marketing management_day1.ppt
TRANSCRIPT
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Marketing ManagementMarketing Management
Prepared by : Soft Skills Unit Prepared by : Soft Skills Unit
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Course OutlineCourse Outline
Lecture 1 : Marketing Principles
Lecture 2 : Market Segmentation and Target Markets
Lecture 3 : Consumer Buying Behavior and Decision Making
Lecture 4 : Marketing plan
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Lecture 1 ContentLecture 1 Content
• Definitions
• Concepts
• Difference between Marketing & Selling
• The Marketing Environment
• The Marketing Mix
• The Marketing Strategies
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What Is the Market
A. Definitions
• The set of actual and potential buyers of a product.
• These people share a need or want that can be satisfied through exchange relationships.
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1. Marketing PrinciplesA. Definitions
- Marketing is managing profitable customer relationships.
•The American Marketing Association offers the following definition:
Marketing is an organization function and a set of processes for
creating, communication, and delivering value to customers and for
managing customer relationships in ways that benefit the organization
and its stakeholders.
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B. Concepts
1. Customer Needs, Wants and Demands.
2. Exchange and Transactions.
3. Markets.
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B .1. Customer Needs, Wants and Demands
Needs: Are the basic human requirements; as food, air, water..etc
Wants: when they are directed to specific objects that might
Satisfy the need.
Demands: are wants for specific products backed by an ability
to pay.
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B .2. Exchange and Transactions
Exchange : is the core concept of marketing; It is the process of
obtaining a desired product from someone by offering something
in return.
- Exchange is a value creating process because it normally leaves
both Parties better off.
Transaction : is a trade of values between 2 or more parties
- When an agreement is reached , we say transaction takes place.
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B. 3. Markets
Suppliers
Company
Competitors
Marketing Intermediaries
Final Users
Marketing System
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The Market word has many definitions :
• A place where buyers and sellers meet, good and services are offered
for sale and transfers for ownership occurs.
• People or organizations with wants to satisfy, willingness and money
to spend.
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C. Difference between Marketing & Selling
Factory Existing Products
Factory Existing Products
Selling & Promoting
Profits thru sales volume
Market Customer Needs
Market Customer Needs
Integrated Marketing
Profits thru Customer satisfaction
Selling Concept
Marketing Concept
Starting Point Focus Means Ends
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D. The Marketing Environment
-The actors and forces outside marketing that affect marketing management ability to
build and maintain successful relationships with target customers.
- It is made up of microenvironment and macro environment.
Macro Environment
Political Factors
Economic Factors
Natural Factors
Technological Factors
Micro Environment
Customers
SuppliersCompetitors
Internal Environment
Socio-culture Factors
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1. Microenvironment
1. Customers :
- Consumer Markets: Consists of individuals & households (B2C).
- Business Markets: Buy goods & services for further processing (B2B).
- Reseller Markets: Buy goods & services to resell at a profit.
- Government Markets: Government agencies that buy goods & services to
produce public services.
- International Markets: Consists of buyers in other countries as
consumers;
producers; resellers….etc.
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2. Competitors: is any organization that offers the same,
a similar, or a substitute product or service in the field of
endeavor in which a company operates.
2. Suppliers; supply problems that affect the marketing can
be supply shortage, or delays, labor strikes , supply costs …etc
4. Others
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2. Macro environment
1. Economic Factors: Factors that effect consumer buying
power & spending patterns .
• Changes in Income
• Changing customer spending patterns
• Unemployment
• Inflation
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2. Political Factors: organizations are affected by :
• Governmental regulations & rules
• Tax regime
• Trade policies
• Special interests
3. Technological Factors: forces that create new
technologies, creating new products and opportunities
• Examples antibiotics; laptops, robotic surgery ..etc
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4. Natural Factors :
Involves the natural resources needed as inputs by marketers
and may affect marketing activities.
• Shortage of raw materials
• Increased pollution
• Energy Sources
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The social and cultural influences on business vary from country to country.
•Income distribution•Demographics, Population growth rates, Age distribution•Labor / social mobility•Lifestyle changes•Work/career and leisure attitudes•Entrepreneurial spirit•Education•Fashion, hypes•Health consciousness & welfare, feelings on safety•Living conditions
5. Sociocultural Factors:
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E. The Marketing MixMarketing
Mix
Product
PricePromotion
Place
• Product Variety• Quality• Design• Brand name• Packaging• Services• Warranties
• List Price• Discounts• Allowances• Payment period• Credit Terms
• Sales Promotion• Advertising• Public Relations• Personal Selling• Direct Marketing
• Channels• Locations• Inventory• Transport
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E.1 Product
Products include physical objects, services, events, persons, places, ideas…etc
1. Consumer Products
2. Industrial Products
Product is anything (tangible / intangible) that can be offered to a market that might satisfy a want or need.
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Product Life CycleProduct Life Cycle
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Core Benefit
Three Levels Of ProductThree Levels Of Product
Augmented Product
Actual Product
Brand name
Quality level
After SaleserviceFeatures
Design
Packaging Warranty
Delivery &Credit
Installation
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E.2 Place• Refers to how an organization will distribute the product or service they are offering to the end user.
• The organization must distribute the product to the user at the right place at the right time.
• Two types of channel of distribution methods are available;
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E.3 PriceIt is the amount of money charged for a product or service, it is agreed upon that the price Offered must cover the cost of the product and return a profit to the producer .
There are 5 marketing objectives to determine the price of a product :
a. Maximize short term profitb. Maximize current market sharec. Survival
Cont’d
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E.4 Promotion
There are 5 different key types of promotion :
1.Advertising
2.Sales Promotion
3.Public Relations
4.Personal Selling
5.Direct Marketing
Cont’d
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1. Advertising
• Popular means of reaching a target audience.
• Cost effective way to build awareness.
• To create a good ad, the marketer must create a message that is
distinct, meaningful and credible.
• There are many advertising 'media' such as newspapers, magazines
and journals, television, cinema, outdoor advertising (such as posters,
bus sides).
Cont’d
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Cont’d
Good ADs
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Bad ADs
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2. Sales Promotion
• Short term incentives to encourage customers to make a purchase.
• There are many sales promotion types as :
a. Advertising Specialties: A product imprinted with a logo as mugs, T
shirts..etc
b. Cash Rebates: A partial refund to the buyer
c. Discounting : reducing the listed price for a limited period of time
d. Coupons
e. Samples.
N.B: Advertising offers reasons to buy a product or service, sales
promotion offers reasons to buy now.Cont’d
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Cont’d
3. Public Relations• Used to obtain favorable publicity, building good corporate image and handling unfavorable rumors, stories and events .
• Influence the public beliefs, feelings and opinions about the company .
• Mass promotion tool & cheap .
• There are several types of public relations :
a. Written material as brochures, magazines, articles..etc
b. Special Events as presentations, conference
c. Public Service Activities as donating money, volunteers or
resources to activities designed to a social cause
d. Speeches as giving talks
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Cont’d
4. Personal Selling
• Personal presentation by the firm’s sales force for the purpose of making sales & building customer relations
• The sales message can be customized to meet the needs of the customer.
• Involves 2 way personal communication as face-to-face, by telephone, through video or web conference.
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• Direct marketing is a type of advertising campaign that seeks to elicit an
action (such as an order, a visit to a store or Web site, or a request for further
information) from a selected group of consumers in response to a
communication from the marketer.
• Types of direct marketing:
• Direct Mail
• Telemarketing
• Email Marketing
• Catalogs
• Websites
5. Direct Marketing
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• Robert Lauter born suggested that the sellers’ 4 Ps correspond to the Customers’ 4 Cs
4 PsProduct
Price
Place
Promotion
4 CsCustomer Solution
Customer Cost
Convenience
Communication
4P’s Verses 4C’s
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F. The Marketing Strategies
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What is Organization’s SWOT ?
• It is a marketing strategy that involves monitoring the external and internal
marketing environment.
• Internal environment (strengths / weakness) analysis:
o A strength is something a firm does well or a characteristic that enhances its
competitiveness.
o A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage
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Strength can be …
• Valuable competencies or know-how
• Valuable physical assets
• Valuable human assets
• Valuable organizational assets
• Valuable intangible assets- e.g. “Image”
• Important competitive capabilities
• An attribute that places an organization in a position of
competitive advantage
• Alliances with capable partners
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Weakness can be …
• Deficiencies in know-how or expertise or competencies.
• Lack of important physical, organizational, or intangible assets.
• Missing capabilities in key areas.
• High unit cost.
• Poor relationship with employees / suppliers.
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• External environment (opportunities / Threats) analysis:
o An opportunity is an area of buyer need and interest in which
there is a high probability that a company can profitably satisfy
that need.
o An environmental Threat is a challenge posed by an unfavorable
trend or development that would lead in the absence of defensive
marketing action.
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Sources of a marketing opportunity…
• Diversify your business interests
• Is to supply an existing product or service in a new or superior way.
• A new product.
• Changes in use of technology opening up opportunities for your business to utilize these technologies such as Ecommerce or Internet sales
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Examples of threats…
• Changing customer tastes
• Technological advances
• Tax increase
• Change in governmental policies
• Closing of geographic markets
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Build on your
Strengths
Evaluate your
Opportunities
Research your
Threats
Recognize your
Weakness