Session 2 MG 220 MBA - 19 Aug 10

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 1: Understanding Marketing Management

> Company Orientation towards the Marketplace

> Fundamental Marketing Concepts, Trends and Tasks

> Marketing & Customer Value

Class Presentation | Session 2 | 19 Aug 2010

MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam

Company Orientations toward the marketplace• Different approaches companies use for

marketing– Production– Product– Selling– Marketing– Holistic Marketing


Company Orientations toward the marketplace• The Production Concept

– Consumers will favor products that are “widely available” & “inexpensive”

– Focus on “Production”

• The Product Concept– Consumer will favor those products that offer the

most quality, performance or innovation– Focus entirely on “Product development”– What if: not priced, distributed, advertised and sold

properly?


Company Orientations toward the marketplace• The Selling Concept

– Customers (consumers & businesses), if not engaged, will not buy enough

– Aggressive selling & promotion is required– Practiced with unsought goods

• The Marketing Concept– Replace product-centred “make-and-sell” with

“sense-and-respond”– Reactive market orientation– Proactive market orientation


Company Orientations toward the marketplace• The Holistic Marketing Concept

– “Everything matters”– Based on the development, design and

implementation of marketing programs, processes, and activities that recognizes their breadth and interdependenices

– 4 Components• Relationship marketing• Integrated marketing• Internal marketing• Social responsibility marketing


Company Orientations toward the marketplace


Fundamental Marketing ConceptsCore Concepts

• NeedsBasic Human Requirements

• WantsNeeds which are directed to a specific object

• DemandsWants for specific products backed by ability to pay (acquire)



• Understanding Needs– Stated– Real– Unstated– Delight– Secret

– Pair of jeans– Quality– Affordable, Branded– A good discount deal– ‘wanna’ look cool!!!



• Satisfying everyone……how?

• SegmentationDifferent segments based on several factors

• Target MarketsSegments presenting greatest opportunity

• PositioningPositioned carefully as delivering certain benefits….



• OfferingPositioning is “crafted” into an offering

• BrandsAn offering from a known source



• Value‘perceived’ tangible and intangible benefits and costs to customers

• SatisfactionFulfillment of a need

*WRONG*

Person’s comparative judgments resulting from a product’s perceived performanceIf performance < expectations: dissatisfied/dissapointedIf performance>=expectations: satisfied/delighted



• Marketing Channels– Communication channels

interacting with target buyers

– Distribution channelsdisplay, sell or deliver

– Service channelsfacilitating transactions with buyers



• Supply Chain–Marketing Channel: Marketer to target

buyer

while

– Supply Chain: A complete value delivery systemFrom Raw materials to components to final buyers



• Competitionall the actual and potential rival offerings and substitutes that a buyer might consider

Coke’s competition (?)



• Marketing Environment– Task Environment

Immediate actors involved in producing, distributing and promoting the offering

– Broad Environment1. Demographic Environment2. Economic Environment3. Physical Environment4. Technological Environment5. Political-legal Environment6. Social-cultural Environment



• Marketing Planning– A Process consisting of:• Analyzing marketing opportunities• Selecting target markets• Designing marketing strategies• Developing marketing programs• Managing the marketing effort


Fundamental Marketing ConceptsShifts in Marketing Management

1. From Marketing does the marketing to everyone does the marketing

2. From organizing by product units to organizing by customer segments

3. From Making everything to buying more goods and services from outside

4. From using many suppliers to working with few “partners”5. From relying on old market positions to uncovering new

ones6. From emphasizing tangible assets to emphasizing

intangible assets7. From building brands through advertising to building

brands through performance and integrated communication


Fundamental Marketing ConceptsShifts in Marketing Management

8. From attracting customers through stores and salespeople to making products available online

9. From selling to everyone to trying to be the best firm serving well-defined target markets

10. From focusing on profitable transactions to focusing on Customer Lifetime Value

11. From a focus on gaining market share to a focus on building customer share

12. From being Local to being “Glocal”13. From focusing on financial scorecard to focusing on

marketing scorecard14. From focusing on shareholders to focus on

stakeholders


Fundamental Marketing ConceptsMarketing Management Tasks

• Developing Marketing Strategies and Plans

• Capturing Marketing Insights• Connecting with customers• Building strong brands• Shaping the Market Offerings• Delivering value• Communicating value• Creating Long-term growth


Marketing & Customer ValueThe Value Delivery Process


Marketing & Customer ValueThe Value Chain

• A tool for identifying ways to create more customer value

• Every firm is a synthesis of activities performed to design, produce, market, deliver and support its product

• Primary Activities (producing & marketing)

• Support Activities (management of firm)



• Firm should estimate its competitors’ costs and performances as ‘benchmarks’ against which it compares its own costs and performance

• Success depends on ‘core business processes’– Market sensing– Offering realization– Customer Acquisition– Customer Realization– Fulfillment management


Marketing & Customer ValueCore Competences

• Outsource the less critical• Focus on Core Competency• Characteristics of Core Competency:– A Source of competitive advantage– Has Application in a wide variety of

markets– Difficult for competitors to imitate


Marketing & Customer ValueA Holistic Marketing Orientation & Customer Value

Customer Company Partners

Designing

Developing

Delivering


Marketing & Customer ValueThe Central Role of Strategic Planning

• All the successful brands:– Focus on Customers– Respond effectively to changing

customer needs– Have well-staffed marketing

departments– And all other departments in their

organizations understand: “CUSTOMER IS THE KING”



• Levels in Strategic Planning [Typical]– Corporate Level– Division Level– Business Unit Level– Product Level

• Marketing Plan is central instrument for directing and coordinating marketing effort– Strategic marketing plan

• Lays out target markets & value proposition

– Tactical marketing plan• Specifics of marketing activities

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 1: Understanding Marketing Management

> Corporate and Division Strategic Planning

> Business Unit Strategic Planning> Product Planning: The Nature and

Contents of a Marketing Plan

Class Presentation | Session 3 | 23 Aug 2010

Session 2 MG 220 MBA - 19 Aug 10

Business

Transcript of Session 2 MG 220 MBA - 19 Aug 10