Sorin Anagnoste

1. Introduction

2. External environment of an organization and its stakeholders

3. Types of organizations

4. Steps for setting up a company

5. Organizational structures (AT Kearnet presentation)

6. Branding (guest speaker – Paul Markovits)

7. Marketing

8. Sales department (AT Kearney)

9. Human resources department & Management function

10. Production, acquisition and logistics (AT Kearney)

11. Accounting, finance and investments

12. Controlling function within an organization

13. Other departments

14. Exam recap

• To explain what marketing is

• To differentiate between “needs” and “wants”

• To understand the fundamental marketing concepts

• To explain why and how companies learn about their customers

• To describe the main tools of marketing research

• To identify and comment on the four elements of a company’s

marketing mix

• Marketing is more than a fancy image, a clever commercial, a special contest or a discount

• Name some examples of marketing questions! • Marketing involves a lot of planning and execution in order to develop a new

product, set its price, market-entry date, distribute it, promote it and convince people to buy it

• Marketing involves also understanding customers’ needs, their buying behavior,

creating consumer awareness, providing customer service and maintaining long term relationships

• Product marketing

• Service marketing

• Place marketing

• Cause related marketing

Need= a difference between your actual state and your

ideal state

Wants= based on needs, but more specific

Marketers channel the customers’ needs for various products and services into wants ( the desire to purchase a specific brand) by exposing you to alternatives

E.g. need= thirst, want= Coca-Cola or Pepsi

Needs/ Wants

Relationship concept

Building and maintaining a long term relationship with key parties;

The relationship with the customer = ongoing process , it doesn’t

end with the sale transaction

CRM = customer

relationship management

Cost to acquire a new client

= 5 * cost of keeping an old

client

Marketing concept

Determine the needs and wants of target markets and shape and

deliver accordingly products and services Outside-in perspective

Selling concept Consumers will buy whatever they sale

Focus on distribution and promotion

Inside-out perspective which works in a seller’s market; in a buyers’ market companies need to become more customer-centered

Product concept Rely on product’s quality, performance and innovative

features;

Devote their marketing resources to make continuous

improvements

Better products # better sales

Also innovative products need marketing

Today’s customers are less loyal (more informed, more sophisticated, a greater

variety, time pressure)

Why satisfying customers is important?

-Cost to acquire a new client = 5 * cost of retaining an old client

-Long term customers buy more, are less price sensitive, take less of a company’s time

-Satisfied customers = best advertisement for

a product

-Dissatisfied customers may tell 20 other persons about their bad experience ( retention specialist)

Periodical analysis of the customer database (e.g. Vodafone, Generali, BCR) - indicators

Some companies promote customer loyalty

Not every customer is worth keeping

Organizational markets (larger quantities)

industrial markets = companies that buy goods and services to produce their own goods and services

reseller markets= wholesalers and retailers

government market

Consumer markets= individuals and households that purchase goods and services for personal use

Detailed marketing research studies - in order to understand buyer’s decision process and factors that influence the buying decision, to gather information about markets etc.

Tools: Focused interviews with 6-10 persons = focus groups

Surveys and questionnaires

Experiments

Blind tests

Telephone or personal interviews

When used inappropriate, research can be misleading

Mystery shoppers

Testing lab boutiques – observe and analyze customers’ reactions

Database marketing- companies specialized in data collection can provide direct marketers with customized mailing lists that target groups with the desired characteristics

Treating customer individually- one-to-one marketing - individualizing offers, different website display, birthday letters and presents etc.

Need recognition Information search Evaluation of alternatives Purchase

Post-purchase evaluation

(eventually cognitive

dissonance)

Buyers’ decision making process

Cognitive dissonance (buyer’s remorse)= anxiety following a purchase

(when the buyer reconsiders all the alternatives rejected) that prompts

buyers to seek reassurance about the purchase

Calls for a prompt reaction of

marketers to reinforce the sales

with guarantees, phone calls to

check customer’s satisfaction,

follow-up letters etc.

Examine current market situation:

Reviewing performance

Evaluating competition

Examining internal strengths and

weaknesses

Analyzing external environment

Assessing opportunities and setting

objectives:

Market penetration, new product

development, geographic expansion,

diversification

Reaching a certain market share (a

company’s portion of the total sales

within a market)

Developing the marketing strategy:

Market segmentation- grouping of

customers with similar characteristics,

behavior and needs (using

demographics, geographics,

physiographics)

Defining your target market

Positioning your product

Developing the Marketing Mix

Marketing Mix (4Ps)

Product policy •Brand •Design •Packaging •Services •Warranty

Price policy •A critical decision because in a company’s marketing mix is the only element that produces revenue •Discount and sales policy (quantity, time, loyalty, special offer) •Price bundling •Payment conditions

Place (Distribution) Policy •Distribution channels •Logistics

Promotion Policy •Advertising •Public Relation (PR) •Sponsoring •Product placement •Event marketing •Personal selling •Direct marketing •Sampling •Online communication

Source: http://brandirectory.com/league_tables/table/global-500-2012, 2012