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Marketing 101

Marketing 101. (more or less). Starbucks as “the third place”. What is Marketing? (according to the academics). MARKETING:

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Marketing 101

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  1. Marketing 101 (more or less)

  2. Starbucks as “the third place”

  3. What is Marketing? (according to the academics) • MARKETING: • the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producers to customer or client • MACRO-MARKETING: • a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society • (New) AMA COMMITTEE DEFINITION: • marketing is 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

  4. What is marketing? (Dunkin’ Donuts crowd) Insights= satisfying needs=success (repeat)

  5. PORTER’S FIVE FORCES MODEL The Five Forces Model helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures in terms of Buyer power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors

  6. PORTER’S FIVE FORCES MODEL

  7. Buyer Power Buyer power – high when buyers have many choices and low when their choices are few Competitive advantages are created to get buyers to stay with a given company NetFlix – set up and maintain your movie list United Airlines – frequent flyer program Apple iTunes – buy/manage your music Dell – customize a computer purchase

  8. Buyer Power Competitive advantage – providing a product or service in a way that customers value more than what the competition is able to do First-mover advantage – significant impact on gaining market share by being the first to market with a competitive advantage All competitive advantages are fleeting E.G., all airlines now have frequent flyer programs

  9. Supplier Power Supplier power – high when buyers have few choices and low when choices are many The opposite of buyer power

  10. Threat of Substitute Products and Services Threat of substitute products and services – high when there are many alternatives for buyers and low when there are few alternatives Switching costs can reduce this threat Switching cost – a cost that makes buyers reluctant to switch to another product/service Long-term contract with financial penalty Great service Personalized products based on purchase history

  11. Threat of New Entrants Threat of new entrants – high when it is easy for competitors to enter the market and low when entry barriers are significant Entry barrier – product or service feature that customers have come to expect and that must be offered by an entering organization Banking – ATMs, online bill pay, etc

  12. Rivalry Among Existing Competitors Rivalry among existing competitors – high when competition is fierce and low when competition is more complacent General trend is toward more competition in almost all industries IT has certainly intensified competition in all sectors of business

  13. The Delta Model - Three Distinct Strategic Options System Lock-In System Economics Monopolistic Power Google-Adwords Total Customer Solutions Customer Economics Cooperation Best Product Product Economics Rivalry

  14. The Triangle: Options for Strategic Positioning System Lock-In Dominant Exchange eBay Proprietary Standard Ipad/Iphone Exclusive Channel Low Cost Horizontal Breadth Accenture/Banks Best Product Total Customer Solutions Redefining the Customer Relationship Netflix/Swiffer Differentiation

  15. Four P’s-You need to at least know them

  16. Satisfying needs varies based on business model

  17. Local insurance market-what is happening? 2009: 23% Prospect-to-Quote Ratio 2009: 86% Prospect-to-Quote Ratio 2008: 58% Prospect-to-Quote Ratio

  18. How it is supposed to work

  19. Important to think about in every marketing decision

  20. As a marketer, you’ll be asked for feedback on ROI

  21. How GE evaluate’s new products and marketing

  22. Marketing is about targeting

  23. Wow-segments are hard

  24. How do I spend the dollars, what’s my plan?

  25. Segmentation for a downtown Boston hotel

  26. Serious stuff-X and Y graph for Dove Soap

  27. At Boathouse, this is how we talk about it… Research/analysis Insights Brand Positioning Creative Strategy

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