The great thing about marketing is that it takes an hour to learn and a lifetime to master
Drucker, the great management theorist had an equally appealing phrase which said” “ The role of marketing is to make the sales force redundant”
What is Marketing? Classic definition of marketing… Getting the right products in the right place at the right price at the right level of promotion
What is Marketing? Marketing is about identifying consumer needs, meeting those needs in terms of product development and very effectively communicating to customers that you have met their needs and that includes pricing , that includes the right communication channels, it includes the right messages and the right media for those messages.
What is Marketing? I define Marketing as looking at people’s needs and wants and matching them with certain products that are available now, today and in the future!
Marketing is about A Focus on Benefits… Customers buy products but they want benefits What people really desire are not products but satisfying experiences Ray Croc built McDonalds on one simple formula: Quality, Service and Cleanliness “ Doing yesterday better”
Who Needs Marketing? The key is to approach marketing in a proper, disciplined approach That stays close to the customer, collects feedback and develops new and improved products for tomorrow The time is ripe for your organization to adopt marketing excellence!
Understanding customers’ needs and wants is absolutely vital for long term survival
Not everyone can spot a new product opportunity or a relevant market trend that satisfies a customer’s, often hidden, needs
Even the best get it wrong, and misinterpret customer needs and wants
Is Marketing an Art or a science? Can marketing managers predict what will happen when they mix marketing ingredients together? If they reduce price will sales go up… or down? Or if they increase advertising… will sales go up… or down?... This week, this month, next year or in the long term… what will happen?
Is Marketing an Art or a science? Are human beings conditioned by TV advertising, or by their neighbors or are they totally free Agents With the advertising intensity of the cellular business, suddenly the SMS craze change the behavior patterns of 30 million Filipinos Marketing moves beyond the realm of physical responses and into the realm of mental responses such as shifts in awareness, attitudes, intentions to purchase, and so on
Is Marketing an Art or a science? Can marketers buy “ share of mind” i.e. calculate how many advertisements it takes to achieve carefully determined levels of brand awareness Marketers can predict aggregate numbers of customers who will respond to direct mail shots or TV advertisements Or is there so much creativity in marketing that many would consider it to be an art form? So it an art, a science or both? Time to think…
52% 74% P 15, 000 - Below Lower DE 28% 18% P 15, 001 - 30, 000 Middle C2 14% 7% P 30, 001 - 50, 000 Upper Middle C1 P 50, 001 - 99, 999 Upper B 6% 1% P 100, 000 + Upper A Metro Manila Total Philippines Estimated Monthly Income % Pop HH ESTIMATED MONTHLY INCOME (Source: PSRC/AGB data)
Is Marketing an Art or a science? Or is there so much creativity in marketing that many would consider it to be an art form? So it an art, a science or both? Time to think…
Are markets becoming more competitive? Somewhere out there, as I speak, competitors are Analyzing And Targeting our customers
Are markets becoming more competitive? Markets are becoming more competitive today than ever before Partly because of global competition and partly because reaction times are quicker and product life cycles are shorter No market is safe from competition Competition can attack an organization’s sales, Market share or profits anytime
Applying segmentation in your organization It is a unique group of customer (or potential customers) who share some common characteristics that make them different from other groups of customers Some segments have different needs, require different versions of the same product, pay different prices, buy in different places, can be reached by different media
Applying segmentation… Customers and prospective customers can be grouped together or ‘segmented’ in lots of different ways… age, sex, where they live, how they live, what they earn, and so on
Knowing your customer! Allocate time to know your customers as each segment that is chosen or targeted needs to be treated differently in some way. Segmenting and selecting the best target segments is called target marketing This is a vital marketing skill
Knowing your customer! In the 60’s, we had mass marketing In the 70’s segmentation became more popular In the 80’s target marketing became so precise that narrower, smaller segments or niche markets emerged In the 90’s one to one grew as technology spread and named individuals where targeted directly through database marketing’s mail and telesales
Knowing your customer ! Marketers today satisfy smaller and smaller segments, right down to individual requirements Mass Customization New millennium strategy that will compel many products and services to tailor-made their offerings to thousands and even millions of individual requirement i.e. newspapers, publications and websites
Stay Close to your Customers! It also helps to see the target customers more effectively It allows the marketer to break up the market, focus on the best segments and find new customers who might otherwise have been lost in the madding crowd Sloppy targeting not only waste resources but it can also damage an organizations’ reputation
Stay Close to your Customers! The closer understanding of customer needs helps protect an organizations’ existing customer base from the inevitable onslaught of competitors and their offerings
Why bother with STP? It not only reduce waste but also help boost sales and find the best prices Some people are more likely to buy your product, service or idea than other people Time spent carefully segmenting and accurately targeting helps to find those people. Without segmentation, the likelihood of success reduces
Effective positioning requires an in-depth understanding of the market, its needs, its segments and the target market selected
Positioning strategy is based on whether it is
A. Required by the market
Why bother with planning? It’s a pain in the neck! It’s a waste of time! I need to be out there with my customers!
Why bother with planning? But wait a minute… How much money is needed for advertising and promotions? Is there money available for a new brochure? What is the sales campaign going to happen?
Why bother with planning? Without a plan there is no control, just Different people pushing in different Directions Without a plan, you lose control and Sometimes your business Why some organizations have big Increases in sales and profits and yet they still go out of business
Why bother with planning? Why some organizations have big Increases in sales and profits and yet they still go out of business Because of the cash flow problems Caused by unplanned growth Sales and marketing must integrate with other functions like finance
Why bother with planning? Planning forces the manager to consider the future… even create the future! Managers need to move away from the day to day operations and reflect on the bigger picture– how it all fits Together Plans integrates all activities!
Why bother with planning? Planning along with leading, organizing And controlling- is one of the key skills that a manager and even an employee must have To summarize, planning saves time and Money, reduces stress, panic and heart Attack, paints a bigger picture, looks to the future, helps a person organize effectively
Marketing must permeate throughout the whole organization as part of the corporate culture MARKETING IS TOO IMPORTANT TO BE LEFT TO THE MARKETING DEPARTMENT