marketing management_day1.ppt
TRANSCRIPT
Marketing ManagementMarketing Management
Prepared by : Soft Skills Unit Prepared by : Soft Skills Unit
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
Lecture 1 ContentLecture 1 Content
• Definitions
• Concepts
• Difference between Marketing & Selling
• The Marketing Environment
• The Marketing Mix
• The Marketing Strategies
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.
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.
B. Concepts
1. Customer Needs, Wants and Demands.
2. Exchange and Transactions.
3. Markets.
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.
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.
B. 3. Markets
Suppliers
Company
Competitors
Marketing Intermediaries
Final Users
Marketing System
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.
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
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
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.
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
2. Macro environment
1. Economic Factors: Factors that effect consumer buying
power & spending patterns .
• Changes in Income
• Changing customer spending patterns
• Unemployment
• Inflation
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
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
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:
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
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.
Product Life CycleProduct Life Cycle
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
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;
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
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
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
Cont’d
Good ADs
Bad ADs
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
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
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.
• 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
• 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
F. The Marketing Strategies
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
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
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.
• 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.
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
Examples of threats…
• Changing customer tastes
• Technological advances
• Tax increase
• Change in governmental policies
• Closing of geographic markets
Build on your
Strengths
Evaluate your
Opportunities
Research your
Threats
Recognize your
Weakness