Transcript MARKETING - WordPress.com

CHAPTER 1
Marketing: An Introduction
• WHAT’S SO HOT ABOUT MARKETING
IN THE
Emilio T. Yap- owns Manila
Bulletin, chairman of the
Manila Hotel and Chairman
Emeritus of Philtrust Bank
WHAT MARKETING IS NOT
• MARKETING IS NOT SELLING
• “MARKETING NOT EQUALS
TO ADVERTISING”
• ADVERTISINGTO INFORM,
TO PERSUADE AND
TO REMIND.
• MARKETING- PRODUCT PLANNING, PRICING,
DISTRIBUTION, CUSTOMER, SERVICE AND PROMOTION.
“BAD MARKETING”
HAVE YOU PERSONALLY ENCOUNTERED SOME OF THEM?
• COMPANY TO CUSTOMERS – “WE CAN’T DO IT,IT’S COMPANY POLICY.”
• COMPANY TO SALES FORCE – “JUST PUSH THIS ITEM BECAUSE WE ARE OVERSTOCKED”.
• SALES MANAGER TO SALES FORCE – “YOU CAN SELL A LOT BY MANIPULATING
CUSTOMERS; JUST TELL THEM THEY HAVE BEEN CHOSEN AS A WINNER IN A LUCKY DRAW.
ANYWAY THEY WON’T REALLY KNOW!”
• SAGO SUPPLIER TO FRANCHISE APPLICANT- “IT’S ALL RIGHT TO HAVE LONG LINES OF
WAITING. IT WILL SEEM AS THOUGH WE ARE DOING SO WELL.”
• TELEPHONE OPERATOR TO CUSTOMER - “IT’S LUNCH BREAK. PLEASE CALL BACK.”
• CAMERA TECHNICIAN TO CLIENT – “OF COURSE WE CAN’T REPAIR IT. YOU JUST HAVE TO
COME BACK IN TO TWO OR THREE WEEKS! GIVE US A CALL FIRST, OKAY?”
• BOSS TO MANUFACTURING CREW – “PLEASE CLEAN THE REPOSSESSED VACUUM CLEANER
UNITS THOROUGHLY. WE MAY BE ABLE TO PASS IT ION AS BRAND NEW UNITS. ISN’T THAT
OUR ADVANTAGE AS A MANUFACTURER?”
• MANUFACTURER TO EXPORT MANAGER – “NEVER MIND IF THEY LOSE MARKET SHARES
BECAUSE WE ARE NOW HAVE A BIGGER PRICE GAP VERSUS NEW COMPETITION. WE WILL
NOW REVIEW PRICES ONLY WHEN OUR DISTRIBUTOR’S VOLUME HAD ALL GONE DOWN.
THAT’S OUR CUE THAT THEY ARE REALLY AFFECTED!”
•
POLITICIAN TO PEOPLE – “I DON’T CARE WHAT YOU FEEL NOW ABOUT WHAT I DO, BUT I
HAVE BEEN ELECTED WITH A FIXED TERM, SO YOU CAN’T REPLACE ME!”
• DRY CLEANER TO CUSTOMER – “SORI PO, NA DISTROY KO ANG BARONG NYO, PASENSYA
NA PO . SIR, WAG NYO NAMAN PO AKO ISUMBONG , PASENSYA NA LANG PO! ANYWAY
MAY IBA PA NAMAN PA SIGURO KAYO!”
MARKETING: THE STRATEGIC 3CS
CONCEPT
EXHIBIT 1-1: TWO INTERACTING COMPONENTS
OF MARKETING
COMPANY
MARKET
EXHIBIT 1-2: TWO INTERACTING COMPONENTS
OF A MARKET
COMPANY
COMPETITION
EXHIBIT 1-3: THE STRATEGIC 3CS OF MARKETING
CUSTOMERS
COMPANY
COMPETITION
EXHIBIT 1-4: KEY OBJECTIVES OF THE 3CS OF
MARKETING
3CS
KEY OBJECTIVES
1. CUSTOMER
TO SATISFY THE NEEDS, WANTS AND
EXPECTATIONS OF TARGET
CUSTOMERS.
2. COMPETITION
TO OUTPERFORM COMPETITION
3. COMPANY
TO ENSURE CORPORATE HEALTH
AND PROFIT
EXHIBIT 1-5: INPUT AND OUTPUT OF MARKETING
SALES
CUSTOMERS
COMPANY
COMPETITION
PROFIT
MARKET SHARES
KEY RESULT AREAS
A. SALES
-RESULT FROM SATISFYING CUSTOMERS NEEDS AND
WANTS. NOTHING CAN BE MORE CONVINCING TO
CUSTOMERS THAN THE FACT THAT MANY OTHER
CUSTOMERS ALSO WANTS THE SAME PRODUCTS AND
SERVICES.
4 U’S OF MARKETING
1.NEW USERS
- WHO USES THE PRODUCT OR SERVICE? OR SERVICE
USE?
2. EXTENDED USERS
- WHO CAN STILL USE THE PRODUCT OR SERVICE?
3. NEW USAGE
- FOR WHAT PURPOSE IS THE PRODUCT OR SERVICE
USED?
4. MORE USAGE
- WHEN AND IN WHAT OCCASIONS IS THE
PRODUCT FOR?
B. MARKET SHARES
-IS THE RATIO OF YOUR BRAND’S SALES VERSUS THE
TOTAL SALES IN YOUR MARKET. IT IS ACTUALLY THE
CONSUMERS WHO ULTIMATELY DECIDE THE COMPETITIVE
FRAME.
E. PROFIT
- AN INDISPENSABLE COMPONENT
FOR AFFIRM TO CONTINUOUSLY SATISFY
IT’S CUSTOMERS.
- ONE CANNOT JUSTIFY ANY PROFIT FROM BUSINESS IT
THE CONSEQUENCES IS THE DESTRUCTION OF LIVES.
a NEED is a costumer's
desire for a product's or
service's specific benefit
LOYALTY
VALUE
SAFETY
APPERANCE
QUALITY
a costumer WANTS is the
desire for products or services
that are not necessary, but
which consumers wish for.
EXAMPLES:
Customer expectation will be
influenced by his or her
perception of the product or
service
DESIGNED TO GUIDE THE FOLLOWING BASED ON THE
NEEDS OF THEIR TARGET MARKET .
• REMOVAL OF TRADITIONAL AND SOMETIMES
THREATENING IQ ENTRANCE TEST AND REPLACED THEM.
• THE USUAL WRITTEN EXAMS
______
• PROFESSORS MADE THEMSELVES AVAILABLE AS RESOURCE
CONSULTANT TO THE STUDENTS.
• STUDENTS WERE STRONGLY ENCOURAGED TO INTERACT
AMONG THEMSELVES.
FEATURES, ADVANTAGES AND
BENEFITS
• FEATURES ARE SIMPLE PRODUCT ATTRIBUTES OFFERED BY
A COMPANY. THEY ARE PROOF OF A BENEFIT.
ADVERTISING AGENCIES CALL THESE “REASONS WHY”
• ADVANTAGES ARE WHAT THESE FEATURES CAN DO
• BENEFITS ARE ADVANTAGES THAT MEET THE EXPLICIT
NEEDS AND WANTS OF THE CUSTOMERS. THEY ARE THE
FAVORABLE RESULTS THAT CUSTOMERS WILL GET WHEN
THEY USE THE PRODUCT OR SERVICE. BENEFITS ANSWER
THE QUESTION: “WHAT’S IN IT FOR ME?”
TO ADD STANDARDS FOR JUDGING
MARKETING EFFECTIVENESS, THE
FOLLOWING ARE THE RECOMMENDED:
“ BETTER THAN BEFORE “
MUST BE THE NORM OF THE COMPANY IN
EVALUATING SALES VIS-À-VIS THE INDUSTRY
GROWTH RATE. THIS IS ESPECIALLY TRUE
SINCE ALL FIRMS NEED TO SELL MORE THAN
BEFORE TO IMPROVE BOTH PROFITABILITY
AND MARKET SHARE , GIVE INCREASING
EXPENSES AND COMPETITION. THE KEY IS
BOTH CUSTOMER BONDING AND
CONTINUOUS MARKET PENETRATION
BETTER THAN OTHERS
MUST BE DEMANDED BY THE COMPANY
IN IMPROVING MARKET SHARE
PERFORMANCE WHICH REFLECTS HOW
THEY FARE AGAINST COMPETITION AND
SUBSTITUTES. THE KEY IS IN THE
FORMULATION OF SOURCES OF
COMPETITIVE ADVANTAGE.
BETTER THAN EXPECTED
Must be practiced in evaluating profit
performance , especially when a
corporate budgets is prepared. The
key is maximizing revenues while
avoiding non-strategic expenses that
do not contribute to business
building .
Better than before
Sales
Company
customers
competition
profit
Market share
Better than expected
Better than other
“SIMPLY SELLING A PRODUCT TO
CUSTOMERS IS NOT MARKETING.
THERE MUST BE CUSTOMER
SATISFACTION AND CONSISTENT
REPEAT PURCHASES.”
.
PURCHASE
% BUYING
% REPEAT PURCHASE
% TRIAL
TIME
ALL CUSTOMER NEEDS AND WANTS
WITHOUT DUE CONSIDER. ACTION TO COST
WILL RESULT IN LOSING OPERATION.
• 100% CUSTOMER SATISFACTION THAT WILL RESULT TO THE FIRM LOSING
MONEY IS SIMPLY NOT A SUSTAINABLE IDEA , SO COMPANIES MAY WANT
TO FOCUS ON SPECIFIC ATTRIBUTES THAT WILL DRIVE CUSTOMERS TO KEEP
PATRONIZING THEIR PRODUCT AND THOSE THAT THE COMPANY CAN
DELIVER BETTER THAN COMPETITION.
• A COMPANY MUST BALANCE THE NEEDS FOR MARKET SHARE AND THEIR
PROFIT EQUATION BY CHALLENGE CONVENTIONAL WISDOM.
• MARKETERS MUST
SUPPORT STRONG
PROFITABLE BRANDS
AND PRODUCT AND
MUST ALSO MAKE THE
HARD DECISIONS TO
ABANDON WEAK
BRANDS AND
PRODUCT THAT HAVE
NO LONG-TERM
POTENTIAL.
• IS THE PROCESS OF CONTINUOUSLY
AND PROFITABLY SATISFYING THE
TARGET CUSTOMER’S NEED , WANTS
AND EXPECTATION SUPERIORS TO
COMPETITION
MARKETING TRIANGLE :
CUSTOMER
1
2
COMPANY
3
COMPETITION
3 LEVELS
1. STRATEGIC
MARKETING
MANAGEMENT
2. MARKETING
STRATEGY
3. MARKETING TACTICS
FOCUS
Vision and mission, industry and
competition Analysis , key factor
for success . Strengths and
weakness Analysis
Marketing segmentation , target
positioning
Product , placement (distribution)
, promotions , pricing
TARGET MARKET : IS THE FAIRLY HOMOGENEOUS GROUP OF
PEOPLE OR ORGANIZATION TO WHOM A COMPANY WISHES TO
APPEAL
MARKETING MIX: IS THE SET OF CONTROLLABLE AND INTERRELATED
VARIABLE , COMPOSE A PRODUCT , PLACEMENT , PRICE AND
PROMOTION THAT THE COMPANY ASSEMBLE TO SATISFY A
TARGET GROUP BETTER THAN COMPETITION.
. CUSTOMERS
COMPETITION
COMPANY
•Market –emerging
opportunities
•Competition’s strategy
and tactics
•Company’s strengths
and weakness
•Industry- impending
threats
•Competitor’s strength
and weakness
•Industry structure and
firm’s competitive
position
•Competitors strategy
•Personal values and
reference of key owners
and exclusives
•Societal expectation
COMPANY’S RELATIVE STRENGTHS ARE
CRITICAL TO STRATEGY FORMULATION
COMPANY’S
STRENGHT
COMPETITOR’S
WEAKNESS
CUSTOMER’S NEEDS
AND WANTS
MANAGEMENT FUNCTIONS
•
MANAGEMENT
MARKETING
PRODUCTION
FINANCE
PERSONNEL
MARKETING AS CENTER OF THE
MANAGEMENT FUNCTION
.
MARKETING
FINANCE
Marketing and Production
Exhibit 1-13: Gross profit equation
Sales
- Cost of Sales
xxx,xxx
xxx,xxx
= Gross Profit
xxx,xxx
Exhibit 1-14: Marketing link to production
Sales
Cost of Sales
Marketing
Production
Exhibit 1-15: Wealth conversion principle
CASH
INVENTORY
RECEIVABLES
MARKET ORIENTATION
- is the marketing concept in action, reflected in
a firm’s values, beliefs, activities and milestones for
consistent work behaviors.
EXHIBIT 1-16: FOUR MAJOR TYPES OF
MARKET ORIENTATION
SALES
MARKET-DRIVEN
CUSTOMERDRIVEN
MARKET-DRIVING