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CBS MBA Workshop 1 @ IBBM
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PNG Ins(tute of Banking and Business Management
Unit 401
Sweta Sud Chifley Adjunct Faculty
Marketing Management
PNG Ins(tute of Banking and Business Management
MBA
What Business are you in?
Why MBA?
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
Know your facilitator • Instrumentation and Controls Engineer • MBA in Systems and Marketing • from Symbiosis International University • Master Project Manager • Post Graduate Diploma in IT Management • Certified Information Systems Auditor • Management experience in India, Singapore, Dubai,
Malaysia, Sydney and 4 years in PNG
PNG Ins(tute of Banking and Business Management
In this Unit.. Week 1
• First workshop • 31st Jan, Friday
Week 2 • Read the Study guide • Read the book – Fee Refund
Week 3 • 2nd workshop • 14th Feb, Friday
Week 4 • Do the assignment – 17th Feb • Due on 24th Feb
Week 5 • 3rd workshop • 28 Feb, Friday
Week 6 • Exam on 6th March – return 7th March
PNG Ins(tute of Banking and Business Management
Today’s Agenda
1 • The Discipline of Marke8ng • Morning tea@10:00
2 • Marke(ng Environment and Marke(ng Analysis • Lunch @ 12:30pm
3
• Marke(ng Strategy and Marke(ng Planning • Evening Tea@ 2:30pm • Ac(vi(es, Cases and discussions
Unit-401, Workshop1, 31st Jan 2014
PNG Ins(tute of Banking and Business Management
Rules for the Workshop
1 • Mobile phones off
2 • No emails on ipads
3
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 1
Discipline of Marke8ng
PNG Ins(tute of Banking and Business Management
What the hell is Marketing?
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
What the hell is Marketing?
PNG Ins(tute of Banking and Business Management
What the hell is Marketing?
PNG Ins(tute of Banking and Business Management
What Marketing is NOT...
PNG Ins(tute of Banking and Business Management
Marketing is NOT COLD CALLING
PNG Ins(tute of Banking and Business Management
Marketing is NOT ADVERTISING
PNG Ins(tute of Banking and Business Management
Marketing is NOT BROCHURES
PNG Ins(tute of Banking and Business Management
Marketing is NOT A WEBSITE
PNG Ins(tute of Banking and Business Management
Marketing is NOT SOCIAL MEDIA
PNG Ins(tute of Banking and Business Management
Marketing is NOT MAGIC
PNG Ins(tute of Banking and Business Management
Marketing is NOT OVERNIGHT
PNG Ins(tute of Banking and Business Management
Marketing is NOT COMPLICATED
PNG Ins(tute of Banking and Business Management
Marketing is a process of: l Education l Communication l Capturing leads l Measuring and adjusting l Building long-term
relationships
PNG Ins(tute of Banking and Business Management
What the hell is Marketing?
PNG Ins(tute of Banking and Business Management
DEFINITION…….
Marketing is a system of business activities designed to plan, price, promote, and distribute want-satisfying products, services and ideas to target markets in order to achieve organizational objectives.
PNG Ins(tute of Banking and Business Management
Marketing Definition Dissected
MARKETING IS
a system: of business activities
designed to: plan, price, promote, distribute
something of value: want-satisfying products, services, and ideas
for the benefit of: the target market – present and potential users
to achieve: the organization’s objectives.
PNG Ins(tute of Banking and Business Management
A SMART DEFINITION
IDENTIFYING Needs and Wants and FULFILL those Needs and Wants
PNG Ins(tute of Banking and Business Management
What the hell is Marketing?
PNG Ins(tute of Banking and Business Management
{ Commercial Break }
Last week review…
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
OK, We’re back
PNG Ins(tute of Banking and Business Management
What gets marketed
• Goods • Service • Events • Experiences • People • Places • Properties • Organizations • Information • Ideas
Exercise 1: Identify the leader
PNG Ins(tute of Banking and Business Management
BROAD DIMENSION OF MARKETING Marketing is not limited to profit making businesses only Whenever you try to persuade somebody to do something, you are involved in the act of marketing You are marketing when you ask someone to …………….
……stay quiet because you are preparing for exams.
……fasten seat belt because it can save one’s life.
……vote for a candidate in the next election.
PNG Ins(tute of Banking and Business Management
Creating Value
Needs Wants
Demands
For the customer
PNG Ins(tute of Banking and Business Management
Nature and Scope of Marketing
Organiza(on
Consumers Products
Nature
of
Marke(ng
PNG Ins(tute of Banking and Business Management
NATURE AND SCOPE OF MARKETING Organizations are the entities that produce and sell products for profits. • Engro Ltd • Dell Corp • Pepsi Co • UN
Products refer to commodities that we purchase from markets to satisfy personal needs. • Grocery • Computers • Beverages • Peace and Security
A consumer is the one for whom the product is made and marketed. • Families • Personal users and organizations • Families, students ets. • Governments or countries
PNG Ins(tute of Banking and Business Management
BROAD DIMENSION OF MARKETING
Broadly, scope of marke(ng is not limited to tradi(onal organiza(ons. If a woman ask her daughter to fasten the seatbelt, the woman would be the seller who is selling an idea.
The idea of safety in this example is the product that is being offered.
The daughter is the consumer to whom the idea is being communicated.
PNG Ins(tute of Banking and Business Management
EVOLUTION OF MARKETING
• Production Concept
• Selling Concept
• Marketing Concept
PNG Ins(tute of Banking and Business Management
Evolution of the Marketing Concept
PNG Ins(tute of Banking and Business Management
1. Product Orientation A concept… • focused on quality products that could
be produced efficiently
• believed that supply creates its own demand
• Intensive Distribution Strategy and Economies of Scale
• Key Questions • 1. Can we produce the product efficiently? • 2. Can we produce enough of it ?
PRODUCTION MARKETS/
CONSUMERS
PNG Ins(tute of Banking and Business Management
2. Sales Orientation A concept… • focused to sell the resulting output
• based on the belief that if consumers are left to themselves, they will not make the effort to buy a company's products.
• substantial post-production effort is required
• Key Questions • Can we sell the product? • Can we charge enough for it?
MARKETS/
CONSUMERS PRODUCTION
SALES/ PROMOTION
PNG Ins(tute of Banking and Business Management
3. Market Orientation
A concept…. • customer’s want satisfaction is
the sole justification for the existence of any enterprise.
• make what people demand • Key Questions
• What do customers want? • How can we keep our customers
satisfied and create long-term relationships
MARKETS/
CONSUMERS PRODUCTION SALES/
PROMOTION MARKETING
PNG Ins(tute of Banking and Business Management
BUSINESS DIMENSIONS OF MARKETING
PNG Ins(tute of Banking and Business Management
{ Commercial Break }
Last week review…
PNG Ins(tute of Banking and Business Management
IMPORTANCE OF MARKETING
Consumers get an opportunity to know about various products that are available in the market.
Marketing fosters healthy competition among brands and this increases the level of competence among firms.
Consumers are able to enjoy better products and they are at affordable prices.
Gives chance to companies of all sizes to survive
Precise identification of what consumers demand
Saves cost for organization
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
OK, We’re back
PNG Ins(tute of Banking and Business Management
IMPLEMENTING THE MARKETING CONCEPT
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
As managers have come to recognize that marketing is vitally important to the success of an enterprise, they have laid down the basic principles that help them achieve organization success.
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
Customer Orientation
Co-ordinated Marketing Activities
Organizational Objectives
Marketing Concept
Successful Business
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept 1. Customer-Orientation Customer-orientation focuses on meeting the specific wants and building long-term relationships with the customers. A truly customer oriented business takes all their important decisions (not only marketing related) while keeping customer satisfaction in mind. For example: before upgrading the IT software for a company, the executives must consider its implication on customer service and satisfaction. The software might be good for the organization’s internal operation – it might make the data more secure and readily available to managers – but might take long to process information which can cause customer dissatisfaction. Two important components of customer orientation are long term relations and mass customization.
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
a. Long-Term Relationships: Today, organizations are able to build long-term relations with customers because organizations have…
access to a huge quantity of information through research, consumer reports which can keep organizations abreast with changing trends and patterns in the market. Customer Relationship Management System (CRMS) is a software that help organizations store valuable information about customer’s specific wants as their professional relationship progresses. For example: a multinational hotel can store specific data on a valued customer as what type/location of room the customer prefers, the cuisine usually ordered, and specific services that he/she is interested in.
Trust and mutual commitment is also a key in developing strong relationships.
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
b. Mass Customization means to develop, produce, and distribute affordable products with enough variety and uniqueness that nearly every potential customer can have exactly what he or she wants. For mass customization, we need the following three key factors:
1. Information on specific customer needs and wants.
2. Communication channels to advertise to specific audience
3. Flexible & cost effective manufacturing capability to make a good variety of products while keeping per unit cost low.
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
2. Coordinated Marketing Activities Coordinated marketing is the planning and execution of all your company’s marketing activities (designing product, distribution, research, promotion, web presence etc.) in a way that is consistent across all of your customer contacts and creates more value than when those activities are performed separately.
PNG Ins(tute of Banking and Business Management
Implementing the Marketing Concept
3. Organizational Objectives There are three major dimensions of an organizational objectives.
1. Performance objectives refer to the growth and financial success of an organization. It may include increasing profits, market share, presence in several geographic markets, reducing costs etc.
2. Societal Responsibility is another important objective which focuses on an organization’s role in safeguarding and improving the quality of life of the society while satisfying consumer wants. For example: Nike has been criticized for years for its sweatshops in Vietnam and Pakistan where their factories exploit low wage workers and force people to work under unwholesome working conditions.
PNG Ins(tute of Banking and Business Management
■ Value: power of a good or service to satisfy a want or need
■ Create time value by making a good or service available when customers want to purchase it. ■ Create place value by making a product available in a location convenient for customers. ■ Create ownership value through an orderly transfer of goods and services from the seller to the buyer.
How Marketing Creates Value
PNG Ins(tute of Banking and Business Management
Creating Value
Create
Communicate
Deliver
Sustain
For the customer
PNG Ins(tute of Banking and Business Management
■ Marketing concept- company-wide consumer orientation to promote long-run success. ■ Firm starts with analysis of customers’ needs and works backward to offer products that fulfill them. ■ Explained by shift from sellers’ market in which goods and services are relatively scarce to buyers’ market in which they are relatively plentiful.
Emergence of the Marketing Concept
PNG Ins(tute of Banking and Business Management
Non-Traditional Marketing
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
■ Target market- group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences.
■ Types of Markets ■ consumer (B2C) product: good or service that is
purchased by end users ■ business (B2B) product: good or service purchased to be
used, either directly or indirectly, in the production of other goods for resale
Selecting a Target Market
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
Marketing Mix
Customer Place
Promo(on
Product
Price
PNG Ins(tute of Banking and Business Management
■ Marketing Mix blends the four strategies to fit the needs and preferences of a specific target market. → Product strategy involves the nature of the product and its
package design, brand names, trademarks, and product image.
→ Distribution strategy ensures that customers receive their purchases in the proper quantities at the right times and locations.
→ Promotional strategy blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.
→ Pricing strategy is setting profitable and justifiable prices for the firm’s product offerings, sometimes subject to government scrutiny.
Marketing Mix
PNG Ins(tute of Banking and Business Management
{ Commercial Break }
Last week review…
PNG Ins(tute of Banking and Business Management
WHAT DOES A MARKETER DO?
PNG Ins(tute of Banking and Business Management
Why Bicycle? Bicycle Type?
Which People? What Quantity?
Where to Sell?
What to Charge?
What and How to Inform?
Who all will compete?
Analyze Wants Product Plan
Segment Demand Forecas(ng
Distribute Price
Promote Analyze Compe(tors
PNG Ins(tute of Banking and Business Management
TOPIC 2 : Marketing Environment and Analysis:
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
PNG Ins(tute of Banking and Business Management
{ Commercial Break }
Last week review…
PNG Ins(tute of Banking and Business Management
People need and/or want something
Marketers will charge them to fulfill that
People will be happy
Marketers will profit
PNG Ins(tute of Banking and Business Management
Brand
Demand
Need
U(lity
Value
Want
Promise
Capacity
Urgency
Sa(sfac(on
Extra
Desire
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
OK, We’re back
PNG Ins(tute of Banking and Business Management
I’ll Xerox it for you!
PNG Ins(tute of Banking and Business Management
“One thing predictable about business is that it is fundamentally unpredictable” ..in Annual Report of Xerox
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
1. Understand the interaction between the market components
2. Differentiate Consumer Markets vs. Business Markets
3. Variables that affect the markets
PNG Ins(tute of Banking and Business Management
“Two special app(tude to have as marketers. 1. Market Research 2. Market Intelligence
PNG Ins(tute of Banking and Business Management
Microenvironment Macroenvironment Consumer Markets Business Market
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
PNG Ins(tute of Banking and Business Management
The forces inside the industry
Porter’s 5 Forces
Microenvironment
PNG Ins(tute of Banking and Business Management
Microenvironment Macroenvironment Consumer Markets Business Market
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Top management Finance Researck & Development Purchasing Opera(ons Accoun(ng
Resources providers
Help the company to promote, sell and distribute its products to final buyers.
Those companies or individuals offering the same
Any group that has an actual or poten(al interest in or impact on an organiza(on’s ability to achieve its objec(ves. Financial publics, Media publics, Government publics, Ci(zen-‐ac(on publics, Local publics, General public, Internal publics.
Our reason to exist
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Bargaining power of suppliers
Threat of New
entrants
Threat of Subs(tute products
Bargaining power of Customers
Compe((on
PNG Ins(tute of Banking and Business Management
Microenvironment Macroenvironment Consumer Markets Business Market
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
human popula(ons in terms of size, density, loca(on, age, gender, race, occupa(on. Demographic trends include age, family structure, geographic popula(on shims, educa(onal characteris(cs, and popula(on diversity. consists of ins(tu(ons and other forces that affect a society’s basic values, percep(ons, and behaviors
factors that affect consumer purchasing power and spending panerns
involves the natural resources that are needed as inputs by marketers or that are affected by marke(ng ac(vi(es. Shortages of raw materials
Increased pollu(on, Increase government interven(on, Environmentally sustainable strategies.
Those business, products or individuals offering the same benefit.
consists of laws, government agencies, and pressure groups that influence or limit various organiza(ons and individuals in a given society
Most drama(c force in changing the marketplace. Creates new products and opportuni(es.
PNG Ins(tute of Banking and Business Management
The forces Outside the industry
Macroenvironment
PNG Ins(tute of Banking and Business Management
Microenvironment Macroenvironment Consumer Markets Business Market
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
From inven(ng the digital camera to being the last ones using it
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Consumer market consists of those who buy finished products and services. The end user. The buying decision maker.
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Supply
Surplus
Buying power
Segmenta8on.The consumer market can be split into age groups, ethnic group, or buying habits. Each group has needs that can be iden(fied.
Reach. Common media modes are television, Internet, or print. A business owner can determine the best mix of media for reaching his market by determining how the target consumer receives his daily news or what magazines the consumer is likely to read.
B2C
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Services
Som goods
Consumer durables
Fast-‐moving common goods
4 Types of Consumer Products
$
$$$ $$$$
$$
PNG Ins(tute of Banking and Business Management
{ Commercial Break }
This (me is for real…
PNG Ins(tute of Banking and Business Management
Who needs what kind of adver(sing…
How do I posi(on a brand…
Would Bentley adver(se in direct mail in buildings that belong to Plan 8…
Would Plan 8 be offered at the exit of a Bentley dealer…
Think:
PNG Ins(tute of Banking and Business Management
Brand
Demand
Need
U(lity
Value
Want
Remember?
Reaching the Consumer Market
Assignment
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
OK, We’re back. Again.
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Growing Consumer Market Segments
Two growing consumer market segments are Hispanic Americans and "green" consumers.
Hispanic Americans have the highest birth rate in the country. Green consumers choose products that are environment-‐
friendly.
For adidas, sustainability is not just a response or responsibility – it’s an
opportunity to create new business value for yourselves and your
consumers!
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Business market consists of those who buy materials and services to manufacture new products or services. They are not the end user.
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
B2B
Manufacturers
Demand
Inventory/Stock
Buying/Purchasing
Business to business
Those suitable to finish a product. You can buy wholesale and add your own label.
Forces that may change quality, prices, availability.
Surplus or shortages.
Purchasing changes the final result of any transac(on and it’s itself a marke(ng response.
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Straight Rebuy
Modify Rebuy
New Task
Buying Classifica8ons
3
By towing airplanes between gates and into maintenance facili(es, American is saving 3.6 million gallons of fuel.
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2 The Marke8ng Environment
Microenvironment Macroenvironment Consumer Markets Business Market
Everybody has some marke(ng experience
The marke8ng environment is a set of forces that affects the ability to build and maintain successful rela(onships with customers
Goals
Concepts
Key words
Case Studies
Prac8cal examples
Q&A
Feed back
Order rou(ne
Evalua(on & Selec(on
Get proposals & analize
Search for sources
Descrip(on & characteris(cs
Determina(on of quan((es and specs
Recogni(on of need
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 2
The Marke8ng Environment
Macroenvironment
Microenvironment
Business Markets
Consumer Markets
PNG Ins(tute of Banking and Business Management
Principles of Marke8ng Chapter 3
MARKETING STRATEGY and PLANNING
PNG Ins(tute of Banking and Business Management
Companywide Strategic Planning: Defining Marketing’s Role
Strategic planning : Process of developing and maintaining strategic fit between the organization’s goal and capabilities
PNG Ins(tute of Banking and Business Management
Step in Strategic Planning
Planning marke(ng and other func(on strategies
Designing business poruolio
Sevng company objec(ve and goal
Defining company mission
Corporate Level
Business Unit, Product, and
market strategies …
………….………………………
PNG Ins(tute of Banking and Business Management
i. Defining a Market-Oriented Mission
Mission statement:
Ø statement of the organization purpose. Ø market oriented and defined in terms of satisfying basic customer needs. Ø should be meaningful and specific yet motivating.
PNG Ins(tute of Banking and Business Management
ii. Setting Company Objective and Goals
Business Objectives - To build profitable customer relationships
- Investing heavily in research
- Heavy investment must funded the improved profit
Marketing Objectives - Increase market share
- Increase product availability and promotion
PNG Ins(tute of Banking and Business Management
iii. Designing the Business Portfolio Business Portfolio - Collection of businesses and product that make up the company.
- Is the one that best fits the company strengths and weaknesses to opportunities in the environment.
Portfolio Analysis - Process by which management evaluates the products and businesses that make up the company.
PNG Ins(tute of Banking and Business Management
Cont…
Business portfolio involve two steps: 1. Analyzing the current business portfolio.
2. Developing strategies for growth and downsizing
PNG Ins(tute of Banking and Business Management
Boston Consulting Group Approach
PNG Ins(tute of Banking and Business Management
Problem with Matrix Approach ü Difficult to define SBUs and measure market share and grows ü time-consuming ü Costly to implement ü Focus on classifying current business, provide little advise for future planning.
PNG Ins(tute of Banking and Business Management
Product / Market Expansion Grid
Market penetra8on
Market development
Product development Diversifica8on
PNG Ins(tute of Banking and Business Management
Product / market expansion grid : a poruolio-‐ planning tool for iden(fying company growth opportuni(es through market penetra(on, market development, product development or diversifica(on. Market penetra8on : company growth by increasing sales of current products to current market segments without changing the product. Market development: Company growth by iden(fying and developing new market segments' for current company products. Product development: Company growth by offering modified or new products to current market segments. Diversifica8on : Company growth through star(ng up or acquiring businesses outside the company’s products and markets.
PNG Ins(tute of Banking and Business Management
Planning Marketing: Partnering to Build Customer Relationship
i. Partnering with Other Company Departments.
ii. Partnering with Others in the Marketing System
PNG Ins(tute of Banking and Business Management
Value Chain : The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products.
Value delivery Network : The network made up of the company, its suppliers, its distributors and ultimately, Its customers who partner with each other to improve the performance of the entire system.
PNG Ins(tute of Banking and Business Management
● The marke(ng logic by which the company hopes to create customer value and achieve profitable customer rela(onship. ● The company designs an integrated marke(ng mix made up of factors under its control such as product, price, place and promo(on.
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
● To succeed in today’s compe((ve marketplace, companies must first understand customer needs and wants. ● The process involves : Ø Market segmenta(on Ø Market targe(ng Ø Differen(a(on Ø Posi(oning
PNG Ins(tute of Banking and Business Management
MARKET SEGMENTATION
ü Dividing a market into dis(nct groups of buyers who have different needs, characteris(cs, or behaviors, and might require separate products or marke(ng programs ü Market segment : v a group of consumers who respond in a similar way to a given set of marke(ng efforts.
PNG Ins(tute of Banking and Business Management
§ Market targe(ng : ü The process of evalua(ng each market segment’s anrac(veness and selec(ng one or more segments to enter. § Posi(oning : ü Arranging for a product to occupy a clear, dis(nc(ve and desirable place rela(ve to compe(ng products in the minds of target consumers. § Differen(a(on : ü Actually differen(a(ng the market offering to create superior customer value.
PNG Ins(tute of Banking and Business Management
• Marke(ng mix : ü the set of tac(cal marke(ng tools that the firm blends to produce the response it wants in the target market. Ø product – the goods and services combina(on the company offers to the target market. Ø Price – the amount of money customers must pay to obtain the product. Ø Place – company ac(vi(es that make the product available to target customers. Ø Promo(on – ac(vi(es that communicate the merits of the product and persuade target customers to buy it.
PNG Ins(tute of Banking and Business Management
PNG Ins(tute of Banking and Business Management
MANAGING THE MARKET EFFORT MANAGING MARKETING :
Analysis,Planning,Implementation & Control
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Marketing Analysis
Use SWOT Analysis. S = strengths W = weaknesses O = opportunities T = threats
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PNG Ins(tute of Banking and Business Management
Marketing Planning
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Marketing Strategies Ø Specifict strategies for target markets,positioning,the marketing mix and marketing expenditures levels. Marketing Budgets Ø Outlines that used to control monitor progress,measure return on marketing investment and take corrective action.
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Marketing Implementation Is the process turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives. Marketing planning addresses the what and why the marketing activities,implementation addresses the who,where,when and how.
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Marketing Department Organization
Design marketing organizatios that can carry out marketing strategies and plans. Example ; Ø Chief marketing officers(CMO) position : head up the company marketing operations & represent marketing on the top management team.
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Ways Of Marketing Department Functional Organization ü Handle different marketing activities by specialities a sale manager,advertising manager,marketing research manager,customer services manager & new product manager.
Geographic Organization ü Sales and marketing people assigned to specifics country,regions and districts.
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Product Management Organization ü Manager of PMO develops and implements a complete strategy and marketing program for a specific product or brand.
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Market / Customer Management Organization ü Market managers are responsible for developing marketing strategies and plans for specifics market or customers
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Marketing Control Measuring & evaluating the results of marketing strategies and plans and taking corrective action to ensures that the objectives are achieved.
Operating Control
Ø Checking ongoing performance against the annual plan and taking corrective action when necessary.
Strategic Control
Ø Looking at wheter the company’s basic strategies are well matched to its opportunity.
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Measuring & Managing Return On Marketing Investment
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For More Information
• Join E-communities
• Network
• Read Marketing journals and suggested reading material
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■ Standardization- offering the same marketing mix in every market.
■ Adaptation- developing a unique marketing mix to fit each market’s local competitive conditions, consumer preferences, and government regulations.
■ Mass customization- allows a firm to mass produce goods and services while adding unique features to individual or small groups of orders.
Marketing Mix for International Markets
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■ Marketing research– the process of collecting and evaluating information to support marketing decision making. AC Nielson– Consumer Research ■ Secondary data– Previously published data from trade associations, advertising agencies, marketing research firms, and other sources. ■ Primary data– Data collected through observation, surveys, and other forms of observational study. ■ Data mining– computer searches of customer data to detect patterns and relationships. ■ Business intelligence– activities and technologies for gathering, storing, and analyzing data to make better competitive decisions
Marketing Research
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Market Segmentation
■ Market segmentation– the process of dividing a total market into several relatively homogeneous groups.
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How Market Segmentation Works
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■ Geographic Segmentation ■ Divides market into homogeneous groups on the basis of their locations.
■ Demographic Segmentation ■ Divides market on the basis of various demographic or socioeconomic
characteristics: gender, income, age, occupation, household size, stage in the family life cycle, education, and ethnic group
■ Psychographic Segmentation ■ Divides consumer market into groups with similar psychological
characteristics, values, and lifestyles. (VALS) ■ AIO statements—people’s verbal descriptions of various attitudes, interests,
and opinions
■ Product-Related Segmentation ■ Divides market based on buyer’s relationship to the good or service.
■ based on benefits sought by buyers, usage rates, and loyalty levels
Segmenting Consumer Markets
PNG Ins(tute of Banking and Business Management
■ Geographic segmentation– targets geographically concentrated industries.
■ Demographic, or customer-based, segmentation– a good or service intended for a specific organizational market (i.e. healthcare).
■ End-use segmentation– focuses on the precise way a B2B purchaser will use a product.
Segmenting Business Markets
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■ Consumer behavior- actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.
■ Personal factors: needs and motives, perceptions, attitudes, self-concept
■ Interpersonal factors: cultural, social, and family influences
■ External factors: economic events
■ Business buying behavior- often includes a variety of influences from multiple decision makers.
Determining What Customers Want
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Steps in Consumer Behavior
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■ Relationship marketing- developing and maintaining long-term, cost-effective exchange relationships with partners.
■ Consumers enter into relationships only if there is some benefit to them.
■ Relationship marketing seeks to achieve customer satisfaction.
Relationship Marketing
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■ Lower costs and higher profits for the business. ■ Efficient targeting of best customers increases the lifetime value of a customer.
■ revenues and intangible benefits (referrals and customer feedback) from a customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer.
■ Stronger relationships with business partners and opportunities to combine capabilities and resources to better accomplish goals.
Benefits of Relationship Marketing
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■ 80/20 principle: frequent customers have a higher lifetime value, so businesses allocate resources accordingly ■ Frequency marketing: reward purchasers with cash, rebates, and other premiums (TGI Fridays reward program) ■ Affinity programs: solicit involvement based on common interest ■ Comarketing: businesses jointly market each others’ products ■ Cobranding: firms link their names in a single product
Tools for Nurturing Customer Relationships
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■ Customizing products and marketing and rapidly delivering goods.
■ Customer relationship management software helps companies gather, sort, and interpret data about specific customers.
One-to-One Marketing