26. Time Performance 3: Compete with convenience 2: Compete with improvements in trust 1: Compete by offering better functionality 4: Compete on a price basis Least demand Main stream Most demand
Major Decisions in Advertising This CTR corresponds to Figure 15-1 on p. 451 and relates to the material on pp. 451-460. Instructor’s Note: This CTR and Notes provide an overview of advertising decisions. Each decision area is covered in greater detail on subsequent CTRs. Major Decisions in Advertising Setting Objectives. Advertising objectives are specific communications tasks to be accomplished for a specific target audience during a specified time period. Advertising objectives can be to inform (build primary demand), persuade (selective demand), or remind (brand loyalty). Advertising objectives are often linked to specific sales objectives. Budget Decisions. Advertising budgets are set for each product consist with the advertising objectives. The details of budget decisions are covered in greater detail on the following CTR. Message Decisions. Advertisers must construct their messages carefully to reach target markets. The details of message decisions are covered in greater detail on a subsequent CTR. Media Decisions. In selecting media for ads, advertisers must consider the several factors to reach consumer when, how, and how often it takes to reach promotional objectives. The details of media decisions are covered in greater detail on a subsequent CTR. Campaign Evaluation. Measures of communication effects and sales effects should be employed. Discussion Note: You might wish to tell students of the controversy involved in measuring campaign effectiveness. Traditionally, advertisers measured effectiveness in terms of recall or recognition. Management wants a behavioral change in purchases. Marketers who successfully merge the two have a bright career ahead of them.
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Analyzing Current SBU’s: Boston Consulting Group Approach This CTR corresponds to Figure 2-2 on p. 39 and relates to the discussion on pp. 38-39. Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company. In portfolio analysis, management evaluates the businesses for their strategic fit in meeting company objectives. Strategic Business Units (SBUs) consist of separate units of the company that can be planned independently from other company businesses. The BCG Matrix Stars. High growth, high share businesses. Stars often require heavy investment to build/maintain share in rapidly expanding markets. You may wish to discuss the importance of market share to product profitability at this point. Cash Cows . Low growth, high share businesses. Cows generate profits for investment in other businesses. Question Marks. High growth, low share businesses. Strategy must decide between further investment to move question marks to star status or phasing the product out. Dogs . Low growth, low share. Dogs are often targets for divestment, but may still be profitable and/or contribute to other organizational goals.
Marketing is the process of and then in turn making it possible for them to enjoy the products and services.
Summary Overview Marketing is a pervasive activity. It is something that eventually touches everyone and it dramatically affects peoples’ daily lives. The principles learned in marketing courses are directly and immediately applicable to students’ daily lives. Key Issues Marketing is important to every consumer . People bear the costs of marketing via price. Everyone buys or uses a product or service. People shop, are exposed to advertising, and provide information to businesses. Marketing is important to your job . People have to market themselves. Marketing offers career opportunities. Organizations exist to satisfy customers; marketing contributes to success. Discussion Question: How would a knowledge of marketing benefit an accountant? A computer system designer? An attorney? A physician? Marketing also affects innovation and the standard of living : stimulates research and innovation; creates new/improved products; generates a higher standard of living. This slide relates to material on pp. 5-6. Indicates place where slide “builds” to include the corresponding point.
Summary Overview A marketing program blends all of the firm’s marketing plans into one “big” plan. The marketing program combines strategy and tactics, ideas and actions, and serves as the link between planning and implementation and control. Elements of the Marketing Program Marketing Plan . A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy. Marketing plans should make clear the following: 1. What marketing mix will be offered, to whom, and for how long. 2. What company resources will be needed at what rate. 3. What results are expected (this should also specify some means of control). Implementation . Implementation involves putting the marketing plan into action. During implementation, marketing managers make many operational decisions -- short-run, often “on-the-spot,” decisions to help implement strategies. Discussion Note: Effective operational decision making is critical to successful implementation. Marketing managers must use the marketing plan as a context for overall guidance -- what the company wants to do -- and then adapt individual decisions to align company efforts and objectives to changing situations. Control . Control is an ongoing process of analyzing and correcting the actions taken in implementation. Control jobs provide feedback to managers that leads them to modify their marketing strategies. Teaching Tip: Students should understand that control is not a punishment mechanism to be used only when someone makes mistakes. Businesses expect that all plans require some fine tuning and even more than that when competitive forces change quickly.
Managerial Levels and Plans This CTR relates to the material on pp. 60-63 and corresponds to Exhibit 3-3 on p. 61. Contingency Factors in Planning The four contingency factors that affect planning are: 1. Level In the Organization. 2. Life Cycle of the Organization. 3. The Degree of Environmental Uncertainty. 4. The Length of Future Commitments. This CTR presents the first contingency factor, with the other three covered on the following CTR. Level In the Organization The figure on the CTR illustrates the general relationship between managerial level and the type of planning the managers does. Typically, operational planning dominates the planning activities of lower level managers. Top manager predominately engage in strategic planning. Discussion note: The text observes that the small business owner must engage in both types of planning. As more and more jobs are being created in small businesses, ask students to elaborate on this observation. What are the special problems in planning facing the small business owner? If managers at large companies don’t have time to plan, when does the small business owner get the time? Consider interjecting the role of software computer technology as an aid to small business planners. For reference, you may wish to view the promotional video, “In Their Own Words: Small Business Owners Discuss Their Software Solutions,” MicroSoft/Entrepreneur Magazine, 1993.
