www.regenesys.co.za

WELCOME TO REGENESYS!

Thank you for choosing us as your partner in education.

Your educational progress is our top priority, so please share your thoughts and experiences with us

via feedback@regenesys.co.za.

And please remember to order your meal before class if you’d like to eat during the break!

www.regenesys.co.za

Ms Patience Nyoni July 2017

HIGHER CERTIFICATE IN BUSINESS MANAGEMENT MARKETING MANAGEMENT I

www.regenesys.co.za

THE POWER OF MARKETING

Source: https://www.linkedin.com/pulse/power-people-word-mouth-marketing-food-tourism-jenn-bussell Accessed on 29 July 2017

www.regenesys.co.za

•  What is marketing? •  What role does marketing play in my life? •  Is marketing important? •  Why has marketing attracted much

attention of the media?

www.regenesys.co.za

ACTIVITY: INTRODUCTIONS

Aim: To get to know each other Time: 20 seconds per person Task: Introductions Please introduce yourself by sharing:

•  Your name •  Your designation if applicable •  Something interesting about yourself that

colleagues might not know about you •  Your expectation for the module

www.regenesys.co.za

LEARNING OUTCOMES

Upon completing this module, students should be able to:

•  Explain marketing terminology, concepts and principles;

•  Understand market segmentation and positioning principles;

•  Describe the marketing environment; •  Describe the principles of consumer behaviour; •  Understand a marketing mix; and •  Explain the components of a marketing strategy.

www.regenesys.co.za

CONTENT SCOPE AND LEARNING GUIDANCE

The Sections that will be covered in this module:

•  SECTION 1: Marketing Terminology, Concepts and Principles.

•  SECTION 2: The Marketing Environment. •  SECTION 3: Consumer Buyer Behaviour. •  SECTION 4: Competitor Analysis. •  SECTION 5: Market Segmentation and

Positioning.

www.regenesys.co.za

CONTENT SCOPE AND LEARNING GUIDANCE

•  Section 6: Product Strategies •  Section 7: Pricing Decisions •  Section 8: Distribution decisions •  Section 9: Integrated Marketing Communication •  Section 10: The marketing plan

www.regenesys.co.za

GROUND RULES Be open-minded When speaking, use “I think”, “I feel”, etc

(you are a very important aspect of this learning) Listen carefully One conversation at a time Respect the opinions of others

•  Give constructive feedback •  Build on the ideas of others rather than destroying

them Take some risks and share new ideas. Finishing time is 4pm. We will have tea and lunch breaks

Have fun and enjoy the experience!

www.regenesys.co.za

REGENESYS’ INTEGRATED LEADERSHIP AND MANAGEMENT MODEL Holistic – focus on

individual Interrelationship exists –

dynamic Individual impact effects

team, organisation performance and engages environment

Delivery - aligning

systems, strategies, structures and culture

www.regenesys.co.za

SECTION 1

Marketing Terminilogy, Concepts and Principles

www.regenesys.co.za

WHAT IS MARKETING?

“Marketing is a process by which companies create value for customers and build strong relationships in order to capture value from customers in return”. (Kotler and Armstrong, 2014:27) “Marketing is anticipating and satisfying consumer needs by means of mutually beneficial exchange processes, and doing so prof i tably and more effect ively than competitors by means of efficient managerial processes.” (Lamb et al, 2010:5)

www.regenesys.co.za

THREE CENTRAL THEME IN DEFINITIONS FOR MARKETING

• Creating value for customers; • Building strong relationships with customers;

• Capturing value from customers

www.regenesys.co.za

MARKETING IS BOTH A SCIENCE AND AN ART

•  As a science, marketing has amassed a huge body of (academic and practical ) knowledge over many years based on scientific

•  As an art, marketing managers also need intuition, or “gut feel”, which o n l y c o m e s f r o m y e a r s o f experience – especially of trial and error – in the market. The ability to think creatively, innovatively

www.regenesys.co.za

WHAT ANCHORS MARKETING?

Marketing is anchored on the marketing mix, normally named the 4Ps and extended marketing mix 3Ps. The 7Ps are: -Product (most crucial P) -Price -Place (distribution channels) -Promotion (marketing communications) -People -Process -Physical Evidence

www.regenesys.co.za

THE MARKETING PROCESS

The basic marketing process: 1.  Understand the market place, customer needs

and wants. 2.  Design a market driven marketing strategy. 3.  Construct an integrated marketing program

that delivers superior value. 4.  Build profitable relationships and create

customer delight. 5.  Capture value from customers to create profits

and customer equity (Kotler and Armstrong, 2014:27).

www.regenesys.co.za

STEP 1: UNDERSTANDING CUSTOMER NEEDS, WANTS AND DEMAND

5 Basic customer and market place concepts •  Needs, wants and demand •  Market offerings (product, service and

experience) •  Value and satisfaction •  Exchanges and relationships; and •  Markets (Kotler and Armstrong, 2014, 28-29)

www.regenesys.co.za

NEEDS, WANTS AND DEMAND

•  Human needs arise from a “state of felt deprivation of some basic satisfaction”. (Kotler and Armstrong, 2014, 28-29)

•  Wants are the form human needs take as they are shaped by culture and individual personality”. (ibid).

•  Demand are “wants for specific products, backed up by the ability and willingness to buy them”. (ibid)

www.regenesys.co.za

MARKET OFFERING

It is a bundle of benefits fulfilling the customer’s needs and wants Market offerings can also be expanded to include other entities, such as persons, organisations, places, information and ideas (ibid)

www.regenesys.co.za

QUESTIONS: STARBUCKS

1.  China is a nation of tea drinkers. How has Starbucks changed the behaviour of Chinese people so that they choose coffee over tea?

2.  Why do you think this is such a big achievement for Starbucks?

3.  Name two aspects of Starbuck’s strategy to attract and leverage customers in China.

4.  Identify two big difficulties facing Starbucks in China.

5.  Who is Starbucks’ main competitor in China? Why would you say has this competitor been so successful?

www.regenesys.co.za

STEP 2: DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY:

•  Requires that a marketer “fully understands consumers and the marketplace”.

•  To design a successful marketing strategy, the marketing manager must answer two important questions:

? What type of customers will we serve (who’s our target market); and

? How can we best serve these customers (what’s our value proposition)?

www.regenesys.co.za

THE SIX MARKETING PHILOSOPHIES

Philosophy is the study of ideas about knowledge, truth and the nature and meaning of life, etc” Merriam-Webster.com,2015) 1.  Production 2.  Product 3.  Selling 4.  Marketing 5.  Societal 6.  Relationship

www.regenesys.co.za

STEP 3: PREPARE AN INTEGRATED MARKETING PLAN AND PROGRAMME:

•  “To actually deliver the intended value to target customers”;

• What is Integrated Marketing?

• The marketing programme is where the basic marketing strategy is transformed into action – by means of the marketing mix”

(Kotler and Armstrong, 2014:34)

www.regenesys.co.za

STEP 4: BUILDING CUSTOMER RELATIONSHIPS

•  “The essential aim of the first three steps in the marketing process - the fourth and most important step: Ø  Building and managing profitable customer

relationships”

Ø  See def. of CRM; Ø  Relationship building blocks and Levels of

customer satisfaction (Fig. 4)

(Kotler & Armstrong, 2014:34; Berman & Evans, 2013: 56).

www.regenesys.co.za

LEVELS OF CUSTOMER SATISFACTION

WOW Thrilled Happy Satisfied Fig3: Page 25 in module (Adapted from Berman and Evans, 2013:56)

www.regenesys.co.za

BUILDING BLOCKS OF A CUSTOMER RELATIONSHIP •  Loyal customers are the lifeblood of any

business. To build loyal customers: •  Meet customer expectations consistently •  Exceedingly meet the customer’s

expectations to the point where the customer is “emotionally devoted”

www.regenesys.co.za

BUILDING BLOCKS OF A CUSTOMER RELATIONSHIP

1.  Customer base 2.  Customer service 3.  Customer satisfaction 4.  Customer loyalty programmes

www.regenesys.co.za

STEP 5: CAPTURING VALUE FROM CUSTOMERS

•  In the final step, marketers “reap the rewards of creating superior customer value”.

•  By “creating value for consumers, they in turn capture value from consumers”, as seen in: ü  Sales; ü  Customer loyalty and retention; ü  Share of market and share of customer; ü  Profits; and ü  Long-term customer equity

(Kotler & Armstrong, 2014:27).

www.regenesys.co.za

CUSTOMER RELATIONSHIP GROUPS

Butterflies True Friends

Strangers Barnacles

POTENTIAL

PROFIT

HIGH

LOW

PROJECTED LOYALTY SHORT TERM LONG TERM

www.regenesys.co.za

21 ST CENTURY NEW MARKETING TRENDS

“As the marketplace changes, so must those who serve it.”

Kotler and Armstrong looks at five major trends and forces that are changing the marketing landscape and challenging marketing strategy today.

www.regenesys.co.za

FIVE MAJOR DEVELOPMENTS: 21ST CENTURY

•  The changing economic environment •  The digital age •  Rapid globalisation •  Call for more ethics •  Call for social responsibility

www.regenesys.co.za

SECTION 10

THE MARKETING PLAN

www.regenesys.co.za

INTRODUCTION:

•  Where it all comes together....

•  Good marketing plan provides direction and focus for your brand, product, or company – as a whole.

•  M-plan forms part of the co.’s overall business plan – essential to “bring it all together” under one plan...

www.regenesys.co.za

PURPOSE AND CONTENT

•  Marketing plan is derived from the company’s business plan (master plan covering the entire organisation);

•  M- plan has a narrower focus than the business plan

•  Focus of the m-plan: specific marketing strategies and tactics, with the customer as the starting point.

•  Chapter 2 (*Table 2.2, p.79, prescribed text, outlines the major sections of a typical marketing plan. See also Appendix 1, pp. 634-642 for a sample marketing plan.)

.

www.regenesys.co.za

RESEARCH FOR MARKETING PLANS

Role of Research:

•  M-plans must be based on up-to-date information about the business environment, the market place, and market segments currently served or to be served by the company.

•  Internal and external data is needed – through primary and secondary research and analysis.

•  M- plan should outline what marketing research will be conducted and how the findings will be applied.

(Kotler and Armstrong, 2014:633).

www.regenesys.co.za

MAJOR ELEMENTS OF A MARKETING PLAN

www.regenesys.co.za

MAJOR ELEMENTS OF A MARKETING PLAN

Starting Point of a M- Plan: •  Co. Mission statement – Co. Strategic

objectives – Marketing objectives

•  Marketing as a whole, can be viewed as a collection of all the elements and activities listed in a marketing plan.

•  Fig. 19 (SG) – Major Elements of a M- Plan.

(Greenley, Hooley and Saunders, 2002; Aistrup Consulting.com, 2010;

www.regenesys.co.za

MARKETING ETHICS AND SUSTAINABILITY

Ethics, Sustainability and Responsibility: •  Closely related, intertwined concepts

•  The marketing concept, as a business philosophy, means that businesses are part of the society in which they operate and are therefore responsible to that society...

•  For ethically responsible marketers (i.e. those who apply the marketing concept), displaying social responsibility is a fundamental way of doing business

(Kotler and Armstrong, 2014: 604)

www.regenesys.co.za

MARKETING ETHICS AND SUSTAINABILITY

Corporate Social Responsibility (CSR): •  See definition (Skinner et al, 2004)

•  However, not all marketers follow the marketing concept. In fact, some companies use questionable marketing practices that serve their own interests, instead of the consumers’.

•  “Responsible marketers must consider whether their actions are sustainable in the long term”

(Skinner, Mersham and Von Essen, 2004; Kotler and Armstrong, 2014: 604)

www.regenesys.co.za

MARKETING ETHICS AND SUSTAINABILITY

What is Sustainable Marketing? •  “Socially and environmentally responsible marketing

that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs”

•  So, there is a need to balance short term needs with long term interests...

•  Complete the case study: “Sustainability at Unilever”

(Skinner, Mersham and Von Essen, 2004; Kotler and Armstrong, 2014: 605)