Business / Marketing Minor Marketing Fundamentals M21439 Session 3: Operational Objectives & The Marketing Mix.

Business / Marketing Minor

Marketing FundamentalsM21439

Session 3:

Operational Objectives & The Marketing Mix

Key Concepts

• Difference between strategic and operational

marketing

• Marketing objectives

• Marketing mix as a tactical toolkit

• Different theorists marketing mixes

Strategic Marketing

Lambin (1997) identified that the role of

strategic marketing is to ‘lead the firm towards

attractive economic opportunities; that is,

opportunities that are adapted to its

resources and know-how and offer a potential

for growth and profitability”

Marketing Objectives

A marketing objective is a statement of what

is to be expected from marketing activities. It

specifies the results expected from marketing

efforts.

For example, To increase sales of the product in the UK by 10% per annum in real terms each year for the next 3

years.

Marketing Objectives

May relate to any of the following:

- Selling existing products into existing markets

- Selling existing products into new markets

- Selling new products into existing markets

- Selling new products into new markets

Ansoff’s Matrix

Source: Harding,S. & Long,T. (1998) MBA Management Models UK:Gower

Current Products

CurrentMarkets

New Products

New Markets

Market Penetration Product Development

Market Development Diversification

Products

Markets

Question:

Give examples of organisations pursuing the four strategies

defined by Ansoff?

For example, Birds Eye are currently relaunching its frozen food range across Europe to try and penetrate the market more successfully and thus increase sales.

Marketing Programmes for Implementation

This is the detailed operational information

which allows the marketing plan to be

carried out in the short to medium term.

Operational Marketing

Lambin (1997) identified operational

marketing as “an action orientated process

which is extended over a short to medium

term planning horizon and targets existing

markets and segments”.

The Marketing Mix

The marketing mix is the tactical toolkit

deployed by marketing managers in order to

implement a company’s agreed marketing

strategy.

Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.245

Unique Selling Proposition

Baker (2000) states that

“in devising this unique selling proposition or

bundle of the benefits the marketer has 4

basic ingredients which he/she can combine

in an almost infinite number of ways to

achieve different end results.”

Source: Baker,M.J. (2000) Marketing Strategy & Management, 3rd ed, London:Macmillan Business

McCarthy’s Marketing Mix

Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed,USA:Prentice Hall

Target Customers

Intended Positioning

PRICE

PLACEPROMOTION

PRODUCT

Variety, Quality, Design,Features, Brand name,

Packaging, Services

List price, Discounts,Allowances, Payment Period, Credit terms

Channels, Coverage,Assortments, Locations,

Inventory, Transportation,Logistics

Advertising, PersonalSelling, Sales promotion,

Public relations

Dibb et al (2001)MarketingMix –5 Dimensions

Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.245

Boom & Bitner (1981) 7 Dimension Definition

Source: Palmer,A. (2000) Principles of Marketing USA:Oxford University Press

Focus on satisfying customers’ needs

profitably

PRODUCT PRICE

PROMOTION

PEOPLEPHYSICALEVIDENCE

PLACE

PROCESSES

Question:

Why do different theorists favour different marketing mixes?

Product

“Anything that can be offered to a market for

attention, acquisition, use, or consumption

that might satisfy a want or need. It includes

physical objects, services, persons, places,

organisations and ideas.”

Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p7

Branding

Adcock (2000) suggests that

“a brand is not a product that just happens to

have high awareness, nor is it a recognisable

name or logo, although both these are often

present. It is so much more, it is a powerful

stimulus that conjures up a complex image

and level of expectation about itself and what

it can do for a consumer.”

Source: Palmer, A. (2000) Principles of Marketing UK:Oxford

Packaging

An important part of the product that not only

serves a functional purpose, but also acts as

a means of communicating product

information and brand character.

Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall

Question:

Give examples of products that you purchase often & would like to

purchase?

What is it about them that makes you consumer/desire them?

Definition of Price

The amount of money charged for a product

or service, or the sum of the values that

consumers exchange for the benefits of

having or using the good or service.

Source: Kotler.P & Armstrong.G (2001) Principles of Marketing 9th ed, USA:Prentice Hall

Question:

When is a price too expensive?

Give example.

Channel Structure for Consumer Goods

CONSUMER

PRODUCER

Retailer Retailer Retailer

Wholesaler Wholesaler

Agent

Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall

Channel Structure for Organisational Markets

Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall

DistributorDistributor

AgentAgent

MANUFACTURER

USER

Question:

Why do supermarkets in the UK have so much power over the

channel? Has the introduction of Walmart in

the UK changed things?

Elements of the Promotional Mix

Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall

PROMOTIONAL MIX

Sales Promotion

Direct Marketing

Public Relations

Advertising

Personal Selling

Question:

Which promotional mediums have you been subjected to today?

Physical Evidence

Physical evidence is important to guide

buyers of intangible services through the

choices available to them.

This evidence can take a number of forms.

Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Question:

Why do some organisations offer ‘flash cars’ or health club memberships as part of a renumeration package?

People

“People decisions are particularly important to

the marketing of services. In service sectors,

people planning can assume great

importance where staff have a high level of

contact with customers.”

Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Question:

Do people matter?

If so why?

Question:

In a marketing orientated organisation who is responsible

for the customer?

Process

Process decisions are again important to

marketers in the service sector. For example,

a customer of a restaurant is deeply affected

by the manner in which staff serve them.

Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Aspects of Process

“Friendliness of staff and the flows of

information affect the customer’s perception

of the service product offer. Appointment or

queuing systems become part of the service.

Ease or difficulty of payment can enhance or

spoil the consumption of the service.”

Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrell.O.C. (2001) Marketing – Concepts & Strategies US:Houghton Mifflin

Question:

Give examples of organisations who have made the process of purchase more flexible. How?