Business Administration Department

 

BA340 Marketing Principles

Dr. Geoffrey Lantos                                                                                                       Summer I 2006

 

CLASSROOM LECTURE/DISCUSSION OUTLINE

 

INTRODUCTION TO AND OVERVIEW OF STRATEGIC MARKETING

 

Introduction to BA340: Course Structure and Requirements

 

  I. Syllabus and Exam Template

         Audio: 2003 Mercuries #3 Motel 6 “Business Talk” 

 

 II. Assignment options: Applications-Oriented Written Assignments, Classroom Debates, Optional Term Paper Project

 

 III. Case Class Discussion Questions

 

 IV. Miscellaneous handouts and resources: Using the Business Library, Proofreader's Marks, Classroom Lecture/Discussion Outline, Transparency Handout Packet, Pricing Exercises, five Lantos articles, 18 Ideas For Becoming A Master Student, Student Information Inventories (Please hand in filled out inventories at end of class session.)

 

The Nature And Scope Of Marketing

(Related Reading: Ch. 1: “The True Marketing Concept is Based on The Biblical Philosophy of Life”)

 

  I. The Nature of Marketing (MKTG)

A.  Definition of MKTG

      = f (stage of economic development):

1.   Self-sufficiency (Subsistence Phase)

2.       Barter (Made-to-Order Phase)

. Videos: 1998 Festivals # 21 Cash Verlag “Columbus”; Clios 40th Pt. 2 Visa Gold “Burro” 

- Marketing – an exchange of values between two parties to a transaction.

3.       Merchant System

·         Middlemen (merchants, intermediaries, sellers) as marketers:

(1)    Marketing facilitates exchange

(2)    Marketing adds utility

      - Marketing - the process of facilitating the exchange of goods and services by a merchant.

4.   Industrial Revolution (Production Era)

·         Production concept – the major task of an organization is to pursue efficiency in production and distribution of a product that it thinks would be good for the market.

      - Marketing - the performance of those activities that direct the flow of goods and services from producer to consumer or ultimate user.

·         Product concept – “Build a better mousetrap…”

           - MKTG Myopia

5.   Stage of Mass Production and Mass Promotion (Sales Era)

·         Selling concept

             . Needs vs. wants

6.   Stage of Affluent Society (Marketing Era)

      - Marketing - "the performance of those activities that direct the flow of goods and services from producer to consumer or ultimate user in order to satisfy the customer and achieve the firm's objectives"

·         Marketing Concept - the main task of an organization is to determine the needs and wants of target markets and to satisfy them through the design, pricing, delivery, and communication of appropriate and competitively viable products and services.

 

The Selling Concept

Starting Point:       Focus:                           Means:                           Ends:

   Factory        Existing Products     Selling and Promoting     Profit through Volume

 

The Marketing Concept

   Starting Point       Focus:                          Means:                            Ends:

      Market          Customer Needs     Integrated Marketing     Profit through Customer

                                                                                                       Satisfaction

 

- Marketing - the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. - Pre-2004 American Marketing Association Definition

- Marketing - 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. – 2004 American Marketing Association Definition

- Marketing - the business function that identifies and anticipates customers' needs and wants, creates products to satisfy those needs and wants, and then delivers the product through various techniques of pricing, distribution, and promotion.

 


                                                          FIN                                                                 CUSTOMER

 


                                                       R&D                  MKTG  

  

                                             MFG

                  

·     Societal MKTG Concept

Audio: 2002 Mercuries #4 Infect Truth  “Kasbah”

·     The “4 Ps” (Marketing Mix)

Audio: 2003 Mercuries # 26: Bud Light “Genius/Mr. Pink Gorilla Maker”

 

               ++ Video Case—Finagle A Bagel (15 min.)

 

B.     - MKTG Management (Mgt.) - analysis, planning, implementation, and control of marketing programs with target markets in order to achieve organizational objectives.

 

 

 

                                           MKTG V.P.

 

 


                     Adv.    Sales      MKTG      Customer    Product       Other MKTG

                      Mgr.    Mgr.     Research      Services         Mgr.      Functions

                                                      Mgr.         Mgr.

 

 II. The Scope of MKTG

A.  Broadening the MKTG Concept: Products/Services

                               Organizations     

                     Persons

                               Places

            Ideas

                               Activities/Events

                  Audio: 2003 Mercuries #12 Ad Council “Skim Latte”; #44 MADD “Dial”

 

Strategic Management and the Strategic Marketing Management Process

(Related Reading: Chapter 2)

 

I. Company Strategy vs. MKTG Strategy

 

         - Company (Co.) Strategy - a long-term master plan through which a company hopes to achieve its

                  objectives in a particular competitive environment.

 

     Stockholders

 

 Board of Directors

      

                                               CEO/President

 


                                                            VP                      Plans

                                                                                 Board

 

 


                                      FIN    R&D    MFG    MKTG

 

·         Why plan?

            - Strategic Management Process - steps taken at the corporate/business unit levels to develop long-term master plans for survival, growth, and prosperity.

            - MKTG Strategy - planning for the marketing function.                

            - Strategic MKTG Process - steps taken at the product/market level to develop marketing programs

            for products and/or markets.

            - Goals –

            vs. strategy –

            vs. tactics –

            vs. policy

 

 

 

  • Strategic Mgt. Process:

ANALYSIS           PLANNING                 IMPLEMENTATION                  CONTROL

 

                                    Business

 Co. Mission,          Goals             Portfolio,                                           

Situation(al)              and              Functional     Company             Evalua-      Corrective

. Analysis             Objectives       Strategies      Tactics                   tion             Action 

 

ANALYSIS:        1. Company Mission (Business Definition, Business Purpose)

        2. Situation(al) Analysis (Environmental Analysis, SWOT Analysis)

PLANNING:      Company Strategy/Strategic Planning Process

       3. Set Company Goals and Objectives

       4. Develop Alternative Courses of Action

       5. Evaluate Alternatives

       6. Select Best Alternative (i.e., make a decision)

       7. Set Control Standards (projected results)

IMPLEMENTATION:  Company Tactics and Organization (Organizing and Directing)

CONTROL: Monitoring, Evaluating, and Taking Corrective Action

 

 II. Co. Portfolio Strategy (Business Portfolio Analysis)

         Strategic Business Units (SBUs) (Business Units, Operating Units, BusinessDomains, Decision

          Making Units [DMUs]) 

- Portfolio Grids/Portfolio Matrices:

 

                   - Boston Consulting Group (BCG) Approach (“Dogs and Cows” Matrix)

 

          - Strategy (resource allocation) = f (                                                              )

 

       4 Strategy Alternatives:  1.

                                                     2.

                                                     3.

                                                     4.

 

·    Growth Share Matrix (Cash Quadrant Matrix, BCG Matrix):

                                                   Relative MKT Share

                                              HIGH                      LOW      

 

 


                Industry              STARS                  QUESTION

                     Or                                                           MARKS                       HIGH

                  MKT      10%

                  Growth

    Rate               CASH COWS             DOGS                        LOW    

                                        

 


                                        10x                       1.0                           1/10

 

         SBUs Classified:

1. Question Marks (Problem Children) -

                      Strategies -

2. Stars -

                      Strategies -

3. Cash Cows -

                      Strategies -

4. Dogs -

                      Strategies -

   .

III. MKTG Growth Strategy (Product/MKT Strategies)

    - Product/MKT

-    Product/MKT Boundaries: Defining the Competition

-     Audio: 2003 Mercuries # 19 National Thoroughbred Racing Assoc. “Camping”; 2004 Mercuries #44 Nora Gas “Crazy”; #45 Chik-Fil-A  “Brush with Terror”

                    - Product/MKT Matrix (Market Opportunity Matrix: MOM):

         Markets

                                           Present                New

 


                         Present         MKT               MKT

                                         Penetration       Development

               Products                                             

 

                            New         Product             Diversi-

                                         Development       fication

                                                                       

 

A.      Intensive (Intense) Growth (Organic Growth)

1.       MKT Penetration

a. New users and lapsed users

b. Competitions’ customers

c. Current customers buy more

     Audio: 2004 Mercuries #41 Rainbow Foods “Babysitter”

2. MKT Development

3. Product Development

B.      Diversification Growth

C. Consolidation Strategies        

                                               Markets