7/30/2019 Marketing Fall'12 --- Sv 1st Term

1/40

FALL12

1

7/30/2019 Marketing Fall'12 --- Sv 1st Term

2/40

MARKETING?

Businesses like Kodak, General Motors, and Sears

seemed invincible at one time.

MARKETING

2

7/30/2019 Marketing Fall'12 --- Sv 1st Term

3/40

MARKETING

In the long run survival of everybusiness is at risk.

MICROSOFT WAL-MART DELL --- no guarantee

THE ONLY THING THAT IS CONSTANT IS CHANGE

CUSTOMERS

Needs packaged milk

Demographics old/young ratio

Lifestyle mobile phone, diet foodConsumption bottled water

Behavior tech/business edu

COMPETITORS

New technologies pager

Shifting barriers china

ENVIRONMENT

Economic car loans

Political stability

Social shopping bagsTechnological VCR

3?12/09 cc

7/30/2019 Marketing Fall'12 --- Sv 1st Term

4/40

MARKETING

So under this grim scenario how companies can survive?

4

7/30/2019 Marketing Fall'12 --- Sv 1st Term

5/40

MARKETING

THE MARKETING PROCESS

UNDERSTANDMARKET &CUSTOMER

DESIGN AMARKETINGSTRATEGY

INTEGRATEDMARKETINGPLAN4 Ps

BUILD

CUSTOMERRELATIONSHIP

S

CREATE

PROFITS &CUSTOMER

EQUITY

5

7/30/2019 Marketing Fall'12 --- Sv 1st Term

6/40

MARKETING

ELEMENTS OF A MODERN MARKETING

SYSTEM

SUPPLIERS

COMPANY(MARKETER)

COMPETITO

RS

MARKETINGINTERMEDIARIE

S

FINALUSERS

E N V I R O N M E N T 6

7/30/2019 Marketing Fall'12 --- Sv 1st Term

7/40

MARKETING

What is a value proposition? P 9

?How the product will serve target customersHow it will differentiate and position itselfCW

7

7/30/2019 Marketing Fall'12 --- Sv 1st Term

8/40

MARKETING

STARTINGPOINT

FACTORYEXISTINGPRODUCTS

SELLING &PROMOTING

PROFITS THRUSALES VOLUME

FOCUS MEANS ENDS

MARKET CUSTOMERNEEDS

INTEGRATEDMARKETING

PROFITS THRUCSTMR STFCTN

T H E S E L L I N G C O N C E P T

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

8

7/30/2019 Marketing Fall'12 --- Sv 1st Term

9/40

MARKETING

SOCIETAL MARKETING

Consumer short-run wants vs Consumer long run welfare

IPM (Ciba-Geigy)SOCIETY

(HUMAN WELFARE)

CONSUMERS(WANT SATISFACTION)

COMPANY(PROFITS)

9

7/30/2019 Marketing Fall'12 --- Sv 1st Term

10/4010

LOYALTY

Loyalty is the single most importantdriver of long-term profitability.

LOYALTY = PROFIT

7/30/2019 Marketing Fall'12 --- Sv 1st Term

11/40

MARKETING

CUSTOMER EQUITY P 22

HIGH

PROFITABILITY

SHORT-TERMCUSTOMERS

LOWPROFITABILITY

LONG-TERMCUSTOMERS

BUTTERFLIES

STRANGERS

TRUE FRIENDS

BLANKETS

CUSTOMER RELATIONSHIP GROUPS

11

7/30/2019 Marketing Fall'12 --- Sv 1st Term

12/40

12

Immediacy in profits and results isdeceptive

RYK/MLTN mangoes

7/30/2019 Marketing Fall'12 --- Sv 1st Term

13/40

MARKETING

CORPORATE & MARKETING

13

CHAPTER 2

7/30/2019 Marketing Fall'12 --- Sv 1st Term

14/40

MARKETING

STEPS IN STRATEGIC PLANNING

MISSIONFUNCTIONAL

STRATEGIES

BUSINESSPORTFOLI

O

CORPORATE

OBJECTIVES & GOALS

PP 35/36

14

mc1 13/09 c/c 15/9

7/30/2019 Marketing Fall'12 --- Sv 1st Term

15/40

MARKETING

PLANNING AT DIFFERENT MANAGEMENT LEVELS

STRATEGIC PLANNING BY TOP MANAGEMENTDefine the business MISSIONSet corporate goals & objectives.Establish the business portfolio.Set strategic marketing direction.

BCG Matrix P38 15

mc1 13/09TACTICAL PLANNING BY MIDDLE MANAGERS

Develop tactical plan & strategies to achieve corporateobjectives.

OPERATIONAL PLANNING BY SUPERVISORYMANAGERS

Develop action plans to implement tactical plans.

7/30/2019 Marketing Fall'12 --- Sv 1st Term

16/40

MARKETING

MARKET

PENETRATION

DIVERSIFICATION

MARKET

DEVELOPMENT

PRODUCT

DEVELOPMENT

EXISTING

PRODUCTS

NEW

MARKETS

EXISTING

MARKETS

NEW

PRODUCTS

THE PRODUCT / MARKET EXPANSION GRID

16c/c 19/9

7/30/2019 Marketing Fall'12 --- Sv 1st Term

17/40

MARKETING

MARKETING STRATEGY?FIG.2.4 P45

MARKET SEGMENTATION

TARGETING

MARKET DIFFERENTIATION

POSITIONING P46

INTEGRATED MARKETING MIX FIG2.5 P46 17

7/30/2019 Marketing Fall'12 --- Sv 1st Term

18/40

MARKETING

PRODUCTVariety

QualityDesign

FeaturesBrand namePackaging

Services

PLACEChannels

CoverageAssortmentsLocationsInventory

Transportationlogistics

PROMOTIONAdvertising

Personal sellingSales promotionPublic relations

PRICEList price

DiscountsAllowances

Payment periodCredit terms

TARGETCUSTOMERS

INTENDEDPOSITIONING

18mc2 13/09

m/c1 17/9

7/30/2019 Marketing Fall'12 --- Sv 1st Term

19/40

MARKETING

PLANNINGDevelop Strategic

Plans

DevelopMarketing Plans

IMPLEMENTATION

Execute Plans

CONTROL

Measure Results

Evaluate Results

Take CorrectiveAction

S W O T A N A L Y S I S

19

7/30/2019 Marketing Fall'12 --- Sv 1st Term

20/40

MARKETING

STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

INTERNAL

NEGATIVEPOSITIVE

EXTERNAL

SWOT ANALYSIS

20

7/30/2019 Marketing Fall'12 --- Sv 1st Term

21/40

MARKETING

1 Secret formula, unique,difficult to copy plant andmanufacturing process.2 All managers &directors, close relatives.

3 High profitability.

1 Low credibility inmarket.2 Very estranged relations

with the largest consumer.3 Threat of imports from

China.4 High profitability.

1 Lack of professionalism.2Very old plant.

3 Resistance to change.4 All managers & directors,close relatives.

1 Monopoly in the market.2 Possibility of export - Turkeyand other M Eastern areas.

3 New emerging markets.4 Established name.

INTERNAL

NEGATIVEPOSITIVE

EXTERNAL

PESTICIDE CO.

21

7/30/2019 Marketing Fall'12 --- Sv 1st Term

22/40

MARKETING

22CHAP 3

7/30/2019 Marketing Fall'12 --- Sv 1st Term

23/40

MARKETING

MICRO ENVIRONMENT

The Company --- various departments

Suppliers --- or partners?

Marketing Intermediaries --- resellers, financial intermediaries, distributiocompanies, mktg srvcs. agencies

Customers --- consumer, business, resellers, government, international

Competitors --- positioning

Publics --- financial, media, government, NGOs, neighborhood,general public, internal public

23

7/30/2019 Marketing Fall'12 --- Sv 1st Term

24/40

MARKETING

MACRO ENVIRONMENT

Demographics --- population size, density, location, age, gender race occupation

Economic forces --- factors that affect consumers buying power andspending 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

24

7/30/2019 Marketing Fall'12 --- Sv 1st Term

25/40

MARKETING

25

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

m/c2 17/9

m/c 1 20/9

7/30/2019 Marketing Fall'12 --- Sv 1st Term

26/40

MARKETING

INFORMATION

GING MARKETING INFORM

26

7/30/2019 Marketing Fall'12 --- Sv 1st Term

27/40

DATA

INFORMATION

KNOWLEDGE

27

MARKETING

INFORMATION

7/30/2019 Marketing Fall'12 --- Sv 1st Term

28/40

MARKETING

INFORMATION

KNOWLEDGE

28

EXPLICIT TACIT

DISCUSS FIG.4.1 P 85Marketing Information System

7/30/2019 Marketing Fall'12 --- Sv 1st Term

29/40

MARKETING

INFORMATION

29

SOURCES OF MARKETING INFORMATION

Internal Data,

Marketing Intelligence,

Marketing Research.

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

30/40

MARKETING

INFORMATION

30

Internal Data

Consumer and market information obtained from data sources within thecompany.

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

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

31/40

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.

31

MARKETING

INFORMATION

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

32/40

BUSINESS

INTELLIGENCE

Government/

Regulatory

Technological

Cultural &

Social

Demographic

Economic

Competition

32

MARKETING

INFORMATION

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

33/40

MARKETING

INFORMATION

33

Marketing Intelligence

Systematic collection and analysis of publicly availableinformation 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

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

34/40

MARKETING

INFORMATION

34

Marketing Research

Systematic design, collection, analysis, and reporting of data

relevant to a specific marketing situation facing an organizatio

MR facilitates understanding of different marketing-related

phenomena e.g. purchasing behavior, customer perceptions about

various things and issues, characteristics of a particularpopulation, market potential, market share, effectiveness of

various marketing programs, media effectiveness etc. etc.

m/c 1 24/9

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

35/40

MARKETING

INFORMATION

35

Defining theProblem and

Research

Objectives

Developing theResearch Plan for

collecting

information

Implementing theResearch Plan----

Collecting and

analyzing the data

Interpreting andreporting 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

m/c 2 20/9

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

36/40

MARKETING

INFORMATION

36

EXPLORATORY RESEARCH

DESCRIPTIVE RESEARCH

CAUSAL RESEARCH

Secondary Data Primary Data

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

37/40

MARKETING

INFORMATION

37

Observational Research

Ethnographic Research

Survey Research

Experimental Research

Focus Group Interviews

Depth InterviewsSAMPLINGTypes of samplesTABLE 4.4 P 100

MARKETING

7/30/2019 Marketing Fall'12 --- Sv 1st Term

38/40

MARKETING

INFORMATION

38

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)Managing detailed information about individual customers

and carefully managing customer touch points in order

to maximize customer loyalty.

CibasReps. visits to farmers farms...

Essential information about large farmers.

United Airline employees initiative

RFIDs use in CRM.

m/c 2 24/9

m/c 2 27/9 rpt.

MARKETING ETHICS

&

7/30/2019 Marketing Fall'12 --- Sv 1st Term

39/40

39

SOCIAL RESPONSIBILITY

ADVERTISING & PUBLIC RELATIONS

7/30/2019 Marketing Fall'12 --- Sv 1st Term

40/40