Marketing Management_Day1.ppt

Marketing ManagementMarketing Management

Prepared by : Soft Skills Unit Prepared by : Soft Skills Unit

Course OutlineCourse Outline

Lecture 1 : Marketing Principles

Lecture 2 : Market Segmentation and Target Markets

Lecture 3 : Consumer Buying Behavior and Decision Making

Lecture 4 : Marketing plan

Lecture 1 ContentLecture 1 Content

• Definitions

• Concepts

• Difference between Marketing & Selling

• The Marketing Environment

• The Marketing Mix

• The Marketing Strategies

What Is the Market

A. Definitions

• The set of actual and potential buyers of a product.

• These people share a need or want that can be satisfied through exchange relationships.

1. Marketing PrinciplesA. Definitions

- Marketing is managing profitable customer relationships.

•The American Marketing Association offers the following definition:

Marketing is an organization function and a set of processes for

creating, communication, and delivering value to customers and for

managing customer relationships in ways that benefit the organization

and its stakeholders.

B. Concepts

1. Customer Needs, Wants and Demands.

2. Exchange and Transactions.

3. Markets.

B .1. Customer Needs, Wants and Demands

Needs: Are the basic human requirements; as food, air, water..etc

Wants: when they are directed to specific objects that might

Satisfy the need.

Demands: are wants for specific products backed by an ability

to pay.

B .2. Exchange and Transactions

Exchange : is the core concept of marketing; It is the process of

obtaining a desired product from someone by offering something

in return.

- Exchange is a value creating process because it normally leaves

both Parties better off.

Transaction : is a trade of values between 2 or more parties

- When an agreement is reached , we say transaction takes place.

B. 3. Markets

Suppliers

Company

Competitors

Marketing Intermediaries

Final Users

Marketing System

The Market word has many definitions :

• A place where buyers and sellers meet, good and services are offered

for sale and transfers for ownership occurs.

• People or organizations with wants to satisfy, willingness and money

to spend.

C. Difference between Marketing & Selling

Factory Existing Products

Factory Existing Products

Selling & Promoting

Profits thru sales volume

Market Customer Needs

Market Customer Needs

Integrated Marketing

Profits thru Customer satisfaction

Selling Concept

Marketing Concept

Starting Point Focus Means Ends

D. The Marketing Environment

-The actors and forces outside marketing that affect marketing management ability to

build and maintain successful relationships with target customers.

- It is made up of microenvironment and macro environment.

Macro Environment

Political Factors

Economic Factors

Natural Factors

Technological Factors

Micro Environment

Customers

SuppliersCompetitors

Internal Environment

Socio-culture Factors

1. Microenvironment

1. Customers :

- Consumer Markets: Consists of individuals & households (B2C).

- Business Markets: Buy goods & services for further processing (B2B).

- Reseller Markets: Buy goods & services to resell at a profit.

- Government Markets: Government agencies that buy goods & services to

produce public services.

- International Markets: Consists of buyers in other countries as

consumers;

producers; resellers….etc.

2. Competitors: is any organization that offers the same,

a similar, or a substitute product or service in the field of

endeavor in which a company operates.

2. Suppliers; supply problems that affect the marketing can

be supply shortage, or delays, labor strikes , supply costs …etc

4. Others

2. Macro environment

1. Economic Factors: Factors that effect consumer buying

power & spending patterns .

• Changes in Income

• Changing customer spending patterns

• Unemployment

• Inflation

2. Political Factors: organizations are affected by :

• Governmental regulations & rules

• Tax regime

• Trade policies

• Special interests

3. Technological Factors: forces that create new

technologies, creating new products and opportunities

• Examples antibiotics; laptops, robotic surgery ..etc

4. Natural Factors :

Involves the natural resources needed as inputs by marketers

and may affect marketing activities.

• Shortage of raw materials

• Increased pollution

• Energy Sources

The social and cultural influences on business vary from country to country.

•Income distribution•Demographics, Population growth rates, Age distribution•Labor / social mobility•Lifestyle changes•Work/career and leisure attitudes•Entrepreneurial spirit•Education•Fashion, hypes•Health consciousness & welfare, feelings on safety•Living conditions

5. Sociocultural Factors:

E. The Marketing MixMarketing

Mix

Product

PricePromotion

Place

• Product Variety• Quality• Design• Brand name• Packaging• Services• Warranties

• List Price• Discounts• Allowances• Payment period• Credit Terms

• Sales Promotion• Advertising• Public Relations• Personal Selling• Direct Marketing

• Channels• Locations• Inventory• Transport

E.1 Product

Products include physical objects, services, events, persons, places, ideas…etc

1. Consumer Products

2. Industrial Products

Product is anything (tangible / intangible) that can be offered to a market that might satisfy a want or need.

Product Life CycleProduct Life Cycle

Core Benefit

Three Levels Of ProductThree Levels Of Product

Augmented Product

Actual Product

Brand name

Quality level

After SaleserviceFeatures

Design

Packaging Warranty

Delivery &Credit

Installation

E.2 Place• Refers to how an organization will distribute the product or service they are offering to the end user.

• The organization must distribute the product to the user at the right place at the right time.

• Two types of channel of distribution methods are available;

E.3 PriceIt is the amount of money charged for a product or service, it is agreed upon that the price Offered must cover the cost of the product and return a profit to the producer .

There are 5 marketing objectives to determine the price of a product :

a. Maximize short term profitb. Maximize current market sharec. Survival

Cont’d

E.4 Promotion

There are 5 different key types of promotion :

1.Advertising

2.Sales Promotion

3.Public Relations

4.Personal Selling

5.Direct Marketing

Cont’d

1. Advertising

• Popular means of reaching a target audience.

• Cost effective way to build awareness.

• To create a good ad, the marketer must create a message that is

distinct, meaningful and credible.

• There are many advertising 'media' such as newspapers, magazines

and journals, television, cinema, outdoor advertising (such as posters,

bus sides).

Cont’d

Cont’d

Good ADs

Bad ADs

2. Sales Promotion

• Short term incentives to encourage customers to make a purchase.

• There are many sales promotion types as :

a. Advertising Specialties: A product imprinted with a logo as mugs, T

shirts..etc

b. Cash Rebates: A partial refund to the buyer

c. Discounting : reducing the listed price for a limited period of time

d. Coupons

e. Samples.

N.B: Advertising offers reasons to buy a product or service, sales

promotion offers reasons to buy now.Cont’d

Cont’d

3. Public Relations• Used to obtain favorable publicity, building good corporate image and handling unfavorable rumors, stories and events .

• Influence the public beliefs, feelings and opinions about the company .

• Mass promotion tool & cheap .

• There are several types of public relations :

a. Written material as brochures, magazines, articles..etc

b. Special Events as presentations, conference

c. Public Service Activities as donating money, volunteers or

resources to activities designed to a social cause

d. Speeches as giving talks

Cont’d

4. Personal Selling

• Personal presentation by the firm’s sales force for the purpose of making sales & building customer relations

• The sales message can be customized to meet the needs of the customer.

• Involves 2 way personal communication as face-to-face, by telephone, through video or web conference.

• Direct marketing is a type of advertising campaign that seeks to elicit an

action (such as an order, a visit to a store or Web site, or a request for further

information) from a selected group of consumers in response to a

communication from the marketer.

• Types of direct marketing:

• Direct Mail

• Telemarketing

• Email Marketing

• Catalogs

• Websites

5. Direct Marketing

• Robert Lauter born suggested that the sellers’ 4 Ps correspond to the Customers’ 4 Cs

4 PsProduct

Price

Place

Promotion

4 CsCustomer Solution

Customer Cost

Convenience

Communication

4P’s Verses 4C’s

F. The Marketing Strategies

What is Organization’s SWOT ?

• It is a marketing strategy that involves monitoring the external and internal

marketing environment.

• Internal environment (strengths / weakness) analysis:

o A strength is something a firm does well or a characteristic that enhances its

competitiveness.

o A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage

Strength can be …

• Valuable competencies or know-how

• Valuable physical assets

• Valuable human assets

• Valuable organizational assets

• Valuable intangible assets- e.g. “Image”

• Important competitive capabilities

• An attribute that places an organization in a position of

competitive advantage

• Alliances with capable partners

Weakness can be …

• Deficiencies in know-how or expertise or competencies.

• Lack of important physical, organizational, or intangible assets.

• Missing capabilities in key areas.

• High unit cost.

• Poor relationship with employees / suppliers.

• External environment (opportunities / Threats) analysis:

o An opportunity is an area of buyer need and interest in which

there is a high probability that a company can profitably satisfy

that need.

o An environmental Threat is a challenge posed by an unfavorable

trend or development that would lead in the absence of defensive

marketing action.

Sources of a marketing opportunity…

• Diversify your business interests

• Is to supply an existing product or service in a new or superior way.

• A new product.

• Changes in use of technology opening up opportunities for your business to utilize these technologies such as Ecommerce or Internet sales

Examples of threats…

• Changing customer tastes

• Technological advances

• Tax increase

• Change in governmental policies

• Closing of geographic markets

Build on your

Strengths

Evaluate your

Opportunities

Research your

Threats

Recognize your

Weakness