(Tested - Excellent) Marketing.management.overheads

8/14/2019 (Tested - Excellent) Marketing.management.overheads

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Marketing Management

A discipline focused on

creating, developing, and maintaining

profitable relationships

between

customers and the organization.


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Developing a Marketing Plan

ProductPricePlace

Promotion

Corporate Capabilities

Objectives

Finance

Operations

Human Resources

Environmental

Analysis

Political

Economic

Social

Technological

Customer

Analysis

Who?

What?

How?

Where?

When?

Competitive Analysis

Who? (Direct and Indirect)

Relative size/Power

Strengths and Weaknesses

Potential Risks and Opportunities

Industry Statistics

NEEDS TO BE A GOOD FITALL AROUND


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Marketing Report Evaluation

Your report will be evaluated on the following 3

criteria:

Your ability to define the marketing challenge(problem).

The depth to which you have properly appliedthe marketing tools learnt in class to analyze

the problems in the case.

The effectiveness of the decision and actionplan you have committed to.


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Marketing Report General Comments

To do well, I have to believe that your decisionis appropriate and that your action plan will

work.

This will not come through in yourlanguage, it will come through in your

ability to link your analysis to yourdecision and action plan.

This is not a case write-up, it is a report.Do not give me role, constraints andconsiderations, etc.Take on the role do not be afraid of

the words I or me or we or us.


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Marketing Report Writing Style

Although grammar, punctuation and diction donot count in the mark, poor grammar will

kill the impact of your report.

PROOFREAD, PROOFREAD, PROOFREAD!Get the logic errors out first, then

worry about the grammar.


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Customer Analysis

Marketing is about deciding what to do forwhom

Marketers examine the customer in-depth, notto uncover interesting facts, but instead, tofind actionable ideas

People differ they should be divided intogroups of similar people so that marketers

can work more effectively to influence theirbehaviour (market segmentation)

It is virtually impossible to be all things to allpeople specifying a target market enables a

marketer to focus on the most attractivesegment of the market


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Customer Analysis

Customer Group

WHO

Are they?

Identify and describe potentialcustomers

DemographicsSize of the segment

WHAT

Do they

want/need?

Describe their needs in aproduct/ service

Physical characteristicsPackage of benefits

HOW

Are they

motivated to

purchase?

Determine the reasons why theypurchase

Psychological componentConvenience, impulse, etc.

WHERE

Do they

purchase?

Identify the places where theypurchase

LocationDistribution

WHEN

Do they

purchase?

Describe their purchase patternTime of year, month, dayPoint in their lifeFrequency


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Marketers assess how successful thecompetitors are and look for exploitable

differences in their offerings

Effective marketers capitalize on theseopportunities by attempting to influence

customers perceptions

Marketers must attempt to anticipate changes inthe competitive environment


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Competitor

(Direct/Indirect)

STRENGTHS What do they do well?

WEAKNESSES In what areas are they lacking?

RISKS Possible competitive reactions

OPPORTUNITIES Potential areas to exploit


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Marketing Arithmetic

Cost

(Recurring)

Variable Fixed

Investment

(One-time)


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Cost Classification

Variable Cost (VC)A cost which changes directly and

proportionately with changes in volume

Fixed Cost (FC)A cost which does not change despite

changes in volume

Volume

$

Volume

$


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Marketing Arithmetic

Unit Contribution (UC)Selling Price Variable Costs

Contribution Margin Ratio (CMR)Unit Contribution Selling Price

Break Even (B/E) ~ UnitsFixed Costs Unit ContributionProfit Target Break Even

Break Even (B/E) ~ Sales $Fixed Costs Contribution Margin RatioProfit Target Break Even

Market Share Break Even ~ Units or Sales $Break Even Total MarketRelevant Market Share Break Even

Return on Investment (ROI)Profit Investments


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Sensitivity Analysis

By being able to quickly determine whether anew plan will yield a profit, we can easily test

other scenarios

We could change:the selling price,the variable costs,the fixed costs, orthe profit target


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Mark-up vs. Margin

Mark-up

A percentage is added to the cost of aproduct to determine its selling price

EXAMPLE:

A retailer purchases a product from its supplier

for $10.00 and wishes to add a mark-up of 20%

$10.00 Wholesale Selling Price

2.00 20% Mark-up ($10.00 20%)

$12.00 Retail Selling Price

Margin

The cost represents a percentage of theselling price as determined by 1 margin %

EXAMPLE:

A retailer wishes to set a selling price that allows

for a 20% margin

$12.50 Retail Selling Price (RSP 80% = WSP)

10.00 Wholesale Selling Price (80%)

$ 2.50 Margin (20%)


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Pricing Strategies

Skimming Strategy

The tendency to price very high in thehopes of making a substantial profit in a

short amount of time. Often used when a

firm is the first to enter the market and

wants to make a profit quickly before it

can be copied or imitated.

Penetration Strategy

The tendency to price very low in thehopes of gaining a large market share

quickly and retaining that market share in

the long run. Often used when a markethas growth potential and firms competing in

the market want to discourage new

competitors from entering the market.


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Pricing

Prices should be set based on what customersthink the product or service is worth

(perceived value).

In setting a price, consider your positioningand your competition. Your price sends a big

signal to your customers about how they

should perceive your product/service relative

to your competitors.

In setting your price, you must be completelyaware of your cost structure. Know your

marketing math to determine whether or not

you will be profitable.


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Distribution

There are many ways to get a product/serviceto the end customer.

Deciding which distribution channel(s) to use isa major marketing decision.

it cannot be made independently of othermarketing decisions

it cannot be changed quickly

Identifying who does what for whom enablesmarketers to recognize the implications of

their companys power and control over the

marketing efforts of other channel members.

An alert marketer seeks channels that makesense for their target market.


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Marketing Communications

Often the most visible aspect of marketing,marketing communications is but one piece of

the overall marketing plan.

There are many communication methodsavailable to marketers, including:

advertisingpromotionpoint-of-purchase displaysdirect mailtelemarketingpackagingpersonal sellingtrade incentivespublicity

In general, marketers can use a combination ofthe following two communications strategies.

PUSH strategyPULL strategy


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Push vs. Pull Strategy

Push Strategythe communications effort is directed

towards members of the distribution

channel

Producer Distributor Retailer Customer

Pull Strategythe communications effort is directed

towards the end customer

Producer Distributor Retailer Customer


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Social Marketing

All marketing efforts begin by defining themarketing challenge.

the challenge for a social marketer israrely one of profit maximization

the challenge often focuses on creatingawareness within a target group of a

social problem/need, with the goal of

changing that groups behaviour

Not all people in the target group have thesame level of awareness, knowledge oracceptance. It is important that a consistent

message be given to all individuals in the group

(integrated marketing communications plan).

Social marketers must often deal with highlysensitive/controversial issues. They mustattempt to overcome any social resistance in

their communications strategy.

Documents

(Tested - Excellent) Marketing.management.overheads