2. Selling Vs Marketing Concept
• Selling focuses on the needs of the seller;
Marketing on the needs of the buyer.
Selling is preoccupied with the seller’s
need to convert his product in to cash;
Marketing with the idea of satisfying the
needs of the customer using synergy
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3. Selling Concept
• Consumers and business if left alone, will
normally buy a small quantity of
Organization’s products. For this very
reason, the Organization must undertake
an aggressive selling and promotion effort
• - Buying inactivity (conflict)
• - The set for effective selling to stimulate
more buying
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4. The Marketing Concept
• The Organizational goals could be
achieved if the Company will be more
effective than competitors in creating,
delivering, and communicating customer
value to its chosen target markets
• - Start and end with the customer
• - Love the customer not the product
• - Profits through customer satisfaction
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5. Four Pillars of the Marketing
Concept
• Target Market
• Customer needs
• Integrated Marketing
• Profitability
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6. How Price Fits into Marketing Program
Positioning Strategy
Target
market and
objectives
Marketing program
Product positioning strategy
strategy
Distribution
strategy
Price
strategy
Promotion
strategy
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8. Pricing Strategy for New
and Existing Products
Set Pricing
Objectives
Analyze the
Pricing Situation
Select Pricing
Strategy
Determine Specific
Prices and Policies
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9. Factors Impacting the Pricing
Situation
Customer Price feeling
Legal and Ethical
Constraints
Analyzing the Pricing
Situation Product
Competitors’ Likely
Responses
Costs
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10. Guide to Cost Analysis
Determine cost
structure
A
Analyze cost and
volume relationships
B
Analyze competitive
advantage
C
Estimate the effect
of experience on costs
D
Determine the extent
of control over costs
E
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11. Determinants of Pricing Flexibility
Demand
Competition Demand-Cost Gap Legal and
Costs
Ethical
Influences
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12. Basis of Determining Specific
Prices
Cost Demand Competition
Finally
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13. PRODUCT DECISIONS
• Product and Service Classification
System
• The Product Life Cycle
• Introduction to product matrices
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14. Product and Service
Classification System
• Convenience goods - little effort, relatively
inexpensive
• Shopping goods - e.g. equipment, more
expensive, infrequent
• Speciality goods - extensive search e.g.
Jewellery.
• Unsought goods - e.g. Buying a shirt just
after seeing it.
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15. The Product Life Cycle (PLC) Model
Development
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earrlly
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Grrowiing sellecttiiviitty
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Maturity Decline
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16. Product Life Cycles
• Product Life Cycle – shows the stages that
products go through from development to
withdrawal from the market
• Product Portfolio – the range of products a
company has in development or available for
consumers at any one time
• Managing product portfolio is important for cash
flow
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17. Product Life Cycles
• Product Life Cycle (PLC):
– Each product may have a different life cycle
– PLC determines revenue earned
– Contributes to strategic marketing planning
– May help the firm to identify when a product needs
support, redesign, reinvigorating, withdrawal, etc.
– May help in new product development planning
– May help in forecasting and managing cash flow
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18. Product Life Cycles
• The Stages of the Product Life Cycle:
– Development
– Introduction/Launch
– Growth
– Maturity
– Saturation
– Decline
– Withdrawal
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19. Product Life Cycles
• The Development Stage:
• Initial Ideas – possibly large number
• May come from any of the following –
– Market research – identifies gaps in the market
– Monitoring competitors
– Planned research and development (R&D)
– Luck or intuition – stumble across ideas?
– Creative thinking – innovations, guessing?
– Futures thinking – what will people be using/wanting/needing
5,10,20 years hence?
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20. Product Life Cycles
• Product Development: Stages
– New ideas/possible inventions
– Market analysis – is it wanted? Can it be produced
at a profit? Who is it likely to be aimed at?
– Product Development and modification
– Test Marketing – possibly local/regional
– Analysis of test marketing results and amendment
of product/production process
– Preparations for launch – publicity, marketing
campaign
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21. Product Life Cycles
• Introduction/Launch:
– Advertising and promotion campaigns
– Target campaign at specific audience?
– Monitor initial sales
– Maximise publicity
– High cost/low sales
– Length of time – type of product
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22. Product Life Cycles
• Growth:
– Increased consumer awareness
– Sales rise
– Revenues increase
– Costs - fixed costs/variable costs, profits
may be made
– Monitor market – competitors reaction?
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23. Product Life Cycles
• Maturity:
– Sales reach peak
– Cost of supporting the product declines
– Ratio of revenue to cost high
– Sales growth likely to be low
– Market share may be high
– Competition likely to be greater
– Price elasticity of demand?
– Monitor market – changes/amendments/new
strategies?
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24. Product Life Cycles
• Saturation:
• New entrants likely to mean market is ‘flooded’
• Necessity to develop new strategies becomes more pressing:
– Searching out new markets:
• Linking to changing fashions
• Seeking new or exploiting market segments
• Linking to joint ventures – media/music, etc.
– Developing new uses
– Focus on adapting the product
– Improving the standard or quality
– Developing the product range
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25. Product Life Cycles
• Decline and Withdrawal:
– Product outlives/outgrows its usefulness/value
– Fashions change
– Technology changes
– Sales decline
– Cost of supporting starts to rise too far
– Decision to withdraw may be dependent on
availability of new products and whether
fashions/trends will come around again?
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26. Product Life Cycles
Sales
Development Introduction Growth Maturity Saturation Decline
Time
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28. Product Life Cycles
Sales/Profits
Time
PLC and Profits
PLC
Losses
Profits
Break Even
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29. STRATEGY
IMPLEMENTATION &
CONTROL
• Implementation is the process that turns a
marketing plan into specific tasks to be
performed and ensures that they ultimately
accomplish the plan’s objectives.
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30. STRATEGY
IMPLEMENTATION &
CONTROL
• If the implementation process is not well
thought-out and managed, the plan will not
succeed.
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31. Factors in Implementation
• On-time and accurate performance by
marketing staff, agencies and vendors (the
organization staff must deliver their
services according to the specifications in
the plan)
• Clear delineation of responsibilities of
various elements of the implementation
process (each task must be accomplished
and naming the individual responsible)
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32. Factors Cont …
• Communication of the plan’s objectives,
strategies, and tactics throughout the bank
(it is important that all areas of the bank be
aware of the bank’s marketing efforts).
• Cooperation of all areas affected by
implementation (the individual who chairs
the task force must effectively steer the
group toward the desired end).
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33. Factors Cont …
• Monitoring of results (having a system in
place for monitoring the implementation
process and its progress toward
achievement of the plan’s goals) =
PROGRESSIVE EVALUATION
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34. STRATEGY CONTROL
• The control process involves continuous
monitoring and evaluation of the strategic
plan as well as feedback necessary to
ensure that the plan has been assigned
and communicated to the right people in
the right way.
• Adequate monitoring system will help to
trace the causes of problems and take
corrective actions.
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35. FINALLY
STRATEGY CONTROL
• Plans may derail because of the changes
in the operational environment
(competition, technology, social,
economic, political or legal factors)
• Or some situation within the firm (lack of
cooperation at the operating level):
Therefore
• Problems should be viewed as
opportunities for learning, growth, and
improvement.
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36. Total Concluding Summary
• It is imperative for any marketer to understand
the role of strategy in Business
• Strategy is se of unified Coherent and integrated
set of ideas
• There are long and short term strategies
• Customer are not and will never buy products
but values
• Understand the mission of an organisation
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37. Summary Cont..
• You need to analyse your customers in order to
be customer driven
• Industry analysis is important to determine the
attractiveness of an industry
• Market driven strategies are more sustainable ..
AND
• Product decision are necessary in order to make
proper choice of the strategy
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38. THE END !!!
• Companies which will
ignore strategic
Marketing have no
room in competition
• Always understand
your competitors as
you understand
yourself.
• THANK YOU!!
9/4/2014 38
