Transcript File

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
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
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What is Marketed?
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Goods
Services
Events and experiences
Persons
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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
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1) Identifying customer needs
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2) Managing delivery to customers
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3) Achieving customer satisfaction
Marketing Mix and the Customer
Four Ps
 Product
 Price
 Place
 Promotion
Four Cs
 Customer solution
 Customer cost
 Convenience
 Communication
Copyright © 2009 Pearson
Education, Inc. Publishing as
Prentice Hall
Core Concepts
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Needs, wants, and
demands
Target markets,
positioning, segmentation
Offerings and brands
Value and satisfaction
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Marketing channels
Supply chain
Competition
Marketing environment
Marketing planning
Copyright © 2009 Pearson
Education, Inc. Publishing as
Prentice Hall
Internal Marketing
Internal marketing is the task of hiring, training, and
motivating able employees who want to serve
customers well.
Copyright © 2009 Pearson
Education, Inc. Publishing as
Prentice Hall
Marketing Management Tasks
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Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Create long-term growth
Copyright © 2009 Pearson
Education, Inc. Publishing as
Prentice Hall
Design a customer-driven marketing strategy
Marketing Management Philosophies
• Consumers favor products that are
Production Concept
available and highly affordable
•Improve production and distribution
Product Concept
•Consumers favor products that offer
the most quality, performance, and
innovative features
Selling Concept
•Consumers will buy products only if
the company promotes/ sells these
product
Marketing Concept
Societal Marketing Concept
•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
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Marketing & Sales Concepts Contrasted
Starting
Point
Focus
Factory
Existing
Products
Means
Ends
Selling
and
Promoting
Profits
through
Volume
The Selling Concept
Market
Customer
Needs
Integrated
Marketing
Profits
through
Satisfaction
The Marketing Concept
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Societal Marketing Concept
Society
(Human Welfare)
Societal
Marketing
Concept
Company
(Profits)
Consumers
(Wants)
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MARKET RESEARCH

IT IS THE SYSTEMATIC “ DESIGN,
COLLECTION, ANALYSIS AND REPORTING OF
DATA AND FINDINGS RELEVANT TO A
SPECIFIC MARKETING SITUATION”
The Marketing Mix
Construct a marketing program that delivers
superior value 4 “P” s of Marketing
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Transforms the marketing strategy into action
Includes the marketing mix and the 4P’s of marketing
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Product
Price
Place
Promotion
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Goal 3: Identify elements of a customer-driven strategy.
7 “P” s of
Marketing
The Marketing Mix
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
Levels of Product
Augmented
Product
Installation
Packaging
Delivery
& Credit
Brand
Name
Quality
Level
Features
Core
Benefit
or
Service
AfterSale
Service
Design
Warranty
Actual
Product
Core
Product
Promotion
7 “P” s of

Marketing
PROMOTION Mix
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The specific mix of advertising, personal selling, sales
promotion, and public relations a company uses to
pursue its advertising and marketing objectives.
Place
7 “P” s of

Marketing
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
7 “P” s of

Marketing
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
7 “P” s of

Marketing
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
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Developing a company-wide passion for customers
Organizing around customer segments instead of
products
Understanding customers through qualitative and
quantitative research
Corporate Social
Responsibility
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Socially responsible behavior
Ethical behavior
Legal behavior
The Control Process
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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
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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 FOR
COMPETITIVE 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
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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
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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
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Different brand name – same product
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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
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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
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Same brand name, different product in the same product line.
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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?
chapter
Marketing Channels and
Supply Chain Management
Marketing Channels
Marketing
Channel
A set of interdependent organizations that ease the transfer
of ownership as products move from producer to business
user or consumer.
Supply
Chain
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 and
Division of Labor
Channels
Fulfill
Three
Important
Functions
Overcoming Discrepancies of
quantity, assortment
, time and space
Providing Contact
Efficiency
Channel Intermediaries
Retailer
A channel intermediary that
sells mainly to customers.
Merchant
Wholesaler
An institution that buys goods
from manufacturers, takes title
to goods, stores them,
and resells and ships them.
Agents and
Brokers
Wholesaling intermediaries who
facilitate the sale of a product by
representing channel member.
Supply Chain Management
Supply chain management (SCM) is the management of a
network 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
Supply Chain Management
Focus on Innovative Solutions
Competitive with focus on
Customer Satisfaction
Results
of
Supply Chain
Management
Synchronized Flow on time
Customer Value
Role of Supply Chain Management
Role of
Supply Chain
Management
Communicator of
customer demand from
point of sale to supplier
Physical flow process
that engineers the
movement of goods
Benefits of Supply Chain Management
Reduced Costs
Improved Service
Common Benefits
of Supply Chain
Management
Enhanced 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
Strategic Fit
Changing Environment
Resources
The Role of Strategy
Corporate
Mission &
Objectives
Strategy:
•Corporate
•Business
•Functional
Operating
Plans
Sun Tze on Strategy
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“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
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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
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Mission statement
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In developing a mission statement, management must take into account
three key elements
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The organization’s history
The organization’s distinctive competitiveness
The organization’s environment
Mission statement should be
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Achievable
Motivational
Specific
Missions vs. Strategic Visions
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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
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A strategic vision concerns a firm’s
future business path -- “where we
are going”
Markets to be pursued
 Future technology-productcustomer focus
 Kind of company that
management is
trying to create
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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
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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
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“If you don’t have a competitive advantage, don’t compete.”
Jack Welch, GE
Organizational Issues
A Framework for Analyzing
Organizations
Internal Analysis
External Analysis
Strategy
People
Structure
Systems
Culture
Performance
Figure 15.1
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 Outputs
Strategy Identification, Selection,
and Implementation
Strategy Development
Strategy Development:
Competitor Analysis
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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
Strategy Development:
Market Analysis
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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, cost
structures, and profitability prospects?
What are the alternative distribution channels
and 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).
Corporate Value Chain
76
Dr.Rashad ,skyline University College,UAE,Sharjah
Strategy Development:
Strategy Development
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
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
Types of business-level strategy
78
dr.Rashad ,skyline College,UAE,Sharjah
Thanks