1ZEUA0 Lecture Summary 2

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Marketing planning process:
Mission of the organization: Think back to profiling the company through marketing orientation
Internal: all matters that can be influenced
College 2
Mission: Why are we on earth? Why do we exist? Reason for existence, what value do we bring to
our customers.
Vision: what do we want to achieve (on long term)
Why does a company have a mission and a vision? A mission and a vision provides consistency on norms and
values, this ensures that decisions can be made easier.
The marketing environment:
Microenvironment: Actors in the immediate environment of the organization that influence the effectiveness
of a company in the chosen markets; impressionable.
Macro environment: cannot be influenced.
Environment scan:
Macro level: PESTEL (Political, Economic, Social, Technological, Environmental, Legal)

Micro level 1: 5 forces
New
entrants
Industry
suppliers buyers
competitors
substitutes
Micro level 2: naming and framing
Changes in the marketing environment

Which trends and developments have contributed to the success of the Toyota Prius?
Consumers: environmentally conscious, environmental movements

Technology: hybrid engine
Economic growth / prosperity => many more people can afford more expensive cars
Competition: collaborations in engine development, other companies are also working on this
technology
Regulations: emission standards, BPM
Demographics: structure of the population in terms of factors such as age, income distribution, and
ethnicity
Population pyramid
Age: challenge for marketers?
- Offer different products for age groups
- Relationship marketing
- Get them young!
Ethnicity: How do marketers account for ethnicity? => Pathe movies for Turkish people.
Income: Developing countries (Africa) and rising world economies (China)
Household size: decreasing => need for smaller homes, pack sizes, furniture, etc.
Changing values: compare commercials of now with the 60's/70's, but also things like dry cleaning
(used to be far more popular). Oftentimes changing values are also *created* by marketing, not only
followed: trend to lose weight, men facial cremes, sms text
Ethics: genetic engineering of crops, child labor
Critical consumer: ombudsman, consumer association

Video: Back in the days, there were several standards for video tapes: BCC2000, Betamax, VHS...
VHS "won" this war eventually. Do you know why? (Ask the students) => The porn industry
released all their tapes on VHS.
Conclusion: Alliances can be very important in a product success too.
Encarta: The encyclopedia britannica has been regarded as a classic reference work for more
than 200 years. And, as a classic, it has commanded a premium price: a few years ago a hardback
set of the 32 volumes cost $1600. In 1992 Microsoft decided to get into the encyclopedia
business. The company bought rights to Funk&Wagnalls, a second-tier encyclopedia that had
been reduced to supermarket sales by the time of the purchase. Microsoft used the
Funk&Wagnalls content to create a CD with some multimedia bells and whistles and sold it to
end users for $50. Britannica started to see its market erode offered a CD version for $200.
Unfortunately, customers were not willing to pay four times as much for its product as for
Microsoft's. After a restructuring of the delivery channel, Britannica further cut the price to $90, but
Microsoft further cut the price of Encarta. Then, what happened? (Ask the students) =>
Wikipedia came, and information became free.
Conclusion: the environment of a product on offer can change dramatically with competition
(Microsoft) and technological developments (internet, wikipedia).
Nokia nearly wiped off the market by iPhone, HTC, Blackberry.
General conclusion: It is key for a company to not only know the customer preferences, but also
have a general insight on how the market develops. => next slide
Microenvironment: Porter Model:
Following from the competitor analysis, you have a clear view on what are the entry barriers for
new entrants. Either you are a new entrant yourself, looking at a market to enter… Or you are an
incumbent, and the situation on the market has led you to the conclusion that it is easy (or not) to
enter. If it is easy, you should maybe fill that opportunity yourself!
Same for substitutes: following from the competitor analysis, you know what your product,
generic, and budget competitors are. You therefore know the threat of substitution of your
product.
What would you have to know about these competitors to successfully market your product? Why?
ÿ Sales
ÿ Number of competitors in a market
ÿ Price level Competitive strategy:
- Operational excellence
ÿ Profit margin
- Customer Intimacy
ÿ Financial position
- Product Leadership
ÿ Suppliers
ÿ Responsiveness to change
ÿ Key Customer Values
ÿ Strengths and weaknesses in 4Ps
How do you find this out?

- Buy products of competitors and look inside it (benchmarking)
- Eyes + ears open: how do they promote in media
What is CSR?:
CSR is an idea whereby companies integrate economic, social and environmental concerns in their business operations.
CSR domain:
How about legislation?: The

law is necessary but insufficient: ÿ The law is
reactive ÿ The law is slow ÿ
Business is change-
oriented and faster
Ethics: The established customs, morals, and fundamental human relationships that exist throughout the world.
Ethical Behavior: Behavior that is morally accepted as good or right as opposed to bad or wrong.
Ethical Dilemma Defined: A

situation in which a person must decide whether or not to do something that, although beneficial to oneself or the organization,
may be considered unethical and perhaps illegal.

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Machine Translated by Google

Marketing planning process:

The marketing environment:

Macro level: PESTEL (Political, Economic, Social, Technological, Environmental, Legal)

Micro level 2: naming and framing

Changes in the marketing environment

Consumers: environmentally conscious, environmental movements

Age: challenge for marketers?

- Offer different products for age groups

- Get them young!

Income: Developing countries (Africa) and rising world economies (China)

Ethics: genetic engineering of crops, child labor

Critical consumer: ombudsman, consumer association

Conclusion: Alliances can be very important in a product success too.

Nokia nearly wiped off the market by iPhone, HTC, Blackberry.

Microenvironment: Porter Model:

How do you find this out?

How about legislation?: The

Ethical Dilemma Defined: A

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