This simplifies managerial marketing details.
Marketing keys facets are summarized here.
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1. Page 1 of 19 Managerial marketing summarized
Managerial Marketing
Summarized
By
Joseph Oloba
jooloba@gmail.com
+256785552288
+256700552288
2. Page 2 of 19 Managerial marketing summarized
December 11, 2017
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Managerial marketing
Philip Kotler, the eminent
writer, defines modern
marketing as, “a social and
managerial process by which
individuals and groups obtain
what they need and want
through creating and
exchanging product and
value with others.”
Marketing is the process of
planning and executing the
conceptions, pricing,
promotion and distribution of
ideas, goods, and services to
create exchanges that satisfy
individual and organizational
goals.
Marketing is meeting needs
profitably.
Recent trends in marketing
Ambush Marketing
Forging
Intrusion
Guerrilla Marketing
Ordering something from
competition
Visit competitors
Enquire from competitors
Request something
Buy something from
competition
Compare everything
Creative Marketing
Steps
Find the inherent drama
within your offering
Translate that inherent
drama into meaningful
benefit
State your benefits
believably
Get people’s attention
Motivate your audience to
action
Communicating clearly
Measure finished adverts
against strategy
Referral Marketing
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Referrals come from
persons already known.
Referrals strengthen the
networks
Referrals reduce sales
expenses
Referrals add value to the
sources of the referrals.
Scope of marketing
According to Kotler, marketing
people are involved with ten types
of entities (Gosiipppee)
Goods
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas
Main Functions of Marketing
Selling
Buying
Assembling
Transportation
Storage
Standardization
Grading
Financing
Risk Taking
Market Information
Marketing Challenges of 21st
Century
Threat of the new entrants
Bargaining Power of Buyers
Threat of Substitute
Bargaining Power of Suppliers
Rivalry Among Competing
Firms in Industry
Connecting via technology;
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Connecting with customers
more directly, selectively, and
in a more lasting way;
Connecting with marketing
partners;
Inside partners, outside
partners
Connecting with the
world/Global Marketing due
PESTEL factors.
Core marketing concepts
Marketing philosophies
The production concept
The product concept
The selling concept
The marketing concept
The customer concept
The societal marketing
concept
The SIVA Model
Product
→Solution
Promotion →Information
Price →Value
Placement →Access
Advertising media options for
national advertiser
Bulk e-mail advertisements
lists
Card packs
Catalog advertising
Co-op direct mail
Inside other people’s
products
Coupon books
Direct mail
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Inside stores
Internet and online
advertising
National association
publications
National business
newspapers
National magazines
Newsletters
Customer relationship management
The overall process of
building and maintaining
profitable customer
relationships by delivering
superior customer value and
satisfaction.
Factors Influencing Customer
Satisfaction
Product quality
Service quality
Price
Specific product or service
features
Consumer emotions
Attributions for service
success or failure
Perceptions of equity or
fairness
Other consumers, family
members, and coworkers
Personal factors
Situational factors
6 ways to Identify Consumer
Wants/Needs:
Study your market and your
customers.
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Study your competitors &
their customers.
Observe and ask questions –
lots of questions.
Find out what customers will
respond to in your type of
product or service.
Find out what is most
important to them.
What motivates them?
Outcomes of Customer Satisfaction
Increased customer loyalty
Positive word-of-mouth
communications
Increased revenues
Increased return to
shareholders
What is Service Quality?
Service quality is the
customer’s judgment of
overall excellence of the
service provided in relation to
the quality that was expected.
The Five Dimensions of Service
Quality
Reliability
Providing service as
promised
Dependability in handling
customers’ service
problems
Performing services right
the first time
Providing services at the
promised time
Maintaining error-free
records
Assurance
Employees who instill
confidence in customers
Making customers feel
safe in their transactions
Employees who are
consistently courteous
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Employees who have the
knowledge to answer
customer questions
Tangibles
Modern equipment
Visually appealing
facilities
Employees who have a
neat, professional
appearance
Visually appealing
materials associated with
the service
Empathy
Giving customers
individual attention
Employees who deal with
customers in a caring
fashion
Having the customer’s
best interest at heart
Employees who
understand the needs of
their customers
Convenient business
hours
Responsiveness
Keeping customers
informed as to when
services will be performed
Prompt service to
customers
Willingness to help
customers
Readiness to respond to
customers’ requests
The Service Encounter
is the “moment of truth”
occurs any time the customer
interacts with the firm
can potentially be critical in
determining customer
satisfaction and loyalty
types of encounters:
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remote encounters, phone
encounters, face-to-face
encounters
is an opportunity to:
build trust
reinforce quality
build brand identity
increase loyalty
Technology-Based Service
Encounters
Themes for satisfying SSTs
The technology solved an
intensified need
The technology was better
than the alternative
The technology did its job
Themes for dissatisfying SSTs
The technology itself
failed
The process failed
The technology was
poorly designed
The customer did not use
the technology properly
Determinants of Customer
Relationship Management (CRM)
Trust
Value
Salespeople must::
Understand customer
needs and problems;
Meet their commitments;
Provide superior after
sales support;
Make sure that the
customer is always told
the truth
(must be honest); and
Have a passionate interest
in establishing and
retaining a long-
term relationship (e.g.,
have long-term
perspective).
Stages in the development of a
Customer Relationship
The Pre-Relationship Stage
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The Early Stage
The Development Stage
The Long-term Stage
The Final Stage
Functions of Customer Relationship
Management
Direct functions
Profit;
Volume; and
Safeguard
Indirect functions
Innovation:
Market;
Scout: and
Access.
The role of salespeople as
relationship builders and promoters
identifying potential
customers and their needs;
approaching key decision
makers in the buying firm;
negotiating and advancing
dialogue and mutual trust;
coordinating the cooperation
between the customers and
their company;
encouraging the inter-
organisational learning
process;
contributing to constructive
resolution of existing
conflicts; and
leading the customer
relationship development
team
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Managing Customer Relationships
Initiating the relationship
Engage in strategic
prospecting and
qualifying;
Gather and study pre-call
information;
Identify buying influences;
Plan the initial sales call;
Demonstrate an
understanding of the
customer’s needs;
Identify opportunities to
build a relationship; and
Illustrate the value of a
relationship with the
customer
Developing the relationship
Select an appropriate
offering;
Customise the
relationship;
Link the solutions with the
customer’s needs;
Discuss customer
concerns;
Summarize the solution to
confirm benefits; and
Secure commitment.
Enhancing the relationship
Assess customer
satisfaction;
Take action to ensure
satisfaction;
Maintain open, two-way
communication; and
Work to add value and
enhance mutual
opportunities
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CRM in summary
CRM is a new business
philosophy based on trust
and value;
The core function of CRM is
the value creation process;
Customer relationships
develop over time;
The role of global salespeople
in the process is that of both
relationship builders and
relationship promoters; and
The basic premise of CRM is
to offer superior value to
customers in an effort to turn
prospects into customers,
customers into loyal
customers, and loyal
customers into partners.
Market Segmentation
Demographic segmentation
Geographic segmentation
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Location or region
Psychographic
Product-related
Economic factors
Population income or level
of economic development
Political and legal factors
Type/stability of
government, monetary
regulations, amount of
bureaucracy, etc.
Cultural factors
Language, religion, values,
attitudes, customs,
behavioral patterns
The Market Segmentation Process
Stage I: Identify
Segmentation Process
Stage II: Develop Relevant
Profile
Stage III: Forecast Market
Potential
Stage IV: Forecast Market
Share
Stage V: Select Specific
Segment
Criteria for Effective Segmentation
The market segments must
be measurable in terms of
both purchasing power and
size.
Marketers must be able to
effectively promote to and
serve a market segment.
Market segments must be
sufficiently large to be
potentially profitable.
The number of segments
must match the firm’s
capabilities in terms of
resources.
Must be responsive to
company strategies
Differentiable-it must be
distinguishable.
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Strategies for Reaching Target
Markets
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
Micromarketing
Determinants of a market-specific
strategy:
Company resources
Product homogeneity
Stage in the product life-cycle
Competitors’ strategy
Target Marketing
Evaluating Market Segments
Segment size and growth
Segment structural
attractiveness
- Level of competition
- Substitute products
- Power of buyers
- Powerful suppliers
Company objectives and
resources
Target Marketing Strategies
Choosing a Target Marketing
Strategy
Company resources
The degree of product
variability
Product’s life-cycle stage
Market variability
Competitors’ marketing
strategies
Positioning
The place the product
occupies in consumers’ minds
relative to competing
products
Typically defined by
consumers on the basis of
important attributes
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Involves implanting the
brand’s unique benefits and
differentiation in the
customer mind
Positioning maps that plot
perceptions of brands are
commonly used
Positioning Strategies
Determine consumers’
perceptions and evaluations
of the product or service in
relation to competitors’.
Identify competitors’
positions.
Determine consumer
preferences.
Select the position.
Monitor the positioning
strategy.
Types of Positioning
Attributes position
Benefits
Usage occasions position
Competitors' Positioning
Product Class
Quality Positioning
Price Positioning
Perceptual mapping
Types of Positioning Errors
Under positioning
Over positioning
Confused positioning
Doubtful positioning
Differentiation can be based on:
Products
Services
Channels
People
Image
Criteria for determining which
differences to promote
Important
Distinctive
Superior
Communicable
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Preemptive
Affordable
Profitable
Possible value propositions:
More for more
More for the same
More for less
The same for less
Less for much less
The Marketing Environment
It refers to the actors and
forces outside marketing that
affects marketing
management’s ability to build
and maintain successful
Micro environment actors
company departments,
supplier
marketing intermediaries,
customers,
competitors
various publics
Macro environment actors:
Political / Legal Environment
Economic Environment
Social Environment
Technological Environment
Marketing Mix
Marketing mix elements
Price, product, promotion,
place are the original four (4)
Ps.
Each of the four Ps has its own tools
to contribute to the marketing mix:
Product: variety, quality,
design, features, brand name,
packaging, services
Price: list price, discounts,
allowance, payment period,
credit terms
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Place: channels, coverage,
assortments, locations,
inventory, transportation,
logistics
Promotion: advertising,
personal selling, sales
promotion, public relations
Marketing objectives
Specific – Can the detail
in the information sufficiently
pinpoint problems or
opportunities?
Measurable – Can a
quantitative or qualitative
attribute be applied to create
a metric?
Actionable – Can the
information be used to
improve performance?
Relevant – Can the
information be applied to the
specific problem faced by the
manager?
Time-related – Can the
information be viewed
through time to identify
trends?
Marketing tactics
The seven tactics below are
sometimes referred to as the 7Ps
because they all start with the letter
P (State Government of Victoria,
2017)
Your product or service
The pricing of your product
or service
Your position (place) in the
marketplace
The promotion of your
product of service
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The people in your business
(e.g. salespeople, staff)
The process/ buying
experience
The physical environment
The four Ps as the four Cs, as
analyzed by Goi (2009):
The four Ps of the marketing mix
can be reinterpreted as the four Cs.
They put the customer’s interests
(the buyer) ahead of the marketer’s
interests (the seller).
Customer solutions, not
products: Customers want to
buy value or a solution to
their problems.
Customer cost, not price:
Customers want to know the
total cost of acquiring, using
and disposing of a product
Convenience, not place:
Customers want products
and services to be as
convenient to purchase as
possible.
Communication, not
promotion:
Customers want two-way
communication with the
companies that make the
product.
Product Life-Cycle
Overestimation of Market
Size
Product Design Problems
Product Incorrectly
Positioned, Priced or
Advertised
Costs of Product
Development
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Competitive Actions
To create successful new products,
the company must:
understand it’s customers,
markets and competitors
develop products that deliver
superior value to customers.
Product Life Cycle
Services marketing
Characteristics of services
Intangibility
Inseparability
Variability
Perishability
Ownership
Basic Differences Between Goods &
Services
Customers do not obtain
ownership of services
Services products may not be
inventoried.
Intangible elements dominate
value creation.
Customers may be involved in
the production process.
Many services are difficulty
for customers to evaluate
To be continued!