Scanning the Societal EnvironmentThe societal environment is scanned with what is called PEST analysis, which is Political-legal, Economic, Sociocutural, TechnologicalWe scanned the environment of the USA, the most significant for example in the economic, is the struggling US economy, the increasing of inflation and unemployment, & increasing personal income.For the technological for example is, that the USA considered the highest in investment in R & D, increasing number of Internet user and the spread of virtual storesFor the political legal, we found a stable democratic governmentAnd finally for the sociocutural, the increasing of environmental awareness and health consciousness, What are the conclusion from the societal scanning of the US that we get?? Let’s see next
Fifth day (part two)
THE SO CALLED …MARKETING!!What Is It All About?
Science VS. Practice• It is well known that marketingas a science did not startbefore the 20th century, butmarketing as a practicestarted with the start ofmankind!!
Social VS. Managerial• Marketing originally is a societalprocess by which individuals andgroups obtain what they need andwant through interacting freely withothers, but when it comes formanagerial level its more formalprocess aiming primarily at sellingproducts.
What is Market?BUT - not just ANY people, they have to have• Willingness to buy• Purchasing power (money)• Authority to buy
What is Marketing? Formal Def. 1 Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives. The American Marketing Association
What is Marketing? Formal Def. 2 Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably.” Philip Kotler, Marketing Management, Millenium Edition
What is Marketing? My Proposed Def. Marketing is an organizational functionand a set of processes for identifying, creating, communicating, and delivering value to customers in ways that benefit the organization and its stakeholders.
Evolution of Marketing …Concepts Concept Production Product Sales MarketingApproach Buyers admire Good product is well made no more an Customer more Customer willAssumption product & can assurance for knowledgeable buy anyway praise quality & success among and less naive performance alternatives Efficiently Substantial Find wants andFocus produce large Product quality promotional fill them quantities effort Marketing execs Shaped by Shaped by Sales executive dominatingStrategy manufacturin designers and more admired through g executives engineers customer orientation How to better Sell the out MarketingSales Hard sell serve the put myopia customer
Values, Needs & WantsFundamental beliefs aboutwhat is desirable, worthwhile,and important to an individual Values Needs Wants
Values, Needs & WantsFundamental beliefs aboutwhat isdesirable, worthwhile, and A state of felt deprivation;important to an individual physical, social or individual. Values Needs Wants
Values, Needs & WantsFundamental beliefs aboutwhat is desirable, worthwhile,and important to an individual A state of felt deprivation; physical, social or individual. Values Needs Wants That form taken from a human need and shaped Into certain SOLUTION of a value to customers
Marketing Debate Does Marketing Create or Satisfy Needs?
Environmental Analysis EXTERNAL F O R C E S - PEST Analysis Economic D IR E C T F O R C E S - Porter Analysis Power of Buyers Governmental Social Political Suppliers Power of Actions Competition Rivarly Threat of Subsitutes Technology
PEST Analysis Political Economic Sociocultural TechnologicalUS government is Struggling US Increasing The highestConstitution-based economy (T) environmental investment of thefederal republic with awareness & health USA government in R Increasing Inflation &strong democratic unemployment (T) consciousness (O) & D (O)tradition (O) Declining mass extensive Energy prices technologically market increased, and food trends worldwide (O) prices decreased slightly (T) Increasing diversity of & (T) workforce and Consumer purchasing increasing number of markets decision is going user of internet (O) more towards low price (O) & (T) Changing pace and location of life & Non-store formats household (Especially Virtual Lower cost Stores) grew faster composition competition regional than the total retail and globally (T) industry (O) Increasing personal income (O)
Porter Analysis XXXXX Low Medium Significant entry High bargaining barriers, and economy power, but market is of scale growing and there’s a potentiality new customer groups Medium Total =Medium Rising bargaining Only government, no power, but there’s a foreign potentiality to eliminate suppliers High Rising sales of substitute Products
SWOT is notjust anice-to-have;it must beused!!
Strengths (S) Weaknesses (W) S1: Highly efficient supply chain management W1: Decreasing Profitability. S2: Virtually connected Stores, and Head W2: The Stores are centralized in quarters W3: Negative corporate Image. S3: Every one clearly understand the structure W4: Tight Liquidity. S4: Marketing and promotion practices W5: No marketing division exists. S5: Value the employees and calling them W6: No R&D division exists. associate - partners rather than clerks Opportunities (O) SO Strategies WO StrategiesO1: The consumer purchasing decision is going S1O1 Continual focus on low prices W1O4 Develop more virtual products that canmore towards low price be online sold S2O2 Utilize technological tools to maintainO2: The extensive technologically trends in the and improve information network W2O3 Expanding in Europe and by reducingworld S4O2 Use the technology in making innovative distribution costO3: Existing only in stores a relatively small number marketing and promotion practicesof countriesO4: The increasing number of internet users S4O4 More focusing on the dot com businessO5: Different store types offer Wal-Martopportunities to exploit markets Threats (T) ST Strategies WT StrategiesT1: Increasing Inflation & unemployment S1T1 Use the efficient supply chain in W2T2 Expanding outside the to avoid moreT2: Being number one means higher exposure to decreasing the operation cost exposure to competitioncompetition S1T3 Use the efficient supply chain to maintain W6T3 Establishing R&D division to innovateT3: Lower cost regional and global manufacturing lower prices than global competitors and minimizing costsleading to price competition S4T2 Always keeping an edge in comparison toT4: Rivalry among competing firms is high competitorsT5: Non-store formats (Especially Virtual Stores)grew faster than the total retail industry S2T5 Developing the Wal-Mart virtual store to lead the market
CIAs XXXXX Area Comment Product Too narrow product line, and no capability to develop newCritical Improvement Areas Development products that would keep the company competitive and enable it to serve new markets/segments Research and Strong R&D function is essentially to help the company development develop new products, and to track technology changes and also to help the company having the propriety technology Marketing, Strong marketing function to develop the company and competitive marketing arm and skills, and support of competitive intelligence intelligence to scan and completely understand the industry and the market Costing Higher cost relative to competitors may deprive company from its current super profitability pricing advantages Internal The management skills needs to be fostered with special(CIAs) Management focus on human resources management (and more specific comp. & benefits) Communication Communications problems hinder the company performance especially wit regards to the culture diversity
Marketing Strategy STP 4Ps Segmentation Targeting Positioning CustomersDefining differentgroups of Customerswho share a similar setof attributes. ProductsCan be also definedfrom products point ofview, so we haveproduct segments.
Marketing Strategy STP 4Ps Segmentation Targeting Positioning Customers TargetingDefining differentgroups of Customers This is simply towho share a similar set choose aof attributes. segment, or in other cases you may select to go Products mass!! Single / MultiCan be also defined Product /from products point of Marketview, so we have Massproduct segments.
Marketing Strategy STP 4Ps Segmentation Targeting Positioning Customers Targeting positioningDefining different Act of designinggroups of Customers This is simply to the company’swho share a similar set choose a offerings andof attributes. segment, or in image to occupy other cases you a distinctive may select to go place in the Products mass!! mind of the target Single / Multi marketCan be also defined Product / segment.from products point of Marketview, so we have Mass PoPs Vs. PoDsproduct segments. Identity Vs. Image
Marketing Strategy STP 4Ps Segmentation Targeting Positioning Customers Targeting positioningDefining different Act of designing 4ps = 4Csgroups of Customers This is simply to the company’swho share a similar set choose a offerings andof attributes. segment, or in image to occupy Product = Customer Solution other cases you a distinctive may select to go place in the Price = Customer Cost Products mass!! mind of the target Place = Convenience Single / Multi marketCan be also defined Product / segment. Promotion = Communicationfrom products point of Marketview, so we have Mass PoPs Vs. PoDsproduct segments. Identity Vs. Image
CasesSegmentation & Targeting Product: Residential apartment located in New Cairo Features: 300sqm –finished lux with full services Price: LE 500,000 Payment Terms: 35% down payment – 65% 5 years installments Guess what are the Targeted Segments? B2B / B2C Demographics Socioeconomic Behavioral B+-A Owning at least Individual Married with Culture oriented one car Consumers Children Love to live calm Members in prestigious club
What To Do? Research Your Develop Your Document into Market Strategy Marketing Plan• Define • STP • Set Goals• Design • 4Ps (Sales Forecast)• Collect • Plan Activities• Analyze • Forecast a Budget• Document
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