Beruflich Dokumente
Kultur Dokumente
The National Organization of Certified Public AccountantsAn association of institutional, professionals, and OFWs
Riyadh Chapter, Kingdom of Saudi Arabia Riyadh, Kingdom of Saudi Arabia
MODULE 4
MARKETI NG
MANAGEMENT
PURPOSE OF BUSINESS
CUSTOMERS
BUSINESS BUSINESS
SUCCESS SUCCESS
Create and
maintain value
for stakeholders
Employees Suppliers
Managers Creditors
Shareholders Investors
BUSINESS SUCCESS
PURPOSE OF BUSINESS
PURPOSE OF BUSINESS
CREATE & KEEP CUSTOMERS
MARKETING IS THE
PETER DRUCKER PROCESS BY WHICH THIS IS
“Revered as father of
Modern Day ACHIEVED
Management”
CRITERIA FOR BUSINESS SUCCESS
INCREASED PERFORMANCE PURSUED IN TWO (2) FOCI
Incremental Input
INPUT Enhance Customer
Satisfaction
Increased Output
OUTPUT
PRODUCT ORIENTED
RATHER THAN
CUSTOMER ORIENTED
FOCUS ON CUSTOMER
NEEDS AND BE
MARKETING LED
MARKETING REVOLUTION
ENVIRONMENTAL PRESSURES
THAT LED TO MARKETING REVOLUTION
MARKETING CHALLENGES
David Lowndes
Director of Product Development for Comac, Inc
MARKETING CHALLENGES
David Lowndes
Director of Product Development for Comac, Inc
MARKETING SELLING
Determine Customers
needs and ability to buy
wants of target or not buy.
market.
Stimulate
Deliver desired consumers
satisfaction interest to the
efficiently and products.
effectively.
MARKETING VS. SELLING
MARKETING CONCEPT SELLING CONCEPT
Guaranteed UnGuaranteed
Sales Volume and Profits Sales Volume and Profits
Customers Satisfaction Customers Satisfaction
Target
Market
MARKETING
SYSTEM
Things to Marketing
be Organi-
Marketed zations
MARKETING CORE CONCEPTS
Management Guidance
to achieve and maintain market share,
growth and profitability
Customer Orientation
Integration Effort
Competitive Advantage
Segmentation and Positioning
Environmental Awareness
Customer Orientation
Integration Effort
DEPARTMENT’S TOTAL
SUPPORT OFFERINGS
Competitive Advantage
Competitive Advantage
PETER DOYLE – Professor of Marketing & Strategic Management
UNIVERSITY OF WARWICK
MEASURES USED BY AMERICAN AND JAPANESE BUSINESSMEN
TO EVALUATE PERFORMANCE
Return on Investment
2.5
USA
1.5
JAP
JAP
1 USA
JAP
USA
0.5
JAP
USA
0
ROI CAPITAL MKT SHARE PROD. RATIO
GAIN
MARKETING CORE CONCEPTS
SEGMENTATION
Identifying homogeneous market and
subdividing them by applying variables
POSITIONING
Choice of target market segment
Determine where business will compete
Choice of differential advantage
Dictate how business competes
Environmental Awareness
ORGANIZATION
Recognizing and
responding profitably
to unmet needs and
trends of the
environment.
MARKETI NG
DECI SI ONS
MARKET
SEGMENTATION
SELECTING
MARKET MARKETING TARGET
PLANNING DECISIONS MARKET
MARKET
POSITIONING
MARKET SEGMENTATION
IMPORTANCE OF
MARKET SEGMENTATION
MARKET SEGMENTATION
BASES FOR SEGMENTATION
NEEDS PROFILES
MARKET SEGMENTATION
MARKET PROFILES
DESCRIPTIVE MEASURABLE CUSTOMER CHARACTERISTICS
DEMOGRAPHIC
GEOGRAPHIC age, sex, family size
region of the country income, occupation,
urban or rural area education
religion, race, nationality
PSYCHOGRAPHIC BEHAVIORAL
social class product usage
lifestyle type brand loyalty
personality type type of user
MARKET SEGMENTATION
CRITERIA FOR SEGMENTATION
Effective : homogeneous customers but
significantly different from the others.
SEGMENT SEGMENT
SIZE GROWTH
PROFITABI CAPABI-
LITY LITIES
COMPETI-
TION
MARKET SEGMENTATION
MANAGEMENT STRATEGIC CHOICES
Undifferentiated Strategy
No Class 240 250 20 60,000 4,800 50,000 5,200
Differentiated Strategy
Economy 144 250 20 36,000 2,880
MARKET POSITIONING
MARKET POSITIONING
MAJOR POSITIONING ERRORS
Underpositioning
Buyers have vague idea about the product and
don’t really sense anything special about it.-
Crystal Clear Pepsi (1993)
Overpositioning
Too narrow image of the brand. –
Customer perception vs. actual.
Confused positioning
Confused image – too many claims
Doubtful positioning
Too hard to believe what the product claims.
MARKETI NG
PLAN
MARKETING PLAN
MARKETING DECISIONS
MARKETING AUDIT
EVALUATION
MARKETING PLAN
IMPLEMENTATION
MARKETING PLAN
STRATEGIC FUNCTIONS
MARKETING PLAN
MAJOR COMPONENTS OF MARKETING PLAN
MARKETING MIX
Product Promotion Set of marketing decisions to
Price Services implement positioning strategy
Staff
MARKETING PLAN
MAJOR COMPONENTS OF MARKETING PLAN
Details of implementation
Who is responsible
ACTION PLANS
When it will be done
How much it will cost
Projected Revenues
Expenditures
BUDGET Profits
Cash Flow
ORGANIZATIONAL Staff
IMPLEMENTATION Organizational design
MARKETI NG
MANAGEMENT PROCESS
The 4 P’s
PRODUCT
PRODUCT
Bundle of Utility
(satisfaction)
that buyer receives as
result of lease/purchase
PRODUCT
MANAGERIAL DECISIONS – PRODUCT DEV’T.
PROCEED
TO NEXT
STAGE
GET
ADDITIONAL ABANDON
INFORMATION PRODUCT
PRODUCT
STEPS IN PRODUCT DEVELOPMENT
IDEA PRODUCT
GENERATION DEVELOPMENT
SCREENING TEST
OF IDEAS MARKETING
ECONOMIC COMMERCIA-
ANALYSIS LIZATION
PRODUCT
PRODUCT LIFE CYCLE
VALUE
Sales/Profit
Decline
Market
Acceptance
Maturity Abandon
Product
Launching
Growth Decline
Competitive
Introductory
TIME
PRODUCT
REASONS WHY
PRODUCT FAI L
Inadequate product analysis
Product deficiencies
Lack of effective marketing effort
Ease of competitive entry
Poor timing of introduction
Technical or production problems
PRODUCT
SOLUTIONS TO AVOID
PRODUCT FAILURE
Organizational change
A function of cost
Money value of a
product/service
PRICE
PRICING OBJECTIVES
PENETRATION PRICING –
setting low initial price at certain
profit – MASS MARKET TARGET
PRICE
PSYCHOLOGICAL PRICING STRATEGIES
Evaluate
Select Price
Competitive
Strategies
PRICE
PRICING OBJECTIVES AND STRATEGY
HARVEST GROWTH
PRODUCT – MATURE BUILD PRICE AS
AGGRESSIVE WEAPON TO
PRICE – HIGH BUILD SHARE
OR ENTER MARKET
USE CASH –NEW PRODUCTS
MAINTAIN QUALITY
LEADERSHIP
ADJUST PRICES DEFENSIVELY
LEADER IN PREMIUM PRICE
PREVENT COMPETITIVE NICHE
EROSION
Ex. Rolex, Bang & Olufsen
Rolls Royce
PLACE ( DI STRI BUTI ON)
PLACE
Selection and
management of
channels and product
flow to consumers
PLACE
CHANNEL OPTIONS
PLACE
TYPES OF CHANNEL
MARKETING SYSTEMS
CONVENTIONAL MARKETING
CHANNEL
HORIZONTAL MARKETING
SYSTEM
WHOLESALERS
Buy
Stock
ordering delivery
Promote
Display
RETAILERS Sell
Deliver
Finance
END CONSUMERS
VERTICAL
MANUFACTURER
Design
Make
Marks & Spencer Brand
Price
Mercedez Benz Promote
WHOLE
Buy
Shell SALER
Stock
Display
Sell
Deliver
Finance
RETAILER
END CONSUMERS
HORIZONTAL
Two or more autonomous organizations at
the same level cooperate in exploiting
market opportunities
MULTI CHANNEL
Using multiple channels to satisfy differing
needs of segments and customers
ADVERTISING
Any paid form of non- personal
presentation and promotion of
ideas, goods, or services by an
identified sponsor.
PERSONAL SELLING
Personal presentation by the
firm’s sales force for the
purpose of making sales and
building customer
relationships.
MARKETING COMMUNICATION MIX
SALES PROMOTION
Short- term incentives to
encourage the purchase or
sale of a product or service.
PUBLIC RELATIONS
Building good relationships
with the public by publicity
for a "corporate image.
DIRECT MARKETING
Direct communications with
carefully targeted individual
consumers to obtain an
immediate response and
cultivate lasting customer
relationships.
SETTI NG THE
PROMOTI ON MI X
Growth Decline
Product
Competitive
Launching
Introductory TIME
Pre-Introduction
Light Advertising
Pre Introduction Publicity
Introduction
Heavy Advertising
Public Relations
Sales Promotions
ADVERTISING GOALS
ADVER-
TISING
ADVERTISING
OBTAIN
AROUSE
HOLD
GET
STAGES IN ADVERTISING CYCLE
INTRODUCTORY ADVERTISING
Develop consumer awareness
COMPETITIVE ADVERTISING
Emphasis such as “Better”
“Improved” “ No 1”
RETENTIVE ADVERTISING
Develop consumer loyalty by
repetitive advertising
Marketing Effectiveness
ORGANI- Measure of
ENVIRON-
ZATION quality of
MENT
relations
EFFICIENCY EFFECTIVENESS
“Doing things right” “Doing the right things”
OVERCOMING CHALLENGES
THE
COMMUNI CATI ON
OPTI MI ZATI ON PROCESS
David Lowndes
OPTIMIZATION PROCESS
ANALYSIS
Evaluate current communication materials in relation
to the following Critical Success Factors (CSF)
Specific objectives & desired response- campaign materials.
Target markets
Industry norms, best practices, business environment
Value of transaction or sales
Customization and personalization needs
Audience demographics
Competitive program offerings
Business and marketing objectives
Product lifecycles
Inventory quantities, shelf life and value
Usage and reorder patterns
Design requirements and constraints
Corporate graphic standards
Production options and costs
Delivery options and costs
Privacy and other regulatory compliance
OPTIMIZATION PROCESS
RE-ENGINEERING
REVISE
RE-DESIGN
COMBINE
ELIMINATE
ADD
OPTIMIZATION PROCESS
AUTOMATION
Automate production