Novo Marmo Marketing Management
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Novo Marmo Marketing Management Prepeard By : Faleh Zahrawi
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Transcript of Novo Marmo Marketing Management
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
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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
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The 4 Ps & 4Cs
MarketingMix
Product
PricePromotion
Place
CustomerSolution
CustomerCost
Communication
Convenience
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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
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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
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Customer looks for ValueCustomer looks for Value
Value =Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost= Monetary Cost + Time + Cost Energy Cost + Psychic
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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
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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
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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
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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
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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.
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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
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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
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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
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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.
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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
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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”.
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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.
