Tonight: Marketing Fundamentals      Ads Marketing Myopia Competitive Advantage Strategic Marketing Management Ethics in Marketing 1 Marketing Myopia  Key theme in one or two sentences… 2 Marketing Myopia    Key theme in one or two sentences… Ensure continued growth by concentrating on meeting customer’s needs rather than concentrating on selling products Know the business you are in 3 Marketing Myopia: Four Myths 4 Marketing Myopia: Four Myths  Myth 1: An ever-expanding and more affluent population will ensure our growth. 5 Marketing Myopia: Four Myths    Myth 1: An ever-expanding and more affluent population will ensure our growth. When markets are expanding, we often assume we don’t have to think imaginatively about our businesses, but instead seek to outdo rivals simply by improving what we are already doing. Consequence: increased efficiency making products rather than boosting the value those products deliver to customers. 6 Marketing Myopia: Four Myths  Myth 2: there is no competitive substitute for our industry’s major product. 7 Marketing Myopia: Four Myths   Myth 2: there is no competitive substitute for our industry’s major product. Believing that our products have no rivals makes our companies vulnerable to dramatic innovations –often by smaller newer companies that focus on customer needs rather than the products themselves 8 Marketing Myopia: Four Myths  Myth 3: We can protect ourselves through mass production. 9 Marketing Myopia: Four Myths   Myth 3: We can protect ourselves through mass production. While the declining unit costs that come with increased production are alluring, focusing on mass production emphasizes our company’s needs when we should be emphasizing our customers’. 10 Marketing Myopia: Four Myths  Myth 4: Technical R&D will ensure our growth 11 Marketing Myopia: Four Myths   Myth 4: Technical R&D will ensure our growth When R&D produces breakthrough products, it is critical to remain focused on customer needs…ideally, new products are both breakthrough and meet customer needs 12 What is Competitive Advantage? 13 Competitive Advantage  A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition 14 Case Work    Read Case Break into small groups Discuss using Competitive Advantage and concepts from Marketing Myopia 15 Strategic Marketing Management  Answers three questions: What is the organizations main business activity?  What are long term goals?  How will it reach its goals?  16 Strategic Marketing Management    Sears and Land’s End Gap v Old Navy v Banana Republic General Motors Cadillac  Saturn  Buick  Chevrolet  Oldsmobile  Pontiac  17 Strategic Market Planning Strategic Plan: the process of anticipating future events and determining strategies to achieve organizational objectives in the future Marketing Planning: designing activities relating to marketing objectives, the changing marketing environment, and the marketing mix Marketing Plan: a document that acts as a guidebook of specified marketing activities and their rationale. 18 Ethics & Marketing   Why do we care? Examples of ethical issues 19 Ethics & Marketing  The moral principles or values that generally govern the conduct of an individual or group…the standards of behavior by which conduct is judged 20 Potential Ethical Dilemmas 21 Typical Ethical Dilemmas        Gift giving/entertainment False or misleading advertising Misrepresentation of goods or services Lying to get the sale Manipulation of data Misleading warranties Exploitation of children or disadvantaged groups         Stereotypical representation of minorities, genders Invasion or misuse of customer privacy Sexually oriented appeals Unsafe products or services Price deception Price discrimination Unfair competitor statements Package size deceptions 22 Ethics Exercise: Abercrombie & Fitch    Read hand out Break into small groups Discuss and prepare responses to: Is marketing adult-style underwear to a younger audience unethical? Why or why not?  If the sexy words had been omitted from the front of the product, would the issue be the same?  23 Next Week   Review Chapters 2 (Comp Adv) and 3 (Ethics) in text For two weeks: Read Chapters 6 and 7 (Consumer Decision Making/Business Marketing) 24