To Learn Applied Marketing Management

1. Mahar Business Solution
Wai Phyo Hein (လုံးလုံး)
09 25 855 22 11 / 09 77 855 22 11
heindeco@gmail.com
HR Practitioner, Business Consultant & Business Management Trainer
Applied Marketing Management

2. Why we learn marketing . . .
1. Increasing competition
2. Increasing consumer choice and consumer power
3. Technology and access to information
The Marketing Concept
 What do customer wants?
 Can we develop it while they still want it?
 How can we keep our customers satisfied?
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3. Contents
1. What is Marketing?
2. Marketing Concepts
3. The Marketing Mix & STP
4. The Marketing Process
5. Customer Focus
6. The Marketing Environment
7. Buying Behavior
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4. What is Marketing?
• Marketing is the management process which identifies, anticipates
and supplies customer requirements efficiently and profitably.
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Marketing
Identifying
Anticipating
Supplying
Customer
needs
Firm’s
objectives
Exchange
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5. What is Marketing?
• Marketing is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational goals.
• This definition expands on the previous one and considers what is
involved in marketing to satisfy both the customer and the company.
• Important key points of marketing –
• Approach to how something is achieved.
• Systematic method
• Satisfaction of both supplier and customer
• Shaping and managing the marketing mix
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6. Marketing Concepts
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Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
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7. Marketing Concepts – AIDA Model
• A – Awareness
• Initial point where your brand and/or business is recognised and
acknowledged.
• I – Interest
• Generating thoughts and discussion about your brand.
• D – Desire
• Communicate your messages through the use of social media and email
marketing.
• A – Action
• The stage where the conversion is complete and back to the 'interest' stage to
retain them. Your website is responsible for this stage.
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8. Marketing Concepts
The Different Between Sales & Marketing
• Sales
trying to get the customer to want what the company produces
• Marketing
trying to get the company produce what the customer wants
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9. Marketing Concepts
• Main Concept of Marketing is what the customer wants and how to
satisfy the customer while still making a profit.
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Start point Focus Means End
Sales Orientation Factory Existing Products
Selling +
Promoting
Profit through
sales volume
Market Orientation Market Customer Needs
Integrated
Marketing
Profit through
customer
satisfaction
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10. Marketing Concepts - Scope
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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Needs, wants
demands
Markets
Marketing &
Marketers
Utility, Value &
Satisfaction
Xchange, Transaction
Relationships
Products
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11. Marketing Concepts
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Growth
DeclineMaturity
IntroductionMarketing
Assets
Managing
Delivery
Measuring
Success
Devising
Strategy
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12. Marketing Concepts
• Three aspects of a business system are especially important in
marketing.
• The Distribution System
• The Information System
• The Flow of influence
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13. Marketing Concepts – Functions of Marketing
Market Information
Market Planning
Exchange Functions
Product Designing and Development
Physical Distribution
Standardization and Grading
Financing
Risk Taking
Packaging, Labeling and Branding
Customer Support
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14. Marketing Concepts
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15. The Marketing Mix
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Product
Price
Place
Promotion
Process
Physical
Evidence
People
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16. The 4 Ps & 4Cs
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Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
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17. The Marketing Mix - Product
It is not simply what an organization produces, it is what the consumer
buys.
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Growth
DeclineMaturity
Introduction
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18. The Marketing Mix - Product
• A product may be said to satisfy needs by processing the following
attributes.
• Tangible Attributes
• Tangible Attributes can include such product characteristics as size, color, weight,
volume, smell, taste, touch, quantity, or material composition.
• Intangible Attributes
• The unobservable characteristics which a physical good possesses such as style, quality,
strength, beauty, etc.
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19. The Marketing Mix – Product Mix
• Range
• Segmentation and Positioning
• Features, Advantages and Benefits (FAB)
• Differentiation – Unfulfilled Preferences
• Branding
• Packing
• Value
• Product Life Cycle(PLC)
• Portfolio Analysis (Boston Consulting Group Matrix)
• Directional Policy Matrix (Ansoff Growth Matrix)
• Research and Development
• New Product Development
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20. Features, Advantages and Benefits (FAB)
• Features have to have a relevance to our needs and wants. These are
the advantages. And through the advantages we must be realise a
benefit.
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Product Feature Advantage Benefit
Table Plastic Easier to clean
Lighter
Cheaper
Time-Saving
Portable
Economy of initial outlay
Steel More resistant to stains
Will carry heavier
weights
Time-Saving
Low replacement
maintenance cost
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21. Portfolio Analysis (Boston Consulting Group
Matrix – BCG)
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Question Marks
Low Market Share and
High Market Growth
Don’t know what to do
with opportunities;
decide whether to
increase investment.
Stars
High Market Share and
High Market Growth
Doing well, great
opportunities.
Dogs
Low Market Share and
Low Market Growth
Weak in Market,
difficult to make profit.
Cash Cows
High Market Share and
Low Market Growth
Doing well in no
growth market with
limited opportunities.
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22. Product Range
• By introducing variations in models or style
• By changing the quality of products offered at different price levels
• By developing associated items
• By developing new products that have little technical or marketing
relationship to the existing range
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Product A Product B Product C Product D
Size 1 Size 1 Size 1 Size 1
Size 2 Size 2 Size 2
Size 3 Size 3
Size 4
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23. Ansoff Growth Matrix
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Market Penetration Product Development
Market Development Diversification
Existing New
New
Existing
Markets
Products
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24. The Marketing Mix - Place
Five Right of Distribution (Distribution is a key marketing function)
1. The Right product
2. In the Right place
3. At the Right time
4. In the Right quantity
5. For the Right price
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Producer
Producer
Producer Wholesaler ConsumerRetailer
Retailer Consumer
Consumer
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25. Direct Selling
• Mail Order
• Telephone Selling
• Door-to-Door Selling
• Personal Selling in the sale of industrial goods
• A vertically-integrated organization which includes both
manufacturing and retail outlets
• Computer-shopping or TV shopping
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26. The Marketing Mix - Price
• Cost Accounting involves the calculation of costs of products (or
services). A product cost is defined in the as ‘ the cost of a finished
product built up from its cost elements’.
The cost of materials consumed in making the product or providing the
service. (Direct Material Costs)
The cost of the wages and salaries (labour) of employees of the organization,
who are directly or indirectly involved in producing the product or providing
the service. (Direct Labour Costs)
The cost of other expenses, apart from materials and labour costs. These
include items such as rent and rates, electricity bills, gas bills, depreciation,
interest charges, the cost of sub-contractor’s services, office cleaning,
telephone bills and so on. (Other Direct Expenses)
Indirect Cost or Overhead.
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27. Functional Costs
• In a traditional costing system for manufacturing organization, costs
are classified as follows.
• Production or manufacturing costs
• Administration costs
• Marketing or Sell and Distribution costs
• General Overheads
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28. Price Elasticity
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• Price Elasticity of Demand = (% Change in Quantity Demanded) / (%
Change in Price)
• Elasticity > 1
• If the price is lowered, total sales revenue will rise, because of the large
increase in demand.
• If the price is raised, total sales revenue will fall, because of the large fall in
demand.
• Elasticity < 1
• If the price is lowered, total sales revenue will fall, because the increase in
sales volume will be to small to compensate for the price reductions.
• If the price is raised, total sales revenue will go up because the drop in sales
quantities will very small.
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29. Breakeven Analysis
Breakeven point = Fixed Costs/(Price-Variable Costs)
For Example;
The Fixed Costs of Making a product are $ 50,000. The Price is $ 50 per
unit, the variable costs is $30.
Breakeven point = 50,000/(50-30) = 25,000 units
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30. The Marketing Mix - Promotion
Promotion = Push Strategy
3 roles of promotion
• To Inform
• To Persuade
• To Remind
3 types of Promotion
• Sales Promotion
• Publicity
• Advertising
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31. The Marketing Mix - Promotion
• Promotion is concerned with communication between the seller and
the buyer.
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Organization
Sales Team
Marketing Activity
Customer Base
Sales
Market
Messages
Feedback
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32. The Marketing Mix & STP
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Positioning
Targeting
Segmentation
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33. Segmentation
1.Geographic
Nations, Regions, States, Countries and Cities
2.Demographic
Age, Gender, Family size, Family Life Cycle, Income, Occupation, Education,
Religion, Race, Generation and nationality
3.Psychographic
Social Class and Lifestyle
4.Behavior
Knowledge, Attitudes and Responses to a product
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34. The Marketing Process
• Where are we now?
• Where do we what to be?
• How are we going to get there?
• How do we know when we have
got there?
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35. The Marketing Process
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External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusiness Mission
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36. The Marketing Process
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Market Needs
Wants
Strengths of
organization
Weakness of
organization
Existing
competitors
Expected
competitorsDesign for
creating value
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37. Gap Analysis
37
Current State Desired StateMarketing Plan
SWOT Analysis & PESTEL Analysis
Database
Performance Gap (Anything)
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39. Content of Marketing Plan
• Business Mission Statement
• Objectives
• Situation Analysis (SWOT)
• Marketing Strategy
• Target Market Strategy
• Marketing Mix
Positioning
Product
Promotion
Price
Place – Distribution
People
Process
• Implementation, Evaluation and Control
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40. Customer Focus
• Product Benefits
• Service Benefits
• Image Benefits
• Relational Benefits
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41. Customer Focus
Value = Benefits + Cost
Benefits = Functional Benefits + Emotional Benefits
Cost = Monetary Costs + Time Costs + Energy Costs + Psychic Costs
• Satisfaction - Based on a comparison of performance and expectations.
• Performance > Expectations => Satisfaction
• Performance < Expectations => Dissatisfaction
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42. Customer Focus
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43. Transactional vs Relationship Marketing
Transactional Relationship
Important of single sale Important of customer relationship
Important of product features Important of customer benefits
Short time scale Longer time scale
Less emphasis on service High level of customer service
Quality is concern of production Quality is concern of all
Competitive commitment High level of customer commitment
Persuasive communication Regular communication
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44. The Marketing Environment
Micro environment typically include:
- The organization itself, existing and potential environment
- Value chain partners and market intermediaries (wholesalers, retailers,
agents and brokers)
- Customers
- Competitors
- Publics (Key stakeholders)
- One of the most popular techniques for analyzing the micro
environment is Five Forces Model developed by Michael Porter.
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45. Five Force Model
Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitute products
Rivalry among existing competitors
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46. Macro Environment
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47. 47
Demographics
Social
Change
Economic
Conditions
Political &
Legal Factors
Technology
Competition
Environmental
Scanning
Target Market
Product
Distribution
Promotion
Price
External Environment
is not controllable Ever-Changing
Marketplace
Physical / Natural
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48. 48
Self
-Actualization
Needs
Represent the
need for self- fulfillment
Esteem Needs
Desire for a positive self-
image and to receive
attention
Belongingness needs
Desire to accepted by one’s peers
Safety Needs
Safe and secure physical and emotional
environment
Physiological Needs
Most basic human physical needs
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