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MKTG 436 Marketing Decisions Making
Course Description <ul><li>Reinforcing concepts you learned in  Marketing Principles , you will analyze, evaluate and deve...
Course Objectives <ul><li>Become familiar with individual topical areas of marketing management such as:  pricing, forecas...
The Bottom-line is….. <ul><li>What decisions do Marketing Managers have to make in their work? </li></ul><ul><li>Why these...
Market Orientation,  Marketing Management,  and The Marketing Planning Process Chapter 1
Overview <ul><li>In the middle 20 th  century, the term  marketing   was viewed as more or less equivalent to the term   s...
Development of the Marketing Concept Production  Concept Selling Concept Product Concept Marketing  Concept
The Production Concept <ul><li>Assumes that consumers are interested primarily in product availability at low prices </li>...
The Product Concept <ul><li>Assumes that consumers will buy the product that offers them the highest quality, the best per...
The Selling Concept <ul><li>Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to...
The Marketing Concept <ul><li>Assumes that to be successful, a company must determine the needs and wants of specific targ...
Learning Outcomes <ul><li>Nature and causes of  customer satisfaction  and  quality . </li></ul><ul><li>Importance of havi...
Customer Satisfaction and Quality <ul><li>A buyers’ degree of satisfaction with a product is the consequence of the compar...
8 Dimensions of Quality <ul><li>Performance </li></ul><ul><li>Features </li></ul><ul><li>Reliability </li></ul><ul><li>Con...
Quality, Satisfaction and Performance <ul><li>High quality results in superior business performance  is supported by empir...
Market Orientation <ul><li>Market orientation refers to an organizational perspective that encourages  </li></ul><ul><ul><...
Market Orientation and Market Planning <ul><li>To implement a market orientation philosophy, firms must not only motivate ...
Marketing Planning Process <ul><li>Planning is merely a systematic way for an organization to attempt to control its futur...
Marketing Planning Process <ul><li>Corporate (top) management planning  focuses on  long-term direction  of the organizati...
Basic Steps in Planning <ul><li>Conducting a situation analysis.  </li></ul><ul><li>Establishing objectives. </li></ul><ul...
Conduct Situation  Analysis Develop Strategies  and Programs Establish  Objectives Provide Coordination  and Control Basic...
Basic Steps in Planning <ul><li>Conducting a situation analysis   </li></ul><ul><ul><li>Understand current situation and t...
Basic Steps in Planning <ul><li>Developing strategies and programs  </li></ul><ul><ul><li>To achieve stated objectives, de...
Conclusion <ul><li>Marketing Concept  </li></ul><ul><ul><li>Serves as starting point giving attention to customer needs as...
Marketing Decision Making (MKTG 436) <ul><li>Introduction and Overview ( Chapter 1 ) </li></ul><ul><li>Conducting situatio...
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MKTG 436

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