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Tonight:Tonight:

AdsAds Link to Text?Link to Text? Marketing MyopiaMarketing Myopia Competitive AdvantageCompetitive Advantage Strategic Marketing ManagementStrategic Marketing Management Marketing MixMarketing Mix Ethics (if time)Ethics (if time)

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Marketing MyopiaMarketing Myopia

Key theme in one or two sentences… Key theme in one or two sentences…

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Marketing MyopiaMarketing Myopia

Key theme in one or two sentences… Key theme in one or two sentences… Defining your market too narrowly Defining your market too narrowly

prevents an organization from prevents an organization from seeing growth opportunities an/or seeing growth opportunities an/or threats from potential substitutesthreats from potential substitutes

Ensure continued growth by Ensure continued growth by customer centricity rather than customer centricity rather than concentrating on selling productsconcentrating on selling products

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 1: An ever-expanding and more affluent population will ensure our growth.

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 1: An ever-expanding and more Myth 1: An ever-expanding and more affluent population will ensure our growth.affluent population will ensure our growth.

When markets are expanding, we often When markets are expanding, we often assume we donassume we don’’t have to think t have to think imaginatively about our businesses, but imaginatively about our businesses, but instead seek to outdo rivals simply by instead seek to outdo rivals simply by improving what we are already doing.improving what we are already doing.

Consequence: increased efficiency Consequence: increased efficiency making products rather than boosting the value those products deliver to customers.

ExamplesExamples

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 2: there is no competitive substitute for our industry’s major product.

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 2: there is no competitive substitute for our industry’s major product.

Believing that our products have no rivals makes our companies vulnerable to dramatic innovations –often by smaller newer companies that focus on customer needs rather than the products themselves

ExamplesExamples

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 3: We can protect ourselves through mass production..

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 3: We can protect ourselves through mass production.

While the declining unit costs that come with increased production are alluring, focusing on mass production emphasizes our company’s needs when we should be emphasizing our customers’.

ExamplesExamples

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 4: Technical R&D will ensure our growth

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Marketing Myopia: Four Marketing Myopia: Four MythsMyths

Myth 4: Technical R&D will ensure our growth

When R&D produces breakthrough products, it is critical to remain focused on customer needs…ideally, new products are both breakthrough and meet customer needs

ExamplesExamples

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What is Competitive What is Competitive Advantage?Advantage?

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Competitive AdvantageCompetitive Advantage

A set of unique features of a A set of unique features of a company and its products that are company and its products that are perceived by the target market as perceived by the target market as significant and superior to the significant and superior to the competitioncompetition

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Competitive AdvantageCompetitive Advantage

A set of unique features of a A set of unique features of a company and its products that are company and its products that are perceived by the target market as perceived by the target market as significant and superior to the significant and superior to the competitioncompetition

Discuss using Marketing Discuss using Marketing Myopia and Competitive Myopia and Competitive

AdvantageAdvantage

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Strategic Market Strategic Market PlanningPlanning

Strategic Plan: the process of anticipating future events and determining strategies to achieve organizational objectives in the future

Marketing Plan: a document that acts as a : a document that acts as a guidebook of specified marketing activities and guidebook of specified marketing activities and their rationale.their rationale.

Marketing Planning: designing activities relating to marketing objectives, the changing marketing environment, and the marketing mix

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Marketing MixMarketing Mix

ProductProduct PlacePlace PromotionPromotion PricePrice

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Marketing MixMarketing Mix

Product: The starting point of the marketing Product: The starting point of the marketing mix is the product offering or product strategymix is the product offering or product strategy

Place: Place, or distribution strategies, are Place: Place, or distribution strategies, are concerned with making products available concerned with making products available when and where customers want themwhen and where customers want them

Promotion: includes advertising & PR, it is Promotion: includes advertising & PR, it is about informing, educating, persuading, and about informing, educating, persuading, and reminding target markets of the benefits of the reminding target markets of the benefits of the product or serviceproduct or service

Price: What a buyer must give up in order to Price: What a buyer must give up in order to acquire a product. acquire a product.

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Ethics & MarketingEthics & Marketing

Why do we care?Why do we care? Examples of ethical issuesExamples of ethical issues

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Ethics & Marketing:Ethics & Marketing:Why Do We Care?Why Do We Care?

For… Against…

It’s the right thing to do The role of the corporation is to maximize shareholder value

Government is likely to intervene if firms aren’t socially responsible (see tobacco industry)

Businesses are about producing goods and services; the market will decide what succeeds

It can enhance a company’s profitability

It can be expensive, especially in a global economy

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Ethics & Marketing: Ethics & Marketing: Why Do We CareWhy Do We Care

““Marketing is about values. This is a very Marketing is about values. This is a very complicated world, it’s a very noisy world. complicated world, it’s a very noisy world. And we’re not going to have a chance for And we’re not going to have a chance for people to remember a lot about us. And so people to remember a lot about us. And so we have to be really clear about what we we have to be really clear about what we want them to know about us. Even a great want them to know about us. Even a great brand needs investment and caring if it’s brand needs investment and caring if it’s going to retain its relevance and vitality.” going to retain its relevance and vitality.” Steve JobsSteve Jobs

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Ethics Exercise: Ethics Exercise: Abercrombie & FitchAbercrombie & Fitch

Read hand outRead hand out Break into small groupsBreak into small groups Discuss and prepare responses to:Discuss and prepare responses to:

Is marketing adult-style underwear to a Is marketing adult-style underwear to a younger audience unethical? Why or younger audience unethical? Why or why not?why not?

If the sexy words had been omitted If the sexy words had been omitted from the front of the product, would the from the front of the product, would the issue be the same?issue be the same?

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Next WeekNext Week

Marketing FunctionMarketing Function Market Research (Chapter 6: Market Research (Chapter 6:

Consumer Decision Making)Consumer Decision Making)