Download BA635-2005 - University of Alaska system

Current Marketing
Issues Seminar
BA635
Dr. Ed Forrest
E
Telephone:
(Office) 786-4161
(Cell) 854-8784
Email:
[email protected]
W3site:
http://faculty.cbpp.uaa.alaska.edu/afef/
3
Tonight:
Discuss the Defining
Components of our
Seminar:
 “Current Marketing
Issues ”
What is
Marketing?
5
Everybody is a Marketer:
 Everybody
promotes
themselves….
 Packages
themselves …..
 Everybody
has
their price……
6
& Always been Marketers
Innate
sense of
exchange
 1,000’s of
years…
bartered &
traded
“branded”
goods &
services

7
“The Dawn of Marketing”
8
The Evolution of “Marketing”
From: Specific
Function…
To: General
Orientation….
Classic Functional Definition
All activities performed in
between:
The Point of Production
&
The Point of Consumption
st
1
Formal Definition ~1919
*Marketing and Merchandising by
Ralph Butler & John Swinney,
 Marketing
defined
as ‘the manner in
which the product
is disposed of,
the way in which
it is distributed…,
through various
channels of
trade.”
11
•Book distinguishes
marketing from
merchandising,
•w/ marketing being
something
manufacturers do
•& merchandising
being the domain of
jobbers; retailers.
Marketing Defined -1935 -
“The performance
of business
activities that direct
the flow of goods &
services from
producers to
consumers.”
Marketing Definedas a Process- 1985
"The process of planning &
executing the conception,
pricing, promotion &
distribution of ideas, goods
& services to create
exchange & satisfy
individual & organizational
objectives"
The Marketing Process:
Strategic
Planning
Situation Analysis
•Company
•Consumers
Marketing Strategy
P’s
The Marketing Mix:
Growth &
Competitive
Product Place
Strategies
•Competitors
Target
Market
Price Promotion
G
N
•Conditions
C
Service
TGT
• PEST
Positioning
Strategy
D
E
WM
F
The Latest Official
AMA Definition (circa 2004)
 ..an organizational
function &
a set of processes
creating,
communicating &
delivering value to customers

for
 & for
managing customer
relationships in ways that
benefit the organization & its
stakeholders
Why the changed
focus?
What happened
between 1985
& 2004 that
made the AMA
change the
definition of
marketing?
The AMA Rationale: “Technology &
marketing been changing quite rapidly over last five to 10
years…
Marketing should
be customercentric -- not
brand-centric"

19
The 1985 definition was not encompassing
enough. The new definition more clearly
infuses the customer into marketing."
Management Reorientation
Focus on
Consumer
– Not
product
Long –Term
Relationships
Not Shortterm Sales
Marketing’s new definition
reflects a broadened focus -
Was focused on short term profitable transactions…


Was focused on capturing new customers….


Now use integrated strategy w/ all points of contact
Was segmented on geo/demographic variables


Now focus on keeping existing customers
Was focused on mass- media advertising......


Now look at customers' lifetime value
Now use all relevant variables, especially behavioral
variables -- usage rate & loyalty
Performance was measured by financial metrics…

Now also measured strategic & customer-satisfaction
metrics
Marketing > Function
=An Orientation
“Marketing is…
…the whole business
seen from the point of
view of its final result,
-from the customers’
point of view.”
Changed focus--resulted in
restructuring:

Company was organized by product units.....


The marketing department did the marketing…


Now everyone does some marketing
Company was the unit of analysis.........


Now organized by customer segment
Now whole value chain is unit of analysis
Had individual / hierarchical work structures…

Now cross functional teams
Marketing
Next StepID the issues…
Ramkhamhaeng University Institute for
International Studies
GB 635 Current Issues in Marketing
Course Outline
London Metropolitan University
MK3P04 Current Issues in Marketing
Syllabus
 Developing criteria to
evaluate marketing
plans against selected
issues.
Creating appropriate
research methods to
investigate issues.
Ethics and the practise
of marketing

Sample issues:
Green Marketing
Consumerism
Use of I.T. in marketing
Brand Valuation
Stereotyping in
advertising
Marketing Issues- as delineated
by 1999 UAA Syllabus…
Marketing performance
The Creation of Customer
Satisfaction & Value
Buyer Behavior
Relationship Marketing
Inter-firm Relationships in
Marketing
Services Marketing & Service
Quality
Competition & Strategy
Marketing and Information
Technology
Marketing Globally
Ethics and Legal Issues in Marketing
-On Any Syllabus, any
Year or Day- One can find
Issues of:
As it is
Product Quality
Service Quality
Consumer
Confidence/Satisfaction
Value/Pricing Practices
Free/Fair trade
Globalization
Advertising (volume,
veracity, political-correctness)
What’s most relevantDepends on Your Perspective:
MarketerIssues = factors
that affect sales
• ConsumerIssue = factors
that affect one’s
sensibilities
Fact is--these & most issues…
Are
RE-CURRENT
issuesthat Ebb & Flow
w/ socioeconomic
events
We could- examine all
these issues 1 by 1…
Quite
taxing
&
Just too
Superficial
“Yes… you seem to
be suffering from
a marketing issue”
Examining
only
symptoms
--not
diagnosing
the cause
Ergothe Real
Question is….
Ergothe Real
Question is….
Marketing’s “utility”/value derived
from its Facilitation of Exchange!
Willing
to sell
Temporal Utility
Spatial Utility
Transactional Utility
Marketing
Willing
to buy
Key Point:
Keep Marketing in Perspective
Anything/Everything
one does to facilitate
exchange
Whatever impacts
Why- What- Where- When- How
Exchange occurs…
is (or becomes) an Issue…
Marketing Issues
in
Perspective
Marketing - part of Business
& Business - part of Society
Marketing
Business
Society
“Societal
Change”
creates
“issues” for
Business…
which creates
“issues” for
Marketing
Thus- in order to
identify- anticipate- understand
Marketing Issues
in particular
One needs to
identify-anticipateunderstand
Societal Change
in general
Society Defined:
A group of humans broadly
distinguished by:
mutual interests,
participation in characteristic
relationships,
shared institutions, &
a common culture
In the final analysis marketing
strategy is formulated to address…
THUS-
Patterns
of/changes to:
human interests,
relationships,
institutions &
culture…
…become
marketing issues
Hence- our search for marketing
issues begins w/ examination of…
& what better
time to study
Societal Change
…We are living
thru one of the
great periods of
societal
change in the
history of
humankind…
We’re in midst - next great Paradigm Shift…
… in the way we
live, communicate, work, produce & consume…
An entirely new &
increasingly
complex ecosystem has
emerged,
which impacts the way people
connect, engage, influence,
--& are influenced.
Social Media Revolution
Socialnomics
Online Ad Spend to Overtake TV by 2016FORBES: Tech | 8/26/2011
Major Marketing Issues: 2012


#1: How do I
measure the effect of
social media
marketing on my
business?
#3: What are the
best ways to sell
with social media?

#2: How do I
integrate and manage
all of my social media
marketing activities?

#4: How do I
improve customer
engagement with
social media?
Major Marketing Issues: 2012

#5: How do I
master the use of
specific social
media platforms?

#6: How do I
effectively find my
target audience
with social media?

#7: What are the
best practices in
social media
marketing?

#8: How do I use
social media in
niche markets?
the keyword has changed… For
anyone going into business these
days
The New word is
Algorithm
Algorithms derived
via “Analytics”
...the process of obtaining an optimal or realistic
decision based on existing data.
New Marketing Mgt.
Tools & Technologies
all about capturing, generating,
analyzing, leveraging DATA
DATA
08/20/11 Why Software Is Eating the World
•Six decades into the computer revolution
• four decades since the invention of the
microprocessor
• two decades into the rise of the modern
Internet
----all of the technology required to
transform industries through software
finally works and can be widely delivered
at global scale
In 2000..the cost of a customer running a basic
Internet application was ~$150,000 a month.
…same application today in Amazon's cloud costs
~$1,500 a month…
•Today, the world's largest
bookseller, Amazon, is a software
company
•Today's largest video service by
number of subscribers is a
software company: Netflix
•Today's dominant music
companies are software
companies, too: Apple's iTunes,
Spotify , Pandora
•Today's fastest growing
entertainment companies are
videogame makers
•Photography, of course, was
eaten by software long ago.
•Today's largest direct marketing
platform is a software company—
Google
•Today's fastest growing telecom
company is Skype, a software
company
Data mining
New Mrktg Skill Sets
Database marketing
E-crm
Automated online
assistant
Sales force management
system
Business intelligence
Sales intelligence
Enterprise Feedback
Management (EFM)
Business Relationship
Management
Sales process engineering
Partner Relationship
Management (PRM)
Comparison of CRM
systems
Predictive analytics
Consumer Relationship
System
Employee experience
management (EEM)
Professional services
automation software
(PSA)
Support automation
Supplier relationship
management
Customer Experience
International Customer
Service -
Customer experience
transformation
Vendor Relationship
Management or VRM
Customer Intelligence
Customer service contains ISO standards
• Lead Mgt
• Sales Force Mgt
Data management
•Digital Asset Mgt
•Web Content Mgt
•Marketing Resource Mgt
•Marketing Operations Mgt
Competencies Needed by
Todays Marketers…
Traditional Skills
 Sales mgt
 Advertising mgt
 Sales promotion
mgt
 Marketing
research
 Pricing
PLUS:
 CRM -Customer
relationship management)
 PRM- Partner relationship
management
 MRM-Marketing Resource
Mgt.: Database Mgt & Datamining
 Lifetime Profitability
analysis by segment,
customer, channel
 IMC-Integrated marketing
communications; Public
relations -(including event &
cause sponsorship, buzz
marketing)