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MKTG 436

MKTG 436

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  • 1. MKTG 436 Marketing Decisions Making
  • 2. Course Description
    • Reinforcing concepts you learned in Marketing Principles , you will analyze, evaluate and develop decisions pertaining to product, price, promotion and physical distribution ( the 4 P’s ) marketing programs.
    • Emphasis will be placed on analytical techniques and case studies to develop effective decision- making skills in the major functional areas of marketing.
  • 3. Course Objectives
    • Become familiar with individual topical areas of marketing management such as: pricing, forecasting, budgeting, advertising, market analysis and marketing strategies.
    • Understand how to assess and manage cost and profitability considerations in the evaluation and choice of marketing decisions.
    • Be able to understand the concept of marketing segmentation , and to utilize the analytical tools and techniques necessary to profitably segment a market.
    • Learn how the product-market structure is related to product benefits and consumer profiles.
    • Understand the relationship between business and marketing strategy and the preparation of the marketing plan.
    • Gain a fundamental knowledge of how to identify the market potential , industry sales, and company sales measurements needed for marketing decisions.
    • Learn the basic skills necessary to operate SPSS.
    • Understand how to estimate price elasticity and how to establish pricing objectives that implement chosen marketing strategies .
    • Be able to evaluate the overall effectiveness of an advertising program within the context of promotion and sales.
  • 4. The Bottom-line is…..
    • What decisions do Marketing Managers have to make in their work?
    • Why these decisions have to be made?
    • How are these decisions made and how effective they could be?
  • 5. Market Orientation, Marketing Management, and The Marketing Planning Process Chapter 1
  • 6. Overview
    • In the middle 20 th century, the term marketing was viewed as more or less equivalent to the term selling .
    • As products became more sophisticated, competition increased, resulting in a business environment that was becoming increasingly complex.
    • More emphasis on Marketing Research to learn about buyers’ motives and preferences as firms sought to satisfy market needs.
    • Managers realize that they need to understand customer needs, its competition, and broad environment to assure long-term success.
  • 7. Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept
  • 8. The Production Concept
    • Assumes that consumers are interested primarily in product availability at low prices
    • Marketing objectives :
      • Cheap, efficient production
      • Intensive distribution
      • Market expansion
  • 9. The Product Concept
    • Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features
    • Marketing objectives:
      • Quality improvement
      • Addition of features
  • 10. The Selling Concept
    • Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
    • Marketing objectives :
      • Sell, sell, sell
    • Lack of concern for customer needs and satisfaction
  • 11. The Marketing Concept
    • Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition
    • Marketing objectives :
      • Make what you can sell
      • Focus on buyer’s needs
  • 12. Learning Outcomes
    • Nature and causes of customer satisfaction and quality .
    • Importance of having a “ market orientation ” to deliver quality thereby maintaining customer satisfaction and competitive advantage.
    • How marketing managers use the market planning process in implementing a market orientation.
    We will examine the following in this chapter:
  • 13. Customer Satisfaction and Quality
    • A buyers’ degree of satisfaction with a product is the consequence of the comparison between the level of the benefits perceived and the level of benefits expected prior to purchase.
    • In order to deliver customer satisfaction an organization has to offer quality in its goods and services.
    • Traditionally, the term quality thought to mean defect-free products. Today, high quality means pleasing customers.
    • Truly quality-oriented view of customer satisfaction is one that provide a level of benefits that exceeds rather than just meet expectations.
  • 14. 8 Dimensions of Quality
    • Performance
    • Features
    • Reliability
    • Conformance
    • Durability
    • Serviceability
    • Aesthetics
    • Perceived quality
    In seeking to provide customer satisfaction, organizations can pursue any of the following dimensions of quality:
  • 15. Quality, Satisfaction and Performance
    • High quality results in superior business performance is supported by empirical research.
    • High profitability is a consequence of higher quality. High quality creates and maintains a high degree of customer satisfaction.
    • Quality allows a firm to increase its relative sales position in the market, which is positively related to return on investment.
    • Satisfied owners continued investments in human resource and equipment will lead to a virtuous circle of sustained high level of performance. Key is the adoption of a market orientation
  • 16. Market Orientation
    • Market orientation refers to an organizational perspective that encourages
      • (1) the systematic gathering of market intelligence ,
      • (2) dissemination of the intelligence across all organizational units and
      • (3) a coordinated, organizational wide responsiveness to the intelligence.
    • Like Total Quality Management (TQM) – all departments and employees must commit to and share responsibility for quality. Marketing has a lead role in this process for identifying priority needs and customer concerns.
    • Measuring market orientation through a questionnaire survey using listed statements.
  • 17. Market Orientation and Market Planning
    • To implement a market orientation philosophy, firms must not only motivate employees, it must provide analytical tools and decision-making frameworks to generate and process marketing intelligence.
    • Examples of key actions to be taken:
      • Decide which business opportunities can give the firm the best chance to create satisfied customers
      • Analyze customer decision making processes and identify various preference patterns in a market
      • Assess competitive advantages and competitor’s positions in a market
      • Measure market opportunities and assess impact of plans for enhancing customer satisfaction or competitive advantage on profitability
      • Applying knowledge from market intelligence to the design of market offering.
  • 18. Marketing Planning Process
    • Planning is merely a systematic way for an organization to attempt to control its future. A plan is a statement of what the organization hopes to achieve, how to achieve it and when it will be achieved.
    • Marketing Planning is the systematic process for developing and coordinating marketing decisions .
    • Marketing Decisions are made at 2 levels – top management and middle management . So the marketing planning process operates at 2 levels.
  • 19. Marketing Planning Process
    • Corporate (top) management planning focuses on long-term direction of the organization regarding the markets and needs that will be served, whereas
    • Middle management planning specifies how the corporate marketing plan will implemented on a product-by-product basis by focusing on sales and profitability of products or brands.
    • Both planning levels should be interdependent
  • 20. Basic Steps in Planning
    • Conducting a situation analysis.
    • Establishing objectives.
    • Developing strategies and programs.
    • Providing coordination and control.
  • 21. Conduct Situation Analysis Develop Strategies and Programs Establish Objectives Provide Coordination and Control Basic Steps in Market Planning
  • 22. Basic Steps in Planning
    • Conducting a situation analysis
      • Understand current situation and trends affecting the future of the organization
      • Assess Problems (or Threats ) and Opportunities posed by buyers, competitors, costs and regulatory changes.
      • Identify Strengths and Weaknesses possessed by the firm
    • Establishing objectives
      • Having completed situation analysis, decision makers must then establish specific objectives that identifies the level of performance the organization hopes to achieve
  • 23. Basic Steps in Planning
    • Developing strategies and programs
      • To achieve stated objectives, decision makers must develop both strategies (long-term actions to achieve objectives) and programs (short-term actions to implement strategies)
    • Providing coordination and control
      • Some mechanism to ensure that strategies are effectively implemented through some form of coordination and control measures.
  • 24. Conclusion
    • Marketing Concept
      • Serves as starting point giving attention to customer needs as the basic purpose of a business.
    • Market-oriented organization takes its lead from the market
      • Understand customers and competitors, determine which customers and needs fit best with the organization’s capabilities and profit goals and develop their responses to the marketplace .
    • A planning approach that deals with the problems involved in implementing the marketing concept
      • Conducting situation analysis and setting objectives before developing strategies and programs improve chances for choosing the best marketing policies.
      • Planning takes place at 2 levels, top and middle management
      • Focus on market needs and quality can lead to outstanding performance.
  • 25. Marketing Decision Making (MKTG 436)
    • Introduction and Overview ( Chapter 1 )
    • Conducting situation analysis ( Chapters 3 to 6 ).
    • Establishing objectives and developing strategies and programs ( Chapters 8 to 10 ).
    • Providing coordination and control
    • Decision-Making using SPSS applications ( every lesson )
    • See Figure 1-8