May Taibah

What is Marketing : Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Kotler
What is a Marketing planning : Planning The process for anticipating future events and determining strategies to achieve organizational objectives. Marketing planning : planning activities relating to marketing objectives and the changing marketing environment.

Michael Porter 5 forces of competition Growth / Share Matrix Porter Generic Strategies of Competition

Blue Ocean strategy

Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.

Competitive Rivalry: What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.

Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. The higher your market share, the higher the proportion of the market you control. The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily.
Market growth is used as a measure of a market's attractiveness. Markets experiencing high growth are ones where the total market is expanding, meaning that its relatively easy for businesses to grow their profits, even if their market share remains stable.

Dogs: Low Market Share / Low Market Growth In these areas, your market presence is weak, so it's going to take a lot of hard work to get noticed. You won't enjoy the scale economies of the larger players, so it's going to be difficult to make a profit. And because market growth is low, it's going to take a lot of hard work to improve the situation. Cash Cows: High Market Share / Low Market Growth Here, you're well-established, so it's easier to get attention and exploit new opportunities. However it's only worth expending a certain amount of effort, because the market isn't growing, and your opportunities are limited. Stars: High Market Share / High Market Growth Here you're well-established, and growth is exciting! There should be some strong opportunities here, and you should work hard to realize them. Question Marks (Problem Child): Low Market Share / High Market Growth These are the opportunities no one knows what to do with. They aren't generating much revenue right now because you don't have a large market share. But, they are in high growth markets so the potential to make money is there. Question Marks might become Stars and eventual Cash Cows, but they could just as easily absorb effort with little return. These opportunities need serious thought as to whether increased investment is warranted.

Leadership a firm sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on the structure of the industry. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors. A low cost producer must find and exploit all sources of cost advantage. 2. Differentiation a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price.

1. Cost

3. Focus The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others. The focus strategy has two variants. (a) In cost focus a firm seeks a cost advantage in its target segment, (b) differentiation focus a firm seeks differentiation in its target segment. Both variants of the focus strategy rest on differences between a focuser's target segment and other segments in the industry. The target segments must either have buyers with unusual needs or else the production and delivery system that best serves the target segment must differ from that of other industry segments. Cost focus exploits differences in cost behavior in some segments, while differentiation focus exploits the special needs of buyers in certain segments.

Red Ocean Strategy Compete in existing market space Beat the competition Exploit existing demand Make the valuecost tradeoff Align the whole system of a companys activities with its strategic choice of differentiation or low cost

Blue Ocean Strategy Create uncontested market space Make the competition irrelevant Create and capture new demand Break the valuecost tradeoff Align the whole system of a companys activities in pursuit of differentiation and low cost

Business Mission Marketing Objectives. Situation analysis ( SWOT / TOWS) Target Market Selection Marketing Mix ( Product, price, place, promotion) . Implementation Evaluation and Control .

(1) A Purpose Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the needs of all stakeholders (including employees, and society at large?) (2) A Strategy and Strategic Scope A mission statement provides the commercial logic for the business and so defines two things: -The products or services it offers (and therefore its competitive position) - The competences through which it tries to succeed and its method of competing (3) Policies and Standards of Behavior A mission needs to be translated into everyday actions. For example, if the business mission includes delivering outstanding customer service, then policies and standards should be created and monitored that test delivery.

(4) Values and Culture The values of a business are the basic, often un-stated, beliefs of the people who work in the business. These would include: Business principles (e.g. social policy, commitments to customers) Loyalty and commitment (e.g. are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?)

What role does the mission statement play in marketing planning? In practice, a strong mission statement can help in three main ways: It provides an outline of how the marketing plan should seek to fulfil the mission It provides a means of evaluating and screening the marketing plan; are marketing decisions consistent with the mission? It provides an incentive to implement the marketing plan

The SMART criteria (an important concept which you should try to remember and apply in exams) are summarised below: Specific - the objective should state exactly what is to be achieved. Measurable - an objective should be capable of measurement so that it is possible to determine whether (or how far) it has been achieved Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant - objectives should be relevant to the people responsible for achieving them.
Ex:Decrease or remove potential customers' resistance to buying our product, leading to a 20 percent increase in sales that are closed in six months or less.

SWOT : Internal: Strength , Weakness External : Opportunities, Threats

TOWS :
Strategies Opportunities Threats Strength Weakness

Two important factors to consider when selecting a target market segment:

The attractiveness of the segment

The fit between the segment and the firm's objectives, resources, and capabilities.

The following are some examples of aspects that should be considered when evaluating the attractiveness of a market segment: Size of the segment (number of customers and/or number of units) Growth rate of the segment Competition in the segment Brand loyalty of existing customers in the segment Attainable market share given promotional budget and competitors' expenditures Required market share to break even Sales potential for the firm in the segment Expected profit margins in the segment

Who are the potential customers? What are they like? Where can I find them? How can I reach them?
Geographic attributes Demographic attributes Psychographic attributes

A product can be a physical item, a service, or an idea. Describe in detail your products or services in terms of the features and benefits they offer customers. Describe what you need to have or do to provide your product or service (how it's produced).

List the price of your products and describe your pricing strategy. List price ranges for product lines.

lipsticks "ranging in price from $5.00 to $15.00 per item

Describe any price flexibility or negotiating room, as is common with large purchases such as houses or cars.
Outline any discounts you offer for long-term customers, bulk purchases or prompt payment. Also, include the terms of sale, such as "net due in 30 days," extended payment plans, and whether you accept credit cards.

Describe how your products and customers "meet" or come together through sales and distribution. Describe your sales philosophies and methods. Do you employ an aggressive sales method for a large number of quick sales, or a relaxed method where the emphasis is on having customers feel comfortable to come back another time even if they don't buy now? Do you use contract sales people or employees? Explain your approach to sales issues. Describe your distribution system. (Where will your product be placed so customers have access to it?) A few points about distribution to address in your marketing plan are:

Is the exchange of the product made in a store? Through the mail? Through a direct sales representative? What are your production and inventory capacities? (How quickly can you make products and how many can you store?) Are there cyclical fluctuations or seasonal demands for your products? For example, if you produce Christmas decorations, how will you manage peak production and sales periods as well as slow periods? Do you sell to individuals or to re-sellers? Your company may use more than one method. For example, you may sell directly to customers who place large orders but also sell to customers who buy small quantities of your product through retail outlets.

Promotion Plan A promotion plan describes the tools or tactics used to accomplish your marketing objectives.
Promotional mix It is helpful to define the five main elements of the promotional mix before considering their strengths and limitations.

Advertising Advertising is any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across).
Direct marketing Direct marketing creates a direct relationship between the customer and the business on an individual basis. Personal Selling Personal selling refers to oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

If your marketing objective is to: Create awareness of baby care products among mothers of newborns.

Then tools or tactics might be: Advertise in baby care or motherhood magazines. Distribute product samples to obstetricians. Offer free baby care seminars to expectant mothers Distribute free samples or discount coupons at high school football games. Sponsor an event attended by teens.

Increase sales of potato chips to teens.

We will see marketing continue to move from one-way marketing methods to two-way communication with consumers. Businesses will begin to see that the only marketing that truly works with consumers is relationship marketing and really taking the time to listen to what they want and what they desire. For businesses in the next decade, it will become increasingly important to monitor their brands and reputations online and to be aware of what's being said as well as do any damage control and address any issues that arise in a timely if not immediate fashion. Traditional Marketing Continues to Diminishes Consumers Will Determine Value

Mobile Marketing Social Marketing Integration Real-Time Search Marketing Loyalty Marketing

In your marketing plan you focus on the what and why, but in the implementation process you focus on the who, where, when, and how.
Resources , Cost, Control

In order to properly implement your marketing plan you must: Be sure to always check your progress. Know what's working and what isn't. Be sure and reward employees for jobs well done. When goals are met, deadlines, etc, make sure to congratulate your people. Always try new things. Never sit on your hands. The market is always changing, as such, so should you.

Not jump ship too soon. Give you plan time to work. If its not working, don't give up. Work with your team, let them help you succeed
Ask for feedback. Ask companies you work with how you are doing. Ask team members if they are pleased with how the "plan" is going and how it may be improved.

Control : Steps that an organization takes to ensure that its marketing plans are successful. a. Setting standards based on plans b. Measuring performance against standards c. Correcting deviations from standards and plans

Evaluation : Techniques used after the marketing plan period to analyze success in achieving individual marketing objectives and to more broadly assess the entire organizations marketing efforts
a. b. c. d. e. f.

Sales analysis Market-share analysis Marketing cost and profitability analysis Efficiency ratios Marketing-effectiveness rating review Marketing audit

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