Transcript VSFS_Marketing_1

NA_CCM
Corporate Marketing
Management
Mitchell Young
What is marketing?
The process by which companies create
value for customers and build strong
customer relationships in order to capture
value from customers in return.
--Kotler and Armstrong (2010).
Marketing is the management process for
identifying, anticipating and satisfying
customer requirements profitably.
--The Chartered Institute of Marketing. Accessed 2012.
In other words…
‘There will always be need for
some selling. But the aim of marketing is to
make selling superfluous. The aim of
marketing is to know and understand the
customer so well that the product or service
fits him and sells itself. Ideally, marketing
should result in a customer who is ready to
buy. All that should be needed is to make
the product or service available’.
Peter Drucker
What is marketing management?
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.
The 7Ps of the marketing mix
Figure 1.4
The 7Ps components of the marketing mix
From 4 P’s to 4 C’s
4 P’s Model
Product
Price
Place
Promotion
4 C’s Model
Customer
Cost
Convenience
Communication
(Competition)
Transaction
Relationship
marketing
One-off Exchange,
brand management
Short-term focus
Mass communications
Isolated market
research
Mass markets or
market segments
Market share
Focus
Time perspective
Ongoing exchanges,
customer management
Long-term focus
Primary communication
Personal
communications
Customer feedback
mechanism
Ongoing dialogue
Market size
Criterion for success
Market of One
Mind share (share of
customer)
Harvard Business Review January-February 20
Is your company customer focused?
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Can middle managers accurately describe your
customer promise?
Can all members of your executive team name
three things that most undermine trust among your
existing customers?
Is your brand really the best option? Will it continue
to be?
Have you embraced any novel ideas that have
produced significant innovations in the last year?
Have front line staff posed any uncomfortable
questions or suggested important improvements?
The marketing environment
Task environment
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Company
Suppliers
Distributors
Dealers
Target customers
Broad environment
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Demographic
Economic
Physical
Technological
Political-legal
Social-cultural
The Marketing Plan (1of2)
I.
II.
III.
IV.
V.
VI.
Executive Summary
Current Situation (industry analysis, internal
analysis, consumer analysis)
Environmental Analysis (PEST)
Market Segmentation and Target Market Analysis
SWOT Analysis
Marketing Objectives Selection
The Marketing Plan (2of2)
VII. Sales Forecast
VIII. Marketing Mix Strategies
 Product
 Promotion
 Price
 Place/Distribution
IX. Implementation Plan
X.
Follow up and Control Plan
Three Product Levels
Definitions of business
Product definition
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BP sells fuels
Biersdorf sells cosmetics
Renault sells
automobiles
Xerox makes copy
equipment
Market definition
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BP sells energy
Biersdorf sells beauty
Renault supplies
transport vehicles
Xerox improves office
productivity
What are they selling?
Product or service or brand
Ford Focus
Spanish Holiday
Core Product
Actual Product
Freedom to travel
A motor car
Relaxation
Budget/No Frills Airline e.g. EasyJet
or Ryanair Chelsea Football Club
Nike
Hilliers' Garden Centres
Holiday insurance
An airline journey
Excitement and leisure
Association with the
best in sports.
Augmented Product
Food bought during your
flight
Sporting event
Nike online allows you
to personalise your
trainers
Products for gardening Hilliers' gardening club
Product or service or brand
Ford Focus
Spanish Holiday
Budget/No Frills Airline e.g. EasyJet
or Ryanair Chelsea Football Club
Nike
Hilliers' Garden Centres
Core Product
Actual Product
Augmented Product
Freedom to travel
A motor car
Ford finance
Relaxation
Two weeks in a resort
Holiday insurance
Gets you from A to B
cheaply
An airline journey
Food bought during your
flight
Excitement and leisure
Sporting event
Personalised shirts and
other merchandise
Association with the
best in sports
Shoes and other
clothing
Nike online allows you
to personalise your
trainers
Leisure and relaxation
Goods for gardens
Hilliers' gardening club
Porter’s Generic Strategies
Target Scope
Competitive Advantage
Low Cost
Product
Uniqueness
Broad
(industry wide)
Overall Cost
Leadership
Differentiation
Narrow
(market
segment)
Cost Focus
Differentiation
Focus
Sources of Growth