Marketing Balaji

MARKETING MANAGEMENT
July-August 2005
DILIP M. SARWATE Ph. D. CMC
July- August 2005
Dilip M. Sarwate Ph.D.
1
Section One
Understanding Marketing Management
July- August 2005
2
WHAT IS HAPPENING ON MARKETING FRONT ?
n n
n n n n
MARKETING IS BECOMING ALL PERVASIVE ENVIRONMENTS AT GLOBAL, MACRO & MICRO LEVEL
CHANGING CUSTOMERS ARE BECOMING DEMANDING COMPETITION IS BECOMING FIERCER TECHNO
LOGY IS RAPIDLY CHANGING MARKETING COSTS ARE ON THE RISE
July- August 2005
3
WHAT IS MARKETING ?
n
MARKETING IS A PROCESS OF EXCHANGES TO SATISFY NEEDS & WANTS TO GENERATE CUSTOME
R SATISFACTION AND FULFILLING THE ORGANISATIONAL OBJECTIVES
July- August 2005
4
Type of Exchanges
n n n n
B2B B2C C2C C2B
July- August 2005
5
WHAT IS MARKETING MANAGEMENT ?
n n n n n n n
ANALYSING MARKETING OPPORTUNITIES RESEARCHING AND SELECTING TARGET MARKETS UNDER
STANDING CUSTOMER EXPECTATIONS COMPETITIVE POSITIONING DESIGNING MARKETING STRAT
EGIES PLANNING MARKETING PROGRAMMES ORGANISING, IMPLEMENTING AND CONTROLLING MAR
KETING EFFORTS
July- August 2005
6
MARKETING AS A FUNCTION
n n n n n n n n
MARKETING RESEARCH/INTELLIGENCE MARKETING COMMUNICATION SALES MANAGEMENT MARKET
LOGISTICS SERVICE MARKETING ADMINISTRATION MARKETING FINANCE MARKETING INNOVATIO
N
Dilip M. Sarwate Ph.D. 7
July- August 2005
MARKETING AS A CONCEPT
MANAGEMENT ORIENTATION
n
PRODUCTION CONCEPT- CONSUMERS WILL
n
FAVOUR AVAILABILTY AND LOW COST. CONCENTRATION ON PRODUCTION EFFICIENCY AND WIDE
DISTRIBUTION PRODUCT CONCEPT- CONSUMERS WILL FAVOUR QUALITY, PERFORMANCE AND IN
NOVATIVE FEATURES. CONCENTRATION ON MAKING SUPERIOR PRODUCTS AND IMPROVEMENTS RE
GULARLY
July- August 2005
8
MARKETING AS A CONCEPT (CONTINUED)
n
SELLING CONCEPT- AGGRESSIVE SELLING MARKETING CONCEPT- THE KEY TO
AND PROMOTIONAL EFFORTS ARE REQUIRED TO CONVINCE CUSTOMERS
n
FULFILLING THE ORGANISATIONAL OBJECTIVES CONSISTS OF SUPERIORITY OVER COMPETITOR
S IN INTEGRATING MARKETING ACTIVITIES TOWARDS DETERMINING AND SATISFYING THE NEE
DS AND WANTS OF TARGET MARKETS
July- August 2005
9
LANDMARKS IN THE DEVELOPMENT OF MARKETING CONCEPTS
n n n n
1950’s 1960’s 1970’s 1980’s
n n
CUSTOMER ORIENTATION DRUCKER MARKETING MYOPIA LEVITT POSITIONING RIES & TROUT SE
RVICE NICHE KOTLER MARKETING WARFARE RIES & TROUT 1990’s GLOBAL MARKETING LEVITT 2
000’s RELATIONSHIP MARKETING (CRM) COMPETITIVE INTELLIGENCE KNOWLEDGE MANAGEMENT
July- August 2005
EVOLVING ROLE OF MARKETING
Pr od uc tio n
Marketing
Production
Marketing
Finance
H.R.D
.D .R H
PRODUCTION DOMINANT
Finance
July- August 2005
ALL FUNCTIONS EQUAL
11
Production
Production Finance
HRD
Marketing
H
nce a Fin
RD
MARKETING IMPORTANT
MARKETING MAJOR
July- August 2005
12
Pr od uc tio n
Fin an ce
Production
Marketing
Customer
M ark eti ng
Customer
Fi na nc e
HRD
H
RD
CUSTOMER CONTROL
July- August 2005
CUSTOMER FOCUS/INTEGRATED MARKETING
13
Customer Value
n
n
n
Total customer value: Product value, services value, personnel value and image v
alue Total customer cost: Monetary cost,time cost, energy cost and psychic cost
Customer perceived value: Difference between the prospective customer’s evaluation
of all the benefits and all the costs of an offering and the perceived alternat
ives
July- August 2005
Customer satisfaction
n
n
• • • •
Satisfaction is a person’s feeling of pleasure or disappointment resulting from co
mparing a product’s perceived performance in relation to his or her expectations M
easuring customer satisfaction
Customer satisfaction surveys Complaint and suggestion system Ghost shopping Los
t order analysis
July- August 2005
Stakeholders as customers
n n n n n n n n n
Consumers Customers Employees Suppliers Dealers Shareholders Financial instituti
ons Government Society
July- August 2005
Value chain
n n
• • •
Tool for identifying ways to create more customer value Primary activities
Inbound logistics Outbound logistics Service * Operations * Marketing and sales
§
• • • •
Support activities
Procurement Technology development Human resource management Firm infrastructure
July- August 2005
Attracting and retaining customers
n
• • •
Three types of customers
Firm’s customers Competitors’ customers Non-users
n n
Retention of customers Attracting the customers
July- August 2005
18
Customer relationship management (CRM)
n
n
• • •
Establishing long term relationship with key customers to produce high customer
equity, that is loyal customers Alternatives
Basic marketing : Simply sell the product Reactive marketing: Encourage feedback
Accountable marketing: Follow-up, suggestions on improvements Proactive marketi
ng: Anticipating future needs of customers Partnership (Back) marketing: Helps c
ustomer to succeed
• •
July- August 2005
WHY WE SHOULD SATISFY THE CUSTOMER?
n n n n n
BUYS AGAIN TALKS FAVOURABLY TO OTHERS REMAINS A LOYAL CUSTOMER BUYS NEW PRODUCTS
OF THE COMPANY INCREASES PROFITABILITY CUSTOMER RETENTION MORE CRITICAL THAN CU
STOMER ATTRACTION. FROM CUSTOMER SATISFACTION TO DELIGHTING THE CUSTOMER.
July- August 2005
HOW DO WE DO IT BETTER THAN OUR COMPETITORS?
n n n n n n
CUSTOMER FEEDBACK CUSTOMER SATISFACTION RELATIONSHIP MARKETING CUSTOMER CARE AND
SERVICE NICHE EFFICIENT COMPLAINT HANDLING BACK ( PARTNERSHIP) MARKETING
July- August 2005
21
BACK MARKETING
n n
n
n n n
KNOW THE BUSINESS OF YOUR CLIENT USE INFORMATION IN SPOTTING OPPORTUNITIES PROVI
DE GUIDANCE ON ENTERPRISE MANAGEMENT HELP THE CLIENT SUCCEED DEVELOP LOYAL CUSTO
MERS INCREASE YOUR OWN BUSINESS
July- August 2005
BEFORE SALES SERVICE
n n n n n n n n n
MARKETING COMMUNICATION HELP IN SELCTION RELIABILITY TRAINING GUARANTEES FINANCI
NG TESTING CHOICE PERIPHERAL
July- August 2005
AFTER SALES SERVICE
n n n n n n n
WARANTEES SUPPLY OF SPARES TROUBLE SHOOTING QUALITY AUDITS TRADE IN ALLOWANCE RE
PLACEMENTS PUBLIC RELATIONS
July- August 2005
CHANGING PARADIGMS
n
• • • §
TURBO MARKETING
FASTER INNOVATIONS MANUFACTURING EFFICIENCY EFFECTIVE LOGISTICS RETAILING
v
• • • •
OTHERS
USE OF COMPETITIVE INTELLIGENCE CUSTOMER PROFITABILITY TOTAL QUALITY MANAGEMENT
(TQM) RETURN ON MARKETING (USE OF MARKETING RATIOS)
July- August 2005
WHAT IS A CUSTOMER?
n
n
n
n
A CUSTOMER IS THE MOST IMPORTANT PERSON IN OUR BUSINESS, IN PERSON IN OUR OFFICE
, SHOP, ON TELEPHONE OR BY MAIL. A CUSTOMER IS NOT DEPENDENT ON US … WE ARE DEPEN
DENT ON HIM/HER. A CUSTOMER IS NOT AN INTERRUPTION TO OUR WORK … HE/SHE IS THE PUR
POSE OF IT. WE ARE NOT DOING A FAVOUR BY SERVING HIM/HER … HE/SHE IS DOING US AFAV
OUR BY GIVING US THE OPPORTUNITY TO DO SO.
July- August 2005
WHAT IS A CUSTOMER ?
n n
n
n
A CUSTOMER IS RIGHT. HE/SHE IS ALWAYS RIGHT. NOBODY HAS EVER WON AN ARGUMENT WIT
H A CUSTOMER. CUSTOMER BRINGS NEEDS AND WANTS. OUR JOB IS TO FULFILL THEM. PROFI
TABLY FOR BOTH OF US. A CUSTOMER IS THE KING(QUEEN ) --
MAHATMA GANDHI
27
July- August 2005
Section Two
Analyzing Marketing Opportunities
July- August 2005
28
Scanning the marketing environment
n
• • • •
Macro environments
Economy Technology Polity Culture
§
• •
Micro environments
Market Task
§
SWOT analysis
July- August 2005
Market information
n
• • • • •
Marketing information system
Internal record system Marketing intelligence system Marketing research system A
nalytical system Marketing decision support system
§
• •
Market size estimation
Present demand Forecasting
July- August 2005
30
Major Schools
n n n
Industrial Marketing Consumer Marketing Services Marketing
July- August 2005
31
Understanding the Markets
7 O’s of Markets
• • • • • • •
Objects Objectives Organization Operations Occupants Occasions Outlets Product P
rice Place Promotion
4 P’s of Marketing Mix
• • • •
July- August 2005
Consumer markets and buyer behavior
n n
n
n
Buyer’s characteristics: Cultural, social,personal and psychological Social factor
s: Reference groups (family members, neighbors, relatives, colleagues and others
) Buying roles: Initiators, influencers, deciders, purchasers and users Personal
factors: Age, occupation, economic status, life style
July- August 2005
Consumer markets and buyer behavior (Cont.)
n
n
n
Psychological factors: Motivational theories of Moslow’s hierarchy of needs, Freud’s
, Pavlov, Herzberg’s satisfiers/dissatisfiers) Post purchase behavior: Cognitive d
issonance Share of heart, share of mind and share of market
July- August 2005
Business markets and behavior
n
n n n
Producer’s market: Industrial goods, consumer goods, original equipments, finished
goods, components Institutional markets Resellers market: For all types of good
s Government market: For all types of goods
July- August 2005
35
WHAT DOES THE CUSTOMER WANT ?
n
INDUSTRIAL CUSTOMERS
TECHNICAL CAPABILITY DELIVERY QUALITY PRICE PERFORMANCE HISTORY PRODUCTION FACIL
ITIES REPUTATION FINANCIAL POSITION PROGRESS COMMUNICATION MANAGEMENT AND ORGANI
ZATION
-
July- August 2005
36
DIFFERENCE WITH CONSUMER MARKETING
n n n n n n
n n
NUMBER OF CUSTOMERS ARE SMALL, LARGE BUYERS GEOGRAPHICAL CONCENTRATION NON-HOMOG
ENUITY DERIVED DEMAND BUYING OBJECTIVES BUYING OPERATIONS- CLOSE SUPPLIER RELATI
ONSHIP DIFFERENCE IN MARKETING MIX COMPETITION
July- August 2005
Type of marketing
n n n n
OE marketing Spares marketing Systems marketing Turnkey projects
July- August 2005
38
Market segmentation
n
Definition: Subdividing the total market on the
basis of certain common characteristics
n
• • • • •
Segmentation variables
Geography Demography End use basis Psychography Buyer behavior
July- August 2005
39
Benefits of segmentation
n n n n n n
Identifies all types of markets Comparison of the relative benefits Identifying
the competition in each segment Understanding the requirements of customers Defi
ning the target markets Refining the marketing mix
July- August 2005
40
Essentials for segmentation
n n n
Substantiality Accessibility Measurability
July- August 2005
41
Target marketing strategies
n n n n n n
Single segment concentration Product specialization Market specialization Select
ive specialization Full market coverage STP (Segmenting, targeting & positioning
)
July- August 2005
42
Section Three
Developing marketing strategies
July- August 2005
43
Product life cycle strategies
n
• • • •
Stages
Introduction Growth Maturity Decline
§
§
Analyzing each stage: With respect to sales volume, market share, marketing expe
nses, competition, customer size Strategies: With respect to 4 P’s
July- August 2005
Developing new products
n
• • • • •
Why new products?
Changing customer tastes Product obsolescence Increased competition Resource lim
itations Governmental controls
§
§
Innovation versus imitation
Innovation: High cost of R & D, long gestation, high
marketing costs, risks
§
Imitation: Low R&D cost, low risk
July- August 2005
Stages in new product development
n
Idea generation:
Customers, dealers, suppliers, competitors, R&D people, top management
n
Screening: Present line, market opportunities, policies with
respect to investment, return on investment, pay back period. Go error versus no
-go error
n n n n n
Concept testing Feasibility studies: Legal, marketing, technical, financial Prod
uct development Test marketing Commercialization
July- August 2005
Competitive marketing
n
• • • •
Type of players
Market leader Market challenger Market follower Market nicher
§
§ § §
Competitive Intelligence
Competitor reconnaissance Early warning system Counter intelligence
July- August 2005
Competitive strategies (cont)
n
n n n n
Alternatives
Defending the market share Expanding the market share Marketing warfare Mergers
& acquisitions
§
Developing the right amalgam of customer and competition orientation
July- August 2005
48
Strategies for global markets
n n n
• • • • • •
Overseas market research Global environment scanning Evaluating competitive adva
ntage (Porter’s model
Factor conditions ( Manufacturing capacity, productivity) Supporting industries
(Ancillary, services- banking, insurance) Demand (Local and global, growth) Orga
nization, structure, rivalry Government help Risk taking
July- August 2005
49
Alternatives of entry
n n
• • • • •
Exports: Direct, indirect and deemed Joint venturing
Licensing Subcontracting/outsourcing Management contracting Technology transfer
Equity participation
§
• • •
Multi-national marketing
Global manufacturing facilities Direct foreign investment Mergers& acquisitions
July- August 2005
Section Four
Designing Marketing Program
July- August 2005
51
Product strategies
n
n n n n
Product levels
Generic product Basic product Expected product Augmented product
§
• • • • •
Product hierarchy
Need family Product line Product class Product type Brand
July- August 2005
Brand decisions
n
• • • • • •
Six levels of meaning of brand
Attributes Benefits Values Culture Personality User
§
• • •
Building brand equity
Brand awareness: Through name, logo, colours Brand effectiveness: Through recall
Brand loyalty: Through customer satisfaction
July- August 2005
Brand naming
Alternatives
n n n n n
Short, simple and easy to remember Giving product features, colours, design Givi
ng product benefits Association with people, places, events Distinctly different
n
• • •
Decisions
Individual names Blanket/ separate family names Corporate names
July- August 2005
Packaging decisions
n
• • • • •
Purpose of packaging
Protection Promotion Brand identity Economy Legal requirement
§
• • •
Alternatives
Materials to be used Design Labeling
July- August 2005
Services marketing
July- August 2005
56
What is a Service?
n
A service is any act or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its pro
duction may or may not be tied to a physical product.
July- August 2005
Importance of Services
Contribution to GDP
Sector Agriculture Manufacturing Service
July- August 2005
India 27 22 51
USA 4 24 72
58
Service Mix
n
n
n
Pure tangible good: Soap, toothpaste, shampoo and other FMCG products. No servic
es accompany the product Tangible good with accompanying service: Automobiles, w
hite goods, computers, engineering goods and others. Many types of services are
attached to them Hybrid: Offering includes equal parts of good and services. Res
taurants, cinema and others
July- August 2005
Service Mix (cont.)
n
n
n
Major service with accompanying minor goods and services: Airlines, Railways, Bu
s and others. The service requires a capital intensive good but the primary item
is a service Pure service: Banking, Insurance, Baby sitting, management consult
ancy, teaching and others. Offer primarily consists of a service Clients presenc
e required: Surgery, beauty treatment and others require client’s presence. Car re
pair, banking and others may not require client’s presence.
July- August 2005
60
Type of Services
n
n
Equipment based: Vending machine, automated car washing and others People based:
They could be skilled, unskilled or professional. Driving, welding, painting ar
e in the first category, newspaper delivery, waiter, window cleaning in the seco
nd category and legal, medical accounting in the third category.
July- August 2005
61
Types of Services (cont.)
n
n
Needs differentiation: Whether the needs are Personal like hair cutting, beauty
treatment, health care or Business like recruitment, advertising and others. Som
e like banking, insurance can satisfy both types of needs. Objectives: They coul
d be Profit like airlines, banking and others or Non-Profit like social work (Ro
tary, Lions), NGO’s others. It can also differ on the basis of Ownership which cou
ld be private or public.
July- August 2005
Characteristics of Services
n
Intangibility: Services cannot be heard, seen, tasted, felt or smelled before th
ey are bought. Service provider’s task is to Manage Evidence and Tangibilize the I
ntangibles. Marketing tools,
Place People Equipments Communication material Symbols Price
§ § § § § §
July- August 2005
(cont.)
n
n
Inseparability: Services are typically produced and consumed simultaneously unli
ke for physical goods. Variability: The requirements of customers as well as ser
vice providers can vary in nature. For example, you can fly economy, business cl
ass or first class on airlines. The hospitals can provide general wards, special
and deluxe suites.
July- August 2005
(cont.)
n
Perishability: Services cannot be stored. Strategies emerge in relation to Deman
d and Supply conditions as explained below:
Differential pricing Complimentary services Part time employees Increase consume
r participation Facilities for future expansion Non peak demand Reservation syst
em Peak time efficiency Shared services
Demand side
n n
Supply side
n n n
July- August 2005
65
Marketing Strategies for Service Firms
Traditional marketing mix
n n n n
Product Price Place Promotion
People Physical evidence Process
Additional mix for services
n n n
July- August 2005
Marketing in Service Industries
n
Internal marketing: Between the
company and its employees
n
Interactive marketing: Between
employees and customers
n
External marketing: Between the
company and the customers
July- August 2005
67
Service Quality Model
( Parasuraman, Zeithmal and Berry)
Five gaps that cause unsuccessful delivery n Gap between consumer expectations a
nd management perception n Gap between management perception and service quality
specification n Gap between service quality specification and service delivery
n Gap between service delivery and external communication n Gap between perceive
d service and expected service Refer to the Service Quality Model
July- August 2005 Dilip M. Sarwate Ph.D. 68
Determinants of Service Quality
n n n n n
Reliability Responsiveness Assurance Empathy Tangibles
July- August 2005
69
Monitoring System
n n n n n n
Customer feedback Customer satisfiers Customer dissatisfiers Complaint handling
system Customer relation ship management Internal marketing
July- August 2005
70
Managing Productivity
Objectives are to keep costs down and increase productivity. Alternatives are,
n n n n
n n
Skilful workers through better selection and training Handling more volume by gi
ving less time to consumers Increased efficiency through automation, technology
Reduce or make obsolete the need for a service through products like wash & wear
Design a more effective service like Para-legal, Para-medical Offer incentives
to customers
July- August 2005
Pricing decisions
July- August 2005
72
Setting pricing policy
n
n n n
Pricing objectives
Market entry Price wars Profit maximization
•
• • • •
Determining demand
Target customer Market size Price sensitivity Price elasticity of demand
July- August 2005
Setting pricing policy (cont.)
n
• • • •
Estimating costs
Fixed costs Variable costs Marginal costing Break even pricing
•
•
• •
Analyzing competitors’ costs, prices and offers Pricing decisions
In theory In practice
July- August 2005
74
Price setting
n
n n n n
In theory
Market penetration pricing Market skimming pricing Multi brand pricing Multi lev
el pricing
n
n n n n n
In practice
Cost plus (Mark up pricing) Target return pricing Competitive parity pricing Dem
and oriented pricing Sealed bid pricing
July- August 2005
Selecting the final price
n
n n n n n
Target customer: AU, OEM, Reseller, Government Geographical locations Payment te
rms Price discounts and allowances Invitation and incentives Responding to price
changes by the competitors
July- August 2005
Market logistics
July- August 2005
77
Market Logistics decisions
n
n n n n n n
Physical distribution
Alternatives in physical distribution Warehousing Modes of transportation Invent
ory management Order processing Supply chain management
July- August 2005
78
Channel decisions
n
n n
Why channels?
Wider market coverage Generation of volumes and benefit of economies of scale Af
ter sales service Promotion Financial assistance
n n n
July- August 2005
79
Channel decisions (cont.)
n
n n n
Channel flows
Physical flows Payment flows Promotion flows * Title flows * Information flows
n
n n n n n n
Channel design
Product characteristics Customer characteristics Competitive characteristics Org
anizational characteristics Competitive characteristics Environmental characteri
stics
July- August 2005
Channel decisions (cont.)
n
n n
Channel levels
Zero level: Direct marketing Multi level
n
n n n n n n
Selection of channel members
Location Present line of business Financial resources Manpower resources Reputat
ion Professionalization
July- August 2005
Marketing communication decisions
July- August 2005
82
Communication decisions
n n n n n n n
Communication objectives Target definition Type of products and services Stage i
n product lifecycle Communication tools Communication budgets and allocation Mea
suring the communication effectiveness
July- August 2005
83
Communication objectives
n n n n n n n n
Awareness building Comprehension building Legitimacy Lead generation Trade enqui
ries Informing the changes in the marketing mix Image building Social cause
July- August 2005
Target audience
n n n n n n n
Consumers Customers Dealers Suppliers Shareholders Employees Society
July- August 2005
Types of products
n n n n
Industrial products: OE, Components Consumer durables Consumer no-durables Servi
ces: Industrial, consumer
Introduction Growth Maturity Decline
Stage in product life cycle
• • • •
July- August 2005
86
Communication tools
n
Advertising: Using different media, media
cost paid by the sponsors Public relations: Press conference, annual reports, ne
wsletters, lobbying, sponsorship gifts, exhibitions, demonstrations meetings mai
l
n
n
Sales promotion: Point of purchase, samples, Personal selling: Sales presentatio
ns sales Direct marketing: Telemarketing, mail order,eDilip M. Sarwate Ph.D. 87
n n
July- August 2005
Communication budgets
n n n n
Affordable method Percentage of sales method Competitive parity method Objective
and task method
July- August 2005
88
Advertising decisions
The five M’s of advertising § Mission § Money § Message § Media § Measurement
July- August 2005
89
Mission
n n n n n
Marketing objectives Sales objectives Corporate objectives Social objectives Any
others
July- August 2005
90
Money
n n n n n n
Stage in PLC Market share Consumer base Competition and clutter Advertising freq
uency Product substantiality
July- August 2005
Message
n n n n
Message generation Message evaluation and selection Message execution Social, et
hical and legal issues
July- August 2005
92
Media
Criterion
• • • • •
Reach, frequency and impact Major media types Specific media vehicle Media timin
g Geographical media allocation Print Audio Audio-visual Post Outdoor Internet
Alternatives
• • • • • •
July- August 2005
Measurement
n n
n
•
Communication impact Sales impact
Tools
Pre testing: Opinion research, portfolio test, laboratory tests Post testing: Re
cognition test, recall test (Aided/Unaided)
•
July- August 2005
94
Sales promotion
n
• •
Purpose
Invitation Incentive
§
• • • • • •
Decisions
Establishing objectives Selecting consumer promotion tools Selecting trade promo
tion tools Developing the program Pre testing Implementation and control
July- August 2005
Public relations
n n n n n n
Press publicity Product publicity Corporate communication Lobbying Counseling Us
e of PR agencies
July- August 2005
96
Direct marketing
n
Suitability: No. of customers small, high unit
value, after sales service specialization
n
• • •
Major channels
Face to face selling Direct mail- post office Direct mail- Fax, e-mail, voice ma
il
§
• •
Steps
Creation of data base Creation of mail material
July- August 2005
Sales force decisions
July- August 2005
98
Designing the sales force
n n n n n
Sales force objectives Sales force strategy Sales force structure Sales force si
ze Sales force compensation
July- August 2005
99
Managing the sales force
n n n n n
Recruitment and selection Training Supervising Motivating Performance evaluation
July- August 2005
100
Personal selling
n
n n n
Characteristics of a successful sales person Art of selling Communication skills
Negotiation skills
July- August 2005
101
Art of selling
n
Use of SELL formula
Salute Excite interest Let go Loop through
S E L L
July- August 2005
102
Marketing organization
July- August 2005
103
Organizing the marketing department
n n n n n
Functional basis Territory basis Product basis End use basis Combination
July- August 2005
104
INTERFACE OF MARKETING WITH OTHER DEPARTMENTS
DEPARTMENT THEIR EMPHASIS MARKETING EMPHASIS APPLIED RESEARCH SHORT LEAD TIME MA
NY MODELS IMMITATION SHORT RUNS CUSTOM BUILT STRICT QC
R&D
BASIC RESEARCH LONG LEAD TIME FEW MODELS INNOVATION LONG RUNS STANDARD AVG. QC
PRODUCTION
July- August 2005
105
INTERFACE (CONTINUED)
PURCHASE
FEW VENDORS ECONOMIC LOT PRICE FACTOR SEVERAL LARGE STOCKING QUALITY FACTOR
FINANCE
STRICT BUDGETING COST PLUS PRICING STANDARD TERMS TOUGH CREDIT TOUGH COLLECTION
FLEXIBLE DEMAND ORIENTED FLEXIBLE EASY TERMS EASY
July- August 2005
106
INTERFACE (CONTINUED)
n
HRD
SELECTION BY HRD STANDARD SALARY STANDARD PROMOTION LIMITED TARINING BY DEPT EXT
RA EXTRA REGULAR SCANT REGARD NOT NECCESSARY
n
LEGAL
WITHIN LAW ETHICAL
July- August 2005
107
Section Five
Marketing control
July- August 2005
108
Marketing control
n
Annual plan control: Sales analysis, market share
analysis, marketing expense analysis, financial analysis
n
Profitability control:Profitability by product, territory,
customer, segment, order size
n
Efficiency control: Efficiency of sales force, advertising,
sales promotion, distribution
n
Strategic control: Marketing effectiveness rating instrument, marketing audit, m
arketing excellence review, company ethical and social responsibility review
July- August 2005
109
Marketing audit
n
n
n n n
Comprehensive, systematic, periodic, independent review of, A company’s marketing
environment, planning, strategy, organization to, Identify the problem areas To
improve the marketing performance And to improve the profitability
July- August 2005
Components of a marketing audit
n n n n n n
Marketing environment audit Marketing strategy audit Marketing organization audi
t Marketing systems audit Marketing productivity audit Marketing function audit
July- August 2005
111
Use of marketing ratio
Marketing ratio = (Marketing expense/ Sales)x 100 APPLICATIONS
• • • •
Trend analysis Budgeting Comparison with major competitors Comparison with indus
try
July- August 2005
112
Thank you
July- August 2005
113

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