-1. marketing mgmt overview
DESCRIPTION
Marketing management Over ViewTRANSCRIPT
Marketing Overview
Simplicio P. Umali, Jr.Simplicio P. Umali, Jr.
A social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational objectives ( American Marketing Assn)
That an organization aims all its efforts at the satisfaction of the needs and wants of consumers at a profit.
The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
NEED: a state of felt deprivation of some basic satisfaction ( hunger, thirst, love, security, ego, recognition)
WANT: a learned need satisfier, a specific satisfier ( food-softdrinks/ hamburger)
DESIRE: conscious ability and willingness to satisfy a need and want ( buy a McDo)
MARKET: consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.
TARGET MARKET: a fairly homogeneous group of customers to whom a company wishes to appeal
SEGMENTING: an aggregating process that clusters together people with similar needs into a market segment
Focus on ProductsFocus on Products
Selling and Selling and Promoting meansPromoting means
Profits through Profits through sales volume sales volume
Customer needs Customer needs focusfocus
Integrated Integrated Marketing Marketing
Profits through Profits through customer satisfactioncustomer satisfaction
STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management Process
1. Define organization’s Business, Mission and Goals
2. Identify and frame organizational growth opportunities
3. Formulate Product-Market strategies4. Budgeting marketing, financial and production
resources5. Develop reformulation and recovery strategies
1.Business, Mission and GoalsBusiness define by type of market or customers, needs of customer groups, preferably not
productsMission Scope of organization’s operations apparent in its business definition and reflects
management’s vision of what the organization seeks to do. Crystallizes mgmt’s vision , long term direction and character; provides
guidance for mkt and product opportunities; challenges employees to do things valued by organization and its customers/market.
Goals SMART Objectives- Production, Marketing and Financial
2. Organizational Growth Opportunities Environmental Opportunities
Unmet/changing consumer needs Unsatisfied buyer groups New means or technology
Distinctive Competency Orgn’s unique strengths / qualities Skills, technologies, resources Source of competitive advantage
Success Requirements Matches environmental opportunities and competency
Physical Environment (islands, weather)
Demographic Environment (Age, sex, family size)
Economic Environment (GNP, GDP, interest, forex)
Political & Legal Environment ( laws, leadership)
Socio-Cultural Environment (practices, beliefs)
Technological Environment (obsolescence, trends)
Competitive Environment (direct & substitutes)
Objectives
Resources of the firm (financial, physical)
Organizational structures and personnel
Technology
Capacities (production, distribution)
Systems, Policies and Procedures
Stimulus-Response modelStimulus-Response modelLearning Process: Learning Process:
--Drive-Cue-Response-ReinforcementDrive-Cue-Response-Reinforcement
Problem Solving Method: Problem Solving Method: Marketing Marketing Mixes & Other Stimuli( cultural, social, Mixes & Other Stimuli( cultural, social, personal, psychological) evaluated for personal, psychological) evaluated for purchase decision purchase decision
Cultural: (Culture, Subculture, Social class)
Social: (Reference group, family, roles & statuses)
Personal: (Age and life cycle stage, Occupation, Economic circumstance, Lifestyle, Personality and self-concept)
Psychological: ( Motivation, perception, learning, beliefs and attitudes)
Organizational Growth Opportunities-SWOT Analysis
Strengths Weaknesses Management Marketing Manufacturing Products R&D Organization Finance
Opportunities / Threats Economic Competition Consumer trends Technology Legal / Regulatory Industry/market structure Competition
3. Formulate Marketing StrategyProductPricePlacePromotion
StrategyDo right things
What you should do
The means to fulfilling the end
Tactics ( programs)Do things right
How to do things
The application of strategy
Geographic: Metro Mla, Prov Luzon/ Urban, rural
Demographic: Age, sex, income class (AB, C, D+), family size, education, religion (Christian, Muslim)
Psychographics: social class(novo-rich, old rich),Lifestyle (health buff, fashionista, active) Personality (compulsive, authoritative, followers)
Behavioral: Usage occasion(regular, special occas), Benefits sought (freshness, quality, economy, good taste), User status (light, heavy user), Loyalty status, Readiness stage
Evaluate the market segmentsEvaluate the market segments
Choose the target marketsChoose the target markets
Distinguish market coverage strategyDistinguish market coverage strategy——differentiated vs. undifferentiated differentiated vs. undifferentiated marketing or concentrated marketingmarketing or concentrated marketing
The act of designing the company’s product image and value offer so that the segment’s customers understand and appreciate in his mind what the company or product stands for in relation to competitors.
You position the product in the mind of the prospect.
In positioning, what is most important is how the brand is ranked in your customer’s mind against your competition.
4. Budgeting
Sales Budgets P&L Operating expenses, selling, admin Marketing and Advertising budgets Manufacturing budgets, volumes, capacity
utilization, costs and margins Contribution margins
MARKETING CONTROLS PERFORMANCE MEASURES MARKET RESEARCH FEEDBACK SYSTEMS BUDGETS CONTINGENCY PLANS
ORGANIZING MARKETING Marketing Planning Sales Organization Distribution and Logistics Support Services-Advtg, Media, Creative,
Promotions, Events
5. Reformulation and RecoveryMarketing auditContingency planningAlternative strategies/ programsFeedback system
MARKETING PLAN1. Executive Summary2. Situation Analysis: industry, market, competition3. Marketing objectives4. Marketing Strategy and Programs
Target Market Key Mktg Strategy-positioning, differentiation Product, Price, Promotion, Place plans
5. Organization, Measurement, Review & Controls6. Marketing Budget7. Appendixes