Novo Marmo Marketing Management

Prepeard By : Faleh Zahrawi

What is Marketing??…Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories?

All of the above, plus much more!

Marketing? =

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals

American Marketing Association

Marketing? =

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.

Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

6

Marketing? =

Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.

Marketing is all about creating a pull, sales is all about push.

Marketing is all about managing the four P’s – product price place promotion

7

The 4 Ps & 4Cs

MarketingMix

Product

PricePromotion

Place

CustomerSolution

CustomerCost

Communication

Convenience

8

Difference Between – Sales & Marketing ?Difference Between – Sales & Marketing ?

Salestrying to get the customer to want what the company produces

Marketing trying to get the company produce what the customer wants

Scope – What do we market

Goods Services Events

ExperiencesPersonalitiesPlaceOrganizationsPropertiesInformationIdeas and concepts

Core Concepts of Marketing

Based on:

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Needs, wantsdemands

Markets Marketers

Utility,Value &Satisfaction

Xchange,TransactionRelationships

Products

Core Concepts of Marketing

Core Concepts of Marketing

Need – food ( is a must )

Want – Pizza, Burger, French fry's ( translation of a need as per our experience )

Demand – Burger ( translation of a want as per our willingness and ability to buy )

Desire – Have a Burger in a five star hotel

In order to understand Marketing let us begin with the

Customers

CompetitionCompany

Marketing Triangle

Who is a Customer??

Anyone who is in the market looking at a product / service for

attention, acquisition, use or consumption that satisfies a want or a

need

CUSTOMER IS . . . . .

Customer–

CUSTOMER has needs, wants, demands and desiresUnderstanding these needs is starting point of the entire marketing

These needs, wants …… arise within a framework or an ecosystem

Understanding both the needs and the ecosystem is the starting point of a long term relationship

How Do Consumers Choose Among Products & Services?

Value - the value or benefits the

customers gain from using the product versus the cost of obtaining the product.

Satisfaction - Based on a comparison of performance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

17

Customers – Problem Solution

As a priority , we must bring to our

customers “WHAT THEY NEED”

We must be in a position to UNDERSTAND their problems

Or in a new situation to give them a chance to AVOID the problems

18

Customer looks for ValueCustomer looks for Value

Value =Benefit / Cost

Benefit = Functional Benefit + Emotional Benefit

Cost= Monetary Cost + Time + Cost Energy Cost + Psychic

19

Analysis Of CompetitionAnalysis Of Competition

Who are your competitors?What are their strengths and weaknesses?What have been their strategies?

How are they likely to respond to your Marketing plan?

Strategic MarketingStrategic Marketing

Strategic marketing management is concerned with how we will create value for the customer

Asks two main questions

What is the organization’s main activity at a particular time? – Customer Value

What are its primary goals and how will these be achieved? – how will this value be delivered

21

Strategic PlanningStrategic Planning

Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal

Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market

opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal

The Strategic-Planning, Implementation, and Control Process

The Strategic-Planning, Implementation, and Control Process

Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal Formulation

Business Mission

Strategy Formulation

Environmental Analysis

Internal AnalysisCompetitorCustomerSupplier

RegulatorySocial/ Political

Technology Know-HowManufacturing Know-How

Marketing Know-HowDistribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing managerA written document that acts as a guidebook of marketing activities for the marketing manager

26

CONTENTS of MARKETING PLAN

CONTENTS of MARKETING PLAN Business Mission Statement

Objectives

Situation Analysis (SWOT)

Marketing Strategy Target Market Strategy Marketing Mix

Positioning Product Promotion Price Place – Distribution People Process

Implementation, Evaluation and Control

The Marketing Process The Marketing ProcessBusiness Mission Stateme

nt

Objectives

Situation or SWOT Analysis

Implementation Evaluation,

Control

Target Market Strategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix

Factors Influencing Company’s Marketing StrategyFactors Influencing Company’s Marketing Strategy

DemographicsDemographics

SocialChangeSocial

Change

EconomicConditionsEconomicConditions

Political & Legal FactorsPolitical &

Legal FactorsTechnologyTechnology

CompetitionCompetition

EnvironmentalScanning

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

ProductDistributionPromotion

Price

External Environment is not controllable

External Environment is not controllable Ever-Changing

MarketplaceEver-Changing

Marketplace

External Marketing EnvironmentExternal Marketing Environment

Physical / Natural

P r o d u c t

31

Anything that is offered to the market for

attention, acquisition, use or consumption that

satisfies a want or a need

Product is . . . . . Product is . . . . .

Types of Products

ConsumerProducts

IndustrialProducts

PRODUCTS

Services

33

Product Items, Lines, and Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a product that can be designated as a

distinct offering among an organization’s products.

A specific version of a product that can be designated as a

distinct offering among an organization’s products.

A group of closely-related product items.

A group of closely-related product items.

All products that an organization sells.

All products that an organization sells.

34

Product Mix

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a product line

Consistency – how closely related the product lines are in end use

35

What is a Service? Defining the Essence

An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets

Some Industries – Service Sector

Manufacturing

Mining

Restaurants, catering

Insurance

News and entertainment

Transportation (freight and passenger)

Health care

Education

Wholesaling and retailing

Laundries, dry-cleaning

Repair and maintenanceProfessional (e.g., law, architecture, consulting)

Classification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Business Hotels

Pure Intangible Service

Manufacturing

Mining

38

Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.

Inseparability - Services are produced and consumed simultaneously.

Variability or Heterogeneity – Services are highly variable

Perishability – Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer of title

Major Characteristic of Services Major Characteristic of Services

39

The Marketing Mix

The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion.

Generally acknowledged that this is too narrow today; now includes , Processes, Productivity [technology ]People [employees], Physical evidence

Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

40

The “8Ps” of Integrated Service Management vs. the

Traditional “4Ps ”

Product elements

Place, cyberspace, and time

Process

Productivity and quality

People

Promotion and education

Physical evidence

Price and other user outlays

The Give and Get of Marketing

42

Great Words on Marketing

“The purpose of a company is ‘to create a customer…

The only profit

center is the customer”’.

“A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs”.

“The aim of marketing is to make selling unnecessary”.

“While great devices are invented in the Laboratory, great products are invented in the Marketing department”.

“Marketing is too important to be left to the marketing department”.

43

Drivers of Customer Satisfaction

Many aspects of the firm’s value

proposition contribute to customer satisfaction: The core product or service offered

Support services and systems

The technical performance of the firm

Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels

Marketers and Markets

Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.Much happens before and after the sale to affect customer satisfaction

Stages of Customer Interaction

What Changed in Marketing…

Organize by product unitsFocus on profitable transactionsLook primarily at financial scorecardFocus on shareholdersMarketing does the marketingBuild brands through advertisingFocus on customer acquisitionNo customer satisfaction measurementOver-promise, under-deliver

Organize by product unitsFocus on profitable transactionsLook primarily at financial scorecardFocus on shareholdersMarketing does the marketingBuild brands through advertisingFocus on customer acquisitionNo customer satisfaction measurementOver-promise, under-deliver

Organize by customer segments

Focus on customer lifetime valueLook also at marketing scorecard

Focus on stakeholdersEveryone does the marketingBuild brands through performanceFocus on customer retentionMeasure customer satisfaction and

retention rateUnder-promise, over-deliver

Old Economy New Economy

Customer?

Technologyalone does not deliver, helps people do.

Customers needTo be educated too…

Customers are not only present where competition is.

Advertising will only sell, Not retain customers

“Selling focuses on the needs of the seller;

marketing on the needs of the buyer.

Thank you for working so hard today!Call me anytime!

055.4739212, zfaleh@yahoo.com