CBS MBA Workshop 1 @ IBBM

1. Unit 401
Marketing Management
Sweta Sud
Chifley Adjunct Faculty
PNG
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of
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and
Business
Management

2. MBA
Why MBA?
What Business are you in?
PNG
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and
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3. PNG
Ins(tute
of
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and
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Management

4. Know your facilitator
•
•
•
•
•
•
•
Instrumentation and Controls Engineer
MBA in Systems and Marketing
from Symbiosis International University
Master Project Manager
Post Graduate Diploma in IT Management
Certified Information Systems Auditor
Management experience in India, Singapore, Dubai,
Malaysia, Sydney and 4 years in PNG
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5. In this Unit..
• First
workshop
Week
1
• 31st
Jan,
Friday
• Read
the
Study
guide
Week
2
• Read
the
book
–
Fee
Refund
• 2nd
workshop
Week
3
• 14th
Feb,
Friday
• Do
the
assignment
–
17th
Feb
Week
4
• Due
on
24th
Feb
• 3rd
workshop
Week
5
• 28
Feb,
Friday
• Exam
on
6th
March
–
return
7th
March
Week
6
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6. Today’s Agenda
Unit-401, Workshop1, 31st Jan 2014
1
2
3
• The
Discipline
of
Marke8ng
• Morning
tea@10:00
• Marke(ng
Environment
and
Marke(ng
Analysis
• Lunch
@
12:30pm
• Marke(ng
Strategy
and
Marke(ng
Planning
• Evening
Tea@
2:30pm
• Ac(vi(es,
Cases
and
discussions
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7. Rules for the Workshop
1
2
• Mobile
phones
off
• No
emails
on
ipads
3
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8. Principles
of
Marke8ng
Chapter
1
Discipline
of
Marke8ng
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9. What the hell is Marketing?
PNG
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10. PNG
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and
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Management

11. What the hell is Marketing?
PNG
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12. What the hell is Marketing?
PNG
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13. What Marketing is NOT...
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14. Marketing is NOT
COLD CALLING
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15. Marketing is NOT
ADVERTISING
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16. Marketing is NOT
BROCHURES
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17. Marketing is NOT
A WEBSITE
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18. Marketing is NOT
SOCIAL MEDIA
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19. Marketing is NOT
MAGIC
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20. Marketing is NOT
OVERNIGHT
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21. Marketing is NOT
COMPLICATED
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22. Marketing is a process of:
l
Education
l
Communication
l
Capturing leads
l
Measuring and adjusting
l
Building long-term
relationships
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23. What the hell is Marketing?
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24. DEFINITION…….
Marketing is a system of business activities designed to
plan, price, promote, and distribute want-satisfying
products, services and ideas to target markets in order to
achieve organizational objectives.
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25. Marketing Definition Dissected
MARKETING IS
a system:
of business activities
designed to:
distribute
plan, price, promote,
something of value:
want-satisfying products,
services, and ideas
for the benefit of:
and
the target market – present
potential users
to achieve:
objectives.
the organization’s
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26. A SMART DEFINITION
IDENTIFYING Needs and Wants and FULFILL those
Needs and Wants
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27. What the hell is Marketing?
PNG
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Management

28. {
Commercial
Break
}
PNG
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Management
Last
week
review…

29. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
OK,
We’re
back
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and
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30. What gets marketed
Exercise 1: Identify the leader
• Goods
• Service
• Events
• Experiences
• People
• Places
• Properties
• Organizations
• Information
• Ideas
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31. BROAD DIMENSION OF MARKETING
Marketing is not limited to profit making businesses only
Whenever you try to persuade somebody to do something, you are involved
in the act of marketing
You are marketing when you ask someone to …………….
……stay quiet because
you are preparing for
exams.
……fasten seat belt
because it can save one’s
life.
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……vote for a candidate in
the next election.

32. Creating Value
For the customer
Demands
Wants
Needs
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33. Nature and Scope of Marketing
Organiza(on
Nature
of
Marke(ng
Consumers
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Products

34. NATURE AND SCOPE OF MARKETING
Organizations are the entities that produce and sell
products for profits.
• Engro Ltd
• Dell Corp
• Pepsi Co
• UN
Products refer to commodities that we purchase from markets
to satisfy personal needs.
• Grocery
• Computers
• Beverages
• Peace and Security
A consumer is the one for whom the product is made and
marketed.
• Families
• Personal users and organizations
• Families, students ets.
• Governments or countries
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35. BROAD DIMENSION OF MARKETING
Broadly,
scope
of
marke(ng
is
not
limited
to
tradi(onal
organiza(ons.
If
a
woman
ask
her
daughter
to
fasten
the
seatbelt,
the
woman
would
be
the
seller
who
is
selling
an
idea.
The
idea
of
safety
in
this
example
is
the
product
that
is
being
offered.
The
daughter
is
the
consumer
to
whom
the
idea
is
being
communicated.
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36. EVOLUTION OF MARKETING
• Production Concept
• Selling Concept
• Marketing Concept
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37. Evolution of the Marketing Concept
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38. 1. Product Orientation
A concept…
• focused on quality products that could
be produced efficiently
• believed that supply creates its own
demand
• Intensive Distribution Strategy and
Economies of Scale
• Key Questions
• 1. Can we produce the product
efficiently?
• 2. Can we produce enough of it ?
PRODUCTION
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MARKETS/
CONSUMERS

39. 2. Sales Orientation
A concept…
• focused to sell the resulting output
• based on the belief that if consumers
are left to themselves, they will not
make the effort to buy a company's
products.
• substantial post-production effort is
required
• Key Questions
• Can we sell the product?
• Can we charge enough for it?
PRODUCTION
SALES/
PROMOTION
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MARKETS/
CONSUMERS

40. 3. Market Orientation
A concept….
• customer’s want satisfaction is
the sole justification for the
existence of any enterprise.
• make what people demand
• Key Questions
• What do customers want?
• How can we keep our customers
satisfied and create long-term
relationships
MARKETING
PRODUCTION
SALES/
PROMOTION
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MARKETS/
CONSUMERS

41. BUSINESS DIMENSIONS OF
MARKETING
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42. {
Commercial
Break
}
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Last
week
review…

43. IMPORTANCE OF MARKETING
Consumers get an opportunity to know about various
products that are available in the market.
Marketing fosters healthy competition among brands
and this increases the level of competence among
firms.
Consumers are able to enjoy better products and they
are at affordable prices.
Gives chance to companies of all sizes to survive
Precise identification of what consumers demand
Saves cost for organization
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44. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
OK,
We’re
back
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of
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and
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Management

45. IMPLEMENTING THE MARKETING
CONCEPT
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46. Implementing the Marketing Concept
As managers have come to recognize that marketing is
vitally important to the success of an enterprise, they have
laid down the basic principles that help them achieve
organization success.
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47. Implementing the Marketing Concept
Successful Business
Marketing
Concept
Customer
Orientation
Co-ordinated
Marketing
Activities
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Organizational
Objectives

48. Implementing the Marketing Concept
1. Customer-Orientation
Customer-orientation focuses on meeting the specific wants
and building long-term relationships with the customers. A truly
customer oriented business takes all their important decisions
(not only marketing related) while keeping customer satisfaction
in mind. For example: before upgrading the IT software for a
company, the executives must consider its implication on
customer service and satisfaction. The software might be good
for the organization’s internal operation – it might make the
data more secure and readily available to managers – but might
take long to process information which can cause customer
dissatisfaction.
Two important components of customer orientation are long term
relations and mass customization.
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49. Implementing the Marketing Concept
a. Long-Term Relationships:
Today, organizations are able to build long-term relations with
customers because organizations have…
access to a huge quantity of information through research, consumer
reports which can keep organizations abreast with changing trends and
patterns in the market.
Customer Relationship Management System (CRMS) is a software that
help organizations store valuable information about customer’s
specific wants as their professional relationship progresses. For
example: a multinational hotel can store specific data on a valued
customer as what type/location of room the customer prefers, the
cuisine usually ordered, and specific services that he/she is interested
in.
Trust and mutual commitment is also a key in developing strong
relationships.
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50. Implementing the Marketing Concept
b. Mass Customization means to develop, produce, and distribute
affordable products with enough variety and uniqueness that nearly
every potential customer can have exactly what he or she wants.
For mass customization, we need the following three key factors:
1. Information on specific customer needs and wants.
2. Communication channels to advertise to specific audience
3. Flexible & cost effective manufacturing capability to make a good
variety of products while keeping per unit cost low.
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51. Implementing the Marketing Concept
2. Coordinated Marketing Activities
Coordinated marketing is the planning and execution of all your
company’s marketing activities (designing product, distribution,
research, promotion, web presence etc.) in a way that is
consistent across all of your customer contacts and creates more
value than when those activities are performed separately.
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52. Implementing the Marketing Concept
3. Organizational Objectives
There are three major dimensions of an organizational objectives.
1. Performance objectives refer to the growth and financial success
of an organization. It may include increasing profits, market share,
presence in several geographic markets, reducing costs etc.
Societal Responsibility is another important objective which
focuses on an organization’s role in safeguarding and improving
the quality of life of the society while satisfying consumer wants. For
example: Nike has been criticized for years for its sweatshops in
Vietnam and Pakistan where their factories exploit low wage workers
and force people to work under unwholesome working conditions.
2.
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53. How Marketing Creates Value
■ Value:
power of a good or service to satisfy a
want or need
■ Create
time value by making a good or service
available when customers want to purchase it.
■ Create
place value by making a product available
in a location convenient for customers.
■ Create
ownership value through an orderly
transfer of goods and services from the seller to
the buyer.
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54. Creating Value
For the customer
Sustain
Deliver
Communicate
Create
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55. Emergence of the Marketing Concept
■ Marketing
concept- company-wide consumer
orientation to promote long-run success.
■ Firm starts with analysis of customers’
needs and works backward to offer products
that fulfill them.
■ Explained by shift from sellers’ market in
which goods and services are relatively scarce
to buyers’ market in which they are relatively
plentiful.
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56. Non-Traditional Marketing
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57. PNG
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58. Selecting a Target Market
■ Target
market- group of people toward whom an
organization markets its goods, services, or ideas
with a strategy designed to satisfy their specific needs
and preferences.
■ Types
■
■
of Markets
consumer (B2C) product: good or service that is
purchased by end users
business (B2B) product: good or service purchased to be
used, either directly or indirectly, in the production of
other goods for resale
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59. PNG
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60. PNG
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61. Marketing Mix
Promo(on
Place
Customer
Product
Price
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62. Marketing Mix
■ Marketing
Mix blends the four strategies to fit the
needs and preferences of a specific target market.
→ Product strategy involves the nature of the product and its
package design, brand names, trademarks, and product image.
→ Distribution strategy ensures that customers receive their
purchases in the proper quantities at the right times and
locations.
→ Promotional strategy blends advertising, personal selling, sales
promotion, and public relations to achieve its goals of informing,
persuading, and influencing purchase decisions.
→ Pricing strategy is setting profitable and justifiable prices for the
firm’s product offerings, sometimes subject to government
scrutiny.
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63. {
Commercial
Break
}
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Last
week
review…

64. WHAT DOES A MARKETER DO?
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65. Why Bicycle?
Analyze Wants
Bicycle Type?
Product
Plan
Which People?
What Quantity?
Segment
Demand
Forecas(ng
Where to Sell?
What to Charge?
Distribute
What and How to Inform?
Promote
Price
Who all will compete?
Analyze
Compe(tors
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66. TOPIC 2 :
Marketing Environment and Analysis:
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67. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
PNG
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of
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and
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Management

68. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
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Management

69. {
Commercial
Break
}
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Last
week
review…

70. People
need
and/or
want
something
Marketers
will
charge
them
to
fulfill
that
People
will
be
happy
Marketers
will
profit
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71. Brand
Promise
Demand
Capacity
Need
Urgency
U(lity
Sa(sfac(on
Value
Extra
Want
Desire
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72. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
OK,
We’re
back
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73. I’ll
Xerox
it
for
you!
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74. “One
thing
predictable
about
business
is
that
it
is
fundamentally
unpredictable”
..in
Annual
Report
of
Xerox
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and
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75. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
1. Understand the interaction between the market components
Case
Studies
2. Differentiate Consumer Markets vs. Business Markets
Prac8cal
examples
3. Variables that affect the markets
Q&A
Everybody
has
some
marke(ng
experience
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76. “Two
special
app(tude
to
have
as
marketers.
1. Market
Research
2.
Market
Intelligence
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77. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Prac8cal
examples
Microenvironment consists of the actors close to the company
that affect its ability to serve its customers, the company,
suppliers, marketing intermediaries, customer markets,
competitors, and publics
Q&A
Everybody
has
some
marke(ng
experience
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78. Porter’s
5
Forces
The forces inside the industry
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Microenvironment

79. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
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of
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and
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Management

80. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Top
management
Finance
Researck
&
Development
Purchasing
Opera(ons
Accoun(ng
Resources
providers
Help
the
company
to
promote,
sell
and
distribute
its
products
to
final
buyers.
Those
companies
or
individuals
offering
the
same
Any
group
that
has
an
actual
or
poten(al
interest
in
or
impact
on
an
organiza(on’s
ability
to
achieve
its
objec(ves.
Financial
publics,
Media
publics,
Government
publics,
Ci(zen-­‐
ac(on
publics,
Local
publics,
General
public,
Internal
publics.
Our
reason
to
exist
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81. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Bargaining
power
of
Customers
Bargaining
power
of
suppliers
Compe((on
Threat
of
New
entrants
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Threat
of
Subs(tute
products

82. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

83. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
factors
that
affect
consumer
purchasing
power
and
spending
panerns
human
popula(ons
in
terms
of
size,
density,
loca(on,
age,
gender,
race,
occupa(on.
Demographic
trends
include
age,
family
structure,
geographic
popula(on
shims,
educa(onal
characteris(cs,
and
popula(on
diversity.
consists
of
ins(tu(ons
and
other
forces
that
affect
a
society’s
basic
values,
percep(ons,
and
behaviors
involves
the
natural
resources
that
are
needed
as
inputs
by
marketers
or
that
are
affected
by
marke(ng
ac(vi(es.
Shortages
of
raw
materials
Increased
pollu(on,
Increase
government
interven(on,
Environmentally
sustainable
strategies.
Most
drama(c
force
in
changing
the
marketplace.
Creates
new
products
and
opportuni(es.
consists
of
laws,
government
agencies,
and
pressure
groups
that
influence
or
limit
various
organiza(ons
and
individuals
in
a
given
society
Those
business,
products
or
individuals
offering
the
same
benefit.
PNG
Ins(tute
of
Banking
and
Business
Management

84. The forces Outside the industry
PNG
Ins(tute
of
Banking
and
Business
Management
Macroenvironment

85. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
From
inven(ng
the
digital
camera
to
being
the
last
ones
using
it
Case
Studies
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

86. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Consumer market consists of those who buy finished products
and services. The end user. The buying decision maker.
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

87. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Buying
power
Segmenta8on.The
consumer
market
can
be
split
into
age
groups,
ethnic
group,
or
buying
habits.
Each
group
has
needs
that
can
be
iden(fied.
Goals
B2C
Concepts
Supply
Key
words
Reach.
Common
media
modes
are
Case
Studies
Prac8cal
examples
Q&A
Surplus
television,
Internet,
or
print.
A
business
owner
can
determine
the
best
mix
of
media
for
reaching
his
market
by
determining
how
the
target
consumer
receives
his
daily
news
or
what
magazines
the
consumer
is
likely
to
read.
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

88. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
$
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Fast-­‐moving
common
goods
$$$
Goals
Services
4
Types
of
Consumer
Products
$$$$
Consumer
durables
Concepts
Key
words
Case
Studies
Prac8cal
examples
$$
Som
goods
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

89. {
Commercial
Break
}
PNG
Ins(tute
of
Banking
and
Business
Management
This
(me
is
for
real…

90. Think:
Who
needs
what
kind
of
adver(sing…
How
do
I
posi(on
a
brand…
Would
Bentley
adver(se
in
direct
mail
in
buildings
that
belong
to
Plan
8…
Would
Plan
8
be
offered
at
the
exit
of
a
Bentley
dealer…
PNG
Ins(tute
of
Banking
and
Business
Management

91. Remember?
Brand
Demand
Need
U(lity
Value
Want
Assignment
Reaching
the
Consumer
Market
PNG
Ins(tute
of
Banking
and
Business
Management

92. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
OK,
We’re
back.
Again.
PNG
Ins(tute
of
Banking
and
Business
Management

93. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Growing
Consumer
Market
Segments
Two
growing
consumer
market
segments
are
Hispanic
Americans
and
"green"
consumers.
Hispanic
Americans
have
the
highest
birth
rate
in
the
country.
Green
consumers
choose
products
that
are
environment-­‐
friendly.
Goals
Concepts
Key
words
Case
Studies
Prac8cal
examples
Q&A
For
adidas,
sustainability
is
not
just
a
response
or
responsibility
–
it’s
an
opportunity
to
create
new
business
value
for
yourselves
and
your
consumers!
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

94. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Concepts
Key
words
Case
Studies
Business market consists of those who buy materials and
services to manufacture new products or services. They are
not the end user.
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

95. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Business
to
business
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Those
suitable
to
finish
a
product.
You
can
buy
wholesale
and
add
your
own
label.
B2B
Goals
Manufacturers
Concepts
Demand
Key
words
Inventory/Stock
Case
Studies
Buying/Purchasing
Forces
that
may
change
quality,
prices,
availability.
Surplus
or
shortages.
Prac8cal
examples
Q&A
Purchasing
changes
the
final
result
of
any
transac(on
and
it’s
itself
a
marke(ng
response.
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

96. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
By
towing
airplanes
between
gates
and
into
maintenance
facili(es,
American
is
saving
3.6
million
gallons
of
fuel.
New
Task
Buying
Classifica8ons
3
Goals
Concepts
Key
words
Case
Studies
Straight
Rebuy
Modify
Rebuy
Prac8cal
examples
Q&A
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

97. Principles
of
Marke8ng
The
Marke8ng
Environment
Chapter
2
The
marke8ng
environment
is
a
set
of
forces
that
affects
the
ability
to
build
and
maintain
successful
rela(onships
with
customers
Microenvironment
Macroenvironment
Consumer
Markets
Business
Market
Goals
Feed
back
Order
rou(ne
Evalua(on
&
Selec(on
Get
proposals
&
analize
Concepts
Search
for
sources
Key
words
Descrip(on
&
characteris(cs
Case
Studies
Prac8cal
examples
Q&A
Determina(on
of
quan((es
and
specs
Recogni(on
of
need
Everybody
has
some
marke(ng
experience
PNG
Ins(tute
of
Banking
and
Business
Management

98. Principles
of
Marke8ng
Chapter
2
The
Marke8ng
Environment
Consumer
Markets
Business
Markets
Microenvironment
Macroenvironment
PNG
Ins(tute
of
Banking
and
Business
Management

99. Principles
of
Marke8ng
Chapter
3
MARKETING
STRATEGY
and
PLANNING
PNG
Ins(tute
of
Banking
and
Business
Management

100. Companywide Strategic Planning:
Defining Marketing’s Role
Strategic planning : Process of
developing and maintaining strategic fit
between the organization’s goal and
capabilities
PNG
Ins(tute
of
Banking
and
Business
Management

101. Step in Strategic Planning
Business
Unit,
Product,
and
market
strategies
Corporate
Level
Sevng
company
objec(ve
and
goal
Designing
business
poruolio
PNG
Ins(tute
of
Banking
and
Business
Management
…………….………………………
Defining
company
mission
Planning
marke(ng
and
other
func(on
strategies

102. i. Defining a Market-Oriented
Mission
Mission statement:
Ø statement of the organization purpose.
Ø market oriented and defined in terms of satisfying basic
customer needs.
Ø should be meaningful and specific yet motivating.
PNG
Ins(tute
of
Banking
and
Business
Management

103. ii. Setting Company Objective and
Goals
Business Objectives
- To build profitable customer relationships
- Investing heavily in research
- Heavy investment must funded the improved profit
Marketing Objectives
- Increase market share
- Increase product availability and promotion
PNG
Ins(tute
of
Banking
and
Business
Management

104. iii. Designing the Business Portfolio
Business Portfolio
- Collection of businesses and product that make up the company.
- Is the one that best fits the company strengths and weaknesses to
opportunities in the environment.
Portfolio Analysis
- Process by which management evaluates the products and businesses
that make up the company.
PNG
Ins(tute
of
Banking
and
Business
Management

105. Cont…
Business portfolio involve two steps:
1. Analyzing the current business portfolio.
2. Developing strategies for growth and
downsizing
PNG
Ins(tute
of
Banking
and
Business
Management

106. Boston Consulting Group Approach
PNG
Ins(tute
of
Banking
and
Business
Management

107. Problem with Matrix Approach
ü Difficult to define SBUs and measure market share and
grows
ü time-consuming
ü Costly to implement
ü Focus on classifying current business, provide little
advise for future planning.
PNG
Ins(tute
of
Banking
and
Business
Management

108. Product / Market Expansion Grid
Market
penetra8on
Product
development
Market
development
Diversifica8on
PNG
Ins(tute
of
Banking
and
Business
Management

109.
Product
/
market
expansion
grid
:
a
poruolio-­‐
planning
tool
for
iden(fying
company
growth
opportuni(es
through
market
penetra(on,
market
development,
product
development
or
diversifica(on.
Market
penetra8on
:
company
growth
by
increasing
sales
of
current
products
to
current
market
segments
without
changing
the
product.
Market
development:
Company
growth
by
iden(fying
and
developing
new
market
segments'
for
current
company
products.
Product
development:
Company
growth
by
offering
modified
or
new
products
to
current
market
segments.
Diversifica8on
:
Company
growth
through
star(ng
up
or
acquiring
businesses
outside
the
company’s
products
and
markets.
PNG
Ins(tute
of
Banking
and
Business
Management

110. Planning Marketing:
Partnering to Build Customer
Relationship
i.
Partnering with Other Company Departments.
ii.
Partnering with Others in the Marketing System
PNG
Ins(tute
of
Banking
and
Business
Management

111. Value Chain : The series of internal departments that carry out
value-creating activities to design, produce, market, deliver and
support a firm’s products.
Value delivery Network : The network made up of the company,
its suppliers, its distributors and ultimately, Its customers who
partner with each other to improve the performance of the entire
system.
PNG
Ins(tute
of
Banking
and
Business
Management

112. ●
The
marke(ng
logic
by
which
the
company
hopes
to
create
customer
value
and
achieve
profitable
customer
rela(onship.
●
The
company
designs
an
integrated
marke(ng
mix
made
up
of
factors
under
its
control
such
as
product,
price,
place
and
promo(on.
PNG
Ins(tute
of
Banking
and
Business
Management

113. PNG
Ins(tute
of
Banking
and
Business
Management

114. ●
To
succeed
in
today’s
compe((ve
marketplace,
companies
must
first
understand
customer
needs
and
wants.
●
The
process
involves
:
Ø Market
segmenta(on
Ø Market
targe(ng
Ø Differen(a(on
Ø Posi(oning
PNG
Ins(tute
of
Banking
and
Business
Management

115. MARKET
SEGMENTATION
ü
Dividing
a
market
into
dis(nct
groups
of
buyers
who
have
different
needs,
characteris(cs,
or
behaviors,
and
might
require
separate
products
or
marke(ng
programs
ü
Market
segment
:
v
a
group
of
consumers
who
respond
in
a
similar
way
to
a
given
set
of
marke(ng
efforts.
PNG
Ins(tute
of
Banking
and
Business
Management

116. §
Market
targe(ng
:
ü
The
process
of
evalua(ng
each
market
segment’s
anrac(veness
and
selec(ng
one
or
more
segments
to
enter.
§
Posi(oning
:
ü
Arranging
for
a
product
to
occupy
a
clear,
dis(nc(ve
and
desirable
place
rela(ve
to
compe(ng
products
in
the
minds
of
target
consumers.
§
Differen(a(on
:
ü
Actually
differen(a(ng
the
market
offering
to
create
superior
customer
value.
PNG
Ins(tute
of
Banking
and
Business
Management

117. •
Marke(ng
mix
:
ü
the
set
of
tac(cal
marke(ng
tools
that
the
firm
blends
to
produce
the
response
it
wants
in
the
target
market.
Ø
product
–
the
goods
and
services
combina(on
the
company
offers
to
the
target
market.
Ø
Price
–
the
amount
of
money
customers
must
pay
to
obtain
the
product.
Ø
Place
–
company
ac(vi(es
that
make
the
product
available
to
target
customers.
Ø
Promo(on
–
ac(vi(es
that
communicate
the
merits
of
the
product
and
persuade
target
customers
to
buy
it.
PNG
Ins(tute
of
Banking
and
Business
Management

118. PNG
Ins(tute
of
Banking
and
Business
Management

119. MANAGING THE
MANAGING MARKETING :
MARKET EFFORT
Analysis,Planning,Implementat
ion & Control
PNG
Ins(tute
of
Banking
and
Business
Management

120. Marketing Analysis
Use SWOT Analysis.
S = strengths
W = weaknesses
O = opportunities
T = threats
PNG
Ins(tute
of
Banking
and
Business
Management

121. PNG
Ins(tute
of
Banking
and
Business
Management

122. Marketing Planning
PNG
Ins(tute
of
Banking
and
Business
Management

123. Marketing Strategies
Ø Specifict strategies for target
markets,positioning,the marketing mix
and marketing expenditures levels.
Marketing Budgets
Ø Outlines that used to control monitor
progress,measure return on marketing
investment and take corrective action.
PNG
Ins(tute
of
Banking
and
Business
Management

124. Marketing Implementation
Is the process turning marketing
strategies and plans into marketing
actions to accomplish strategic marketing
objectives.
Marketing planning addresses the what
and why the marketing
activities,implementation addresses the
who,where,when and how.
PNG
Ins(tute
of
Banking
and
Business
Management

125. Marketing Department Organization
Design marketing organizatios that can carry
out marketing strategies and plans.
Example ;
Ø Chief marketing officers(CMO) position :
head up the company marketing operations
& represent marketing on the top
management team.
PNG
Ins(tute
of
Banking
and
Business
Management

126. Ways Of Marketing Department
Functional Organization
ü Handle different marketing activities by specialities a sale
manager,advertising manager,marketing research
manager,customer services manager & new product manager.
Geographic Organization
ü Sales and marketing people assigned to specifics
country,regions and districts.
PNG
Ins(tute
of
Banking
and
Business
Management

127. Product Management Organization
ü Manager of PMO develops and
implements a complete strategy and
marketing program for a specific
product or brand.
PNG
Ins(tute
of
Banking
and
Business
Management

128. Market / Customer Management
Organization
ü Market managers are responsible
for developing marketing strategies
and plans for specifics market or
customers
PNG
Ins(tute
of
Banking
and
Business
Management

129. Marketing Control
Measuring & evaluating the results of marketing strategies and
plans and taking corrective action to ensures that the objectives are
achieved.
Operating Control
Ø Checking ongoing performance against the annual plan and
taking corrective action when necessary.
Strategic Control
Ø Looking at wheter the company’s basic strategies are well
matched to its opportunity.
PNG
Ins(tute
of
Banking
and
Business
Management

130. Measuring & Managing Return On
Marketing Investment
PNG
Ins(tute
of
Banking
and
Business
Management

131. For More Information
• Join E-communities
• Network
• Read Marketing journals and suggested reading material
!
PNG
Ins(tute
of
Banking
and
Business
Management

132. Marketing Mix for International
Markets
■
■
■
Standardization- offering the same marketing mix in every
market.
Adaptation- developing a unique marketing mix to fit each
market’s local competitive conditions, consumer
preferences, and government regulations.
Mass customization- allows a firm to mass produce goods
and services while adding unique features to individual or
small groups of orders.
PNG
Ins(tute
of
Banking
and
Business
Management

133. Marketing Research
■ Marketing
research– the process of collecting and
evaluating information to support marketing decision
making. AC Nielson– Consumer Research
■ Secondary
data– Previously published data from trade
associations, advertising agencies, marketing research
firms, and other sources.
■ Primary
data– Data collected through observation,
surveys, and other forms of observational study.
■ Data
mining– computer searches of customer data to
detect patterns and relationships.
■ Business
intelligence– activities and technologies for
gathering, storing, and analyzing data to make better
competitive decisions
PNG
Ins(tute
of
Banking
and
Business
Management

134. Market Segmentation
■
Market segmentation– the process of dividing a total
market into several relatively homogeneous groups.
PNG
Ins(tute
of
Banking
and
Business
Management

135. How Market Segmentation Works
PNG
Ins(tute
of
Banking
and
Business
Management

136. Segmenting Consumer Markets
■ Geographic
■
Segmentation
Divides market into homogeneous groups on the basis of their locations.
■ Demographic
■
Segmentation
Divides market on the basis of various demographic or socioeconomic
characteristics: gender, income, age, occupation, household size, stage in
the family life cycle, education, and ethnic group
■ Psychographic
■
Segmentation
Divides consumer market into groups with similar psychological
characteristics, values, and lifestyles. (VALS)
■
AIO statements—people’s verbal descriptions of various attitudes, interests,
and opinions
■ Product-Related
■
Segmentation
Divides market based on buyer’s relationship to the good or service.
■
based on benefits sought by buyers, usage rates, and loyalty levels
PNG
Ins(tute
of
Banking
and
Business
Management

137. Segmenting Business Markets
■ Geographic
segmentation– targets geographically
concentrated industries.
■ Demographic,
or customer-based, segmentation– a
good or service intended for a specific organizational market
(i.e. healthcare).
■ End-use
segmentation– focuses on the precise way a B2B
purchaser will use a product.
PNG
Ins(tute
of
Banking
and
Business
Management

138. Determining What Customers Want
■ Consumer
behavior- actions of ultimate consumers
directly involved in obtaining, consuming, and
disposing of products and the decision processes that
precede and follow these actions.
■
■
■
Personal factors: needs and motives, perceptions,
attitudes, self-concept
Interpersonal factors: cultural, social, and family
influences
External factors: economic events
■ Business
buying behavior- often includes a variety
of influences from multiple decision makers.
PNG
Ins(tute
of
Banking
and
Business
Management

139. Steps in Consumer Behavior
PNG
Ins(tute
of
Banking
and
Business
Management

140. Relationship Marketing
■ Relationship
marketing- developing and
maintaining long-term, cost-effective exchange
relationships with partners.
■ Consumers
enter into relationships only if there
is some benefit to them.
■ Relationship
marketing seeks to achieve
customer satisfaction.
PNG
Ins(tute
of
Banking
and
Business
Management

141. Benefits of Relationship Marketing
■ Lower
costs and higher profits for the business.
■ Efficient
targeting of best customers increases the
lifetime value of a customer.
■
revenues and intangible benefits (referrals and
customer feedback) from a customer over the life of
the relationship, minus the amount the company must
spend to acquire and serve that customer.
■ Stronger
relationships with business partners and
opportunities to combine capabilities and resources
to better accomplish goals.
PNG
Ins(tute
of
Banking
and
Business
Management

142. Tools for Nurturing Customer
Relationships
■ 80/20
principle: frequent customers have a higher
lifetime value, so businesses allocate resources
accordingly
■ Frequency
marketing: reward purchasers with
cash, rebates, and other premiums (
TGI Fridays reward program)
■ Affinity
programs: solicit involvement based on
common interest
■ Comarketing:
businesses jointly market each
others’ products
■ Cobranding:
product
firms link their names in a single
PNG
Ins(tute
of
Banking
and
Business
Management

143. One-to-One Marketing
■ Customizing
products and marketing and
rapidly delivering goods.
■ Customer
relationship management
software helps companies gather, sort, and
interpret data about specific customers.
PNG
Ins(tute
of
Banking
and
Business
Management