Transcript Marketing Management Process

Marketing Management Process
o Analyzing market opportunities
 Market research and information system
 Understanding consumer market
 Understanding organizational market
o Researching and selecting target market
 Measuring and forecasting demand
 Market segmentation, Targeting and positioning
o Developing the marketing mix
 Designing product
 Pricing product
 Placing product , Promotion strategies
o Managing the marketing effort
 Competitor analysis and competitive marketing
strategies
 Planning, implementing, organizing and controlling
marketing programs.
 Analyzing market opportunities
SLIDE NUMBER 8 & 9
Business operates within a fast changing and unpredictable
environment
Social
Economic
Public
S
In
Com
In
Cus
Competitors
Demographic
Political
Natural
Core marketing System
Legal
Marketing environment: consists of the actors and forces
that affect the company’s ability to develop and maintain
successful transactions and relationship with its target
customers.
The micro environment: consists of the actors in the
company’s immediate environment that affect its ability
to serve its market.
The macro environment: consists of the larger societal
forces that affect all the actors in the micro environment.
Strategic Analysis
External Analysis
Internal Analysis
Customer Analysis
Competitor Analysis
Market Analysis
Environmental
analysis
O & T, trends and
strategic Uncertainties
Performance Analysis :Profitability,
sales, customer satisfaction, product
quality, relative cost etc.
Determinants of strategic option:
past and current strategies, strategic
problems, organizational capabilities
and constraints, financial resources
and constraints, s & w
Strategic S, W, problems,
constraints and uncertainties
Strategic Identification and selection
Opportunity : an arena of need in which a company can
perform profitably
Opportunities can be listed and classified according to their
attractiveness and the success probability
Success probability depends on whether:
 company’s business strengths match the key success factors
(KSF)
 company’s business strengths exceed those of its
competitors
Key Success Factors: Assets and competencies that provide
the basis for competing successfully. Two types of KSF:
Strategic necessities : minimum skills and assets that a business
must possess to even consider operating in the chosen
market/industry. They do not necessarily provide an advantage
because others have them. But their absence will create a
substantial weakness. Business with only strategic necessities are
usually market followers.
Strategic strengths (superior competencies): Those at which
a company excels. These assets and competencies are superior
to those of competitors. They provide a base of advantage.
A strategic competency is something a business unit does
exceptionally well that has strategic importance to that business
( e.g. manufacturing or promotion).
A strategic asset is a resource that is strong relative to that of
company’s competitors (e.g. brand name, installed customer
base).
An environmental threat : a challenge posed by an
unfavourable trend or development that would lead, in the
absence of defensive marketing action, to sales or profit
deterioration.
Impact analysis is a tool that help to evolve that threat into
strategy
Impact Analysis: ( assessing systematically the impact and
immediacy of the trends and events that underlie each strategy
uncertainty) The assessment of the relative importance of
strategic uncertainties. Which uncertainties merit intensive
investment in information gathering and in-depth analysis,
and which merit only a low key monitoring effort
The extent to which a strategic uncertainty should be
monitored and analyzed depend on its (1)impact and
(2)immediacy
(1). The impact of a strategic uncertainty : Each strategic
uncertainty involves potential trends or events that could have
an impact on present, proposed and even potential SBU
The impact of a strategic uncertainty is related to:
The extent to which it involves trends or events that will
impact existing or potential SBUs
The importance of involved SBUs
The number of involved SBUs
(2) The immediacy of a strategic uncertainty is related to
The probability that the involved trends or events will occur
The time frame of the trends or events
The reaction time likely to be available, compared with the
time required to develop and implement appropriate strategy
Strategic Uncertainty Categories
Immediacy
Low
I
m
p
a
c
t
H
i
g
h
L
o
w
Monitor & Analyze:
Contingent strategies
considered
Monitor
High
Analyze in depth;
develop strategy
Monitor &
Analyze
Major Opportunities
High
Major
High
Low
Speculative
Business
Troubled Business
Ideal Business
Mature Business
Threats
Low
Management needs to monitor the larger forces and actors in
the marketing environment if it is to keep its products and
marketing practices current. For this purpose management
must develop and manage information.
Marketing Information System (MIS)
MIS consists of people, equipment, and procedures to gather,
sort, analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.
Marketing Information System
Marketing
Managers
Developing Information
Assessing
Information
Needs
Analysis
Internal
Record
Marketing
Intelligence
Target
Market
Marketing
Channels
Planning
Implementation
Control
Marketing
Environment
Distributing
Information
Marketing
Decision
Support
Analysis
Competitors
Marketing
Research
Public
Macro
Environmental
Forces
Marketing Decisions and communication.
Internal records system : includes reports on orders, sales,
prices, inventory levels, receivables, payables, and so on. It
supplies result data
Marketing Intelligence System : a set of procedures and
sources used by managers to obtain their everyday
information about pertinent developments in the marketing
environment.
This information is obtained by reading books, newspapers,
and trade publications; talking to customers, suppliers,
distributors, and other outsiders; and talking with other
managers and personnel within the company .
But, this system is casual, and valuable information could be lost
and or arrive at too late.
Additional steps to improve the quality and quantity of MI
 Train and motivate the sales force to spot and report new
developments.
 Motivate distributors, retailers, and other middlemen to pass
along importance intelligence.
 Purchase information from outside suppliers
 Establish an internal marketing information center to collect
and circulate marketing intelligence.
Marketing Research
The systematic and objective identification, collection,
analysis, and dissemination of information for the purpose of
improving decision making related to the identification and
solution of problems and opportunities in marketing
Marketing research Process
 Problem Definition: PD in any research is the most
important issue. In defining the problem, the researcher
should take into account the purpose of the study, the relevant
background information, what information is needed, and
how it will be used in decision making.
A problem exists when we do not have enough information
to answer a question.
Criteria of a problem
 It should be original: The purpose of research is to fill the
gaps in existing knowledge to discover new facts and not to
repeat already known facts. Therefore, a preliminary survey
of the existing literature in the proposed area of research
should be carried out to find out the possibility of making
original contribution.
 It should be neither very general nor very specific: If the
problem is very general, it is usually too vague to be tested. If
the problem is very specific, it is usually too narrow to be
important or consequential. Some kind of compromise must be
made between generality and specificity.
 It should be solvable: a problem may be unsolvable due to
two major reasons:
1. It may concern some supernatural of amorphous
phenomena.The impossibility of obtaining relevant data
renders the problem unsolvable.
2. It cannot be operationally defined. An operational
definition of a problem specifies the activities or operations
the investigator must perform in order to measure it. Once the
method of recording and measuring a phenomenon is specified
That phenomenon is said to be operationally defined.
It should be feasible: Feasibility should be checked against
the following considerations:
 Study design



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Access to organization and respondents
Sample or universe to be tested
Source of data
Method of collecting data
 Type of variables (nominal”ordinal) involved
 Selection of scales of measurement and statistic
 Time required for study and its availability
 Funds required and their availability
Development of An Approach to the Problem: Includes
formulating an objectives or theoretical framework, analytical
models, research questions, hypotheses, and identifying
characteristics or factors that can influence the research design.
Research Design Formulation: Framework or blueprint
for conducting a marketing research design. RD details the
procedures necessary for obtaining the required information,
and its purpose is to design a study that will test the hypotheses
of interest, determine possible answers to the research
questions, and provide the information needed for decision
making.
Conducting exploratory research, precisely defining the
variables, and designing appropriate scales to measure them
are also part of the research design.
Formulating the research design involves the following steps:
1. Definition of the information needed
2. Design the exploratory, descriptive, or causal phases of the
research
3. Methods of collecting quantitative data (survey,
observation, and experimentations)
4. Specify the Measurement and scaling procedures
5. Questionnaire design
6. Sampling process and sampling size
The sampling design process
 Define the target population : collection of elements or
objects that posses the information sought by the researcher.
Defining the target population involves translating the
problem definition into a precise statement of who should or
should not included in the sample.
The target population should be defined in terms of
elements, sampling units, extent and time.
Unit: an element or a unit containing the element, that is
available for selection at some stage of the sampling process.
Element: The object about which or from which the
information is desired.
Extent: geographical boundaries
Time: Period under consideration
 Defining the sample frame
Representation of the elements of the target population. It
consists of a list or set of direction for identifying the target
population.
 Select a sampling technique (slide 25)
 Determine the sample size
7. Plan of data analysis
Classification of sampling technique
Sampling Techniques
Nonprobability Sampling Techniques Probabilty Sampling Techniques
Nonprobability Sampling Techniques
Convenience
Sampling
Judgmental
Sampling
Quota
Sampling
Snow ball
Sampling
Probability
Sampling Technique
Single
Random
Sampling
Systematic
Sampling
Stratified
Sampling
Cluster
Sampling
Othe
sampling
Technique
Field Work or Data Collection: Involves a field force or
staff that operate either in the field, as in the case of personnel
interviewing ( in home, mall intercept) from an office by
telephone or through mail. Proper selection,
training,supervision, and evaluation of the field force helps
minimize data collection errors.
Data Preparation and Analysis: Includes the editing,
coding, transcription and verification of data. Each
questionnaire or observation form is inspected, or edited, and if
necessary, corrected. Number or letter codes are assigned to
represent each response to each question in the questionnaire.
Data Presentation and Analysis
Principles of Tabular Presentation
Number: Tables are numbered to show their position in
a series Using Arabic numbers Ex : Table 3.1
Title: It should be brief – verbs and article omitted –
Yet self explanatory, clearly stating the nature,
classification and time reference of the information
given. Ex: Sri Lanka National Defense
Expenditures, 1995 - 2000
Footnotes: Footnotes are given to explain anything
that cannot be incorporated in the table, including
certain qualifications on the data or method of
computation They follow the table but precede the
source. They should be indicated by symbols or
letters, not by numbers which might be mistaken for
the part of table.
Sources of the Data: Unless they are primary data,
sources of data should be cited in order that the source
may be referred if necessary
Principles of Graphic Presentation
Number of varieties of graphic materials are available. Ex:
bar charts, pictographs, pie charts, and map charts.
Figure Number : Title
45
40
Unit of Measure
35
30
East
West
North
25
20
15
10
Legend
5
0
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Always show a baseline for zero, the bottom border of
the chart.
Pie Chart
Figure Number and Title
Include the units
of value within
each slice
Non
Durable
goods
21%
Durable
goods 39%
Services
48%
In determining the appropriate proportion of the
pie, the proportion of degrees in a circle should be
calculated.
Also, a good rule to follow is to begin slicing the pie
from 12 o’ clock position and work your way around
clockwise with the sections positioned in decreasing
order of magnitude
However, Pie charts become difficult to interpret,
when they are cut into many pieces and several are
shown alongside one another
Summarizing Statistics : Two major kinds of
summarizing statistics.
Measures of Central Tendency ( Measures of Location):
Provides measures of the midpoint of the distribution.
 Arithmetic Mean : Should be computed only
from interval or ratio scaled data.
 Median : Requires only ordinal data.
 Mode : Requires only nominal data.
 Measures of Dispersion : Gives an indication of
the amount of variation in the data comprising the
distribution
 Standard deviation : Difference between the mean
and an observed value
 Variance and
 Range : The spread of the data
Univariate techniques are used for analyzing data when there is
a single measurement of each element or unit in the sample, or,
if there are several measurement of each element each element
is analyzed in isolation. .
Multivariate techniques are used for analyzing data when
there are two or more measurements on each element and the
variables are analyzed simultaneously.
Report Preparation And Presentation: The entire project
should be documented in a written report which addresses the
specific research questions identified,describe the approach, the
research design, data collection, and data analysis procedure
adopted