1a marketing in today's economy

marketing strategymarketing strategy

Marketing in Today’s EconomyMarketing in

Today’s Economy

Prof. Vikram Parekh on Marketing Strategy @2009

marketing strategymarketing strategy

• Introduction

• The challenges and opportunities of marketing

in today’s economy

• Basic marketing concepts• Basic marketing concepts

• Major marketing activities & decisions

• Taking on the challenges of marketing strategy


The Challenges and OpportunitiesOf Marketing in Today’s Economy

• Power Shift to Customers

• Massive Increase in Product Selection

• Audience and Media Fragmentation

• Changing Value Propositions

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• Changing Value Propositions

• Shifting Demand Patterns

• New Sources of Competitive Advantage

• Privacy, Security, and Ethical Concerns

• Unclear Legal Jurisdiction


The Children’s Online Privacy Protection Act (COPPA)

1-4Exhibit 1.2


• Increasing customer power is a challenge to

marketers in today’s economy. In what ways

have you personally experienced this shift in

power; either as a customer or as a business

Discussion QuestionDiscussion Question

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power; either as a customer or as a business

person? Is this power shift uniform across

industries and markets? How so?


Basic Marketing Concepts

• Marketing (AMA 2005 definition)

– “…an organizational function and a set of processes for

creating, communicating, and delivering value to customers

and for managing customer relationships in ways that benefit

the organization and its stakeholders.”

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the organization and its stakeholders.”

• Market

– A collection of buyers and sellers


Basic Marketing Concepts

• Marketspace

– Electronic marketplaces that are not bound by time or space

• Metamarket

– A cluster of closely related goods and services that center

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– A cluster of closely related goods and services that center

around a specific consumption activity

• Metamediary

– Provides a single access point where buyers can locate and

contact many different sellers in the metamarket


Common Metamarkets and Participants

1-8Exhibit 1.3Prof. Vikram Parekh on Marketing Strategy @2009

What is Exchange?

• Exchange

– Process of obtaining something of value by offering

something in return

• Five Conditions of Exchange

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• Five Conditions of Exchange

– There must be at least two parties to the exchange.

– Each party has something of value to the other party.

– Each party must be capable of communication and delivery.

– Each party must be free to accept or reject the exchange.

– Each party believes it is desirable to exchange with the other

party.


What is a Product?

• Product

– Something that can be acquired via exchange to satisfy a

need or a want

• Examples

1-10

• Examples

- Goods

- Services

- Ideas

- Information

- Digital Products

- People

- Places

- Experiences and Events

- Real or Financial Property

- Organizations


The Concept of Utility

• Utility

– Ability of a product to satisfy a customer’s desires

• Five Types of Utility

– Form Utility

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– Form Utility

– Time Utility

– Place Utility

– Possession Utility

– Psychological Utility


Major Marketing Activities and Decisions (1 of 5)

• Strategic Planning

– Strategy

– Tactical Planning

– Marketing Plan

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– Marketing Plan

• Social Responsibility and Ethics

– Social Responsibility

– Marketing Ethics


• How concerned are you about privacy and

security in today’s economy? Are you more

concerned about online security or about the

potential ramifications of RFID technology? Will


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potential ramifications of RFID technology? Will

these issues still be important in 10 years?

Explain.



• Research and Analysis

– Internal Analysis

– Competitive Intelligence

– Environmental Scanning

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– Environmental Scanning

– Situation Analysis

• Developing Competitive Advantage

– Competitive Advantage

– SWOT Analysis


• Marketing Strategy Decisions

– Market Segmentation and Target Marketing

– Product Decisions

• Product Positioning


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• Product Positioning

– Pricing Decisions

• Leads to revenue and profit

• Directly connected to customer demand

• Easy to change

• Major quality cue for customers


• Social networking sites like

MySpace.com, LinkedIn.com,

and Facebook.com have been

criticized for questionable

content and easy access to

predators.

Online Social NetworkingOnline Social Networking

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predators.

• How can advertisers balance

the opportunities presented by

these sites with the risk?

Beyond the Pages 1.2



• Marketing Strategy Decisions (continued)

– Distribution and Supply Chain Decisions

• Distribution and Supply Chain Management

• Supply Chain Effectiveness

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• Supply Chain Effectiveness

– Promotion Decisions

• Integrated Marketing Communications (IMC)



• Implementation and Control

– Marketing Implementation

• Developing and Maintaining Customer Relationships

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• Developing and Maintaining Customer Relationships

– Transactional Marketing

– Relationship Marketing


Major Characteristics of Transactional and Relationship Marketing

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Exhibit 1.4


• Unending Change

• People-Driven Nature of Marketing

• Lack of Rules for Choosing Marketing Activities

Taking on the Challenges of

Developing Marketing Strategy (1 of 2)

1-20

• Basic Evolution of Marketing & Business Practice

• Increasing Demands of Customers

• Overall Decline in Brand Loyalty & Increase in Price Sensitivity


• The text argues that marketing possesses very

few rules for choosing the appropriate marketing

activities. Can you describe any universal rules of

marketing that might be applied to most products,


1-21

marketing that might be applied to most products,

markets, customers, and situations?


• Competing in Mature Markets

– Increasing commoditization

– Little real differentiation among product offerings

Taking on the Challenges of

Developing Marketing Strategy (2 of 2)

1-22

• Increasing Expansion into Foreign Markets

• Aggressive Cost-Cutting Measures

• Increasing Cooperation with Supply Chain

Partners and Competitors


• Increasing expansion into

foreign markets is becoming a

necessity to compete in the

global marketplace.

Marketing Strategy in ActionMarketing Strategy in Action

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• What kind of opportunities

and threats are presented by

the increasing global nature of

the marketplace?


1a marketing in today's economy

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