The New Marketing Realities

The New Marketing Realities

Open Ended

Explain what you think about today's marketing realities?

Transformative forces that transform the face of marketing today....

• Technology

• Globalization

• Social responsibility

Dramatically Changed Marketplace

New consumers capabilities

• Consumers can use the Internet as a powerful information and purchasing aid. 

• Consumers can search, communicate, and purchase on the move. 

• Consumers can tap into social media to share opinions and express loyalty 

• Consumers can actively interact with companies. 

• Consumers can reject marketing they find inappropriate. 

New company capabilities

• Companies can use the Internet as a powerful information and sales channel, including for individually differentiated goods. 

• Companies can collect fuller and richer information about markets, customers, prospects, and competitors. 

• Companies can reach consumers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information. 

• Companies can improve purchasing, recruiting, training, and internal and external communications. 

• Companies can improve their cost efficiency 

Changing channels

• Retail transformation. Store-based retailers face competition from catalog houses 

• Disintermediation by dot coms. Responded by traditional companies using reintermediation --> brick and click

Hightened competition

• Private labels. Brand manufacturers are further buffeted by powerful retailers that market their own store

  brands, increasingly indistinguishable from any other type of brand.

• Mega-brands. Many strong brands have become mega-brands and extended into related product categories,

  including new opportunities at the intersection of two or more industries. Computing, telecommunications,

  and consumer electronics are converging, with Apple and Samsung releasing a stream of state-of-the-art

  devices from MP3 players to LCD TVs to fully loaded smart phones.

Hightened competition

• Deregulation. Many countries have deregulated industries to create greater competition and growth opportunities. In the United States, laws restricting financial services, telecommunications, and electric utilities have all been loosened in the spirit of greater competition

• Privatization. Many countries have converted public companies to private ownership and management to increase their efficiency. The telecommunications industry has seen much privatization in countries such as Australia, France, Germany, Italy, Turkey, and Japan. 

Company Orientation toward the Marketplace 

• The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive. 

• The product concept proposes that consumers favor products offering the most quality, performance, or innovative features.  

• The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s products 

Company Orientation toward the Marketplace 

• The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets 

• The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing acknowledges that everything matters in marketing—and that a broad, integrated perspective is often necessary. 

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relationship marketing 

Increasingly, a key goal of marketing is to develop deep, enduring relationships with people and organizations that directly or indirectly affect the success of the firm’s marketing activities. Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. 

relationship marketing 

Four key constituents for relationship marketing are customers, employees, marketing partners (channels, sup- pliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts). 

relationship marketing 

The ultimate outcome of relationship marketing is a unique company asset called a marketing network, consisting of the company and its supporting stakeholders—customers, employees, suppliers, distributors, retailers, and others—with whom it has built mutually profitable business relationships. 

integrated marketing 

Integrated marketing occurs when the marketer devises marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts. 

integrated marketing 

Two key themes are that (1) many different marketing activities can create, communicate, and deliver value and (2) marketers should design and implement any one marketing activity with all other activities in mind. 

Internal marketing 

Internal marketing, an element of holistic marketing, is the task of hiring, training, and motivating able employees who want to serve customers well. 

Performance marketing 

Performance marketing requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs 

Open Ended

What are the four Ps in marketing mix