Strategic marketing

1. Marketing in a Changing World:
Creating Customer Value and
Satisfaction
The paradigm of Marketing

2. PRINCIPLES OF MARKETING
Objectives of the course:
What is Marketing? Misconception/Misnomers
Why is Marketing Important (Outcomes
perspective)?
What is the scope of marketing?
What are some fundamental marketing concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management & strategies?

3. OUTCOMES OF MARKETING
Harley Davidson
Honda 125
Honda CD 70

4. CAN YOU IDENTIFY THESE CARS
IN YOUR MARKET?

5. CIAZ?
??

6. CAN YOU
IDENTIFY??

7. CAN YOU
IDENTIFY??

8. WHICH MOBILE BRAND YOU
BUY?
Apple Samsung Xioami

12. Defining the
Value
(Process-1)
Delivering the
Value (Process-3)
Developing the
Value
(Process-2)

13. WHAT IS MARKETING?
Social Process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others--
Philip Kotler
(Functional) “Process of planning and executing the conception, pricing, promotion,
and distribution of ideas, products, services to create exchange that satisfy individual
organizational objectives”-- American Marketing Association
“Management Process that identifies, anticipates, and satisfies customer requirements
profitably”-- The Chartered Institute of Marketing
More simply: Marketing is the delivery of customer satisfaction at a profit.

14. 1. Goods
 Durable Goods
E.g., SMCG
 Non-Durables Good
 E.g., FMCG
2. Services

15. The classic service once offered in our Sub-Continent

16. 3. Events
Music Concerts
Magic Show
4. Experiences
Joy land, Water
parks

17. 5. Places 6. Person
Historical Sites
Political &
Religious
campaigns

18. 7.Properties 8. Ideas
Real Estates,
Hotels/Airbnb
Public Service
Messages

19. CORE MARKETING CONCEPTS
Products
and
Services
Value, satisfaction,
and quality
Needs,
wants,
and demands
Exchange,
transactions,
and relationships
Markets
Core
Marketing
Concepts

20. WHAT MOTIVATES A CONSUMER
TO ACT?
Needs - state of felt deprivation for basic items (i.e., indispensable for
existence & subsistence) such as food and clothing and complex needs such
as for belonging. ( i.e., I am thirsty)
Wants - form that a human need (i.e., strong desire but not necessary for
existence) takes as shaped by culture and individual personality. i.e. I want
Coca-Cola.
Demands - human wants backed by buying power. i.e. I have money to buy a
Coca-Cola.
Marketers are more interested to trace the demand in the market to exploit.

21. High
Level
Needs
Low Level
Needs
Maslow (1943)

23. HOW DO CONSUMERS CHOOSE
AMONG PRODUCTS AND SERVICES?
Customer Value - benefit that the customer gains from owning and
using a product compared to the cost of obtaining the product.
Customer Satisfaction - depends on the product’s perceived
performance in delivering value relative to a buyer’s expectations.
Linked to Quality and Total Quality Management (TQM).
(Positive confirmation Or Negative Confirmation)

24. HOW DO CONSUMERS OBTAIN
PRODUCTS AND SERVICES?
Exchanges - act of obtaining a desired object from someone by offering
something in return.
Transactions - trade of values between parties. Usually involves money
and a response.
Relationships - building long-term relationships with consumers,
distributors, dealers, and suppliers.

25. WHO PURCHASES PRODUCTS
AND SERVICES?
Market - buyers
who share a
need
or want that can
be satisfied by a
company’s products
or services.
Actual
Buyers
Potential
Buyers

26. MODERN MARKETING SYSTEM
Suppliers
End User
Market
Marketing
Intermediaries
Competitors
Company
(Marketer)
Environment
Environment

27. MARKETING MANAGEMENT
Marketing Management
Implementing programs to create exchanges
with target buyers to achieve organizational
goals
Finding and increasing demand, also
changing or reducing demand
Demand Management
Attracting new customers and
retaining current customers
Profitable Customer Relationships

28. MARKETING MANAGEMENT
PHILOSOPHIES—ERA OF MARKETING
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
• Consumers favor products that are
available and highly affordable
•Improve production and distribution
•Consumers favor products that offer
the most quality, performance, and
innovative features
•Consumers will buy products only if
the company promotes/ sells these
product
•Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors
•Focuses on needs/ wants of target
markets & delivering superior value
•Society’s well-being

29. SOCIETAL MARKETING CONCEPT
Society
(Human Welfare)
Consumers
(Wants)
Company
(Profits)
Societal
Marketing
Concept

30. MARKETING & SALES CONCEPTS
CONTRASTED
Factory
Existing
Products
Selling
and
Promoting
Profits
through
Volume
Market
Customer
Needs
Integrated
Marketing
Profits
through
Satisfaction
The Selling Concept
The Marketing Concept
Starting
Point
Focus Means Ends

31. Emerging
Challenges
Nonprofit
Marketing
New
Marketing
Landscape &
Information
Technology
Ethical
Concerns Globalization
Changing
World
Economy
NEW MARKETING CHALLENGES

35. Strategic Marketing

37. In its strategic role, marketing focus on a business’s intentions, the means, and time of realizing those
intentions.

40. Where to compete? Definition of your Market (Segmentation, selection and
implementing of plan).
How to compete? (New product for the market/ new position for an existing
market) Boston Consulting Group Matrix (BCG Matrix )and Ansoff Matrix Analysis.
When to compete? (Time of market entry)--- External Analysis

43. Strategic
Realization
Source: Fred R. David, “How Companies Define Their Mission, “ Long Range Planning
Strategic
Analysis
Strategic Formulation
Strategic
Implementation
Strategic
Evaluation

44. Strategic Planning Steps

45. STRATEGIC PLANNING
PROCESS
 Strategic Planning involves developing an overall
company strategy for long-run survival and growth.
 Fit between company planning, capabilities, and changing
market environment.
Types of Plan:
 Annual plan (Short Term)
 Long-range (Medium Term)
 Strategic Plan (long Term, environmental changed response)
Taking advantage of opportunities according to
changing environment.

46. “we will provide branded products and services of
superior quality and value that improve the lives of
the world's consumers, now and for generations to
come”

47.  Strategic process involves:
 Defining a Mission: Statement of an organization’s purpose; should
be market oriented.
 Mission focused Questions:
 What is our business?
 Who is the customer?
 What do our customer value?
 What should our business be?
 Companies mission should not expressed in terms of profit or
sales (as it is reward only for customer experience)
“McDonald’s mission”
isn’t “to be the world’s best and most profitable quick-
service restaurant”;
it’s “to be our customers’ favorite place and way to eat.”
If McDonald’s accomplishes this customer focused
mission, profits will follow.

49.  Copyright 1998 Prentice Hall
2-3
Market
Oriented
Fit Market
Environment
Motivating Realistic
Distinctive
Competencies
Specific
Characteristics
of Good Mission
Statements
Mission Statements

50. FROM MISSION TO
OBJECTIVES
Setting Company Objectives: Supporting goals and objectives to guide
the entire company.
Planning Functional Strategies: Detailed planning for each department
designed to accomplish strategic objectives.

51. • Microenvironment
• Macroenvironment

52. Some Market Exampls

53. Source: https://www.sochfactcheck.com/lays-snacks-sold-in-pakistan-do-not-contain-
pork/retrieved 18/01/2023

56. PAKISTAN...

57. TURKEY….

59. Source: Mobile Companies to Abandon Projects Worth Billions Due to Import Problems (propakistani.pk)

60. MCDONALD'S INSULT
CHINESE
 The fast-food giant McDonald's spent thousands on a new TV ad to
target the Chinese consumer. The ad showed a Chinese man
kneeling before a McDonald's vendor and begging him to accept his
expired discount coupon. The ad was pulled due to a lack of cultural
sensitivity on McDonald's behalf. The ad caused an uproar over the
fact that begging is considered a shameful act in Chinese culture.

61. RELIGIOUS
IGNORANCE &
BUSINESS
 The film "Hollywood Buddha" showed a complete lack of cultural sensitivity
by causing outrage and protest on the streets of Sri Lanka, Malaysia and Burma when the
designer of the film's poster decided to show the lead actor sitting on the Buddha's head,
an act of clear degradation against something holy.

62. FASHION &
BUSINESS FAILURE
 Both Clairol and the Irish alcoholic drink Irish Mist did not properly
consider the German language when they launched their products there.
Clairol's hair-curling iron "Mist Stick" and the drink "Irish Mist" both
flopped - why? 'Mist' translates n German as "manure".

63. LANGUAGE &
BUSINESS FAILURE
Coors. Coors Light is ubiquitous, and one of its
former slogans was, “Turn it loose!” Unfortunately,
Coors is another brand that had some issues with the
Spanish-speaking market, because that tagline in
Spanish was translated into, “You will suffer from
diarrhea.”

64. MARKETING
ENVIRONMENT
All the actors and forces influencing the company’s ability
to transact business effectively with its target market.
Includes:
Microenvironment - forces close to the company that affect its
ability to serve its customers.
Macroenvironment - larger societal forces that affect the whole
microenvironment.

65. THE MARKETING
ENVIRONMENT
Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics

66. The Microenvironment
Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers

67. Customers - five types of markets that purchase a company’s
goods and services.
Competitors - those who serve a target market with similar
products and services.
Publics - any group that perceives itself having an interest in a
company’s ability to achieve its objectives.

68. CUSTOMER
MARKETS
Company
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets

69. Demographic
Technological
Cultural Economic
Political Natural
Forces that Shape
Opportunities
and Pose Threats
to a Company

70. THE COMPANY’S
MACROENVIRONMENT
Demographic - monitors population in terms of age, sex, race,
occupation, location and other statistics.
Economic - factors that affect consumer buying power and
patterns.
Natural - natural resources/disasters needed as inputs by
marketers or that are affected by marketing activities.

71. Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in Income
Key
Economic
Concerns for
Marketers

72. Factors
Affecting
the
Natural
Environment
More Government
Intervention
Shortages of
Raw Material
Increased Costs
of Energy
Higher Pollution
Levels

73. THE COMPANY’S
MACROENVIRONMENT
Technological - forces that create new product and market
opportunities.
Political - laws, agencies and groups that influence or limit
marketing actions.
Cultural - forces that affect a society’s basic values, perceptions,
preferences, and behaviors.

74. Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment

75. Greater
Concern for
Ethics
Increased
Legislation
Changing
Enforcement
Key
Trends in the
Political
Environment

76. Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others
Views
That Express
Values

77. RESPONDING TO THE MARKETING
ENVIRONMENT
Environmental Management Perspective
–Taking a proactive approach to managing the
microenvironment and the macroenvironment to affect
changes that are favorable for the company. How? Hire
lobbyists , run “advertorials”, file lawsuits and complaints,
and form agreements.

78. • BCG Matrix
• Ansoff Matrix

79. The best portfolio is the one that best fits the company’s
strengths and weaknesses to the opportunities in the
environment.
Management’s first step is to identify the key businesses that
make up the company, called strategic business units (SBUs).
An SBU can be a company division, a product line within a
division, or sometimes a single product or brand.
 decide which SBU’s should receive more, less, or no investment
 develop growth strategies for adding new products or businesses to
the portfolio

82. 1. Boston Consulting Group (BCG) Matrix
5 1
10
20
10
0

83. Build
Invest
Divest
Hold
Source: Come to wisdom

84. EXAMPLE BCG MATRIX-
COCA COLA

85. EXAMPLE OF BCG
MATRIX-APPLE

86. 2. ANSOFF’S MATRIX
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
GE-Product/ Market Expansion Grid

89. PRODUCT/ MARKET
EXPANSION GRID
 Market Penetration: increase sales to present customers with current
products. How?
 Market Development: develop new markets with current products. How?
 Product Development: offering modified or new products to current
customers. How?
 Diversification: new products for new markets.

91. MARKETING’S ROLE IN STRATEGIC
PLANNING
 Process of Selecting Target Consumers
 Market Segmentation: determining distinct groups of buyers (segments)
with different needs.
 Market Targeting: evaluating and selecting which target segments to
enter.
 Market Positioning: products distinctive and desirable place in the
minds of target segments compared to competing products.
 Marketing Strategies for Competitive Advantage
 Market-Leader
 Market Challenger
 Market-Follower
 Market-Nicher

92. THE MARKETING
PROCESS
Target
Consumers
Product
Place Price
Promotion
Competitors
Marketing
Intermediaries
Publics
Suppliers
Demographic-
Economic
Environment
Technological-
Natural
Environment
Political-
Legal
Environment
Social-
Cultural
Environment

93. MARKETING MIX- THE
FOUR P’S
Target
Customers
Intended
Positioning
Product
“Goods-and-service”
combination that a
company offers a
target market
Price
Amount of money
that consumers
have to pay to obtain
the product
Activities that
persuade target
customers to buy
the product
Promotion
Company activities
that make the
product available
Place

94. Marketing Planning
Develop Marketing
Strategies to
Achieve Marketing
Objectives
Develop
Marketing
Plans & Budget
Marketing
Implementation
Turn Marketing Plans
into
Action Plans
to Achieve
Marketing
Objectives
Marketing Analysis of Company’s Situation
Control
Measure
Results
Evaluate
Results
Take
Corrective
Action

95. ELEMENTS OF A
MARKETING PLAN
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls