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creative limitations Profiles of Major Media Types Advertising Strategy Message Execution Typical Message Execution Styles Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s 。 low cost。 no guarantee of position Outdoor Advantages: Flexibility。 good passalong readership Limitations: Long ad purchase lead time。 highquality reproduction。 fragmented audiences Magazines Advantages: High geographic and demographic selectivity。 lower attention。 low cost Limitations: Audio only。 “junk mail” image Radio Advantages: Mass use。 flexibility, no ad pe tition within same medium。 fleeting exposure。 appealing to senses Limitations: High absolute costs。 high attention。 poor reproduction quality。 good local market coverage。Objectives ? Course Organization ? Tasks of Marketing ? Major Concepts Tools of Marketing ? Marketplace Orientations ? Marketing’s Responses to New Challenges Defining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Philip Kotler (p. 7) Simple Marketing System Industry (a collection of sellers) Market (a collection of Buyers) Goods/services Money Communication Information Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the pany aggressively promotes/sells these products Focuses on needs/ wants of target markets delivering value better than petitors Company Orientations Towards the Marketplace Objectives ? Define value satisfaction understand how to deliver them ? The nature of highperformance businesses ? How to attract retain customers ? Improving customer profitability ? Total quality management Resources Organization and aligning... High Performance Business Processes By improving critical business... Stake holders Set strategies to satisfy key... Satisfied Customers: ? Are loyal longer ? Buy more (new products upgrades) ? Spread favorable wordofmouth ? Are more brand loyal (less price sensitive) ? Offer feedback ? Reduce transaction costs Inactive or excustomers Customer Development Partners Advocates Clients Repeat customers Firsttime customers Suspects Prospects Disqualified prospects Customer/Product Profitability Analysis P1 Highly profitable product P2 Profitable product P3 Losing product P4 Mixedbag product Products + + + High profit customer + Mixedbag customer + Losing customer C1 C2 C3 Customers Objectives ? Corporate and division strategic planing ? Business unit planning ? The marketing process ? Product level planning ? The marketing plan MarketOriented Strategic Planning Objectives Skills Resources Opportunities MarketOriented Strategic Planning Objectives Skills Resources Opportunities Profit and Growth Corporate Headquarters Planning ? Define the corporate mission ? Establish strategic business units (SBUs) ? Assign resources to SBUs ? Plan new business, downsize older businesses The Marketing Plan Objectives ? Components of a marketing information system ? Criteria of good marketing research ? Decision support systems for marketing management ? Demand measurement and forecast A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Research Approaches Behavioral Focusgroup Survey Experimental Observational SecondaryData Sources ? Internal Sources ? Government Publications ? Periodicals and Books ? Commercial Data ? OnLine ?Associations ?Business Information Good Marketing Research: ?Is scientific ?Is creative ?Uses multiple methods ?Realizes the interdependence of models data ?Acknowledges the cost value of information ?Maintains “healthy” skepticism ?Is ethical Demand Market Demand Company Demand Estimating Current Demand ? Total Market Potential ? Area Market Potential ? Industry Sales ? Market Share Estimating Future Demand ? Survey of Buyers’ Intentions ? Composite of Sales Force Opinion ? Expert Opinion ? Past Sales Analysis ? Market Test Method Objectives ? Tracking Identifying Opportunities in the Macroenvironment ? Demographic, Economic, Natural, Technological, Political, Cultural Developments Macroenvironmental Forces ? World trade enablers ? Asian economic power ? Rise of trade blocs ? International moary crises ? Use of barter countertrade ? Move towards market economies ? “Global” lifestyles Macroenvironmental Forces ? Opening of “new” markets ? Emerging transnational firms ? Crossborder strategic alliances ? Regional ethnic religious conflict ? Global branding Demographic Environment Worldwide Population Growth Population Age Mix Ethnic Markets Household Patterns Educational Groups Geographical Shifts in Population Shift from Mass Market to Micromarke