Design Marketing strategy Assignment

>> Okay management, Technology, ethics, capital, globalization, free market, strategy, branding, promotion, innovation. I'm Miguel Garcia and this is Fundamentals of Management and Marketing for Non-Business Majors.

>> Like a good neighbor --

>> I am stuck on Band-Aid brand because Band-Aid's stuck on me.

>> Oh, I'd love to be an Oscar Mayer Wiener --

>> I don't want to grow up. I'm a Toys R Us kid.

>> McDonald's --

>> Ba-da-pop-pop-pa, I'm loving it.

[ Music ]

To someone not familiar with marketing sometimes the term has pejorative connotations. Some people think marketing is all about lies while others think that it just pretends to trick people to buy things they don't need. Marketing is a much wider concept and it has a lot of meaning. Marketing is a set of processes for creating, communicating and delivering values to customers as well as for improving customer relationships. Basically it includes everything an organization does to satisfy customer needs and that's why organizations who do not sell products like NGOs or even government agencies they also do marketing because they want to communicate the value to their customers.

>> -- that core value. A lot of things have changed. The market is in a totally different place than it was a decade ago and Apple is totally different and Apple's place in it is totally different. And believe me the products and distribution strategies and the manufacturing are totally different and we understand that. But values and core values those things shouldn't change. We wanted to find a way to communicate this and what we have is something that I am very moved by. It honors those people who have changed the world. Some of them are living. Some of them are not but the ones that aren't you know that if they'd ever used a computer it would have been a Mac.

[ Laughter and applause ]

And the theme of the campaign is just think different. It's the people honoring the people who think different and who move this world forward. It is what we are about. It touches the soul of this company.

>> That was Steve Jobs in 1997 when he had just came back as CEO after being forced out in 1985. The philosophy of satisfying customer needs while meeting organizational profit goals is called the marketing

concept and guides all of the organizational marketing activities. Steve Jobs was someone who had that very clearly in his mind and guided all the company movements towards achieving that goal. To apply this philosophy of satisfying customer needs we need to do one thing, marketing strategy. A plan for doing just two things selecting a target market and then implement the strategies to create the right product or service at the right price with the right promotion and with the right distribution so you can satisfy those customer needs.

>> In order to make their products relevant to a variety of consumers companies use target marketing. Marketers identify specific segments of the population and position their products to appeal specifically to that segment. At McDonald's segmenting is central to their marketing strategy.

>> At McDonald's instead of having a brand manager on big Mac and a brand manager on french fries what we have are segment managers. And so at McDonald's you will find a director of young adults, a director of women, moms, a director of African American consumers, a director of Hispanic consumers, etcetera.

>> McDonald's uses segment insights. Insights are information about consumer behavior that are developed through market research.

>> We're constantly every day all week long collecting information and data that help us understand how to describe our products in a way that will be most compelling for the particular segment.

>> As you have just listened a target market is a specific group of consumers who are particularly interested in a product or service who have access to it and are able to buy it if they wish to. To come up with these target market we need to segment the market which means dividing the market in groups of customers with common characteristics that influence their buying decisions and this can be done according to multiple variables age, gender, income, where do they live in which region? What is the climate? Do they live in a rural setup or in an urban setup? Lifestyles, are these people who practice sports? Are these people who go a lot to the movies? Are these people who are very interested in cultural activities? When market segmentation is done properly it is very effective helping organizations to really focus their resources where they need it and not targeting their market in general. That's a waste of money and resources. I remember a few years ago showing to some people three different commercials that McDonald's had prepared for different parts of the country. One was targeting mostly Hispanic population located in the southwest of the United States. Another commercial was targeting the Asian population that lived in the northwest of the United States and the other was targeting states located in the Mid-West. I remember one person, this person was from the Mid-West raising his hand and saying these two other commercials are not real. They never were on TV. I never seen

them. That's when I say that's exactly what market segmentation does. You were only targeted with the Mid-West commercial because that's the profile you fit into.

>> Real strawberries. [Music]

>> Real lemonade. [Music]

>> Blended.

>> Once you have completed your market segmentation and have come up with whatever target segment or segments you want to work with you have to develop and implement a marketing program. That involves basically a combination of tools that we refer as the marketing mix in which we defined four parameters: products, price, placement and promotion. This is many times referred to as the four Ps. So when we talk about marketing mix we are talking about the four Ps. Remember product, price, placement and promotion.

>> This course was made possible by the Wisconsin School of Business Innovation Fund.