04brands

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Marketing:Building Blueprintsfor Business (Chapter 4)

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers Many different types of marketers

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers Durable Goods

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers Services Durable Goods

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers Retailers Services Durable Goods

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers High Tech Retailers Services Durable Goods

Marketers Advertisers : 

Many different types of marketers Packaged goods & Marketers Advertisers But they all have similar methodologies and organizations. And more High Tech Retailers Services Durable Goods

Marketers Advertisers : 

& Marketers Advertisers Today we’ll cover… The Marketing Function - 5 Ps The Marketing Department Organizational Structure Types of Jobs The Marketing Process Challenges for the Future Questions & Discussion

“Marketing is Everything” : 

“Marketing is Everything” Marketing has become the dominant and often most critical business function Manufacturing techniques and resources are now less critical, often easy to obtain Brand equity and intellectual capital are now more critical, harder to duplicate Business is evolving from manufacture of goods to manufacture of “thinking”

“The Five P’s” : 

“The Five P’s” Five Critical Marketing Decisions Product Price Place (physical distribution) Promotion All types of promotional activities Advertising, Sales Promotion, PR, etc. “The Fifth P” People

1. Product : 

1. Product Product may be “tangible” Packaged goods Durable goods Product may be a service Product may be a combination Products are “bundles of benefits”

2. Price : 

2. Price Key part of “value equation” At the price, product must have some measure of “functional superiority.” Price must also contain margin For funding of necessary activities... and profit Price can send additional signals Can be a strategy in itself, or, more likely, part of a strategy

2. Price : 

2. Price Here are two examples of advertising that supports a price strategy

3. Place : 

3. Place Similar products can make different “place” decisions Example: Coffee Folgers

3. Place : 

Similar products can make different “place” decisions Example: Coffee Folgers Gevalia 3. Place

3. Place : 

3. Place Similar products can make different “place” decisions Example: Coffee Folgers Gevalia Starbucks A Critical Decision

4. Promotion : 

4. Promotion A range of marketing communications (MarCom) techniques can be used: Advertising Sales Promotion Public Relations Publicity Internet/New Media Direct Sales Direct Marketing Event Marketing Trade Shows Promotional Products

5. People : 

5. People Some controversy over the fifth P Once, some said “packaging” One consultant says “personalization” We say it’s “People.” Your customers Your own people Other “stakeholders” Sales Force, Trade, Suppliers

The Marketing Mix : 

The Marketing Mix The right combinations of . . . Demand Example: Price/Supply Marketing Variables Five P Variables Promotional Variables Marketing Strategy . . .

Unique CombinationsUnique Marketing Strategies : 

Unique CombinationsUnique Marketing Strategies Example: Early auto industry Ford - Product/Price GM - Multiple Brands GM - Product/Value

Unique CombinationsUnique Marketing Strategies : 

Unique CombinationsUnique Marketing Strategies Example: Early auto industry Ford - Product/Price GM - Multiple Brands GM - Product/Value Example: Bose Promotion + Place Direct instead of stores

Marketing Departments : 

Marketing Departments Vertical Organization Traditional military “command” structure Clear lines of responsibility Seems to work best when there are numerous similar products Horizontal Organization More fluid “ad hoc” structure Organize around needs and functions 2 Types of Organization

Top Job Functions: : 

Top Job Functions: For both types of organizations CEO, COO, CMO Chief Executive Officer Chief Operating Officer Chief Marketing Officer Top Marketing person “Heavy hitter” 35+ CFO, CIO Chief Financial Officer Chief Information Officer

Vertical Organization : 

Vertical Organization Example: Oscar Mayer (KGF) Consumer Products

Jobs in Vertical Organization : 

Jobs in Vertical Organization Category Manager Veteran (in 30s) Major overall responsibility Nurture/grow brands and brand managers Brand Manager Up from Assistant (mid-20s) Responsible for one brand only “It’s your baby” Succeed or die

Horizontal Organization : 

Horizontal Organization Example: McDonnell-Douglas (2 groups)

Jobs in Horizontal Organization : 

Jobs in Horizontal Organization VP of Program Must know the business Maturity/power/clout - 35+ Marketing Manager Marketing experience, not necessarily advertising Responsible for all advertising, PR, sales promotion, trade shows, etc. Advertising Manager May be “thrown into” role May have little ad experience Competition from other programs

Marketing Job Functions : 

Marketing Job Functions Director of Marketing Often, trained w. “feeder system” P&G, KGF, etc. Has become COO career path Must manage increasing variety of MarCom programs and suppliers Advertising Director Importance depends on size of budget May also have significant responsibilities monitoring media spending

Marketing Job Functions : 

Marketing Job Functions Category Manager Group Product Manager Bridgette Heller - from Brand Manager Gevalia to Category Manager for Coffee at KGF Brand Manager Brand Assistant Other Staff Functions: Sales Promotion Media Market Research Field Marketing…

Field Marketing : 

Field Marketing Excellent entry level job opportunity There are many marketers that operate Field Marketing Organizations Beverage Industry (Beer, Soft Drink) Fast Food Industry Franchise Organizations In many cases, ad agencies that service these marketers also provide Field Marketing “Think Global. Act Local.”

The Marketing Process : 

The Marketing Process Simply put, it’s... Planning Implementation Evaluation

Planning : 

Planning 1. Setting overall marketing strategy 2. Developing annual marketing plan 3. Calculating annual marketing budget 4. Assigning marketing tasks (planning) NOTE: All of this is covered in more detail in Chapter 8 - Marketing & Planning

Implementation : 

Implementation 4. Assigning marketing tasks (continued) After budgets approved, operations move from the theoretical to the practical NOTE: Actual costs may vary from budget - plans may need to be changed “on the fly” 5. Supervising internal functions NOTE: PR may be internal, external or both 6. Overseeing external services Advertising, sales promotion, etc. NOTE: Variety of MarCom program options is growing

Evaluation: : 

Evaluation: 7. Measuring and tracking efforts Sales Results Media Expenditures Awareness and Usage Ongoing Market Research programs (tracking studies) 8. Reporting performance to management NOTE: May be daily, weekly, or quarterly. Trend is for more frequent reporting 9. Integrating results into planning The cycle continues - working for improvement wherever possible

Marketing Challenges: : 

Marketing Challenges: Increasing importance of marketing As mentioned, “Marketing is Everything” the function is more important for everyone Hyper-Competition Too much capacity for size of market Happening on a global scale Examples: Automobiles, computers Fragmentation Consumers, Media, etc. Harder to do “mass” marketing

Questions & Discussion : 

Questions & Discussion