Web 2.0 Strategies in Marketing

Web 2.0 Strategies in Marketing from Joel Warady

Porter's 5 Forces

Michael E. Porter, a professor at Harvard Business School, developed a framework for understanding the strategic competitiveness of a firm within a specific market. The framework includes an analysis of five concurrent forces that affect a business' ability to compete. The forces include:

1. Threats of substitute products from competitors, including product differentiation, price performance of substitutes and a buyer's ability to switch to a substitute.

2. Threat of the entry of new competitors, such as barriers to entry (i.e. patents, and other intellectual properties rights), brand control, government regulation, capital requirements.

3. Intensity of competitive rivalry, such as the number of competitors, firm growth rates, economies of scale, diversity and depth among competitors, and information complexity.

4. Bargaining power of customers, such as concentration of marketing channels, buyer volumes, prohibitive "switching" costs to buyers, and availability of competitive substitutes.

5. Bargaining power of suppliers, such as prohibitive "switching" costs, availability of alternative suppliers, degree of labor solidarity, and the sensitivity of selling price to supply costs.

The first three of these forces focus on an analysis of a business' competitors within the sector. The last two forces focus on the business' vertical integration with the suppliers and customers.

Source:http://www.investinganswers.com

Peter Drucker Quotes

Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes.

Management is doing things right; leadership is doing the right things.

The most important thing in communication is hearing what isn't said.

Efficiency is doing things right; effectiveness is doing the right things.

Most of what we call management consists of making it difficult for people to get their work done.

Business, that's easily defined - it's other people's money.

Knowledge has to be improved, challenged, and increased constantly, or it vanishes.

Peter’s Teachings in Marketing

Peter Drucker is answering the question: how is marketing evolving : 

"The purpose of a business is to create a customer." 

"Business has only two functions -- marketing and innovation. All the rest are costs." 

"The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.“

“The aim of marketing is to make selling unnecessary.” 

"The best way to predict the future is to create it.“

"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." 

The Difference Between Marketing And Selling!

What is Selling? “SELLING is a process of transferring a product or service to a buyer at a price
regardless of his or her need.

What is Marketing? “MARKETING is a process of transferring a product or service to a buyer at a competitive price in order tosatisfy his or her need.

Selling vs. Marketing

SELLING
“Sells what the producer has and need not necessary be a product or service that the Buyer wants”SELLING “Sells what the producer has and need not necessary be a product or service that the Buyer wants”

MARKETING
“Markets a product or service that meets the needs of the Buyer and is not what the producer has to sell"

SELLING
“Focus on the needs of the Producer” –example, selling all the funds of a fund house because they
are available.

MARKETING
“Focus on the needs of the Buyer –example, a growth fund for child education or income fund for a retirement plan”

SELLING
Selling makes use of short-term tactics to get sales –examples are free gifts, discounts, rebates, bribes, etc.

MARKETING
Marketing makes use of long-term strategies to get sales – examples, value-added service, customer education, meeting objectives.

Source: Mike Lee, CFP,RFP Chartered Marketer, Dip. M, MCIM

The changing role of the Chief Marketing Officer

What Is Chief Marketing Officer?

A chief marketing officer (CMO) is a corporate executive responsible for marketing activities in an organization. Most often the position reports to the chief executive officer.

With primary or shared responsibility for areas such as sales management, product development, distribution channel management, marketing communications (including advertising and promotions), pricing, market research, and customer service, CMOs are faced with a diverse range of specialized disciplines in which they are required to be knowledgeable. This challenge is compounded by the fact that the day-to-day activities of these functions, which range from the highly analytical (e.g. – pricing and market research) to highly creative (advertising and promotions), are carried out by subordinates possessing learning and cognitive styles to which the CMO must adapt his or her own leadership style.

Beyond the challenges of leading their own subordinates, the CMO is invariably reliant upon resources beyond their direct control. That is to say, the priorities and/or resources of functional areas not reporting to marketing such as production, information technology, corporate communications and public affairs, legal, human resources and finance have a direct impact on the achievement of marketing objectives. Consequently, more than any other senior executive, the CMO must influence peers in order to achieve their own goals. Clearly, this necessity to lead peers compounds the complexity of challenges faced by the CMO.

Guerilla Marketing Example - Coca-Cola Happiness Vending Machine

I like the examples of guerilla marketing.. I hope that i would meet such an advertising campaing.. who doesn't want to drink free coke:)

Make it easy for businesses to buy from you!

When selling your services to someone who is spending company money, your approach should be to make buying from you or hiring you, as low-risk as possible. They need something from you, tangible or intangible, which supports their decision to buy from you. This does 2 important things.

It makes them feel more comfortable about buying from you.
If it all goes wrong, you have made it easy for them to justify their decision to their boss. They see it as a safety net.
Ways to reduce the risk of buying from you include:

Provide testimonials from named, checkable people.
Offer guarantees.
Provide insurance policies.
Offer risk reversals. (Satisfaction or your money back).
Show them any awards you have earned.

Definition of Marketing

 

The following definitions were approved by the American Marketing Association Board of Directors:

Marketing:

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007)

Marketing Research:

Marketing research is the function that links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. (Approved October 2004)

The Future of Marketing

Philip Kotler: The Future of Marketing ile tvnportal

Philip Kotler "Marketing" (At Anaehim University)

Kotler's Interview with eTalks: Philip Kotler : Marketing for Better World

Niaz: You are an economist trained at the University of Chicago (M.A.) and MIT (Ph.D.). Three of your Professors were Nobel Prize Economists – Milton Friedman, Paul Samuelson, and Robert Solow. But you have been cited as the world’s foremost expert on the Strategic Practice of Marketing. Can you please tell us a little bit about yourself and why marketing became such a big factor in your life?

Philip Kotler:  Throughout my study of economic theory, I was bothered by the absence of discussions of distribution institutions (wholesalers, retailers, agents, jobbers, etc.) and promotional tools (advertising, sales promotion, and salesforce).  It seemed to me that the level of market demand and individual company demand are heavily influenced by these institutions and activities as well as price (which absorbed the most attention of economists).  When I was offered a position to teach either economics or marketing at the Kellogg School of Management at Northwestern University, I chose to teach marketing so that I could show that it was a branch of economic science.

I moved into the question of what influences the level, composition and timing of customer demand and what are the determinants of individual demand.  Classic economics assumes a world of rational buyers and rational producers.  I always felt that this grossly oversimplified the understanding of customer behavior and producer behavior.  The recent growth of interest in behavioral economics in contrast to classical economics is bringing many missing institutions and activities into economic focus.