Marketing management total 2017

1. Marketing management By Dr. Raafat Youssef Shehata

2. Magic formula  Concept  Application  Evaluation

3. Table of contents  Introduction about marketing  Components of marketing plan  STP  Product mix  Pricing  Distribution  Promotional mix  Budgeting

4. Marketing Marketing is defined to be the process responsible for anticipation, identification , and satisfaction of customer needs through a profit

5. Marketing is not ………………………

6. Offline marketing Online marketing 360 campaign

7. Common sense Creativity

8. What is the relation between these 3 terms ProductBrandLove mark

9. Marketing manager  He is the bridge between the company and the customers  His functions are (APIC) Analysis Planning Implementation Control

10. Brand management / bad example  Coca-Cola Battered by a nationwide series of taste-test challenges from the sweeter-tasting Pepsi-Cola, Coca-Cola decided in 1985 to replace its old formula with a sweeter variation, dubbed New Coke. Coca-Cola spent $4 million on market research.  Blind taste tests showed that Coke drinkers preferred the new, sweeter formula, but the launch of New Coke provoked a national uproar.  Market researchers had measured the taste but failed to measure the emotional attachment consumers had to Coca-Cola. There were angry letters, formal protests, and even lawsuit threats to force the retention of “The Real Thing.”  Ten weeks later, the company withdrew New Coke and reintroduced its century-old formula as “Classic Coke,” a move that ironically might have given the old formula even stronger status in the marketplace.

11. Production ConceptProduction Concept Product ConceptProduct Concept Selling ConceptSelling Concept Marketing ConceptMarketing Concept Societal Marketing ConceptSocietal Marketing Concept Marketing Management Philosophies

12. Examples marketing orientation

13. Sanofi-Aventis/ Afara

14. Faragalla and faragello

15. During the 1994 soccer world cup both McDonald’s and Coca-Cola made a mistake of reprinting the Saudi Arabian flag (which includes sacred words from the Koran ) on disposable packaging used in promotions Socio-cultural environment

16. Cultural environment -In 1970 P&G introduced Pampers diapers in Japan -Although successful in USA this product did not sell well in Japan because P&G neglected some important cultural differences between American and Japanese parents -The Japanese mom changes her baby’s diaper about 14 times a day twice as often as her American counterpart -Pampers were too expensive for a Japanese mother to use so many

17. Named in honor of GM’s famed fiasco in trying to market the Chevrolet Nova in Central and South America In Spanish, No Va, or Nova, simply means No Go -- or this car won’t go! Humor in Translations ---

18. Changing the slogan from Ana Ahbo to Ana Bahebo

19. The 4 P’s & 4 C’s of the Marketing Mix  4 P’s  Product  Price  Place  Promotion  4 C’s  Customer Solution  Customer Cost  Convenience  Communication

20. Planning and budgeting

21. The contents and structure of the marketing plan  The executive summary  Situational analysis and target market  Marketing objectives  Marketing strategies  Marketing tactics  Marketing mix  STP  Schedules and budgets  Implementation  Control

22. Situational analysis  SWOT analysis  PESTEL analysis  Market analysis

23. SWOT analysis Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)

24. PESTEL analysis  Political factors  Economic factors  Socio-cultural factors  Technological factors  Ecological  Legal

25. Market analysis  Market size  Growth rate  Market trends

26. Objectives Objective should be SMART S Specific M Measurable A Achievable R Realistic T Time related

27. Strategies Competitive strategies (Porter ) Growth strategies (Ansoff)

28. 1. Market Penetration 2. Market Development 3. Product Development 4. Diversification Existing Markets New Markets Existing Products New Products Product/Market Expansion Grid

29. Market Penetration  making more sales to current customers without changing its products. How? Add new stores in current market areas, improvements in advertising, prices, etc.

30. Market Development  identify and develop new markets for its current products. How? Review new demographic (senior consumers) or geographic (Asian, European & Australian) markets.

31. Product Development  offering modified or new products to current markets. How? Increasing food offerings, extend to Frappuccino drinks.

32. Diversification  start up or buy businesses outside current products and markets. How? Currently testing two new restaurant concepts – Cafe Starbucks and Circadia, or branded casual clothing.

33. Porter’s Generic Strategies Michael Porter has proposed three generic strategies that provide a good starting point for strategic thinking: • Overall cost leadership (WalMart) • Differentiation (Sainsbury) • Focus.

34. The marketing budget  How much the company intend to spend Methods: 1. Task method 2. Percentage of sales 3. Competitive parity 4. All you can afford 5. Same as Last Time (S.A.L.T.)

35. S.T.P Market segmentation Market Targeting Market Positioning

36. Segmentation Variables

37. Dove Targets Women

38. Le Carnival and Tespas

39. Aker Saa versus Cortigino

40. Segmentation by Age Levi Strauss has been successful in developing the idea that it is a “brand for life” by introducing products such as Dockers to meet the needs of consumers as they age

41. Lifestyle segmentation The Jeep Cherokee is aimed at lifestyle segment that favors an outdoor ,adventure-some ,fun- seeking style of life

42. Positioning How the customers are perceiving the product versus other products in the market

43. Domino’s positioning A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

44. Positioning criteria 1. Benefits 2. Specific product features e.g. speed 3. User category 4. Against another products 5. Occasion 6. Hybrid basis

45. To children age range from 5-16 years and to adults’ age range from 24-40 we present Safeguard soap which will provide a 24hrs. Germ protection as it is the number one antiseptic soap having the highest quality. The only antibacterial soap approved by the FDA.

46. Positioning by occasion Nestle Kamananna

47. Personnel Differentiation: Singapore Airlines

48. Perceptual Map for Pain Relievers Perceptual maps show marketers how closely products are conceptually positioned by consumers to “ideal points,” to their own products, and to competitors’ products.

49. Perceptual Mapping Brands of Soap High Moisturizing Non-deodorant High Deodorant Low Moisturizing 6 4 7 2 5 1 8 3 Tone Coast Lux Lifebuoy Dial Safeguard Zest Lava Dove

50. Perception Towards Different Brands…1 55 For me Not for me Value for Money Premium Cairo & Alex The higher the social class the more skewed towards the international brands and Jam mixes that is only produced and sold by them.

51. Perception Towards Different Brands…2 56 For me Not for me VFM Premium Delta Our target group are aware of different brands and they have tried different brands as well. Since there was few brands in the market in the past, as our target group used to consume the VFM and Vitrac until few of them switched to Rashidi Mizan

52. Perception Towards Different Brands…3 57 For me Not for me VFM Premium Upper Egypt Our target group are aware of different brands and they have tried different brands as well. Since there was few brands in the market in the past, as our target group used to consume the VFM and Vitrac until few of them switched to Rashidi El Mizan

53. Repositioning Reasons: 1-The current position may become very competitive 2-Change in customer needs

54. Repositioning Marlboro cigarettes was positioned as a women’s cigarette when it was first introduced – complete with a red-tipped filter to hide lipstick stain The brand really took off, however, when Marlboro adjusted its image as a male product complete with the “macho” Marlboro cowboy

55. Repositioning/ Zest

56. Brand ladder

57. Products and services

58. What is a Product?  A PRODUCTPRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.  Includes:  Physical Objects  Services  Events  Persons  Places  Organizations  Ideas  Combinations of the above

59. Unsought ProductsUnsought Products  New innovations  Products consumers don’t want to think about  Require much advertising & personal selling i.e Life insurance, blood donation Product Classifications: Consumer Specialty ProductsSpecialty Products  Special purchase efforts  High price  Unique characteristics  Brand identification  Few purchase locations i.e Lamborghini, Rolex Shopping ProductsShopping Products  Buy less frequently  Higher price  Fewer purchase locations  Comparison shop i.e Clothing, cars, appliances Convenience ProductsConvenience Products  Buy frequently & immediately  Low priced  Mass advertising  Many purchase locations i.e Candy, newspapers

60. Product portfolio (product assortment or product mix)  A company product portfolio is all the product lines and items that the company offers for sale  Portfolio aspects: -Width “breadth” -Length -Depth

61. P&G’s Product Width and Depth

62. Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($) Sales and Profits ($) Sales and Profits Over the Product’s Life From Inception to Demise Product Life Cycle

63. Branding A brand is a name , a term , a symbol or any other unique element of a product that identifies the product from its competitors

64. Brand versus commodity

65. Characteristics of a Good Brand NameCharacteristics of a Good Brand Name • Short and simple • Suggestive of product benefits • Legally available • Timeless rather than timely • No negative imagery • Easy to spell, read, and pronounce • Adaptable for international markets • Adaptable to packaging/labeling needs • Adaptable to any advertising medium A Good Brand Name Is... A Good Brand Name Is...

66. Dove brand persona The brand is considered as a feminine , honest, sincere and real brand and also rated as young brand with unique qualities, energy, freshness and high spirits

67. Brand Persona 75 A young lady; early 20s She is an elite lady with elegant appearance. She usually wears dresses that shows her beauty She is wealthy and has a lots of possess Her name is very popular and all people knows her A middle age man; late 30s early 40s. He is a successful business many who can reach his clients easily. He adds new sector to his business in a successful way He is very sociable and people loves him

68. Brands as Celebrities-Vitrac 76 Although she is old but very elegant All people love her although she disappeared long ago She is well- known and very beautiful People see her a symbol of indulgence

69. Brands as Celebrities-Rashidi El Mizan 77 He can reach all SECs as Rashidi El Mizan Products Old actor but well known and fits all roles All people see him in movies and TV series; very popular. He is producing Movies that reaches lower SEC as Rashidi Halawa Bar

70. Brand Essence Brand Essence is the heart and soul of a brand – a brand's fundamental nature or quality. Usually stated in two to three words, a brand's essence is the one constant across product categories and throughout the world

71. Brand essence examples

72. Axe Masculine attractiveness

73. Nestle Love and nutrition

74. Kodak Family preservation

75. Line Extension Dannon Yogurt Flavors Multibrands Seiko Lasalle & Pulsar Arial & Tide Brand Extension Barbie Electronics Honda New Brands S.C Jhonson: Pledge –Glade –Raid BrandName Existing New Product Category Existing New Four Brand Strategies

76. Family branding Using the power of the brand name to assist all products in a range Example: Heinz Mustard , Ketchup ,Hot sauce ……..

77. Generic Brand A no-name product with no identification other than a description of contents. Examples: Cola – Aspirin – Paper towels – Green beans

78. Adopter Categories

79. 1-Relative advantage: The degree to which potential consumers perceive a new product is superior to existing substitutes 2-Compatibility: The degree to which potential consumers feel a new product is consistent with their present needs, values and practices 3-Complexity: The degree to which a new product is difficult to understand or use 4-Trialability: The degree to which a new product is capable of being tried on a limited basis 5-Observability: The ease with which a product’s benefits or attributes can be observed, imagined or described to potential consumers Product characteristics that influence diffusion

80. Packaging 5 key functions: 1. Protection 2. Distribution 3. User convenience 4. Promotion 5. compliance

81. Packaging is attraction

82. Packaging is safety Tylenol

83. MacDonald's Packaging is promotion

84. Service

85. Nature and Characteristic of a Service

86. Pricing

87. Gillette Commands a Price Premium

88. Types of Cost Factors that Affect Pricing Decisions Total Costs Sum of the Fixed and Variable Costs for Any Given Level of Production Total Costs Sum of the Fixed and Variable Costs for Any Given Level of Production Variable Costs Costs that do vary directly with the level of production Raw materials Fixed Costs (Overhead) Costs that don’t vary with sales or production levels Executive Salaries, Rent

89. 4 Cs on price setting Cost Company Customer Competitor

90. Price Elasticity of DemandPrice Quantity Demanded per Period A. Inelastic Demand - Demand Hardly Changes With a Small Change in Price. P2 P1 Q1Q2 Price Quantity Demanded per P’2 P’1 Q1Q2 B. Elastic Demand - Demand Changes Greatly With a Small Change in Price.

91. Price Elasticity of Demand Change in quantity demanded % Change in price % -When elasticity is greater than 1 ----- Elastic -When elasticity is less than 1 ----- Inelastic

92. Pricing methods

93. Pricing methods 1. Skimming 2. Penetration 3. Cost plus 4. Captive 5. Loss leader 6. Competitive 7. Psychological 8. EDLP

94. EDLP

95. Captive pricing

96. Odd-even pricing

97. Price bundling

98. Place or distribution

99. Number of Channel Levels

100. Carrefour in Egypt…Maddi Americana changed the place of its refrigerators in Carrefour El Maddi from the entrance to the exist because some of the frozen vegetables were spoiled because of the long time of shopping

101. ZARA Places Retail Stores in High-End, High Traffic Areas

102. Intermediaries 1. Retailers :sell directly to consumers 2. Wholesalers: sell to retailers 3. Distributor and dealers: sell to customers through profit 4. Agents : they do not purchase the products but they earn commission 5. Franchisees e.g. KFC

103. Vending machines

104. Conventional Distribution Channel Vs. a Vertical Marketing System

105. Intensive Distribution Intensive Distribution Selective Distribution Selective Distribution Exclusive Distribution Exclusive Distribution Number of Marketing Intermediaries

106. Promotion

107. Marketing Communication Mix or Promotion Mix Product’s Design Product’s Price Product’s Package Stores that Sell the Product

108. Communication strategies 1. Push strategy 2. Pull strategy 3. Strategy mix

109. Communications models DRIP model: D Differentiate R Remind I Inform P Persuade

110. AIDA Attention Interest Desire Action

111. Public relations The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics

112. Public relation activities 1. Press release & video news release 2. Press conferences 3. Sponsorship 4. Exhibitions 5. Corporate social responsibility 6. Corporate literature 7. Corporate hospitality 8. Videos 9. Special events “celebrity store openings” 10. Website

113. Exhibitions -Here customers come to see the supplier -Visitors are usually from the same industry -Are hold in large halls with large stands -Its cost is rising

114. Exhibitions Purposes 1. Public relations 2. Promotion and selling 3. Networking 4. Testing the response

115. Sponsorship It is an agreement between a company and an event organizer where the company gives money in exchange for rights to associate the company name with the event

116. Sales Promotion It is one of the promotional tools used to add value for a product or service on the short run

117. Patronage RewardsPatronage Rewards Point-of-PurchasePoint-of-Purchase ContestContest SweepstakesSweepstakes GamesGames Cash or Other Award Offered for Regular Use of a Product Cash or Other Award Offered for Regular Use of a Product Displays or Demonstrations at the Point of Purchase Displays or Demonstrations at the Point of Purchase Consumers Submit an Entry to be Judged Consumers Submit an Entry to be Judged Consumers Submit Their Names for a Drawing (by chance) Consumers Submit Their Names for a Drawing (by chance) Consumers Receive Something Each Time They Buy Which May Help Them Win a Prize Consumers Receive Something Each Time They Buy Which May Help Them Win a Prize Major Consumer Sales Promotion Tools

118. Sampling is an EffectiveSampling is an Effective Way to Create Trial-UseWay to Create Trial-Use Within AppropriateWithin Appropriate Target MarketsTarget Markets

119. Sales promotion alternativesSales promotion alternatives

120. Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf SpaceGive a Brand Shelf Space Promote a Brand in Advertising Promote a Brand in Advertising Push a Brand to ConsumersPush a Brand to Consumers Major Trade Sales Promotion Tools Trade-Promotion Tools DiscountsDiscounts AllowancesAllowances Free GoodsFree Goods Push MoneyPush Money Specialty Ad ItemsSpecialty Ad Items

121. Business-Promotion Objectives Generate Business LeadsGenerate Business Leads Stimulate PurchasesStimulate Purchases Reward CustomersReward Customers Motivate SalespeopleMotivate Salespeople Business-Promotion Tools ConventionsConventions Trade ShowsTrade Shows Sales ContestsSales Contests Major Business Sales Promotion Tools

122. Decide on the Size of the IncentiveDecide on the Size of the Incentive Set Conditions for ParticipationSet Conditions for Participation Evaluate the ProgramEvaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the ProgramDetermine the Length of the Program Developing the Sales Promotion Program

123. Personal Selling It is personal paid promotional tool in which there is a face to face contact between a company representative and a customer

124. Major Steps in Effective Selling

125. Advertising

126. Content

127. In Coca-Cola’s new “Taste the Feeling” campaign, they incorporates red into the beach towels, outfits, and nail polish used in their print ad to complement their red logo. The effect is friendly, eye-catching, and emphasizes the action of the models drinking their refreshing soft drink. The end result is that you want to buy a bottle of Coke

128. Teaser ads

129. Principle of Closure

130. Figure –ground principle

131. Advertising Execution Techniques

132. Rational advertising  Factual  Demonstration  Comparison  Slice of life

133. Emotional advertising  Testimonial or endorsement  Animation  Music  Fear  Humor  Sex  lifestyle •Joy •Love •Pleasure •Pride •Safety •Security •Self-esteem •Combinations

134. Factual

135. Comparative Advertising

136. Comparison.

137. Haagen Dazs ice cream

138. Animation and Sexual Haagen Dazs premium ice cream entered the UK market using pleasure as central to the message appeal.

139. Fear

140. Volvo ad

141. Factual

142. Rolex ad

143. Animation

144. Partnership for a Drug-Free America

145. This as uses a rather extreme level of fear appeal.

146. Next Step

147. This is also a bit of a comparison ad though for most consumers of this product

148. Lifestyles Condoms

149. This ad uses humor to approach a sensitive topic. It seems appropriate and well-done in this context

150. Addressing Smoking Attitudes

151. This Norwegian ad addresses young people’s smoking attitudes by arousing strong negative feelings. The ad reads (left panel) “Smokers are more sociable than others.” (Right panel): “While it lasts.”

152. Ashworth appeals

153. Lifestyle

154. Coca-Cola ad

155. Evaluating Advertising 1-Pre-testing : -Focus group 2-Post-testing : -Recognition test -Recall test

156. Media Selection

157. Mohamed El Rakib Emad Graiss Khaled Elmounayri Mona Kadry Tamer Shawky Tamer El Naggar Sherif Omar Raafat Youssef Moderator

158. Raafat ShehataRaafat Shehata 0122776570801227765708