00 fundamentals of marketing 1 slide

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Samuel [email protected] www.dunya.edu.af

University of Management, Economics & Finance

Dunya Institute of Higher EducationUndergraduate Degree

Marketing Course – Fundamentals of Marketing

Lead by Samuel Wee

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Dunya Institute of Higher EducationAgenda

� Kick-Off: Self Introduction.

� Guidelines.

� Agreement on deliverables.

� Course content.

�What do you want to walk away?

“Learning is a treasure that will follow its owner everywhere.”– Chinese Proverb.

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Dunya Institute of Higher Education

� All About Marketing.

� Basic Definition.

� The Marketing Mix.

�Marketing Mix Decision.

“He who fails to plan, plans to fail.”– Proverb quotes.

Fundamentals of Marketing

� The Product Life Cycle.

� Preparation and Planning.

�Marketing Plan.

� Planning Marketing Ideas.

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Dunya Institute of Higher EducationAll About Marketing

“The fact is, everyone is in sales. Whatever area you work in, you do have clients and you do need to sell.”

– Jay Abraham, CEO of Abraham Group.

� Activities to meet customer needs & return value.

�Marketing Analysis.� Customers or markets needs.

� Products or service to meet needs.

� Customer preference.

� Competitors.

� Pricing strategy.

�Market Research.

�Ongoing Promotions.

� Advertising.� Public Relations.

� Sales.

� Customer Service.

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Dunya Institute of Higher EducationBasics Definition

“If you do build a great experience, customers tell each other about that.Word of mouth is very powerful.”

– Jeffrey Preston Bezos , founder, president, chief executive officer and chairman of Amazon.com.

� Basic Definition.

� Advertising.

� Promotion.

�Marketing.� Public Relations.

� Publicity.

� Sales.

� An example of the definitions-.

�Marketing Basics.

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� The Marketing Mix.

� Product.

� Price.

� Place (Distribution).

� Promotion.

Marketing Mix

“Any communication or marketing professional needs cross-cultural research and communication skills to be able to succeed in the future.”– Marye Tharp, marketing and advertising consultant and contractor.

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Dunya Institute of Higher EducationMarketing Mix Decisions

“Business has only two functions - marketing and innovation.”- Milan Kundera, French writer of Czech origin.

Product

Functionality

Apperance

Quality

Packaging

Brand

Warranty

Service / Support

Price

List Price

Discounts

Allowances

Financing

Leasing options

Place

Channel members

Channel motivation

Market coverage

Locations

Logistics

Service levels

Promotion

Advertising

Personal selling

Public relations

Message

Media

Budget

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� Introduction Stage.

�Growth Stage.

�Maturity Stage.

� Decline Stage.

Product Life Cycle

“We make a living by what we get, we make a life by what we give.”- Sir Winston Leonard Spencer Churchill , was a British politician.

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Dunya Institute of Higher EducationMarketing Plan

“Make it simple. Make it memorable. Make it inviting to look at. Make it fun to read.”– Leo Burnett, was an advertising executive .

�What business are you in?

�Objective of Enterprise

�Generic Strategies

� Pricing

� Promotion

� Distribution

� The Environment

� The Prospect

� The Product / Service

� The Competition

� The Enterprise

� Development

� Production

�Marketing / Sales

� Customer Service

� Conclusion

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“Business has only two functions - marketing and innovation.”– Milan Kundera, Czech and French writer .

Production-Oriented Marketing-Oriented

Company Answer Answer

Universal Studios We make movies. We market entertainment.

Revlon Cosmetics “In the factory we “In the drug store we sell hope.”

- its president said make cosmetics.”

Mountain Bell We operate a We market a communication

telephone company. system

Lennox We make furnaces We provide a comfortableand air conditioners. Climate in the home.

Head Ski we make skis. We market recreation, exercise,

ego-building, and a chance to

meet fun people.

Union Pacific We run a railroad. We offer a transportation and

material-handling system.

What Business Are You In?

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“If you don't see yourself as a winner, then you cannot perform as a winner.”– Hilary Hinton "Zig" Ziglar , American author, salesperson, and motivational speaker.

HMA / HCS: Invest best resources in

support of offering.

HMA / LCS: Concentrate on strengthening enterprise; Use offering as stepping stone.

LMA / HCS: Effective marketing and sales

effort to generate profits.

LMA / LCS: Promote offering to supports or

absorbs overheads of profitable segment;

Divest offering.

Key:MA = Market Attractiveness

CS = Competitive Strengths

H = High L = Low

Objective of Enterprise

Absorb or

Divest

Low

High

M a r k e t A t tr a c t iv e n e s s

High LowC o m p e t i t i v e S t r e n g t h s

Full

SupportStrengthen

Marketing

Sales Efforts

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Cost Leadership Strategy:

Profitable quality product or

service at competitive cost.

Differentiation Strategy:

Profitable product or service,

perceived as unique.

Focus Strategy:

Intense form of either strategy to address a focused segment.

Generic Strategy

Differentiation Overall

Cost Leadership

F O C U S

Low Cost PositionUniqueness PerceivedBy the Customer

Industry wide

Particular

Segment Only

Strategic Advantage

Strategic Target

Three Generic Strategies

“The strongest principle of growth lies in human choice.”– Mary Anne (Mary Ann, Marian) Evans, aka George Eliot, was an English novelist.

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“The moment you make a mistake in pricing, you're eating into your reputation or your profits.”– Katharine Paine, journalist.

Skimming Strategy:

Differentiated products that can justify high price, with minimal desire

for significant market penetration and control.

Market Penetration Strategy:Rapid market penetration for eventual market control and short-term

income not so critical.

Comparable Pricing Strategy:

If not market leader, price offer comparable to competitors.

Pricing

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“If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”

– Jeffrey Preston Bezos , founder, and chairman of Amazon.com.

Push Strategy:

“Push“ offering into marketplace - Generous discounts to channels of

distribution, with minimum advertising.

Pull Strategy:

“Pull" prospects into the various channel outlets - Direct interface with end

user through advertising, and minimise use of channels of distribution.

Promotion - Strategy

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Product Comparison advertising:

Similar market offering, with comparative features.

Product Benefit advertising:

Promote new approach to solving use needs, with no comparison to

competitors or old approaches.

Product Family advertising: Offering is part of group or family, benefit as a set could be useful.

Corporate advertising:

Variety of offering, where promoting enterprise identify is more beneficial.

Promotion - Advertising

“Kodak sells film, but they don't advertise film. They advertise memories.”– Theodore A. "Ted" Parker III , was an American ornithologist .

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On-premise Sales: Field sales organization visits prospect's facilities.

Direct Sales: Direct selling through Internet, telephone or mail order contact.

Wholesale Sales: Intermediaries or "middle-men" to distribute to the retailers.

Self-service Retail Sales: Self service retail methods of distribution.

Full-service Retail Sales: Full service retail distribution channel.

Distribution

“We are moving our distribution network closer to our clients.”– Mark Ernst, president and chief executive officer of H&R Block.

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Government Actions: Can support or detract from your strategy.

Demographic Changes: May support or negatively impact the growth potential of your industry and market.

Emerging Technology: May or may not favor the actions of your enterprise.

Cultural Trends: May or may not support offering's penetration of the market.

The Environment

“Innovation is the ability to see change as an opportunity - not a threat.”– Anonymous.

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Market penetration – Existing or new customer; Awareness of offering;

Competition; Growth rate of industry and demographics.

Willingness to pay - Higher price for better solution; Competitive pricing; Need for characteristics (quality, durability, ease of use, dependability, etc.)

Purchase decision time – Confidence in offering; Competitive offering;

Decision makers; Urgency of need; Rick involved.

Adoption – Critical need; Attitude to change; Significance of benefits;

barriers incorporating into daily use; Credibility of offering.

The Prospect

“Sales are contingent upon the attitude of the salesman - not the attitude of the prospect.”– William Clement Stone, was a businessman, philanthropist and self-help book author.

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Technology proprietary.

Benefits derived from offering.

Differentiated offering.

Introduction problems avoidance.

Product obsolescence.

Impact on customer's business.

Complexity of offering.

The Product / Service

“I don't design clothes, I design dreams.”– Ralph Lauren (born Ralph Rueben Lifshitz), American fashion designer and business executive.

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Factors to consider include:

� Competitor's experience.

� Staying power.

�Market position.

� Strength.

� Predictability.

� Freedom to abandon the market.

The Competition

“Competition creates better products, alliances create better companies.”– Brian Graham , baseball player, coach and manager.

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Capacity to be in low-cost production.

Ability to construct entry barriers.

Ability to sustain market position.

Prominence of your enterprise.

Competence of managerial team.

Adequacy of enterprise infrastructure.

Freedom to make critical business decisions.

Freedom from dealing with legal problems.

Your Enterprise

“Our success is a direct result of knowing how to market a brand and having the right people representing the brand.”

– Gregory John Norman , Australian professional golfer and entrepreneur.

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Strength of development manager.

Personnel competencies.

Development tools and equipment.

Development objective funding.

Manageable design specifications.

Development

“The growth and development of people is the highest calling of leadership.”Harvey Samuel Firestone, was founder of the Firestone Tire and Rubber Company, .

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Strength of production manager.

Economies of scale.

Technology and production experience.

Production personnel competencies.

Ability to limit suppliers bargaining power.

Ability to control raw materials and production.

Access to raw materials and sub-assembly production.

Production

“Production is not the application of tools to materials, but logic to work.”- Peter Ferdinand Drucker, was a writer, management consultant, and self-described “social ecologist,

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Dunya Institute of Higher EducationMarketing / Sales

“A business is successful to the extent that it provides a product or service that contributes to happiness in all of its forms.”

– Mihaly Csikszentmihalyi , Hungarian psychology professor.

Experience of Marketing / Sales manager.

Ability to generate good publicity.

Sales promotion techniques.

Effectiveness of distribution channels.

Advertising capabilities.

Sales capabilities.

Appropriate pricing.

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Dunya Institute of Higher EducationMarketing / Sales - Contrasts

Sales Marketing

Emphasis is on the product. Emphasis is on customers’ wants.

Company makes the product and Company first determines customers’

then figures out how to sell it. Wants and the figures out how to

make and deliver a product to satisfy

those wants.

Management is oriented to sales Management is profit-oriented.

volume.

Planning is oriented to short-term Planning is oriented to the long run, in

results, in terms of today’s products terms of new products, tomorrow’s

and markets. Markets, and future growth.

“No great marketing decisions have ever been made on quantitative data.”- John Sculley, American businessman,

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Dunya Institute of Higher EducationCustomer Services

“Your most unhappy customers are your greatest source of learning.”- William Henry "Bill" Gates III , business magnate, philanthropist, author, and chairman of Microsoft,

Experience of Customer Service manager.

Availability of technical support.

Sales promotion techniques.

Unique support to the eyes of customer.

Accessibility of service outlets for customer.

Reputation of customer service.

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Dunya Institute of Higher EducationStrategy Assessment – Market Entry Cost

“Only those who dare to fail greatly can ever achieve greatly.”- Robert Francis "Bobby" Kennedy, was an American politician,

Marketing strength.

Low cost materials and effective production.

Experience of enterprise.

Complexity of introduction problems.

Effectiveness of enterprise infrastructure.

Distribution effectiveness.

Technological efforts.

Adequate operating capital.

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Dunya Institute of Higher EducationStrategy Assessment – Profit Potential

“No matter how good you get you can always get better and that's the exciting part.”- Eldrick Tont "Tiger" Woods, American professional golfer.

Competitive retaliation.

Ability to construct entry barriers.

Intensity of competitive rivalry.

Ability to limit suppliers bargaining power.

Ability to sustain its market position.

Availability of substitute solutions.

Prospect's bargaining power.

Market potential for new products.

Freedom to make critical business decisions.

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Dunya Institute of Higher EducationPlanning Marketing Ideas

Quick…it’s a Marketing Must.

Who Else Needs What You Already Have?

Late Mail Delivery Helps Your Marketing.

Change Never Hurt Business Promotion.

Market for the Future!.

Test...Test...Test.

Image...Image...Image.

Vocabulary 101.

Trade Mailing Lists with Non-Competitors.

“Think big and don’t listen to people who tell you it can’t be done. Life’s too short to think small.”

– Timothy Ferriss is an American author, public speaker, and productivity guru.

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Dunya Institute of Higher EducationThought From A Great Leaders

“A person who never made a mistake never tried anything new.”– Albert Einstein, Theoretical Physicist.

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