Marketing

Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands

Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction

Exchange
Exchange && Transactions
Transactions
Relationships
Relationships && Networks
Networks

Marketing
Marketing Channels
Channels

Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment

04/13/11 1-2
 Marketing
Mix

Place
Product

Customer Convenience
Solution
Price Promotion

Cost Communication
04/13/11 1-3
 Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive

Consumers favor products that

Product
Product Concept
Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling
Selling Concept
Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets & delivering value
better than competitors

04/13/11 1-4
 Image
Image value
value

Personnel
Personnel value
value Total
Total
customer
customer
Services value
value
Services value
value

Product
Product value
value Customer
Customer
delivered
delivered
Monetary
Monetary cost
cost value
value

Time
Time cost
cost
Total
Total
customer
customer
Energy
Energy cost
cost cost
cost

Psychic
Psychic cost
cost

04/13/11 1-5
 Planning Implementation Control

Organizing
Corporate Measuring
planning results
Division
planning Diagnosing
Implementing
results
Business
planning
Taking
Product corrective
planning action

04/13/11 1-6
Limited number of goals

Stress major policies & values

Define competitive scopes

Market Growth Rate

Stars Question marks

4
20%-
3
?2 ? 1
?
18%-
16%-
14%-
5

?
12%-
10%-
8%- Cash cow Dogs
6%-
4%-
2%-
8
0 6 7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x

Relative Market Share

04/13/11 1-8
 BUSINESS STRENGTH
Strong Medium Weak
5.00 3.67 2.33 1.00
5.00 Joints
MARKET ATTRACTIVENESS
High

Hydraulic Aerospace
pumps fittings
3.67
Clutches
Medium

Fuel
pumps
Flexible
2.33 diaphragms
Relief
Low

valve
1.00
Invest/grow Selectivity/earnings Harvest/divest
04/13/11 1-9
 Existing New
products products

Existing 1. Market 3. Product

markets penetration development

New 2. Market
markets development 4. Diversification

04/13/11 1-10
Opportunity Matrix
Success Probability Opportunities

High Low
1. Company develops a more
powerful lighting system
2. Company develops a device
Attractiveness

High for measuring the energy

1 2 efficiency of any lighting
system
3. Company develops a device
for measuring illumination
level
4. Company develops a
software program to teach
lighting fundamentals to TV
Low 3 4 studio personnel

04/13/11 1-11
 Probability of Occurrence Threats

High Low
1. Competitor develops
a superior lighting
system
Seriousness

High 1 2
2. Major prolonged
economic depression
3. Higher costs
Low 3 4 4. Legislation to reduce
number of TV studio
licenses

04/13/11 1-12
 Structure

Strategy Systems

Shared
values

Skills Style

Staff
04/13/11 1-13
 (a) Traditional physical process sequence

Make the product Sell the product

Design Procure Make Price Sell Advertise/
product promote Distribute Service

(b) Value creation & delivery sequence

Choose the Value Provide the Value Communicate the Value

Strategic marketing Tactical marketing

04/13/11 1-14
 Executive Summary & Table of Contents

Current Marketing Situation

Opportunity & Issue Analysis

Objectives

Marketing Strategy

Action Programs

Projected Profit-and-loss

Controls

04/13/11 1-15
 •Sheds light on problem -
Exploratory
suggest solutions or
Research
new ideas.

Descriptive •Ascertain magnitudes.

Research

•Test cause-and-effect
Causal relationships.
Research •Tests hypotheses about cause-
and-effect relationships.

04/13/11 1-16
 Observational

Focus-group

Survey

Behavioral

Experimental

04/13/11 1-17
 Secondary Data
Sources

 Internal Sources
 Government Publications
 Periodicals and Books
 Commercial Data
 On-Line
 Associations
 Business Information

04/13/11 1-18
 Defining the Developing
problem and the research Collect the
research plan information
objectives

Present the Analyze the

findings information

04/13/11 1-19
 Good Marketing
Research...

 Is scientific
 Is creative
 Uses multiple methods
 Realizes interdependence of models & data
 Acknowledges the cost & value of information
 Maintains “healthy” skepticism
 Is ethical

04/13/11 1-20
Marketing Other Buyer’s Buyer’s decision
stimuli stimuli characteristics process

Economic
Product Technological Cultural Problem recognition
Price Political Social Information search
Place Cultural Personal Evaluation
Promotion Psychological Decision
Post-purchase
behavior
Buyer’s decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
04/13/11 1-21
 Cultural
Cultural

Social
Social

Family
Family&&Lifestyle
Lifestyle

Psychological
Psychological

Buyer
Buyer

04/13/11 1-22
 User
User Initiator
Initiator

Key
Family
Decision
Buyer
Buyer Roles Influencer
Influencer

Decider
Decider

04/13/11 1-23
 High Low
Involvement Involvement

Significant
differences
between
brands Complex Variety-
Buying Seeking
Behavior Behavior

Few
differences
between Dissonance- Habitual
brands Reducing Buying Buying
Behavior Behavior

04/13/11 1-24
 Problem
recognition

Information
search

Evaluation of
alternatives

Purchase
decision

Post-purchase
behavior

04/13/11 1-25
 Total
Set Aware-
ness Consid-
Set eration
Choice
Set
Set Decision

04/13/11 1-26
 Potential Entrants
(Threat of
Mobility)

Suppliers Industry Buyers

(Supplier power) Competitors (Buyer power)
(Segment rivalry)

Substitutes
(Threats of
substitutes)

04/13/11 1-27
 Specific Attack
Strategies

 Price-discount
 Cheaper goods
 Prestige goods
 Product proliferation
 Product innovation
 Improved services
 Distribution innovation
 Manufacturing cost reduction
 Intensive advertising promotion

04/13/11 1-28
 6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market

04/13/11 1-29
 Geographic

Region, City orSize,

Density, Climate Demographic
Metro
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits,
Uses, or Attitudes

04/13/11 1-30
 Conform-
Perfor-
Form Features Quality ance
mance
Quality

Repair-
Durability Reliability Style Design
ability

04/13/11 1-31
 Important
Important

Profitable Distinctive
Distinctive

Differences Worth
Establishing
Affordable
Affordable Superior
Superior

Preemptive
Preemptive

04/13/11 1-32
 … the act of designing the
company’s offering and image to
occupy a distinctive place in the the
target market’s mind.

p. 298

04/13/11 1-33
 Marketing
Strategy Business
Development Analysis

Concept Product
Development Development
and Testing

Idea Market
Screening Testing

Idea
Generation Commercialization
04/13/11 1-34
 User

Culture Personality

Attributes Benefits Values

04/13/11 1-35
 Product Category
Existing New
Brand Name

Existing
Line Brand
Extension Extension

New
Multibrands New
Brands

04/13/11 1-36
 The Three C’s Model
for Price Setting

Low Price Costs Competitors’ Customers’ High Price

prices and assessment
prices of of unique
No possible substitutes product No possible
profit at features demand at
this price this price

04/13/11 1-37
 Any
AnyPaid
PaidForm
FormofofNon-personal
Non-personal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Short-term Incentives to
Sales Promotion Encourage Trial or Purchase.

Protect and/or Promote

Public Relations Company’s Image/products.

Personal
Personal Selling
Selling Personal Presentations.

Direct Communications With

Direct Marketing Individuals to Obtain Immediate
Response.
04/13/11 1-38
 Advertising
Advertising
Public,
Public, Pervasive,Expressive,
Pervasive, Expressive,Impersonal
Impersonal

Sales
SalesPromotion
Promotion
Communication,
Communication,Incentive,
Incentive,Invitation
Invitation

Public
PublicRelations
Relations&&Publicity
Publicity
Credibility,
Credibility,Surprise,
Surprise,Dramatization
Dramatization

Personal
PersonalSelling
Selling
Personal
Personal Confrontation, Cultivation,Response
Confrontation, Cultivation, Response

Direct
DirectMarketing
Marketing
Nonpublic,
Nonpublic,Customized,
Customized,Up-to-Date,
Up-to-Date,Interactive
Interactive

04/13/11 1-39
Operations
HR
 Are you willing to work 100 hrs a week
 Give me and example of your ability to work as
a part of a team
 Why do you want to work in our company
 How would you work for a company whose
stock you are considering buying
 How do you calculate WACC
 Walk me through financial statement how do
they flow together
 What are three valuation methods
 Tell me what you think of industry X
 What would you be doing 10 years from now
 Which Item on your resume’ is most important
 Can you pitch me a stock
 Tell me a stock you don’t like
 Why do you want a X deptt and not Y
 What are your favourite and least favourite
aspects of job
Strategy