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Functional Marketing Management

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Functional Marketing Management

  1. 1. DiplomaINTRODUCTION TO MARKETING FUNCTION Facilitator: Munif Ahmad
  2. 2. Marketing Function
  3. 3. What is Marketing?Marketing consists of management tasks anddecisions directed at successfully meetingopportunities and threats in a dynamicenvironment, by effectively developing andtransferring a need-satisfying market offeringto consumers in such a way that the objectivesof the business, the consumer and society willbe achieved.
  4. 4. Key Topics1. Introduction to marketing2. Marketing research3. Customer behaviour4. Market segmentation5. The marketing mix6. The marketing strategy7. Public relations
  5. 5. Marketing Mix- The Four P’s Product Price “Goods-and-service” Amount of money combination that a that consumers company offers a have to pay to obtain target market the product Target Customers Intended Activities that Positioning Company activities persuade target that make the customers to buy product available the product Promotion Place
  6. 6. Marketing ResearchWhy? Sales forecastingKnow the research process Profit forecastingMarket forecasting 1. Define the problem to be investigated 2. Formulate hypotheses 3. Investigate hypotheses 4. Compile a questionnaire 5. Test the questionnaire 6. Select sample 7. Train fieldworkers and do fieldwork 8. Analyse data 9. Interpret the results 10. Compile the report 11. Management studies report 12. Management implements findings
  7. 7. Consumer Buying Behavior  Consumer Buying Behavior refers to the buying behavior patterns of decision making units (individuals & households) directly involved in the purchase and use of products, including the decision- making processes preceding and determining these behaviour patterns. Study consumer behavior to answer:  “How do consumers respond to marketing efforts the company might use, why do they behave the way they do?”
  8. 8. Customer behaviourINDIVIDUAL FACTORS GROUP FACTORS Motivation Family Attitude Reference group Perception Opinion leaders Learning ability Cultural group Personality Lifestyle  Awareness of need  Gathering information  Evaluation  Purchase action  Post purchase evaluation
  9. 9. Factors Affecting Consumer Behavior: Individual Motivation MotivationBeliefs andBeliefs and Individual Attitudes Perception Perception Attitudes Factors Personality Personality Learning Learning And And lifestyle lifestyle
  10. 10. Market segmentationWhat is a market?Different types of markets: • consumers • industrial • resellers Approaches to the • government market – see fig 13.3Requirements for successful segmentation: • Identifiable and measurable • Substantial • Accessible • Responsive
  11. 11. Customer Markets International Consumer Markets Markets Company CompanyGovernment Business Markets Markets Reseller Markets
  12. 12. Requirements forEffective SegmentationMeasurableMeasurable • Size, purchasing power, profiles of segments can be measured.AccessibleAccessible • Segments must be effectively reached and served.SubstantialSubstantial • Segments must be large or profitable enough to serve.DifferentialDifferential • Segments must respond differently to different marketing mix elements & actions.ActionableActionable • Must be able to attract and serve the segments.
  13. 13. Bases for segmentation Demographic – Who they are Geographic – Where they are Psychographic – What they think they are Behavioural – How do they behaveAll of the above determine the consumer profile – draw a picture Targeting and positioning
  14. 14. Bases for Segmenting Consumer MarketsGeographic Nations, states, regions or cities, density Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioral Occasions, benefits, uses, or responses
  15. 15. The marketing instruments (mix) 1. Product ― Product concept ― Product classification ― Brand decisions ― Packaging decisions ― Differentiation ― Obsolescence ― Multi- product decisions ― New product decisions
  16. 16. The marketing instruments – Product (cont.)  New Product Development Process  Develop new ideas  Screen ideas  Eliminate non viable ideas  Develop product  Develop strategy  Test marketing  Commercialisation
  17. 17. Classification of ProductConvenience Products Shopping Products> Buy frequently & immediately > Buy less frequently> Low priced > Gather product information> Many purchase locations > Fewer purchase locations> Includes: > Compare for: • Staple goods • Suitability & Quality • Impulse goods • Price & Style • Emergency goodsSpecialty Products Unsought Products> Special purchase efforts > New innovations> Unique characteristics > Products consumers don’t> Brand identification want to think about> Few purchase locations > Require much advertising & personal selling
  18. 18. The marketing instruments (mix) 2. Price Types of prices  Price adaptations  cost price  skimming  market price  penetration  target price  market price  final price  leader price  odd price  bait price
  19. 19. The marketing instruments (mix)3. Distribution  Type of channel  Channel leadership  Market coverage  Physical distribution Refer to box on page 326
  20. 20. Consumer Marketing Channels & LevelsChannel Level - A Layer of Intermediaries that Perform Some Work inBringing the Product and it’s Ownership Closer to the Buyer.Channel 1 Direct Direct M M C CChannel 2 Indirect Indirect M M R R → C CChannel 3 M M → W W R R → C CChannel 4 M M → W W → W W → R R → C C
  21. 21. The marketing instruments (mix)4. Marketing communication  to inform, persuade and remind  advertising  personal selling  sales promotion  publicity
  22. 22. The MarketingCommunications Mix Any Paid Form of Nonpersonal Any Paid Form of Nonpersonal Advertising Advertising Presentation by an Identified Presentation by an Identified Sponsor. Sponsor. Personal Selling Personal Selling Personal Presentations by a Firm’s Sales Force. Sales Promotion Short-term Incentives to Encourage Sales. Building Good Relations with Public Relations Various Publics by Obtaining Favorable Unpaid Publicity. Direct CommunicationsDirect Marketing With Individuals to Obtain an Immediate Response.
  23. 23. Product Life Cycle Sales and Profits Over the Product’s Life From Introduction to DeclineSales andProfits ($) Sales Profits Time Product Introduction Growth Maturity Decline Develop- mentLosses/Investments ($)
  24. 24. Marketing Planning and Control Planning o Strategic planning o Functional planning Control o Set objectives o Measure performance o Evaluate performance o Take corrective action
  25. 25. Public Relations A deliberate, planned and sustainedprocess of communication between a business and its internal and external publics. Its purpose is obtaining, maintaining and/or improving good relations and understanding.Developed from:ManipulationInformationMutual influence
  26. 26. What is Public Relations?•Building good relations with the company’svarious publics by obtaining favorable publicity,building up a good “corporate image” andhandling or heading off unfavorable rumors,stories and events.•Major functions are: – Press Relations – Product Publicity – Public Affairs – Lobbying – Investor Relations –Development
  27. 27. Major Public RelationsTools Web SiteWeb Site Public Public Service Service News Activities News ActivitiesCorporateCorporate Identity IdentityMaterials Materials Speeches Speeches Audiovisual Audiovisual Special Special Materials Materials Events Events Written Written Materials Materials
  28. 28. Public Relations Management 1. Planning o Scanning the environment o Setting objectives 2. Organising oOrganisational structure oOutside consultants 3. Leading oEstablish corporate culture 4. Evaluation and control
  29. 29. Publicity• Methods of obtaining publicity:  Unique special events  Unique communication messages  News releases  Sponsorships• Social responsibility and business ethics• Areas of social responsibility:  Consumers  Suppliers  Competitors  Employees  Owners and shareholders  The community

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