Post on 17-Jan-2016
Organizational Resource Management
ORM 6
MARKETING
What is Marketing?
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders
Marketing management is the art and science
of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and
communicating superior customer value
What is Marketing Management?
What is Marketed?
Goods Services Events and
experiences Persons
Places and properties
Organizations Information Ideas
What is marketing?
The process of building profitable customer relationships by creating value for customers and capturing value in return
1) Identifying customer needs
2) Managing delivery to customers
3) Achieving customer satisfaction
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-7
Marketing Mix and the Customer
Four Ps Product Price Place Promotion
Four Cs Customer
solution Customer cost Convenience Communication
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-8
Core Concepts
Needs, wants, and demands
Target markets, positioning, segmentation
Offerings and brands
Value and satisfaction
Marketing channels Supply chain Competition Marketing
environment Marketing planning
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-9
Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-10
Marketing Management Tasks
Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Create long-term growth
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Design a customer-driven marketing strategyMarketing Management Philosophies
Design a customer-driven marketing strategyMarketing Management Philosophies
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Societal Marketing ConceptSocietal Marketing Concept
• Consumers favor products that are available and highly affordable•Improve production and distribution
•Consumers favor products that offer the most quality, performance, and innovative features
•Consumers will buy products only if the company promotes/ sells these product
•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors
•Focuses on needs/ wants of target markets & delivering superior value•Society’s well-being
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Marketing & Sales Concepts ContrastedMarketing & Sales Concepts Contrasted
FactoryExistingProducts
Sellingand
Promoting
ProfitsthroughVolume
MarketCustomer
NeedsIntegratedMarketing
Profitsthrough
Satisfaction
The Selling ConceptThe Selling Concept
The Marketing ConceptThe Marketing Concept
StartingPoint
Focus Means Ends
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Societal Marketing ConceptSocietal Marketing Concept
Society(Human Welfare)
Society(Human Welfare)
Consumers(Wants)
Consumers(Wants)
Company(Profits)
Company(Profits)
SocietalMarketingConcept
SocietalMarketingConcept
MARKET RESEARCH
IT IS THE SYSTEMATIC “ DESIGN, COLLECTION, ANALYSIS AND REPORTING OF DATA AND FINDINGS RELEVANT TO A SPECIFIC MARKETING SITUATION”
The Marketing Mix
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Construct a marketing program that delivers superior value 4 “P” s of Marketing
Transforms the marketing strategy into action Includes the marketing mix and the 4P’s of
marketing Product Price Place Promotion
Goal 3: Identify elements of a customer-driven strategy.
The Marketing Mix
7 “P” s of Marketing
Price
PRICE. You must set a price that allows you to make a profit while also meeting your competitors’ prices or beating them. It also has to be the right amount to allow you to maintain and increase your customer base.
Product
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Levels of ProductLevels of Product
BrandName
QualityLevel
Packaging
Design
FeaturesDelivery& Credit
Installation
Warranty
After-Sale
Service
CoreBenefit
orService
CoreBenefit
orService
ActualProduct
ActualProduct
CoreProduct
CoreProduct
AugmentedProduct
AugmentedProduct
Promotion
PROMOTION Mix The specific mix of advertising, personal
selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.
7 “P” s of Marketing
Place
PLACE. Place is all about how your customers can get a product. The place also takes into consideration how the product will get to customers, meaning whether you will sell it directly or through a retailer or online.
7 “P” s of Marketing
People
PEOPLE. The most important people in your business are the people who work with and for you. Hiring the right people is one of the most important things you will do for your business.
7 “P” s of Marketing
Process
PROCESS. Your process and procedures includes everything that you did to get your product to the consumer including all of the planning and paperwork and marketing that it took to do it.
7 “P” s of Marketing
Physical Environment
Managing Marketing Organization
Building a Creative Marketing Organization
Developing a company-wide passion for customers
Organizing around customer segments instead of products
Understanding customers through qualitative and quantitative research
Corporate Social Responsibility
Socially responsible behavior Ethical behavior Legal behavior
The Control Process
What do we want to achieve? What is happening? Why is it happening? What should we do about it?
Types of Marketing Control
Annual plan control :Responsibility of top and middle management .Purpose is to examine whether planned results are achieved
Profitability control: Responsibility of marketing controller .Purpose is to examine where the company is making and losing money
Efficiency control: Responsibility of line & staff management and / or marketing controller .Purpose is to evaluate and attempts to improve spending efficiency of marketing expenditures
Strategic control: Responsibility of top management and marketing auditor .Purpose is to Examine whether company is pursuing its best opportunities with respect to markets, products & channels
What is a Marketing Audit?
A marketing audit is a comprehensive, systematic, independent, periodic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities, and recommending a plan of action to improve the company’s marketing performance.
Some Branding Strategies
MANAGING BRANDS FORCOMPETITIVE ADVANTAGE• Brand Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s.
• Brands have a powerful influence on consumer behavior.
BRAND LOYALTY
• Measured in three stages:
• Brand recognition Consumer awareness and identification of a brand.
• Brand preference Consumer reliance on previous experiences with a product to choose that product again.
• Brand insistence Consumer refusal of alternatives and extensive search for desired merchandise.
Sub-branding
Creating new brands which are part of the parent brand family Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano
Umbrella branding
When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand
E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.
Flanker Brand
Different brand name – same product Purpose: Pre-empt competition, cover the market more
completely (protect your flanks) Problem: some cannibalization, reduction in sales volume
is expected. E.g. Thums Up and Coca Cola in India Tide and Cheer from P&G
Brand Extension
Same brand name, new product line e.g. Reebok shoes and Reebok water.
The concept of congruence determines the success of a brand extension strategy. E.g. Johnson’s baby powder and Johnson’s baby oil – high congruence.
Line Extension
Same brand name, different product in the same product line. E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM
laptops .
Activity 5
When a company market’s and brands its products through celebrities like sports/ film stars, how does it help them?
Do consumers buy products just because the sports/ film stars have endorsed the products?
Does it add value to its brand name? How?
chap
ter Marketing Channels and
Supply Chain Management
Marketing Channels
MarketingChannelMarketingChannel
SupplyChainSupplyChain
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
Marketing Channel Functions
Specialization andDivision of Labor
Specialization andDivision of Labor
ChannelsFulfillThreeImportantFunctions
ChannelsFulfillThreeImportantFunctions
Overcoming Discrepancies of quantity, assortment, time and space
Overcoming Discrepancies of quantity, assortment, time and space
Providing ContactEfficiency
Providing ContactEfficiency
Channel Intermediaries
RetailerRetailer
MerchantWholesalerMerchantWholesaler
Agents andBrokersAgents andBrokers
A channel intermediary that sells mainly to customers.A channel intermediary that sells mainly to customers.
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
Wholesaling intermediaries who facilitate the sale of a product by representing channel member.
Wholesaling intermediaries who facilitate the sale of a product by representing channel member.
Supply Chain Management
Supply chain management (SCM) is the management of anetwork of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
Figure 15.5
Supply Chain Management
ResultsResultsofofSupply ChainSupply ChainManagementManagement
ResultsResultsofofSupply ChainSupply ChainManagementManagement
Focus on Innovative SolutionsFocus on Innovative Solutions
Competitive with focus onCustomer Satisfaction
Competitive with focus onCustomer Satisfaction
Synchronized Flow on timeSynchronized Flow on time
Customer ValueCustomer Value
Physical flow process that engineers the movement of goods
Physical flow process that engineers the movement of goods
Communicator of customer demand frompoint of sale to supplier
Communicator of customer demand frompoint of sale to supplier
Role of Role of Supply ChainSupply ChainManagementManagement
Role of Role of Supply ChainSupply ChainManagementManagement
Role of Supply Chain Management
Benefits of Supply Chain Management
Common BenefitsCommon Benefitsof Supply Chainof Supply ChainManagementManagement
Common BenefitsCommon Benefitsof Supply Chainof Supply ChainManagementManagement
Reduced Costs Reduced Costs
Improved ServiceImproved Service
Enhanced RevenuesEnhanced Revenues
Corporate Strategic Planning
Strategic Planning
…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.
The objectives and strategies established at the top level provide the context for planning in each of the divisions and departments by divisional and departmental managers
Org Objectives Resources
Changing Environment
Strategic Fit
The Role of Strategy
CorporateMission &Objectives
Strategy:•Corporate•Business•Functional
Operating Plans
Sun Tze on Strategy
“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”
Strategic Marketing
“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.”
John Scully
Strategic Planning and Marketing Management
Includes all activities that lead to the development of a clear organizational mission, objectives, and appropriate strategies
Plays a key role in achieving an equilibrium by balancing acceptable financial performance
Prepares for inevitable changes in markets, technology, and competition, as well as in economic and political arenas
The Strategic Planning Process
Mission statement In developing a mission statement, management must
take into account three key elements The organization’s history The organization’s distinctive competitiveness The organization’s environment
Mission statement should be Achievable Motivational Specific
Missions vs. Strategic Visions
A mission statement focuses on current business activities -- “who we are and what we do” Current product
and service offerings
Customer needs being served
Technological and business capabilities
A strategic vision concerns a firm’s future business path -- “where we are going” Markets to be pursued Future technology-
product-customer focus Kind of company that
management is trying to create
Vision Statement
We want to sell a variety of
products on a daily basis to
every living person on the earth.
PepsiCo.
Vision Statement
A computer on every desk and in every home.
Microsoft
Whirlpool Mission Statement
To shape and lead the major home appliance industry globally, becoming one of the world’s great companies while creating value for shareholders, employees, customers, suppliers, government leaders and communities.
The Strategic Planning Process
Corporate Objectives & Goals
An objective is specific and has a long-range purpose Not quantified and not limited to a time period E.g. increasing the return on shareholders’
equity A goal is a measurable objective of the business
Attainable at some specific future date through planned actions
E.g. 10% growth in the next two years
What is Competitive Advantage?
“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.”
Philip Kotler “If you don’t have a competitive advantage,
don’t compete.” Jack Welch, GE
Organizational Issues
A Framework for Analyzing Organizations
Figure 15.1
People Structure
Systems Culture
People Structure
Systems Culture
External AnalysisExternal Analysis
StrategyStrategy
Internal AnalysisInternal Analysis
PerformancePerformance
Overview of Strategic Market Management
Overview of Strategic Market Management
External Analysis• Customer Analysis• Competitor Analysis• Market/submarket Analysis• Environmental Analysis
Internal Analysis• Performance Analysis• Determinants of strategic
options
Strategic Analysis OutputsStrategic Analysis Outputs
Strategy Identification, Selection, and Implementation
Strategy Identification, Selection, and Implementation
Strategy Development
Strategy Development:
Competitor Analysis Who are the existing and potential competitors? What strategic groups can be identified? What are their sales, share, and profits? What are the growth trends? What are their strengths, weaknesses, and
strategies?
Figure 15.5
Market Analysis How attractive is the market or industry and its
submarkets? What are the forces reducing profitability in the market,
entry and exist barriers, growth projections, coststructures, and profitability prospects?
What are the alternative distribution channelsand their relative strengths?
What industry trends are significant to strategy? What are the current and future key success factors?
Strategy Development:
Figure 15.5
THE VALUE CHAIN
Definition Examination of the value chain of
an enterprise to ascertain how much and at which stage value is added to its goods and/or services, and how it can be increased to enhance the product differentiation (competitive advantage).
Dr.Rashad ,skyline University College,UAE,Sharjah76
Corporate Value Chain
Strategy Development:
Strategy Development Resources investment What assets and competencies will provide the
basis for developing a robust strategy? How can they be developed and maintained? How can they be leveraged?
Figure 15.5
dr.Rashad ,skyline College,UAE,Sharjah78
Types of business-level strategy
Thanks