Giáo Trình MARKETING FULL

MARKETING FULL COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY PROF HYUNSUK SUH Giáo trình Marketing toàn tập MBA program COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY MARKETING FULL COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY PROF HYUNSUK SUH Giáo trình Marketing toàn tập MBA program COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY

1 MARKETING: Managing Profitable Customer Relationship

need and want through creating and exchanging products and value with others

COLLEGE OF BUSINESS ADMINISTRATION

CHUNG-ANG UNIVERSITY

PROF HYUNSUK SUH

The objectives of the current chapter are described

Objectives

Be able to define marketing and discuss its core concepts

Understand the marketing process

Be able to understand five(5) marketing management orientations

Understand the strategies for building lasting customer relationships

What is your definition of “MARKETING”?

Is it for selling the product?

Are you talking

about advertising?

Commercial transactions?

Or customer

Example

To explain marketing, let‟s take a look at the following example

Marketing, What‟s It All About?

All Those Bicycles!

Look at the Different Bicycles People Ride!

Things a Firm should do in Producing a Bike

The definitions of the marketing are listed below

What is Marketing?

Marketing is 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 goals

American Marketing Association, 1986

마케팅이란 기업이 최종고객들(소비자들)에게 가능한 한 최대한의 경쟁적 비교우위를 갖

는 가치를 제공해 주기 위해 내부적 고객들(임직원) 및 외부적 고객들(유통업체 등)에게 가

치 있는 기업으로 인식되도록 운영하는 활동

Korean Scholars, 1993

The definitions of the marketing continues

What is Marketing?

Managing markets to bring about exchanges and relationships for the

purpose of creating value and satisfying needs and wants

Social and managerial process by which individuals and groups obtain what

they need and want through creating and exchanging products and value

with others

Delivering customer satisfaction at a profit

The definitions of the marketing continues

Kotler‟s Social Definition of Marketing

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging products and value with others

Marketing is managing profitable customer relationship

It is attracting new customers and retaining and growing current customers

Kotler & Armstrong, 2008, 2010

Marketing is a process by which companies create value for customers and

build strong customer relationships in order to capture value from customers

in return

Kotler & Armstrong, 2011

The unspecified one to one relationship of marketing in the prehistoric days, passed through series of evolutions, ending up showing the same fashion today

기업에서 제일 중요한 자산은 ‘고객’

고객을 중요도와 충성도에 따라 분류 필요 고객의 공통적인 특징 발견

고객의 과거행동은 미래의 행동을 예측하는 근거 상품판매를 위해서는 고객의 욕구와 매체를 파악

정보통신의 발달 Internet,

PC통신,CATV등

원시마케팅

•Unspecified 1:1

•Word of mouth promotion

Needs Wants Demands

Perceived Value

The customers‟ evaluation of the difference between benefits and costs Customers often do not judge values and costs accurately or objectively Customer Satisfaction

Product‟s perceived performance relative to customers‟ expectations Value and Satisfaction

What does this ad trying

to do?

F

C

Creating long-term customer relationships based on the customer value and satisfaction

Deliver customer a superior value that improve customer‟s and society‟s well-being The five(5) important marketing management concepts are described below

The difference between the selling concept and the marketing concept is the process orientation: one is started from a „factory‟ while the other started from the „customer‟

The Selling Concept vs Marketing Concept

Profits through sales volume THE SELLING CONCEPT

needs

Integrated marketing

Profits through customer satisfaction

THE MARKETING CONCEPT

How so?

Society (Human Welfare)

Consumers (want satisfaction)

Company (Profits)

The more advanced form of societal marketing takes into consideration of all three(3) important factors together: The welfare, profits, and satisfaction

The Societal Marketing Concept

Today, the standards of marketing practice have shifted from an emphasis on

producers‟ interests to consumers‟ interests and a consideration of the social and

environmental consequences of potential actions

Ethics

Many marketing issues are not specifically addressed by existing laws and regulations

so many companies, industries, and professional associations have developed codes of ethics to assist managers

You know that a considerable amount of food advertising is directed at children between the ages of 6

to 11 A recent findings report on the role of the media in influencing childhood obesity in the United States The report concluded that the majority of research finds a direct link between the amount of time children spend interacting with the media and their body weight “The report cites studies

showing that the typical American child sees about 40,000 ads a year on television, and that the

majority of ads aimed at children are for sweets, cereal, soda, and fast food.”

QUESTIONS:

1 Do food ads children are exposed to on TV influence them to make unhealthy food choices?

2 Would you support government regulations directed at regulating food ads for children aged

6 to 11?

What is customer equity?

Customer Equity

The combined customer lifetime values of all current and potential customers

Measures a firm‟s performance, but in a manner that looks to the future

Choosing the “best” customers is key

Example: Cadillac

In the 1970s and 1980s, Cadillac had some of the most loyal customers in the industry To an

entire generation of car buyers, the name “Cadillac” defined American luxury Cadillac‟s

share of the luxury car market reached a whopping 51% in 1976 Based on market share and

sales, the brand‟s future looked rosy However Cadillac customers were getting older

(average age 60) and average customer lifetime value was falling Many Cadillac buyers were

on their last car Thus, although Cadillac‟s market share was good, its customer equity was

not Compare this with BMW Its more youthful and vigorous image didn‟t win BMW the

Test yourself with the following concepts

Concept Check

1 The two very important marketing theme for today is to

_ and _

2 Based on _ concept, even if your customers had bad

experiences with your product, if you do well on your sales part, they will forget about the terrible memories and repurchase will occur

3 Although the customers belong to the _ groups have long

term relationship with your company, they do not bring good profits

4 An organization can‟t satisfy the needs of all the customers, so it must focus on one or more of subgroups, which are its _

Consider the following issues

DISCUSS THE FOLLOWING TOPICS

1 What consumer wants (or benefits) are met by the following products or services?

(a) Breakfast Cereal, (b) Adidas running shoes, (c) Hertz Rent-A-Car, and

(d) television home shopping programs

2 Each of the four products, services, or programs in question 1 has substitutes

Respective examples are

(a) a ham and egg breakfast, (b) regular tennis shoes,

(c) taking a bus, and (d) a department store

What consumer benefits might these substitutes have in each case that some

consumers might value more highly than those products mentioned in question 1?

3 A college in a metropolitan area wishes to increase its evening-school offerings of

business-related courses such as marketing, accounting, finance, and management

In 1990, Allergan was just a small specialty pharmaceutical firm selling little-known eye

and skin drugs and over-the-counter contact lens cleaners The introduction of Botox wasn‟t such a big deal initially After all, typical Allergan specialty products, it was just another

specialty drug aimed at a small market (treatment of cross-eye) That was before doctor

discovered that injecting Botox around eyes not only eliminated ocular problems, it erased frown lines as well Once that happened, the doctors in most major US cities were giving

patients off-label (not approved by the FDA for this use) Botox injections Even though

Allergan could not openly market the product for cosmetic purposes, by 2001 sales of Botox was rocketed to $310 million and were growing between 25~35% per year FDA approval

granted in April 2002, only accelerated this sales bonanza With all those target markets

could become a blockbuster drug!

The side effects of Botox can be the loss of facial expressions (however this may be a

positive effect for some business people), drooping eyelids when injected on foreheads and around eyes (but this could also give you somewhat sexy looks) Botox can cause slurred

speech, nausea, headaches, respiratory infections, and constant drooling However,

because Botox cosmetic lasts only 3~6 months all side effects are temporary

Discuss the following problem

Discuss the following problem

Botox has become so lucrative and the demand so great that the treatments are

sometimes offered in a party atmosphere Doctors usually ask a current patient to invite

10~15 prospective clients to a party at his or her home After a brief social period, the doctor gives a short lecture on Botox and invites the partygoers to sign up for treatment Patients take turns leaving the room, and the doctor gives the injections in private Parties provide a non-clinical atmosphere more conductive to patient receptivity, and reduce time and cost

The doctors can give patients a price break up to 25% of the original cost

Q1 What are the needs, wants, and demands of consumers of Botox products in its

different treatment markets? What value does Botox deliver in each market?

Q2 When Allergan sold Botox as a specialty drug for ocular problems, what marketing

management orientation was it employing? When it sells Botox as a cosmetic treatment, is it employing the same or different orientation?

Q3 When doctors treat patients with Botox in their office, is that an example of selling

2 MARKETING STRATEGIC PLANNING

between the organizations goal and capabilities with its marketing opportunities

COLLEGE OF BUSINESS ADMINISTRATION

CHUNG-ANG UNIVERSITY

PROF HYUNSUK SUH

The objectives of the current chapter are described

Objectives

Understand company-wide strategic planning and its process

Learn how to design business portfolios and develop strategies for

company growth and downsizing

Describe the marketing process and the forces that influence it

Why do companies need strategic planning?

What are the stages

of the strategic planning process?

How can strategic planning benefit a company?

Strategic planning, why do we need that for?

What is “Marketing Strategic Planning”?

Marketing Strategic Planning

A managerial decision process that matches an organization’s resources and

capabilities to its market opportunities for long term growth and survival

Solomon, 2009

 The managerial process of creating and maintaining a fit between the

organization’s objectives and resources and the evolving market opportunities

 The goal is long-term profitability and growth

Lamb, Hair, and McDaniel, 2009

The Process of developing and maintaining a strategic fit between the

organization’s goals and capabilities and its changing marketing opportunities

It involves defining a clear company mission, setting supporting objectives,

designing a sound business portfolio, and coordinating functional strategies

Marketing Strategic Planning starts with self queries of the following

Strategic Maketing Planning: Questions to Ask

 A written document that acts as a guidebook of marketing activities for the

marketing manager

What is the organization’s main activity?

How will it reach its goals?

What is Strategic Maketing Planning?

The Strategic Planning Process

The planning activities occur at the business unit, product, and market levels in the following process

Defining the

company

mission

Setting company objectives and goals

Designing the business portfolio

Planning marketing and other functional strategies

Definition of Mission Statement

The definitions for mission statement are described below

The mission statement is a formal document that describes the organization’s

overall purpose and what it hopes to achieve in terms of its customers,

products, and resources (Solomon and Stuart)

The firm’s long-term vision based on a careful analysis of benefits sought by

present and political customers and analysis of existing and anticipated

environmental conditions (Lamb, Hair, and McDaniel)

It is a guideline for the organization’s decision making for both short and long

run and provides direction to the strategic planning and marketing planning

process (Hoffman, et al.)

A statement of the organization’s purpose – what it wants to accomplish in the

larger environment (Kotler and Armstrong)

The Characteristics of Mission Statement

Some of the characteristics of the mission statement are described in the

following

Market Oriented : Products outdated but basic market needs last forever

Realistic : Achievable statement

Specific : Out from generalities mark specific objectives and goals

Market Environment : e.g Girl Scout

Distinctive Competency : Core competence

Motivating : Focus on the useful activities, not on profits and sales

Make employees work is important and feeling of contributing

something to someone

The mission statement is being defined as the organization’s purpose-what it wants to accomplish in the larger environment

Defining Organization’s Mission

Top management’s first step in the strategic planning stage is to answer such

“soul searching” questions as:

 What are the opportunities or needs that we exist to address?

(purpose of the organization)

 What are we doing to address to these needs?

(business of the organization)

 What principles or beliefs guide our work?

(values of organization)

The ideal mission statement is not too broad, too narrow, or too shortsighted

Examples of Mission Statement

The mission statement of different companies are described below

소녀와 젊은 여성이 책임 있는 세계시민으로서 자신의 잠재력을 최대한 개발하도록 하는데 있다

Girl Scouting builds girls of courage, confidence and character, who make the world a better place!

Example

Southwest Airlines Mission Statement

Examples of Mission Statement

More mission statements are described below

McDonald's vision is to be the world's best quick service restaurant experience Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile

Example

"We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors We will conduct all our business affairs ethically, and with the best employees in the mid-south We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our

organization."

Examples of Mission Statement

More mission statements are described below

Our Roadmap starts with our mission, which is enduring It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions

To refresh the world

To inspire moments of optimism and happiness

To create value and make a difference

And in everything we do, we strive for honesty, fairness and integrity

Mission Statements?

Most mission statements today contain market-oriented business themes

We create fantasies – a place where America still works the

way it’s supposed to

We deliver solutions to customer’s information technology

problems

We help people experience the emotions of competition,

winning, and crushing competitors

Space, the final frontier These are the voyages of the starship

Enterprise Its five-year mission: To explore strange new

worlds To seek out new life and new civilizations To boldly

go where no man has gone before

To provide relief to victims of disasters and help people

prevent, prepare for, and respond to emergencies

Example

In order for the corporate mission to be accomplished and make our customers

understood our corporate identity, both internal and external CIs be properly set

The Composition of CIs

Slogan for Coke

1886 Drink Coca-Cola 마시자, 코카콜라

1904 Delicious And Refreshing 맛 좋고 상쾌한

1917 Three Million A Day 하루에 300만 잔

1922 Thirst Know No Season 갈증에는 계절이 없어요

1925 Six Million A Day 하루에 600만 잔

1927 Around the corner from everywhere 지구 곳곳 어디서나

1929 The pause that refreshes 상쾌한 이 순간

1932 Ice Cold Sunshine 얼음같이 차가운 햇살

1938 The Best Friend Thirst Ever Had 갈증의 가장 친한 친구

1939 Coca-Cola goes Along 코카콜라가 함께 가요

1942 The Only Thing Like Coca-Cola is Coca-Cola Itself 코카콜라 같은 것은 오직 코카콜라 밖에 없어요

1948 Where There's Coke There's Hospitality 코카콜라가 있는 곳엔 따뜻함이 있어요

1949 Coca-Cola Along the High Way to Anywhere 코카콜라 어디서나 찾을 수 있어요

1952 What You Want is Coke 당신이 짂정으로 원하는 것은 코카콜라

1956 Coca-Cola Makes Good Thing Taste Better 코카콜라 함께한 다른 것들의 맛까지 훌륭하게 해줘요

1959 Be Really Refreshed 짂짜 상쾌해지세요

1963 Things Go Better with Coke 코카콜라와 함께라면 문제 없어요

1969 It's the Real Thing 상쾌한 그 맛, 코카콜라

1971 I'd Like to Buy the World a Coke 온 세상에 코카콜라를 사주고 싶어요

1976 Coke Adds Life 즐거움을 더해주는 코카콜라

1979 Have a Coke And A Smile 코카콜라와 함께 웃어요

1986 Coca-Cola Red, White & You 코카콜라 빨간색, 하얀색, 그리고 당신

1990 Can't Beat the Real Thing 무엇도 이 맛을 대신할 순 없어요

1993 Always Coca-Cola 언제나 코카콜라

2000 Enjoy Coca-Cola 코카콜라 즐겨요

2003 Stop Thinking Feel It.!

The objective is a statement of what is to be accomplished through marketing

activities Setting company objectives and goals to actualize the mission statement has the following guidelines

The Characteristics of the Organization’s Objectives are …

 Specific : Clearly Defined Outcomes

 Measurable : Quantitative Terms

 Achievable : Realistic

 Compare to Benchmark

 Time-bound : To Be Reached Within

Specific Time Frame

“Our objective is to increase sales of Purina brand cat food by 15 percent over 2014 sales of

$300 million.”

The following examples provide a scent of how objectives be made of

Well Stated Objectives

?

The company must analyze the current business portfolio to decide which business should receive more or less, or no investment

Business Portfolio:

BCG-Growth/Share Matrix 1 Question marks :

Low-share business units in high-growth markets

It can be either a “Star” or “Dog”

Requires a lot of cash to hold their share

2 Stars : High-growth, high-share businesses or products Need heavy investment to finance rapid growth Eventually the growth will slow down and turn into Cash cows

3 Cash cows : Low-growth, high-share businesses or products Produce lot of cash to support other biz units Need less investment to hold the market share

Low

High

Cash Cow

Star Question Mark

Dog

?

The BCG model suggests different strategies according to the different life cycles of the product

Product Life Cycle and BCG Matrix

Introduction Growth Maturity Decline

?

CASH COW

Strategy 1:

제품의 수명주기의 변화에 따라서 Question mark Star Cash Cow 로 변화되도록 관리 하는 것이 바람 직 함

Strategy 2 :

건전한 제품 군들을 유지하기 위해서는 Question mark, Star, and Cash Cow 등

The GE/McKinsey model has been developed to compensate the limitations of BCG model

Examples of GE/McKinsey Matrix