Organizational Resource Management ORM 6 MARKETING.

Organizational Resource Management

ORM 6

MARKETING

What is Marketing?

Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering value

to customers and for managing customer relationships

in ways that benefit the organization and its stakeholders

Marketing management is the art and science

of choosing target markets and getting, keeping, and growing

customers through creating, delivering, and

communicating superior customer value

What is Marketing Management?

What is Marketed?

Goods Services Events and

experiences Persons

Places and properties

Organizations Information Ideas

What is marketing?

The process of building profitable customer relationships by creating value for customers and capturing value in return

1) Identifying customer needs

2) Managing delivery to customers

3) Achieving customer satisfaction

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-7

Marketing Mix and the Customer

Four Ps Product Price Place Promotion

Four Cs Customer

solution Customer cost Convenience Communication


Core Concepts

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands

Value and satisfaction

Marketing channels Supply chain Competition Marketing

environment Marketing planning


Internal Marketing

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.


Marketing Management Tasks

Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Create long-term growth

1 - 11

Design a customer-driven marketing strategyMarketing Management Philosophies

Design a customer-driven marketing strategyMarketing Management Philosophies

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal 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

1 - 12

Marketing & Sales Concepts ContrastedMarketing & Sales Concepts Contrasted

FactoryExistingProducts

Sellingand

Promoting

ProfitsthroughVolume

MarketCustomer

NeedsIntegratedMarketing

Profitsthrough

Satisfaction

The Selling ConceptThe Selling Concept

The Marketing ConceptThe Marketing Concept

StartingPoint

Focus Means Ends

1 - 13

Societal Marketing ConceptSocietal Marketing Concept

Society(Human Welfare)

Society(Human Welfare)

Consumers(Wants)

Consumers(Wants)

Company(Profits)

Company(Profits)

SocietalMarketingConcept

SocietalMarketingConcept

MARKET RESEARCH

IT IS THE SYSTEMATIC “ DESIGN, COLLECTION, ANALYSIS AND REPORTING OF DATA AND FINDINGS RELEVANT TO A SPECIFIC MARKETING SITUATION”

The Marketing Mix

1 - 16

Construct a marketing program that delivers superior value 4 “P” s of Marketing

Transforms the marketing strategy into action Includes the marketing mix and the 4P’s of

marketing Product Price Place Promotion

Goal 3: Identify elements of a customer-driven strategy.

The Marketing Mix

7 “P” s of Marketing

Price

PRICE. You must set a price that allows you to make a profit while also meeting your competitors’ prices or beating them. It also has to be the right amount to allow you to maintain and increase your customer base.

Product

8 - 21

Levels of ProductLevels of Product

BrandName

QualityLevel

Packaging

Design

FeaturesDelivery& Credit

Installation

Warranty

After-Sale

Service

CoreBenefit

orService

CoreBenefit

orService

ActualProduct

ActualProduct

CoreProduct

CoreProduct

AugmentedProduct

AugmentedProduct

Promotion

PROMOTION Mix The specific mix of advertising, personal

selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.


Place

PLACE. Place is all about how your customers can get a product. The place also takes into consideration how the product will get to customers, meaning whether you will sell it directly or through a retailer or online.


People

PEOPLE. The most important people in your business are the people who work with and for you. Hiring the right people is one of the most important things you will do for your business.


Process

PROCESS. Your process and procedures includes everything that you did to get your product to the consumer including all of the planning and paperwork and marketing that it took to do it.


Physical Environment

Managing Marketing Organization

Building a Creative Marketing Organization

Developing a company-wide passion for customers

Organizing around customer segments instead of products

Understanding customers through qualitative and quantitative research

Corporate Social Responsibility

Socially responsible behavior Ethical behavior Legal behavior

The Control Process

What do we want to achieve? What is happening? Why is it happening? What should we do about it?

Types of Marketing Control

Annual plan control :Responsibility of top and middle management .Purpose is to examine whether planned results are achieved

Profitability control: Responsibility of marketing controller .Purpose is to examine where the company is making and losing money

Efficiency control: Responsibility of line & staff management and / or marketing controller .Purpose is to evaluate and attempts to improve spending efficiency of marketing expenditures

Strategic control: Responsibility of top management and marketing auditor .Purpose is to Examine whether company is pursuing its best opportunities with respect to markets, products & channels

What is a Marketing Audit?

A marketing audit is a comprehensive, systematic, independent, periodic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities, and recommending a plan of action to improve the company’s marketing performance.

Some Branding Strategies

MANAGING BRANDS FORCOMPETITIVE ADVANTAGE• Brand Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s.

• Brands have a powerful influence on consumer behavior.

BRAND LOYALTY

• Measured in three stages:

• Brand recognition Consumer awareness and identification of a brand.

• Brand preference Consumer reliance on previous experiences with a product to choose that product again.

• Brand insistence Consumer refusal of alternatives and extensive search for desired merchandise.

Sub-branding

Creating new brands which are part of the parent brand family Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano

Umbrella branding

When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand

E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.

Flanker Brand

Different brand name – same product Purpose: Pre-empt competition, cover the market more

completely (protect your flanks) Problem: some cannibalization, reduction in sales volume

is expected. E.g. Thums Up and Coca Cola in India Tide and Cheer from P&G

Brand Extension

Same brand name, new product line e.g. Reebok shoes and Reebok water.

The concept of congruence determines the success of a brand extension strategy. E.g. Johnson’s baby powder and Johnson’s baby oil – high congruence.

Line Extension

Same brand name, different product in the same product line. E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM

laptops .

Activity 5

When a company market’s and brands its products through celebrities like sports/ film stars, how does it help them?

Do consumers buy products just because the sports/ film stars have endorsed the products?

Does it add value to its brand name? How?

chap

ter Marketing Channels and

Supply Chain Management

Marketing Channels

MarketingChannelMarketingChannel

SupplyChainSupplyChain

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.

Marketing Channel Functions

Specialization andDivision of Labor

Specialization andDivision of Labor

ChannelsFulfillThreeImportantFunctions

ChannelsFulfillThreeImportantFunctions

Overcoming Discrepancies of quantity, assortment, time and space

Overcoming Discrepancies of quantity, assortment, time and space

Providing ContactEfficiency

Providing ContactEfficiency

Channel Intermediaries

RetailerRetailer

MerchantWholesalerMerchantWholesaler

Agents andBrokersAgents andBrokers

A channel intermediary that sells mainly to customers.A channel intermediary that sells mainly to customers.

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Wholesaling intermediaries who facilitate the sale of a product by representing channel member.

Wholesaling intermediaries who facilitate the sale of a product by representing channel member.


Supply chain management (SCM) is the management of anetwork of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Figure 15.5


ResultsResultsofofSupply ChainSupply ChainManagementManagement

ResultsResultsofofSupply ChainSupply ChainManagementManagement

Focus on Innovative SolutionsFocus on Innovative Solutions

Competitive with focus onCustomer Satisfaction

Competitive with focus onCustomer Satisfaction

Synchronized Flow on timeSynchronized Flow on time

Customer ValueCustomer Value

Physical flow process that engineers the movement of goods

Physical flow process that engineers the movement of goods

Communicator of customer demand frompoint of sale to supplier

Communicator of customer demand frompoint of sale to supplier

Role of Role of Supply ChainSupply ChainManagementManagement

Role of Role of Supply ChainSupply ChainManagementManagement

Role of Supply Chain Management

Benefits of Supply Chain Management

Common BenefitsCommon Benefitsof Supply Chainof Supply ChainManagementManagement

Common BenefitsCommon Benefitsof Supply Chainof Supply ChainManagementManagement

Reduced Costs Reduced Costs

Improved ServiceImproved Service

Enhanced RevenuesEnhanced Revenues

Corporate Strategic Planning

Strategic Planning

…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.

The objectives and strategies established at the top level provide the context for planning in each of the divisions and departments by divisional and departmental managers

Org Objectives Resources

Changing Environment

Strategic Fit

The Role of Strategy

CorporateMission &Objectives

Strategy:•Corporate•Business•Functional

Operating Plans

Sun Tze on Strategy

“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”

Strategic Marketing

“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.”

John Scully

Strategic Planning and Marketing Management

Includes all activities that lead to the development of a clear organizational mission, objectives, and appropriate strategies

Plays a key role in achieving an equilibrium by balancing acceptable financial performance

Prepares for inevitable changes in markets, technology, and competition, as well as in economic and political arenas

The Strategic Planning Process

Mission statement In developing a mission statement, management must

take into account three key elements The organization’s history The organization’s distinctive competitiveness The organization’s environment

Mission statement should be Achievable Motivational Specific

Missions vs. Strategic Visions

A mission statement focuses on current business activities -- “who we are and what we do” Current product

and service offerings

Customer needs being served

Technological and business capabilities

A strategic vision concerns a firm’s future business path -- “where we are going” Markets to be pursued Future technology-

product-customer focus Kind of company that

management is trying to create

Vision Statement

We want to sell a variety of

products on a daily basis to

every living person on the earth.

PepsiCo.

Vision Statement

A computer on every desk and in every home.

Microsoft

Whirlpool Mission Statement

To shape and lead the major home appliance industry globally, becoming one of the world’s great companies while creating value for shareholders, employees, customers, suppliers, government leaders and communities.

The Strategic Planning Process

Corporate Objectives & Goals

An objective is specific and has a long-range purpose Not quantified and not limited to a time period E.g. increasing the return on shareholders’

equity A goal is a measurable objective of the business

Attainable at some specific future date through planned actions

E.g. 10% growth in the next two years

What is Competitive Advantage?

“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.”

Philip Kotler “If you don’t have a competitive advantage,

don’t compete.” Jack Welch, GE

Organizational Issues

A Framework for Analyzing Organizations

Figure 15.1

People Structure

Systems Culture

People Structure

Systems Culture

External AnalysisExternal Analysis

StrategyStrategy

Internal AnalysisInternal Analysis

PerformancePerformance

Overview of Strategic Market Management

Overview of Strategic Market Management

External Analysis• Customer Analysis• Competitor Analysis• Market/submarket Analysis• Environmental Analysis

Internal Analysis• Performance Analysis• Determinants of strategic

options

Strategic Analysis OutputsStrategic Analysis Outputs

Strategy Identification, Selection, and Implementation

Strategy Identification, Selection, and Implementation

Strategy Development

Strategy Development:

Competitor Analysis Who are the existing and potential competitors? What strategic groups can be identified? What are their sales, share, and profits? What are the growth trends? What are their strengths, weaknesses, and

strategies?

Figure 15.5

Market Analysis How attractive is the market or industry and its

submarkets? What are the forces reducing profitability in the market,

entry and exist barriers, growth projections, coststructures, and profitability prospects?

What are the alternative distribution channelsand their relative strengths?

What industry trends are significant to strategy? What are the current and future key success factors?


Figure 15.5

THE VALUE CHAIN

Definition Examination of the value chain of

an enterprise to ascertain how much and at which stage value is added to its goods and/or services, and how it can be increased to enhance the product differentiation (competitive advantage).

Dr.Rashad ,skyline University College,UAE,Sharjah76

Corporate Value Chain


Strategy Development Resources investment What assets and competencies will provide the

basis for developing a robust strategy? How can they be developed and maintained? How can they be leveraged?

Figure 15.5

dr.Rashad ,skyline College,UAE,Sharjah78

Types of business-level strategy

Thanks

Organizational Resource Management ORM 6 MARKETING.

Documents

pearson education

prentice hall

marketing mix

customer needs2

customer satisfactioncopyright

demandstarget markets

systematic design

organizational function