Marketing Management Process o Analyzing market opportunities ï‚§ Market research...
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Marketing Management Process Analyzing market opportunities Market research and information system Understanding consumer market Understanding organizational market Researching and selecting target market Measuring and forecasting demand Market segmentation, Targeting and positioning Developing the marketing mix Designing product Pricing product Placing product , Promotion strategies
Managing the marketing effort Competitor analysis and competitive marketing strategies Planning, implementing, organizing and controlling marketing programs. Analyzing market opportunitiesSLIDE NUMBER 8 & 9
Business operates within a fast changing and unpredictable environmentS In Com In CusDemographic CompetitorsPublicEconomicSocialNaturalLegalPoliticalMacro environmentMicro EnvironmentCore marketing System
Marketing environment: consists of the actors and forces that affect the companys ability to develop and maintain successful transactions and relationship with its target customers. The micro environment: consists of the actors in the companys immediate environment that affect its ability to serve its market. The macro environment: consists of the larger societal forces that affect all the actors in the micro environment.
Customer AnalysisPerformance Analysis :Profitability, sales, customer satisfaction, product quality, relative cost etc.Competitor AnalysisDeterminants of strategic option: past and current strategies, strategic problems, organizational capabilities and constraints, financial resources and constraints, s & wMarket AnalysisEnvironmental analysisO & T, trends and strategic UncertaintiesStrategic S, W, problems, constraints and uncertainties
Success probability depends on whether: companys business strengths match the key success factors (KSF) companys business strengths exceed those of its competitorsKey Success Factors: Assets and competencies that provide the basis for competing successfully. Two types of KSF: Opportunity : an arena of need in which a company can perform profitablyOpportunities can be listed and classified according to their attractiveness and the success probability
Strategic strengths (superior competencies): Those at which a company excels. These assets and competencies are superior to those of competitors. They provide a base of advantage. A strategic competency is something a business unit does exceptionally well that has strategic importance to that business ( e.g. manufacturing or promotion). Strategic necessities : minimum skills and assets that a business must possess to even consider operating in the chosen market/industry. They do not necessarily provide an advantage because others have them. But their absence will create a substantial weakness. Business with only strategic necessities are usually market followers.A strategic asset is a resource that is strong relative to that of companys competitors (e.g. brand name, installed customer base).
Impact analysis is a tool that help to evolve that threat into strategyAn environmental threat : a challenge posed by an unfavourable trend or development that would lead, in the absence of defensive marketing action, to sales or profit deterioration.
(1). The impact of a strategic uncertainty : Each strategic uncertainty involves potential trends or events that could have an impact on present, proposed and even potential SBUImpact Analysis: ( assessing systematically the impact and immediacy of the trends and events that underlie each strategy uncertainty) The assessment of the relative importance of strategic uncertainties. Which uncertainties merit intensive investment in information gathering and in-depth analysis, and which merit only a low key monitoring effortThe extent to which a strategic uncertainty should be monitored and analyzed depend on its (1)impact and (2)immediacy
(2) The immediacy of a strategic uncertainty is related to The probability that the involved trends or events will occurThe time frame of the trends or eventsThe reaction time likely to be available, compared with the time required to develop and implement appropriate strategyThe impact of a strategic uncertainty is related to:The extent to which it involves trends or events that will impact existing or potential SBUs The importance of involved SBUsThe number of involved SBUs
Strategic Uncertainty CategoriesLowHighImpactImmediacyLowHighMonitor & Analyze:Contingent strategies consideredAnalyze in depth; develop strategyMonitorMonitor & Analyze
Major OpportunitiesHighLowMajorThreatsHighLowIdeal BusinessSpeculative BusinessTroubled BusinessMature Business
Management needs to monitor the larger forces and actors in the marketing environment if it is to keep its products and marketing practices current. For this purpose management must develop and manage information.Marketing Information System (MIS)MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Marketing Managers AnalysisPlanningImplementationControlAssessing Information NeedsDistributing InformationDeveloping InformationInternal RecordMarketing IntelligenceMarketing Decision Support AnalysisMarketing ResearchMarketing EnvironmentTarget MarketMarketing ChannelsCompetitorsPublicMacro Environmental ForcesMarketing Information SystemMarketing Decisions and communication.
Internal records system : includes reports on orders, sales, prices, inventory levels, receivables, payables, and so on. It supplies result dataMarketing Intelligence System : a set of procedures and sources used by managers to obtain their everyday information about pertinent developments in the marketing environment. This information is obtained by reading books, newspapers, and trade publications; talking to customers, suppliers, distributors, and other outsiders; and talking with other managers and personnel within the company . But, this system is casual, and valuable information could be lost and or arrive at too late.
Additional steps to improve the quality and quantity of MI Train and motivate the sales force to spot and report new developments. Motivate distributors, retailers, and other middlemen to pass along importance intelligence. Purchase information from outside suppliers Establish an internal marketing information center to collect and circulate marketing intelligence. Marketing ResearchThe systematic and objective identification, collection, analysis, and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing
Problem Definition: PD in any research is the most important issue. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Marketing research ProcessA problem exists when we do not have enough information to answer a question. Criteria of a problem It should be original: The purpose of research is to fill the gaps in existing knowledge to discover new facts and not to repeat already known facts. Therefore, a preliminary survey of the existing literature in the proposed area of research should be carried out to find out the possibility of making original contribution.
It should be neither very general nor very specific: If the problem is very general, it is usually too vague to be tested. If the problem is very specific, it is usually too narrow to be important or consequential. Some kind of compromise must be made between generality and specificity. It should be solvable: a problem may be unsolvable due to two major reasons:1. It may concern some supernatural of amorphous phenomena.The impossibility of obtaining relevant data renders the problem unsolvable. 2. It cannot be operationally defined. An operational definition of a problem specifies the activities or operations the investigator must perform in order to measure it. Once the method of recording and measuring a phenomenon is specified That phenomenon is said to be operationally defined.
It should be feasible: Feasibility should be checked against the following considerations: Study design Access to organization and respondents Sample or universe to be tested Source of data Method of collecting data Type of variables (nominalordinal) involved Selection of scales of measurement and statistic Time required for study and its availability Funds required and their availability
Development of An Approach to the Problem: Includes formulating an objectives or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. Research Design Formulation: Framework or blueprint for conducting a marketing research design. RD details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making.
Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also part of the research design. Formulating the research design involves the following steps:2. Design the exploratory, descriptive, or causal phases of the research3. Methods of collecting quantitative data (survey, observation, and experimentations)1. Definition of the inf