MARKETING

FALL12
S. M. Saeed
1

MARKETING

MARKETING?

Businesses like Kodak, General Motors, and Sears seemed invincible at one time.

MARKETING

In the long run survival of every business is at risk.

MICROSOFT WAL-MART DELL --- no guarantee

THE ONLY THING THAT IS CONSTANT IS CHANGE

CUSTOMERS Needs
packaged milk

COMPETITORS New technologies barriers

pager

ENVIRONMENT Economic Political Social

car loans

Demographics Lifestyle

old/young ratioShifting

china

stability

mobile phone, diet food bottled water

shopping bags VCR

Consumption
Behavior

Technological

tech/business edu

12/09 cc
? 3

MARKETING

So under this grim scenario how companies can survive?

MARKETING

THE MARKETING PROCESS

UNDERSTAND MARKET & CUSTOMER

DESIGN A MARKETING STRATEGY

INTEGRATED MARKETING PLAN4 Ps

BUILD CUSTOMER
RELATIONSHIP S

CREATE PROFITS & CUSTOMER EQUITY

MARKETING

ELEMENTS OF A MODERN MARKETING SYSTEM

COMPANY (MARKETER)

SUPPLIERS
COMPETITO RS

MARKETING
INTERMEDIARIE S

FINAL USERS

E N V I R O N M E N T

MARKETING

What is a value proposition?

P9

How the product will serve target customers How it will differentiate and position itself
CW

Choose any five products (or services) and state their value propositions.

MARKETING

STARTING POINT

FOCUS

MEANS

ENDS

FACTORY

EXISTING PRODUCTS
T H E

SELLING & PROMOTING

C O N C E P T

PROFITS THRU SALES VOLUME

S E L L I N G

MARKET

CUSTOMER NEEDS
T H E

INTEGRATED MARKETING
C O N C E P T

PROFITS THRU CSTMR STFCTN

M A R K E T I N G

MARKETING

SOCIETAL MARKETING Consumer short-run wants vs Consumer long run welfare

IPM (Ciba-Geigy)

SOCIETY (HUMAN WELFARE)

CONSUMERS (WANT SATISFACTION)

COMPANY (PROFITS) 9

LOYALTY
Loyalty is the single most important driver of long-term profitability.

LOYALTY = PROFIT

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MARKETING

CUSTOMER EQUITY

P 22

CUSTOMER RELATIONSHIP GROUPS

HIGH PROFITABILITY

BUTTERFLIES

TRUE FRIENDS

LOW PROFITABILITY

STRANGERS

BLANKETS

SHORT-TERM CUSTOMERS

LONG-TERM CUSTOMERS

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Immediacy in profits and results is deceptive

RYK/MLTN mangoes

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MARKETING

STRATEGY CORPORATE & MARKETING

CHAPTER 2

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MARKETING

STEPS IN STRATEGIC PLANNING

CORPORAT E OBJECTIVE S & GOALS

MISSION

BUSINESS PORTFOLI O

FUNCTIONAL

STRATEGIE S
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MARKETING

PLANNING AT DIFFERENT MANAGEMENT LEVELS

STRATEGIC PLANNING BY TOP MANAGEMENT
Define the business MISSION Set corporate goals & objectives. Establish the business portfolio. Set strategic marketing direction.

TACTICAL PLANNING BY MIDDLE MANAGERS

Develop tactical plan & strategies to achieve corporate objectives.

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OPERATIONAL PLANNING BY SUPERVISORY MANAGERS

Develop action plans to implement tactical plans.

BCG Matrix

P38

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MARKETING

EXISTING PRODUCTS

NEW PRODUCTS

EXISTING MARKETS

MARKET PENETRATION

PRODUCT DEVELOPMENT

NEW MARKETS

MARKET DEVELOPMENT

DIVERSIFICATIO N

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THE PRODUCT / MARKET EXPANSION GRID

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MARKETING

MARKETING STRATEGY?
MARKET SEGMENTATION TARGETING MARKET DIFFERENTIATION POSITIONING
P46

FIG.2.4 P45

INTEGRATED MARKETING MIX

FIG2.5 P46

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MARKETING

PRODUCT Variety Quality Design Features Brand name Packaging Services

PRICE List price Discounts Allowances Payment period Credit terms

TARGET CUSTOMERS

PROMOTION Advertising Personal selling Sales promotion Public relations

INTENDED POSITIONING

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PLACE Channels Coverage Assortments Locations Inventory Transportation logistics

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MARKETING

S W O T

A N A L Y S I S

PLANNING Develop Strategic Plans

IMPLEMENTATIO N

CONTROL Measure Results

Evaluate Results Develop Marketing Plans

Execute Plans

Take Corrective Action

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MARKETING

SWOT ANALYSIS

INTERNAL

STRENGTHS

WEAKNESSES

EXTERNAL

OPPORTUNITIES

THREATS

POSITIVE

NEGATIVE

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MARKETING

PESTICIDE CO.
1 Secret formula, unique, difficult to copy plant and manufacturing process. 2 All managers & directors, close relatives. 3 High profitability. 1 Lack of professionalism. 2 Very old plant. 3 Resistance to change. 4 All managers & directors, close relatives.

INTERNAL

EXTERNAL

1 Low credibility in 1 Monopoly in the market. market. 2 Possibility of export - Turkey 2 Very estranged relations and other M Eastern areas. with the largest consumer. 3 New emerging markets. 3 Threat of imports from 4 Established name. China. 4 High profitability.

POSITIVE

NEGATIVE

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MARKETING

MARKETING ENVIRONMENT

CHAP 3

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MARKETING

MICRO ENVIRONMENT
The Company --- various departments Suppliers --- or partners?

Marketing Intermediaries --- resellers, financial intermediaries, distribution companies, mktg srvcs. agencies Customers --- consumer, business, resellers, government, international Competitors --- positioning Publics --- financial, media, government, NGOs, neighborhood, general public, internal public

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MARKETING

MACRO ENVIRONMENT
Demographics --- population size, density, location, age, gender race occupation Economic forces --- factors that affect consumers buying power and
spending patterns.

Natural Environment ---raw mats. avlblty., pollution matters, govt.attitude Technological forces --- new technlgs. Create new mkt. opportunities Political forces --- laws, govt. agencies, pressure groups, personal interests

Cultural forces --- core beliefs, secondary beliefs-are more open to change,
respect of cultural values

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MARKETING

RESPONDING TO THE MARKETING ENVIRONMENT

There are three kinds of companies

Those who make things happen
Those who watch things happen
Those who wonder whats happened
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MARKETING INFORMATION

AGING MARKETING INFORMA

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MARKETING INFORMATION

DATA

INFORMATION KNOWLEDGE
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MARKETING INFORMATION

KNOWLEDGE
EXPLICIT TACIT

DISCUSS FIG.4.1 P 85 Marketing Information System

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MARKETING INFORMATION

SOURCES OF MARKETING INFORMATION Internal Data, Marketing Intelligence, Marketing Research.

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MARKETING INFORMATION

Internal Data
Consumer and market information obtained from data sources within the company.

Rcrds of Sales, Costs statemnt, Cash flows, Discnts policy etc. (Finance Dept.

Productn Schedules Shipments and Inventories rcrds (Production/Logistics)

Cstmr transactns, Demogrphcs, Psychogrphcs, Buying bhvior (Marketing) Customer Satisfaction/service problems etc (Customer Service Dept.)

Channel prblms/opportnties, competitors activities etc. (Sales Department)

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MARKETING INFORMATION

BUSINESS INTELLIGENCE?
Business Intelligence System is designed to
provide the manager with relevant information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and most important competitive arenas.

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MARKETING INFORMATION

Competition Government/ Economic Regulatory

BUSINESS INTELLIGENCE
Demographic Cultural & Social Technological

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MARKETING INFORMATION

Marketing Intelligence
Systematic collection and analysis of publicly available information about Competitors and developments in the Marketing Environment. Media, Projects, Sales personnel interaction, Dust bins, Garbage dumps (dumpster diving),

Suppliers, Channels, Sellers records (Radio Frequency Identification)

RFID

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MARKETING INFORMATION

Marketing Research
Systematic design, collection, analysis, and reporting of data

relevant to a specific marketing situation facing an organization

MR facilitates understanding of different marketing-related phenomena e.g. purchasing behavior, customer perceptions about various things and issues, characteristics of a particular population, market potential, market share, effectiveness of various marketing programs, media effectiveness etc. etc.
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MARKETING INFORMATION

Defining the Problem and Research Objectives

Developing the Research Plan for collecting information

Implementing the Research Plan---Collecting and analyzing the data

Interpreting and reporting the findings

T H E

M A R K E T I N G R E S E A R C H P R O C E S S

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MARKETING INFORMATION

EXPLORATORY RESEARCH DESCRIPTIVE RESEARCH

CAUSAL RESEARCH

Secondary Data

Primary Data

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MARKETING INFORMATION

Observational Research Ethnographic Research Survey Research Experimental Research

Focus Group Interviews

SAMPLING
Types of samples
TABLE 4.4 P 100

Depth Interviews

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MARKETING INFORMATION

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Managing detailed information about individual customers and carefully managing customer touch points in order to maximize customer loyalty.
Cibas Reps. visits to farmers farms... Essential information about large farmers. United Airline employees initiative RFIDs use in CRM.
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MARKETING ETHICS & SOCIAL RESPONSIBILITY

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ADVERTISING & PUBLIC RELATIONS

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