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54P Marketing Stethoscope and Diagnostic Toolkit: Paradigm Shift from Traditional 4Ps of Marketing

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54P Marketing Stethoscope and Diagnostic Toolkit: presents a new mindset for marketing analysis and provides a systematic approach to tackling today's marketing challenges. Just as a doctor uses a stethoscope to initially diagnose a patient, this simple tool helps focus often limited resources to where it is most needed.

54P Marketing Stethoscope and Diagnostic Toolkit: Paradigm Shift from Traditional 4Ps of Marketing

  1. 1. www.josephdeungria.com Be a Marketing Doctor in 77 slides… Prof. Bong De Ungria, MBA, CDM Ateneo Graduate School of Business Use the 21st Century Marketing Stethoscope And Diagnostic Tool Kit To Get to the Heart of Marketing Problems
  2. 2. www.josephdeungria.com Paradigm Shift from the 4Ps of Marketing to 54Ps Prof. Bong De Ungria, MBA, CDM Ateneo Graduate School of Business A 21st Century Marketing Stethoscope And Diagnostic Tool Kit To Get to the Heart of Marketing Problems
  3. 3. www.josephdeungria.com 1. Form groups of 3. 2. Agree on your wackiest or most serious group photo pose. 3. Have your picture taken via iPAD. 4. Huddle as a group and list all the marketing- related words that start with a P. 5. Group that can name all 54 Ps of the lecture wins a PRIZE 4 Marketing Preliminaries
  4. 4. www.josephdeungria.com 4P’s of Marketing? Surely you have heard it. Before, it was…
  5. 5. www.josephdeungria.com Remember: Marketing Mix 4 P’s mean much more!
  6. 6. www.josephdeungria.com Somebody thought of adding 3 new Ps to make it 7Ps mix
  7. 7. www.josephdeungria.com Others Created Better Ways to Illustrate the 7P Model
  8. 8. www.josephdeungria.com And still more ways… Like the 7 dwarfs to remember the 7Ps?
  9. 9. www.josephdeungria.com Same 7Ps: Online Marketing http://marketingmix.co.uk/
  10. 10. www.josephdeungria.com Same 7Ps: Service Marketing http://www.learnmarketing.net/ servicemarketingmix.htm
  11. 11. www.josephdeungria.com Because services are VIP-int: 1. Variable- 4Ws 2. Inseparable- produced & consumed simultaneously 3. Perishable- cant be stored; more to cope with demand fluctuations 4. Intangible- cant sense before Why are the people, process and physical evidence important for services?
  12. 12. www.josephdeungria.com 21st Century realities demand a the 4Ps and 7Ps And Work with the 54Ps of Marketing! But!
  13. 13. www.josephdeungria.com In the same universal way that doctors use stethoscopes, and economists use GNP to give a quick ,valid diagnosis This 54P Marketing Stethoscope and Diagnostic Toolkit Systematically Diagnoses most Marketing Problems! vCoach Bong De Ungria, AGSB Professor’s Note: Why This?
  14. 14. www.josephdeungria.com Why are diagnostic tools like blood tests and x-rays widely used? Because simple diagnostics are: Non-invasive, non-destructive, painless Quick Economical Indicators But they are not as complete as full blood chem or CT scan or brain surgery
  15. 15. www.josephdeungria.com Now, let’s start with 54Ps
  16. 16. www.josephdeungria.com 1st P: Potential Market = Everyone interested in your product or service POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders
  17. 17. www.josephdeungria.com 1st P: Potential Market = Everyone includes competitors who can be future customers POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders Competitors include current & future, direct & indirect (Example: movies Competing with Ballgames For patrons)
  18. 18. www.josephdeungria.com 2nd P: Probable or Available Market = Everyone with interest, access, income & qualification POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE or AVAILABLE Market
  19. 19. www.josephdeungria.com 2nd P: Probable or Available Market = Everyone with interest, access, income & qualification POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE or AVAILABLE Market Example: For “premium” cervical cancer vaccines Only females 10 years old & above(qualify) Belonging to Class AB (income) in Metro Manila (access) Who believe in preventive (interest)
  20. 20. www.josephdeungria.com 2nd P: Probable or Available Market = Probable < Potential POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE or AVAILABLE Market
  21. 21. www.josephdeungria.com 2nd P: Probable or Available Market = What is the market size? POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE or AVAILABLE Market IS THE MARKET BIG ENOUGH TO MATTER And SMALL ENOUGH TO HANDLE?
  22. 22. www.josephdeungria.com 3rd P : Primary Target Market = Focus limited resources on PTM POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market PTM is the Segment of The Probable Market that is Targetted
  23. 23. www.josephdeungria.com 4th P : Penetrated Market = Those who actually buy POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market
  24. 24. www.josephdeungria.com 3rd and 4th P : Greater overlap is ideal! POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market OVERLAP = Targetted customers who actually buy. Indicator of marketing efficiency
  25. 25. www.josephdeungria.com 5th P : Positioning Part 1= What company communicates to PTM (Brand Identity) POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market Positioning BRAND IDENTTY COMPANY
  26. 26. www.josephdeungria.com 5th P : Positioning Part 2= How customer remembers communication (Brand Image) POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningPositioning COMPANY BRAND IMAGE
  27. 27. www.josephdeungria.com 5th P : Positioning Part 3= Ideal: Maximum overlap of image & identity POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningPositioning COMPANY BRAND IMAGEBRAND IDENTTY BRAND IMAGE BRAND IDENTTY
  28. 28. www.josephdeungria.com 5th P: Identity vs. Image Example Sun Cellular Identity: Unlimited Sun Customers Image: 2nd phone POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningPositioning COMPANY BRAND IMAGEBRAND IDENTTY BRAND IMAGE BRAND IDENTTY
  29. 29. www.josephdeungria.com 6th to 9th: 4 Ps of Marketing Mix Support positioning with 4Ps POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O
  30. 30. www.josephdeungria.com 10th P: Packaging Can provide competitive advantage POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging
  31. 31. www.josephdeungria.com 10th P: Packaging May improve/ integrate delivery of 4Ps POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging
  32. 32. www.josephdeungria.com 11th P: Participation Engaged customers are co- creators of positioning & 4Ps POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  33. 33. www.josephdeungria.com 11th P: Participation Greater participation= stronger customer loyalty POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  34. 34. www.josephdeungria.com 11th P: Outstanding Participation Models Text votes in American Idol, Talentadong Pinoy,Ms Universe POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  35. 35. www.josephdeungria.com 11th P: Outstanding Participation Models Text votes in American Idol, Talentadong Pinoy,Ms Universe POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  36. 36. www.josephdeungria.com 11th P: Outstanding Participation Models Customers uploading content in Youtube & Facebook POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  37. 37. www.josephdeungria.com 11th P: Poor Participation Model if Facebook & Youtube dictated users’ content? POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging
  38. 38. www.josephdeungria.com 11th P: Warning: BALANCE Participation! Cannot hand-over 100% control to the market POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation
  39. 39. www.josephdeungria.com 1. Miss Philippines always wins Ms. Universe 2. X videos can overwhelm youtube 3. Bullying on facebook 4. Twitter with 300 character messages 5. Scheming one wins Survivor 100% Participation can destroy products!
  40. 40. www.josephdeungria.com 12th 13th and 14thPs: Extended Marketing Mix Foundations supporting 4Ps are people, process, physical evidence POTENTIAL or TOTAL MARKET Of Customers & Competitors & Stakeholders PROBABLE Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging People, Process, Physical Evidence Participation
  41. 41. www.josephdeungria.com 15th and16th Ps: Marketing Cannot Operate Alone! HR (People), Operations (Production) & Finance (Payments) 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments
  42. 42. www.josephdeungria.com 17th P: PURPOSE Employees need to be driven and guided by company’s vision/ mission 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 17 P U R P O S E
  43. 43. www.josephdeungria.com 18th P: Passion vs. Passivity People (customers & employees) need to be engaged and passionate 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E
  44. 44. www.josephdeungria.com 19th, 20th P: Persistent Profits guarantee long term, sustained growth 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E 19Persistent 20Profits
  45. 45. www.josephdeungria.com What’s popularly referred to as triple bottom line? Profit (bottom vs topline of revenue) People Planet or public (even non-interested)
  46. 46. www.josephdeungria.com 21st P: Triple Bottom Line Traditional and commonly first bottom line are profits 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E 19Persistent 20Profits
  47. 47. www.josephdeungria.com 21st P: Triple Bottom Line More pro-active companies are prioritizing human capital as 2nd bottom line 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E 19Persistent 20Profits
  48. 48. www.josephdeungria.com 21st P: Triple Bottom Line 3rd & most neglected bottom line is Planet or Public (bigger than Potential Market) 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E 19Persistent 20Profits 21 Planet or Public
  49. 49. www.josephdeungria.com What Truly Determines Marketing Success?
  50. 50. www.josephdeungria.com What Truly Determines Marketing Success?
  51. 51. www.josephdeungria.com The greatest P! YOU are what everyone perceives!
  52. 52. www.josephdeungria.com What Truly Determines Marketing Success?
  53. 53. www.josephdeungria.com Perception! How our mind sees, and remembers the world mind sees remembers
  54. 54. www.josephdeungria.com 22nd P: Perception Perception is the Position in the Mind of the Primary Target Market 1POTENTIAL MARKET 2PROBABLE Market 3Primary Target Market 4Penetrated Market 5PositioningP R O D U C T P R I C E P L A C E P R O M O 11Packaging 12People, 13Process, 14Physical Evidence 10Participation People, 15Production, 16Payments 18 P A S S I O N 17 P U R P O S E 19Persistent 20Profits 21 Planet or Public
  55. 55. www.josephdeungria.com Stethoscope: First 22Ps represent 1st dimension only
  56. 56. www.josephdeungria.com Stethoscope is the 1st dimension, 1st diagnostic tool. There are others…
  57. 57. www.josephdeungria.com There are 7 tools & 54Ps in marketing diagnostic toolkit
  58. 58. www.josephdeungria.com When does marketing happen vs. sales? 24 Pre-sale 25 Partnership during sale 26 Post-sale What time frame must be considered for plans? 27. Past 28. Present 29. Projected or Proactive Future Taking Pulse: 2nd Tool 23Period (Timing is key!)
  59. 59. www.josephdeungria.com Help customer position in his mind 31. Points of Parity 32. Points of Difference How? 33. Paint/ Project 34. Picture Thermometer: 3rd Tool 30 Point of Comparison
  60. 60. www.josephdeungria.com Consider the 3 Strategic Cs of Marketing Imagine driving a car using only the front view mirror no side mirror no back view mirror how fast and how safe can you go? Eye Test: 4thTool 35 Perspective of 3Cs
  61. 61. www.josephdeungria.com Heart is a 3 cornered shape For 3 Strategic Cs
  62. 62. www.josephdeungria.com CUSTOMER First side is Customer
  63. 63. www.josephdeungria.com COMPANY CUSTOMER 2nd side is Company who creates, communicates & delivers value
  64. 64. www.josephdeungria.com COMPANY CUSTOMER COMPETITION 3rd side is Competition
  65. 65. www.josephdeungria.com COMPANY CUSTOMER NEEDS, WANTS, DEMANDS COMPETITION For customers, we meet demands
  66. 66. www.josephdeungria.com 3 Strategic C’s: Company, Customer, Competition PROBABLE or PRE-QUALFIED Market Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation People, Production, Payments POTENTIAL Market Persistent Profits COMPANY CUSTOMERS COMPETITION P A S I O N P U R P O S E
  67. 67. www.josephdeungria.com Company tries to reach the right customers PROBABLE or PRE-QUALFIED Market Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation People, Production, Payments POTENTIAL Market Persistent Profits COMPANY CUSTOMERS COMPETITION P A S I O N P U R P O S E
  68. 68. www.josephdeungria.com Competition can block company communication & profits. PROBABLE or PRE-QUALFIED Market Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation People, Production, Payments POTENTIAL Market Persistent Profits COMPANY CUSTOMERS COMPETITION P A S I O N P U R P O S E
  69. 69. www.josephdeungria.com The Company must listen to Its Customers to Beat Competition PROBABLE or PRE-QUALFIED Market Primary Target Market Penetrated Market PositioningP R O D U C T P R I C E P L A C E P R O M O Packaging Participation People, Production, Payments POTENTIAL Market Persistent Profits COMPANY CUSTOMERS COMPETITION P A S I O N P U R P O S E
  70. 70. www.josephdeungria.com Need to respond to marketing challenges in order to: 37. Protect customers vs “bad” brands 38. Prevent loss of sales, share or profit 39. Prolong PLC (product life cycle) 40. Preserve Preferred Brand Status Ask Questions: 5th Tool 36 Probe Why? ? ?
  71. 71. www.josephdeungria.com Inside the Philippine psyche- 42. Poor 43. Patient 44. Perserves/ Resilient 45. Puso (Ch 7) 46. Pamilya (Ch 2) 47. Pananampalataya/ Faith 6th Tool: 41 Philippine X-Ray: See what’s inside?
  72. 72. www.josephdeungria.com After going through the 1st 47Ps, then: 49. Plan the next action 50. Promise by the brand 51. Personal promise by the one talking to the customer 52. Professional promise of the company/ brand 53. Performance vs customer expectation 54. Perceived net value (benefit vs. cost) 7th Tool: 48 Prescription: What’s the outcome of the doctor visit?
  73. 73. www.josephdeungria.com The 54P marketing stethoscope and diagnostic toolkit is just 1 approach to marketing analysis. Its simplistic structure makes it easy to master and apply. But its simplicity also carries with it inherent limitations. Warning! Use wisely.
  74. 74. www.josephdeungria.com There are other P models that actually look like P’s ! (easy or hard to remember?)
  75. 75. www.josephdeungria.com I recommend students and marketing professionals use this 54P marketing stethoscope & diagnostic toolkit as an easy to remember, quick, valid and useful tool for marketing and business analysis. 54Ps works “most” of the time! Prof. Remigio (Bong) De Ungria Ateneo Graduate School of Business Final Note When to Use?
  76. 76. www.josephdeungria.com You are now a marketing doctor! Use 7 tools & 54Ps stethoscope & marketing diagnostic toolkit
  77. 77. www.josephdeungria.com Be a Marketing Doctor in 77 slides… Prof. Bong De Ungria, MBA, CDM Ateneo Graduate School of Business Use the 21st Century Marketing Stethoscope And Diagnostic Tool Kit To Get to the Heart of Marketing Problems

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