Unit 2 Developing the Marketing Mix
feedonwarming-up 常识预习
（问题宽泛，可与讲座内容无关）drift什么意思
1.Go to KFC and order a sandwich. Note the questions you are asked and obrve how special
orders are handled. Next, go to Pizza Hut or McDonald’s and order a hamburger or a pizza.
Consider the differences you saw. Did you obrve any significant differences in how orders are handled? Do you think the restaurants have different marketing concepts?
2.Imagine you were a CEO of Coca-Cola, what kind of marketing strategy you will develop to
compete with Pepsi Cola?
3.What is the newest market for Lining? In which markets does Nike ll well?
4.Why do you think IBM is a successful company? What other successful computer companies
do you know? Why are they successful?
5.What products do you think of when you e the brands?
a. Google
b. Sony
c. Kappa
d. Nokia
6.What is your favorite advertiment? Why do you like it?
lecturette专题讲座
terrorblade
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Developing the Marketing Mix
Today’s companies are struggling in a war zone of rapidly changing competitors, technological proce
ss, new laws, managed trade policies and diminishing customer loyalty. They must keep racing in spite of no permanent “winner”. It is urgent and critical that today’s companies reconsider their business mission and u their marketing strategies as a weapon.
What Is Marketing?
Marketing is the business function that identifies customer needs and wants, determines target markets and designs appropriate products, rvices and programs to effectively rve the markets. More than any other business functions, it deals with customers. Thus, the marketers must shift their ideas from pursuing a sale to creating a customer. Past marketing has been largely transaction-oriented or cost-driven; today’s marketing is more market-focud and customer-driven. In vigorously competitive marketplace, the goal of modern marketing is to win customers and retain customer loyalty through satisfying customer needs and creating superior customer value.生日用英语怎么说
What does the term marketing mean? Various definitions have been given by different scholars. The one given by Prof. Philip Kolter is the most famous. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.
Marketing Management Philosophies
What philosophy should guide marketing efforts? What weights should be given to the interests of the organization, customers and society? The following five concepts orient
organizations to conduct their marketing activities.
The production concept. It holds that consumers will prefer products that are available and affordable and that management should concentrate on improving production and effective distribution. The concept is one of the oldest concepts that guide llers. Two types of situations are suitable to the philosophy. The first occurs where the demand for a product exceeds the supply. The cond is where the product’s cost is high and should be cut down by the way of improved productivity to expand the market.
The product concept. It is bad on the idea that customers will favor tho products with best quality, performance and innovative features, and that the organization should therefore focus their energy on product improvements. The concept leads to “marketing myopia”.
The lling concept. It suppos that customers will not buy enough of the organization’s products u
nless it engages in the hard lling and the heavy promotion effort. Most firms adopt the concept when they have overcapacity. Their aim is to ll what they make rather than make what the market wants.
成功男士发型The marketing concept. It holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. Many successful and famous companies have adopted the marketing concept, such as KFC and Disney. They start with a well-defined market, focus on customer needs, coordinate all the marketing activities affecting customers, and make profits by creating long-term customer relationships bad on customer value and satisfaction.
The societal marketing concept. It expands on the marketing concept by stressing that the organization should deliver the desired customer satisfactions more effectively and efficiently than competitors in a way that maintains or improves the customer’s and society’s well-being. It calls upon companies to balance three considerations in tting their marketing policies, company profits, consumer wants and society’s interests.
The Marketing Mix
Once a company has decided on its overall competitive marketing strategy, it is ready to begin planning its marketing mix. Marketing mix is the t of controllable tactical marketing tools that the firm blends to produce the respon it wants in the target market. It is known as the “four Ps”: product, price, place and promotion.
Product It is defined as anything that can be offered to a market for attention, acquisition, u or consumption that might satisfy a want or need. Products include more than just tangible goods. Broadly defined, they include physical objects, rvices, persons, places, organizations, or ideas. Product planners need to think about the product on three levels: core products, actual products, augmented products. The core product stands at the center of the total product. It consists of the problem-solving rvices or core benefits that consumers ek when they buy a product. The product planner must next build an actual product around the core product. They may have as many as five characteristics: a quality level, features, design, a brand name, and packaging. Finally, the product planner must build an augmented product around the core and actual products by offering additional consumer rvices and benefits.
Price It is the only element in the marketing mix that produces revenues; all other elements reprent costs. It is the amount of money charged for a product or rvice, or the sum of the values
that consumers exchange for the benefits of having or using the product or rvice.
How are prices t? Historically, prices usually were t by buyers and llers bargaining with each other. Price had been the major factor affecting buyer choice. However, nonprice factors have become more important in buyer-choice behavior in recent decades. Today, most llers t one price for all buyers. Price is also one of the most flexible elements of the marketing mix. Unlike product features and channel commitments, price can be changed quickly. At the same time, pricing and price competition is the number-one problem facing many marketing executives.
A company’s pricing decisions are influenced by either internal or external factors. One of important internal factors is a company’s marketing objectives, including survival, current profit maximization, market-share leadership, and product-quality leadership. To achieve the objectives, price decisions must be carefully coordinated with the marketing-mix strategy, that is, product design, distribution, and promotion decisions to form a consistent and effective marketing program. The third internal factor is costs that basically determine a company’s price. The price must cover all the costs for producing and lling the product, and add enough profit to deliver a fair rate of return for the company’s effort and risk. External factors that influence pricing decisions include the nature of the market and demand, competitors’ prices and offers, and other elements such as the economy, rell
needs, or government actions.
Place Whether a company can effectively develop certain new products largely depend on how well its distribution channels operate. Distribution channel includes all intermediaries who provide greater efficiency in making goods available to target markets. It can be classified by the number of channel levels. A direct marketing channel has no intermediary level. The company lls a product directly to consumers. In indirect marketing channels, the channel may contain one intermediary level that is typically a retailer, or two intermediary levels, a wholesaler and a retailer, or three intermediary levels, a wholesaler, a jobber and a retailer.
Promotion Modern marketing does more than developing a good product, tting the fairest price, choosing the most effective distribution channels, it also calls for companies to inform their customers about product benefits and position the product in customer’s mind. When the main promotion tools—advertising, sales promotion, public relations and personal lling—smoothly work together, the company’s marketing objectives can be achieved successfully. Advertising is aiming at informing, persuading or reminding buyers. The company should create good advertiments and lect the best media to desired target audiences and evaluate both communication effects and sales effects of advertising regularly. Sales promotion covers a wide variety of short-term incentive to
ols—coupons, premiums, buying allowances to stimulate consumers. However, it should be consumer relationship building rather than creating only short-term sales volume or temporary brand switching. Avoiding “quick fix”, price-only promotions, the marketers should u the sales promotions to reinforce the product’s position and build long-term relationships with customers. Public relations (PR) aims at building good relations with the company’s various public by obtaining favorable publicity, tting up a good image, and heading off unfavorable events. It has a strong influence on public awareness at a much lower cost than advertising. Normally, public relations us veral tools—news, speeches, special events, written materials, audiovisual materials and corporate-identity materials—to create product and company publicity, and to coordinate product promotion. Personal lling targets specific buyers, compared with mass-marketing tools, like advertising, sales promotion, and public relations. It includes sales prentations, trade shows, and incentive programs. Today, most companies u salespeople, and many companies confer a key role to personal lling in the marketing mix. It can be more
effective than advertising in more complex lling situations. Becau salespeople can adjust the marketing offer to fit the special needs of each customer and build long-term personal relationships by delivering customer value and satisfaction.
Real marketing is more than the art of lling what you make. It is ud by manufacturing companies, wholesaler, retailers individuals and organizations to know what to make. Companies gain market leadership by understanding consumer needs and finding solutions that delight customers through superior value, quality and rvice.
_______________________________________________________________________________ marketing: 市场营销
target market: 目标市场
promotion: an activity intended to help ll a product
distribution: when goods are supplied to shops and companies for them to ll
marketing mix: 市场营销组合
hard lling: heavy promotion
societal marketing concep t: 社会营销观念
diminish: to cau to become smaller
permanent: lasting for ever
retain: to continue to have
myopia: shortsightedness
coordinate: to bring into proper order or relation
well-being: the state of being well or prosperousbrick
call upon: appeal to
extensions自主拓展anyway是什么意思
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Learn after-class: Strategic Marketing Planning and Competitive Marketing Strategies
This text is included mainly as entertainment. Define which cell of the BCG growth-share matrix Coca-Cola falls into.
All companies must look ahead and develop long-term strategies to meet the changing conditions in their industries. Each company should find the strategic plan that makes the most n given its specific situation, opportunities, objectives, and resources.
Strategic Marketing Planning—T he Boston Consulting Group Approach
Sound strategic planning helps the company do a better job than its competitors and take advantage of attractive opportunities in the constantly changing environment. The company needs to analyze its current business portfolio and decide which business should receive more, less, or no investment, and then develop growth strategies for adding new products or business to the portfolio. The well-known portfolio-planning method is the Boston Consulting Group (BCG) Approach. It is bad on an analysis of each business’s or product’s market growth rate and its relative market share. The market growth rate prents a measure of market attractiveness while relative market share rves as a measure of company’s strength in the market. The matrix is divided into four cells, each indicating a different type of business.
Stars. They are high-growth, high-share business or products. Although stars often require substantial funds to finance their rapid growth, they have a high probability of returning large profits o
arranged
ttsver time and will become the future cash cow when their growth slows down.Cash cows. They are high share business units in low-growth markets. They produce a lot of cash that the company can u to support question marks, stars or dogs. Since the business are the market leaders, they enjoy economics of scale and higher profit margins.Question marks. They are high-growth, low-share business or products. Most business start off as a question mark. Becau they are not dominant products, there is some risk of their ever returning much cash to the company. Thus, the company needs to keep pouring money into the business to build the more promising ones into stars as their markets mature or even maintain them. Meanwhile, it has to think hard about phasing out the hopeless question marks.Dogs. Dogs are low-share business units in low-growth markets. They typically generate low profits or loss. The company should put its strong resources into more profitable business and drop the weaker ones.
tzdStars ★★★
Question Marks
Cash Cow Dogs
High Low
Relative Market Share
The BCG Growth-share Matrix
Competitive Marketing Strategies
To be successful in the fast changing competitive environment, the company should design and posit
ion its competitive strategies most effectively, which must be geared to the needs of consumers and also to the strategies of competitors. According to its industry position, a company can adopt a classification of competitive strategies—leading, challenging, following or niching.
A market leader holds the largest market share and usually leads the industry in price changes, new product development, distribution effectiveness, and cost cutting. To remain the number one, leading firms can take any of three actions. First, they can expand total market demand becau they will benefit most from any incread sales. Second, leaders can protect their existing market share through effective defensive and offensive actions. However, the most sophisticated leaders will guard themlves by doing every thing right, leaving no openings for competitive attack. Third, they can try to expand their market share further, even if market size remains constant.
A market challenger is a firm that tries to expand its market share by aggressively challenging the leader, other runner-up firms, or small firms in the industry. It must lect its
