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(1) Marketing has a critical role in changing the business performance.

Select
a marketing activity, and state its effect on the business performance, and
measure its organizational performance?
Solution:
1) Business performance is a set of process, that helps the organization to
achieves there preselected goals, that set by the organization management,
There are a lot of measures of the organization performance, some of it
quantitative, and the other one is qualitative.
Qualitative measures such as
Net profit.
Market share.
Return on investment ROI.
Return on assets ROA.
Total sales of the firm.
Qualitative measures such as.
Customer value.

2) Marketing activities.
The higher performance of marketing activity the higher performance of business
will get.
Marketing activities has a critical role in changing business performance, such as,
Pricing, Place, Product, Promotion.
In the next example we will see, How McDonald's Came Back Bigger than Ever, by
using one of the marketing activities such as product plan.

Product plan is modifying the existing product, and reproduce it as a new


product, for the customers as a new item.

McDonalds faces a problem, that customers need change over time, because
what is attractive today may not be attractive tomorrow, so marketing monitor
customers need in order to meet the needs and satisfy it, McDonalds modifies
there old products and reproduce it as a new items in the food menu, with a new
name.
The product plan, helps the company to continue in the market, and keep their
good position over others competed business firm.

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3) McDonalds enjoy 11% return on investment.
Data coming back from the field, that the product plan has a positive impact on
total sales of the firm, it helps the firm to achieves 11% return on investment
(ROI), its also helps the company to keep their good position over other
competed business firms.

(2) all market segments are not subject to be selected as a target market.
Divide the total market of a food consuming item?
Solution

1) Market segmentation.
Is the process of divide the total market, into smaller group of market,
(customers) a set of customers that have the same behavior need and income,
that the company can offer marketing mix.
We will take fast food market as an example.

1) Fast food market segmentation.


1. Kids.
a. Eat out.
b. Rarely eat out.
2. Young.
a. Eat out.
b. Rarely eat out.
3. Older.
a. Eat out.
b. Rarely eat out.

After segmenting the fast food market to groups of buyers, with the same
behavior needs, and sharing the same needs, the next step is to enter the market,
but first, we need to choose one of the marketing strategies, to help us to enter
the market.

2) Targets Markets.
Once the firm has identified its market, segment opportunities, it must decide
how many and which ones to target.
1. Company targets, increasing the kids sales to class customer
by 20%.

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2. Company targets, increasing young class sales to 50%.
3. Company targets, increasing old class sales to 30%.
Position: building a good reputation in the mind of the customers.

3) Market strategy.
We will use differentiated strategy, to help the company to achieve their goals in
the market, because this strategy based on produce a several products mix, to
meet the need of several customers segment, so it will help the company to
satisfy a customers group, required by producing a several products, in order to
satisfy segment of the groups.
Example
- Producing kids meal with a small toy, will meet the group 1 (kid) needs.
- Producing coffee with the meal, will meet the group 3 (old) needs.

(3) Customer value is an objective for marketing activity and organization, do


you agree? Why? EXAM

(4) No doubt that marketing has a critical role in increasing both of customer
value and organization performance, (true or false), discuss and apply
Solution: True
1. What is the Marketing role?
Responsible for communication with customers or clients, where they need to
purchase of good or service offered by the business firm.
Marketing replays information to customer, about the product, and helps
establish the overall image of the brand.
2. What is the marketing objective?
Define as, what the organization desire to achieve, through marketing activities,
and its got to be SMART Approach, specific, measurable, achievable, realistic and
time specific objectives.
o Decrease customer acquisition costs by 1.5% per quarter.
3. What is the business objective?
4. How to increase customer value.
Research: data and information is a raw material, gathering from
the marketing field, and its reflecting the business firm
performance past.

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Data defects: the data and information are out date, and its great
numbers and information.
Analysis: the gathering information should be analyzed, and
processed to information.
Results: the results come from different types of information.
Recommendation: based on the results.
Creating a customer value, by establishing a good relationship with customer, and
this will increase profitability value.
If the perceived value = paid value, the customer satisfied.
If the perceived value higher than paid value, the customer highly satisfied.
If the perceived value is lower than paid value, the customer is dissatisfied.
5. Apply on management activity (one activity) and state it through customer
value.
6. Organization performance (increase sales and profit).
7. Customer Value
Total benefits; reach to the customer, created by the marketing
management in the business firm
Payment less to get more benefit.
Less payment.
Getting more discount.
Satisfy and meet the need at a lower cost.

(5) Most Egyptian business firm in the recent time face a lot of challenges, so
much better to decrease their production, or getting out of the market, it is hard
to accept such trend, give reason (environmental analysis) EXAM

(6) To build any marketing strategy or to build any marketing plan, marketing
management should study and evaluate the environmental variable affecting
the performance of organization (true or false), discuss
Solution

Steps of analysis, (environmental analysis).


SWOT analysis; is an art, based on research or personal experience, so its the
process of finding a relationship between two variables.
At least to get result, that help decision maker to solve the certain problem in
different business area.
So the analysis is a research activity not marketing activity.

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Analyzing marketing environmental, is the process of finding a relationship
between two variables, at least and state which one effect or can be effect by
other.

1. List of environmental analysis


Economy threats, such as high inflation rate, potential currency devaluation.
The higher the inflation rate, the higher the price of goods and service.
The higher the cost of production (goods and service), the lower the standard of
living.
Technological (such as lack of communication, lack of software).
Social (such as Religious beliefs, high number of population).
Culture.
Political (such as Demonstration, Strike).
Resources such as
i. Human, sales department and labor.
ii. And nonhuman, machinery and materials.
Strengths. Weakness.
o Cheap labor. o Lack of technology.
o
Opportunity. Threat.
o High population. o High inflation rate.
o High demand. o Currency
devaluation.

2. Evaluating the effect of each environmental value, on building any marketing


strategy.
The higher the inflation rate, the higher the price of goods and service.,
The high the production cost and the low the standard of living.
Arrange the environmental variables as following.
Affecting more such as 40%.
Moderate such as 20%.
Low effect such as 10%.
No effect such as 0%.
Some of environmental variables will be in long run, with probability of 1%, while
some will effect on the short term, with probability 40%, so the short term
consider high probability of occurrence, and high risk.
3. Focus on highly effecting environmental variables, with greater risk.

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Most environmental variables in the Egyptian market, create a challenge, threat
not opportunity

(7) State how to develop pricing strategy for new consumer item intend to be
sold in the Egyptian market
(8) State how to develop pricing strategy for new consumer item intended to
be sold in the Egyptian market
(9) The role of marketing manager in building and developing a right
marketing strategy.
(10) Build and develop a marketing strategy for a new food product to tend to
be offered in the Egyptian market to meet a shortage of product in our market
Solution
1) Organization objective.
Meet the shortage in the Egyptian market of our new food product.
Increasing the total sales revenue.
Increasing marketing ROI (quantities).
Increasing customer value (qualitative).
2) Marketing objective.
Define as, what the organization desire to achieve, through marketing activities,
and its got to be SMART Approach, specific, measurable, achievable, realistic and
time specific objectives.
Decrease customer acquisition costs by 1.5% per quarter.
Increasing the market share.
Increasing sales profitability.
Increasing sales profitability volume.
3) Analyzing Market SWOT analysis., for the organization and the market, is
an art, based on research or personal experience, so its the process of
finding a relationship, between two variables at least, to get result, that
help decision maker, to solve the certain problem, in different business
area.
So the analysis is a research activity, not marketing activity.
Analyzing marketing environmental, is the process of finding a relationship
between two variables at least, and state which one effect or can be effect
by other.
Strengths. Weakness.
o Cheap labor. o Lack of technology.

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Opportunity. Threat.
o High population. o High inflation rate.
o High demand. o Currency devaluation.

4) Develop the General long term plan for the marking.


o If the strategy for service, such as tourism so its differentiated
strategy, if its for Arab tourism, so its adaptation, china will be
concentration.
o Undifferentiated market: building value, and unified marketing mix,
to serve different market segment.
Sub plan: Divide the general long term marketing plan. Into another of
marketing factor plan, marketing elements plan.
o Marketing element plan, 4Ps.
o The product related factor plan.
o (because this is a new product so its need)
1. Price strategy, (such as new price, credit terms, payment
period, replacement and refund).
2. Product strategy, (such as design feature, quality, packaging,
brand name).
3. Place channel distribution, coverage strategy, (such as
inventory, transportation).
4. Promotion strategy.
5) Program.
Its statement in a period of time (highly detailed)
o Marketing objectives, (the same above one).
o Human resource needed.
1. Human, (such as sales department, and the need for ten
people to work on machine).
2. Nonhuman, (such as machinery and Materials).
o General Manager, marketing manager.
o Marketing Information system (MIS) the 4Ps.
1. The steps of production.
2. The steps of pricing.
3. The steps of distribution.
4. The steps of promotion.
o Finance, (such as money to pay the workers, 10 millions for
operation)

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6) How to Implement.
Solve the problem before it happened.
o Research coming back with information, that the strategy archived a
highly performance, or low performing.
7) Rate of occurrence.
8) Planning scenarios.
o Applying the real strategy.
o Deal with the real problems, such as expected threat, expected
challenge, and put a Hypothetical solution for the problems.
9) Evaluation, Expectation (or feedback).
We will face three Odds.
1) More obtaining the objective (means highly performance).
2) Not achieve the objective, (means low performance).
3) Reach the objective, (means performing).
o Expect all Obstacles in the strategy.
o No plan can be exactly dose as its estimate.
o Example: competitive business, firms produce the same product with
lower price.
o Increase in materials prices.

(11) Marketing mix is equal for the entire business firm in the market, so what
is distinct firm to another firm
o Communication with the customer in the market.
o Information, that gathering from the marketing field.
o Feedback, customers feedback is very important to identify the changes in
the customers behavior over time.
o Relationship between business firm, and customer, lead to customer
loyalty, all this can change behavior of the customer, to the right behavior,
and encourage customer to buy the product, or take customer form other
compete business firm.

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(13) A product strategy similarly in serving the local and foreign market

Local market. International market.


Focus on producing the product in Focus on producing the product in
one country only. more than country.
Undifferentiating strategy, Concentration strategy Focus on
mass production, small group of customers.
high technology, only one market segment for
Greater quality the same market mix different countries.
element. or adaption strategy Customer need
Larger process. are different.
Larger business. the same product basic are fixed,
Firms multinational ignore that with additional features, with
market need are different focus on limited change and modification, to
one market mix and neglect reflect the environment change
marketing needs. between market segments.
You use this strategy to serve the
different type of customers.
unified customer needs
Key word: Product.

Unified customer need. Customer needs are different.


Promotion strategy. Promotion strategy.
Pull strategy, First customers ask Push strategy, producer offer the
for goods, and tell retailers, the goods with low prices, and deliver it
retailers ask it from wholesalers, to wholesalers, with special offers,
and finally ask it from the (free transportations), then
producers. wholesalers deliver it to retailers,
also for attractive offers, (free
transportation, provide them with
additional stores or inventories
areas.
No need for agent. Agent is very important for entering
the new market.
Type of product, consumer product Type of product, only industrial
and industrial product. product.

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(14) Develop a marketing strategy plan for a new product (service or product
from your own for a business firm existing in EGYPT for exported product

New Suez Canal Project


1) Organization objective.
Creating a new canal, parallel to the existing one, to maximize benefit from the
present Canal and its by-passes.
2) Marketing objective.
Define as, what the organization desire to achieve, through marketing activities,
and its got to be SMART Approach, specific, measurable, achievable, realistic and
time specific objectives.
Boosting the hard currency earnings, for the Egyptian national income.
Increasing the doubled parts of the Suez Canal to 50%.
Shortening the transit time, from 18 hours to 11 hours for the southbound
convoy.
Minimize the waiting time.
3) Analyzing Market SWOT analysis.
for the organization and the market, is an art, based on research or personal
experience, so its the process of finding a relationship, between two variables at
least, to get result, that help decision maker, to solve the certain problem, in
different business area.
So the analysis is a research activity, not marketing activity.
Analyzing marketing environmental, is the process of finding a relationship
between two variables at least, and state which one effect or can be effect by
other.
Strengths. Weakness.
o Cheap labor. o Lack of technology.
Opportunity. Threat.
The Suez Canal is considered to o High inflation rate.
be the shortest link between the o Currency devaluation.
east and the west, maritime
transport and world trade.

4) Develop the General long term plan for the marking.


Differentiated strategy defined as, Customers needs are different with different
characteristic and different price.
This strategy is suitable for service, such as new Suez Canal project.

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Sub plan: Divide the general long term marketing plan. Into another of
marketing factor plan, marketing elements plan.
Marketing element plan; the 4Ps.
The product related factor plan.
1. Price strategy, (such as new price, credit terms, payment
period, replacement and refund).
2. Product strategy, (such as medicine and petroleum).
3. Place channel distribution, coverage strategy, (such as
transportation and warehouses).
4. Promotion strategy.
5) Program.
Its statement in a period of time (highly detailed).
o Marketing objectives, (the same above one).
o Human resource needed.
1. Human, (such as sales department, and the need for ten
people to work on machine).
2. Nonhuman, (such as machinery and Materials).
o General Manager, marketing manager.
o Marketing Information system (MIS) the 4Ps.
1. the steps of production.
2. the steps of pricing.
3. the steps of distribution.
4. the steps of promotion.
o Finance, (such as money to buy the digger machines, 60 billion for
the project operations)
6) How to Implement.
Solve the problem before it happened.
Research: coming back with information, that the strategy will achieve a highly
performance.
7) Rate of occurrence.
Research coming back with information, that Increase the Suez Canal revenues
from $ 5.3 billion at present to $ 13.226 billion in 2023
8) Planning scenarios.
o Applying the real strategy.
o Deal with the real problems, such as expected threat, expected
challenge, and put a Hypothetical solution for the problems.

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9) Evaluation, Expectation (or feedback).
We will face three Odds.
4) More obtaining the objective, (means highly performance).
5) Not achieve the objective, (means low performance).
6) Reach the objective, (means performing).
o Expect all Obstacles in the strategy.
o No plan can be exactly dose as its estimate.
o Example: competitive business, firms produce the same product with
lower price.
o Increase in materials prices.

(15) Eliminating the wholesalers from a channel of distribution network, in the


Egyptian market, would decrease cost of product.

It cant be applied on all products, such as medicine sector, depending on


wholesaler, who import medicine for all over the world, and distributed to
retailer.
Cost of product will increase, such as Fresh vegetable sector, we cant
eliminate wholesaler from channel of distribution network, because the
product cost will increase, by transportation and warehousing.
Who will finance the retailer?
o Example, the wholesalers finance the retail, by giving them the
product on credit, and collect the money after the product sold by
the retailer.
o Number of retailer will decrease.
To solve to wholesaler problem. We need to replace the wholesaler
functions, by government service, and this function had to be effective and
efficient in the same time.
Theoretically its true but practically wrong.

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16) The price the most important factor a customers would consider when
buying any product

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(17) Most business firm complete each other in building a wider channel of
distribution as like as communication method compared with product and price
related elements

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(18)all product strategy could be applied in both consumer and industrial item
Do you agree? Why? Apply on consumer and industrial item?

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(19) Building a right strategy to ensure the segment of both of marketing
objective as good as business objective
Solution

1. Mission.
2. Marketing objective Define as what the organization desire to achieve
through marketing activities and its got to be SMART Approach, specific,
measurable, achievable, realistic and time specific objectives.
3. SWOT analysis, is an art based on research or personal experience, so its
the process of finding a relationship between two variables at least to get
result that help decision maker to solve the certain problem in different
business area.
So the analysis is a research activity not marketing activity.
a. Opportunity and threat that facing the company.

Strengths. Weakness.
o Cheap labor. o Lack of technology.

Opportunity. Threat.
o High population. o High inflation rate.
o High demand. o Currency
devaluation.

4. General long term plan.


Differentiated market Customers needs are different with different
characteristic and different price. Example: China same product with different
quality in two countries. You have to design and develop different types of
product. Different market segments with different needs.
Key word: customer.

5. Sub plan short term


6. Program
7. Implementation
8. Evaluation

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(20) Advertising has an instant result to most business firm to should invest
more in advertising aspect

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Increasing Suez Canal revenue, by increasing quality of service and product.
o Service such as transportation and warehouses.
o Product such as medicine and petroleum.
Egyptian abroad, money transfer from other counties, (increasing from 9
billion to 12 billion in 2012, and now almost 18 billion).
Paid Educational service in Egypt, Shared by the government and the
private sector.
o government national education
o Education quality Improvement
Strategic plan
o Product
o Price
o Distribution channels
o Promotion

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