Lec32714y

Lecture 1: Introduction and Marketing Strategy

Instructor: Lingjing ZhanOffice: M928

Tel: 3400 3949Email: [email protected]

• Aquafresh toothbrush

• L’Oreal

• I want more time

Agenda • About the lecturer• What is marketing

– what is this subject about?

• Marketing management orientations– The sort of thinking that guides marketing activities

• What is a marketing plan– How to conduct a SWOT analysis?

About me

• Lingjing Zhan (詹凌静 )

• PhD in Marketing, University of Alberta

• Department of Management and Marketing

• Research interests: consumer behavior

Research Interest (1)• What makes an online product review helpful?

Research Interest (1)• What makes an online product review helpful?

Research Interest (2)

• What motivates luxury consumption in China?

What motivates luxury consumption in China?

• Differentiate the self from those who cannot afford such products (i.e., the majority)

• Be identified with those who can afford such products

Research Interest (3)

• Imagine that you have moved into a new apartment. You can either continue to use your Internet service provider (ISP), or choose to switch to a new ISP that is available in the new building. Which one will you choose?

• Consumer switch behavior and state of power

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Agenda • About the lecturer• What is marketing

– what is this subject about?

• Marketing management orientations– The sort of thinking that guides marketing activities

• What is a marketing plan– How to conduct a SWOT analysis?

What is marketing?

A video about jeans

What is marketing?

• Key words of marketing?

• Group exercise (form a group with no more than 5 persons):– Draw a conceptual map

• Link “4Ps”, “values”, and “customer needs”• Show the relationships among concepts

The key word : value

• Definition– The overall benefits derived from the product, as

the customer perceives it, at the price charged.

• Value is a ratio: benefits/price

What is this subject about?

Subject map

OverviewCh1. Overview of marketingCh2. Developing marketing

strategies

Understand marketplace and consumers

Ch3. Marketing environmentCh4. Managing marketing

informationCh5. Consumer behaviorCh6. B-B marketing

Marketing StrategyCh7. STPCh8&9. Product, services, and

brandingCh10 &11. PricingCh12 &13. PlaceCh14, 15, 16 &17. Marketing

communications

Extending MarketingCh18 Create competitive

advantageCh19. Global market placeCh20. Social responsibility and

ethics

OverviewCh1. Overview of marketingCh2. Developing marketing strategies MM486 Marketing Strategy

Understand marketplace and consumers

Ch3. Marketing environmentCh4. Managing marketing information MM3761 Marketing ResearchCh5. Consumer behavior MM3721 Consumer BehaviorCh6. B-B marketing

Extending MarketingCh18 Create competitive

advantageCh19. Global market place International marketingCh20. Social responsibility

and ethics

Marketing StrategyCh7. STPCh8&9. Product, services, and

brandingMM4771 Product Policy and

ManagementMM 4831 Strategic Brand

ManagementMM484 Managing New

Product DevelopmentMM4791 Services

Marketing

Ch10 &11. PricingCh12 &13. PlaceMM3781 Distribution

ManagementMM3791 Retailing and

Merchandising

Ch14, 15, 16 &17. Marketing communications

MM3711 Integrated Marketing Communications

MM 4781 Sales Management

Agenda • About the lecturer• What is marketing

– what is this subject about?

• Marketing management orientations– The sort of thinking that guides marketing activities

• What is a marketing plan– How to conduct a SWOT analysis?

Marketing management orientations

• The sort of thinking that guides marketing activities

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The production concept

The product concept

The product concept: an example

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Picture source: http://comic.66wz.com/system/2009/09/22/101435759.shtml

The selling concept

The marketing concept

The societal marketing concept

Agenda • About the lecturer• What is marketing

– what is this subject about?

• Marketing management orientations– The sort of thinking that guides marketing activities

• What is a marketing plan– How to conduct a SWOT analysis?

What is a marketing plan?

• A written document.

General structure of a marketing plan

1. Executive summary.2. Company overview.3. Objectives or goals, usually according to strategic plan and

focus.4. Situation analysis (SWOT analysis).5. Market/product/customer analysis.6. Marketing strategy.

– STP and 4Ps

7. Financial projections.8. Implementation plan.9. Evaluation and control metrics.

The Marketing Plan

Mission vs. objectives

Mission (general)• PeopleAhead’s mission is to

help individuals with career advancement and improve the human capital in companies. The site will act as a networking platform for professionals and career matching as opposed to job and resume-posting searches.

Objectives (specific)• Use brand matching

technology: TrueMatch• Build critical mass of users.• Drive traffic to the Web site

through marketing blitzes.• Utilize word-of-mouth

advertising from satisfied users.

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Situation analysis using SWOT

Reebok: Sponsorship/ Licensing

Reebok is the official outfitter for 3 of the 4 highest-profile U.S. major sports leagues – the NFL, NHL and MLB. Adidas, Reebok’s parent company is the official outfitter for the fourth, the NBA. Reebok has also created a new uniform system for the National Hockey League Basketball fan and lifestyle apparel.

Reebok: Competition

The footwear and sports apparel market is fiercely competitive and oversaturated within the U.S. market – the market where Reebok currently makes the majority of its sales. Nile has the largest share, followed by Adidas/Reebok, followed by many serious players including Skechers, K-swiss, New Balance, and Puma.

Reebok: Quality control

Recently, Reebok has made 3 major recalls on children’s products involving a faulty zipper, a choking hazard, and a lead-ridden trinket.

Reebok: Global Expansion

Currently, 40% of Reebok’s retail sales come from North America, 40% from Europe and the remaining 20% from the rest of the world. Reebok plans to open over 3.000 new stores in China, Russia, and India by 2010 where competition is less fierce. Although consumption is often lower in these regions, the profit margins are typically higher outside the U.S. market.

Reebok

Strengths:Sponsoring/ Licensing

Weaknesses:Quality Control

Opportunities:Global Expansion

Threats:Competition

• An exercise on Nike

The Marketing Plan

Key takeaways

• The key word in marketing concept: Value

• Five marketing management orientations

• SWOT analysis