UNIVERSITY OF GUYANA MARKETING 1101…..MODULE 3

ERIC M. PHILLIPS (MBA,

CTP, BSc. Eng.)

SEPT-DECEMBER 20123

STRATEGIC MARKET PLANNING

MODULE 3… SESSION GOALS

REVIEW OF MODULE 2

THE MARKETING ENVIRONMENT

MARKETING RESEARCH & INFORMATION SYSTEMS

MARKETING MANAGEMENT

I AM THE PERFECT PRODUCT

GROUP ASSIGNMENT

LIFE LESSONS

EDUCATION?

SRI SATHYA SAI BABA

“ The end of education is character”.

MODULE 2 PREVIEW

MASLOW’S HIERARCHY

PERCEPTION IS REALITY?

PERCEPTION IS REALITY?

PERCEPTION IS REALITY

THE GLOBAL ECONOMY…..GOD?

MARKETING MYOPIA

MARKETING MYOPIA

COGNITIVE DISSONANCE…PERCEPTION IS REALITY

I AM THE PERFECT PRODUCT

I AM A PERFECT PRODUCT?

What is your Brand?

GROUP ASSIGNMENT?

THE GOLDEN RULE

He should not wish for others that which he doth not wish for himself, nor promise that which he doth not fulfill."

BAHA'I FAITH

"Hurt not others in ways that you yourself would find hurtful."

BUDDHISM

"All things whatsoever ye would that men should do to you, do ye even so to them; for this is the law and the

prophets."

CHRISTIANITY

"Do not unto others what you would not have them do unto you."

CONFUCIANISM

"This is the sum of all duty: Do naught unto others which would cause you pain if done to you."

HINDUISM

"No one of you is a believer until you desire for another that which you desire for yourself."

ISLAMIC

THE GOLDEN RULE?

THE GOLDEN RULE

In happiness and suffering, in joy and grief, regard all creatures as you would regard your own self."

JAINISM

"What is hateful to you, do not to your fellow man. That is the entire Law; all the rest is commentary."

JUDAISM

"Respect for all life is the foundation."

NATIVE AMERICAN

"Don't create enmity with anyone as God dwells in every heart."

SIKHISM

"Regard your neighbor's gain as your own gain and your neighbor's loss as your own loss."

TAOIST

"That nature alone is good which refrains from doing unto another whatsoever is not good for itself."

ZOROASTRIANISM

THERE ARE MANY PATHS… BUT ONE DESTINATION?

DO UNTO OTHERS?

WHAT MESSAGES DO THESE

CONVEY?

THE GOLDEN RULE? OR CAREER PLANNING?

THE GOLDEN RULE?

MARKETING MANAGEMENT?

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.

Marketing Management is the analysis, planning, implementation

and control of programs designed to create, build and maintain

beneficial exchanges with target markets for the purpose of

achieving organizational goals.

THERE ARE FIVE ALTERNATIVE CONCEPTS OF MARKETING

MANAGEMENT

MARKETING MANAGEMENT CONCEPTS

FIRST CONCEPT

THE PRODUCTION CONCEPT

The Production concepts holds that consumers will favor products that are

available and highly affordable. In this sense, management should focus

on improving production and distribution efficiency. For example, Henry

Ford's whole philosophy was to perfect the production of the Model T so that

its cost could be reduced and more people could afford it.

SECOND CONCEPT

THE PRODUCT CONCEPT

The Product concept holds that consumers will favor products that offer the

most in quality, performance, and innovative features. Thus, an

organization should devote energy to making continuous product

improvements.

MARKETING MANAGEMENT CONCEPTS

THIRD CONCEPT

THE SELLING CONCEPT

The Selling concept holds that consumers will not buy enough of the

organization's products unless it undertakes a large-scale selling and

promotion effort. Most firms practice the selling concept when they have over

capacity. Their aim is to sell what they make rather than make what the

market wants. Such marketing carries high risks.

FOURTH CONCEPT

THE MARKETING CONCEPT

The Marketing concept holds that achieving organizational goals depends

on determining the needs and wants of target market and delivering the

desired satisfactions more effectively and efficiently than competitors

do.

MARKETING MANAGEMENT CONCEPTS

FIFTH CONCEPT

THE SOCIETAL MARKETING CONCEPT

The Societal marketing concept holds that the organization should

determine the needs, wants, and interests of target markets. It should then

deliver superior value to customers in a way that maintain or improves the

consumer's and the society's well being. The societal marketing concepts

asks if the firm that senses, serves, and satisfies individual wants is

always doing what's best for consumers and society in the long run. It

find out that the pure marketing concept over looks possible conflicts

between consumer short run wants and consumer long run welfare.

MARKETING MANAGEMENT CONCEPTS

AN ADDITIONAL CONCEPT?

THE HOLISTIC MARKETING CONCEPT

THE HOLISTIC MARKETING CONCEPT IS BASED ON THE DEVELOPMENT,

DESIGN AND IMPLEMENTATION OF MARKETING PROGRAMS, PROCESSES

AND ACTIVITIES THAT RECOGNIZE THEIR BREADTH AND

INTERDEPENDENCIES.

IT RECOGNIZES THAT EVERYTHING MATTERS IN MARKETING AND THAT A

BROAD INTEGRATED APPROACH IS OFTEN NECESSARY FOR MAXIMUM

RESULTS

IT IS THEREFORE AN APPROACH THAT ATTEMPTS TO RECOGNIZE AND

RECONCILE THE SCOPE AND COMPLEXITIES OF MARKETING ACTIVITIES.

WHAT IS A MARKET?

WHAT IS THE MARKETING ENVIRONMENT?

The ACTORS and FORCES outside marketing that affect

marketing management’s ability to develop and maintain

successful transactions with target customers.

THE MARKETING ENVIRONMENT INVOLVES

THE MICRO ENVIRONMENT

THE MACRO ENVIRONMENT

THE MICRO ENVIRONMENT

DEFINED AS FORCES CLOSE TO THE COMPANY

THAT AFFECT ITS ABILITY TO SERVE ITS

CUSTOMERS 1. THE COMPANY’S OTHER DEPARTMENTS

2. SUPPLIERS (BAKEWELL…FLOUR)

3. MARKETING CHANNEL FIRMS (INTERMEDIARIES)

4. COMPETITORS (ENEMIES)

5. PUBLICS (HAS ACTUAL OR POTENTIAL INTEREST)

(BANKS,MEDIA, GOVERNMENT,CITIZENS, NGOs, ENVIRONMENTAL

GROUPS, NDCs, RDCs, BOARD OF DIRECTORS,EMPLOYEES)

32

Suppliers

Competitors

Company

(marketer)

Marketing

intermediaries

End user market

Main actors and forces in a modern marketing system

THE MACRO ENVIRONMENT

DEFINED AS THE SOCIETAL FORCES THAT

AFFECT THE MICRO ENVIRONMENT 1. DEMOGRAPHICS

2. ECONOMIC

3. NATURAL

4. TECHNOLOGICAL

5. POLITICAL

6. CULTURAL

7. INTERNATIONAL

THE MARKETING ENVIRONMENT

THE MARKETING ENVIRONMENT

OVERVIEW

MARKET INFORMATION SYSTEMS

WHAT IS MARKETING RESEARCH?

THE DIFFERENCE BETWEEN MARKET RESEARCH AND

MARKETING RESEARCH

THE MARKETING RESEARCH PROCESS

THE STRATEGIC IMPORTANCE OF MARKETING RESEARCH

A CASE STUDY

THE VALUE OF MARKETING RESEARCH

OVERVIEW

TYPES OF MARKET RESEARCH

DATA VERSUS INFORMATION

TYPES OF MARKETING RESEARCH

PRIMARY RESEARCH

SAMPLING METHODS

QUESTIONNAIRE DESIGN

MARKETING RESEARCH PROJECT

MARKET RESEARCH WHO AM I?......WHAT AM I?

MARKET INFORMATION SYSTEMS

Consists of people, equipment and procedures to

Gather

Sort

Analyze

Evaluate

And

Distribute

needed , timely and accurate information for

marketing decision makers

INFORMATION COLLECTION PHILOSOPHY

MARKET INFORMATION SYSTEMS

DO THREE THINGS

1. ASSESSES INFORMATION NEEDS

2. DEVELOPS NEEDED INFORMATION

3 DISTRIBUTES THE INFORMATION

Factors Influencing Company Marketing Strategy

TARGET

CONSUMERS

Product

Price

Promotion

Place Suppliers

Marketing

Intermediaries

Publics

Competitors

Demographic-

economic

environment

Technological-

natural

environment

Social-

cultural

environment

Political-

legal

environment

WHERE DO YOU COLLECT DATA?

1. INTERNAL SOURCES

THE ELECTRONIC COLLECTION OF INFORMATION OBTAINED

FROM DATA SOURCES FROM WITHIN THE COMPANY

(GT&T)

2. MARKET INTELLIGENCE

THE SYSTEMATIC COLLECTION AND ANALYSIS OF PUBLICLY AVAILABLE

INFORMATION ABOUT COMPETITORS AND DEVELOPMENTS IN THE MARKETING

ENVIRONMENT

3. MARKET RESEARCH

THE SYSTEMATIC DESIGN, COLLECTION, ANALYSIS AND REPORTING OF DATA

RELEVANT TO A SPECIFIC MARKETING SITUATION FACING A COMPANY

WHAT IS MARKETING RESEARCH?

Marketing research is the systematic gathering,

recording, and analysis of data about issues relating to

marketing products and services.

It has been described as "the function that links the

consumers, customers, and public to the marketer

through information — information used to identify

and define marketing opportunities and problems;

generate, refine, and evaluate marketing actions;

monitor marketing performance; and improve

understanding of marketing as a process.

MARKETING REALITIES

MARKET RESEARCH VERSUS MARKETING RESEARCH

MARKET RESEARCH is any organized effort to gather

information about MARKETS OR CUSTOMERS. It is a very

important component of business STRATEGY

MARKET RESEARCH is concerned specifically with MARKETS

While

MARKETING RESEARCH is concerned specifically about

MARKETING PROCESSES

MARKET RESEARCH VERSUS MARKETING RESEARCH

WHICH?

MARKET RESEARCH

Market research is a key factor to get advantage over competitors.

Market research provides important information to identify and

analyze the market need, market size and competition

Market research is for discovering what people want, need, or

believe. It can also involve discovering how they act. Once that

research is completed, it can be used to determine how to market

your product

Peter Drucker believed MARKET RESEARCH to be the

QUINTESSENCE OF MARKETING

MARKETING RESEARCH

Marketing research is the systematic gathering, recording, and

analysis of data about issues relating to marketing products and

services.

The goal of marketing research is to identify and assess how changing

elements of the marketing mix impacts customer behavior.

It has been described as "the function that links the consumers,

customers, and public to the marketer through information — information

used to identify and define marketing opportunities and problems;

generate, refine, and evaluate marketing actions; monitor marketing

performance; and improve understanding of marketing as a process.

MARKETING MANAGERS USE ?

MARKETING MANAGERS MAKE numerous strategic and tactical decisions in

the process of identifying and satisfying customer needs.

They make decisions about potential opportunities, target market selection,

market segmentation, planning and implementing marketing programs,

marketing performance, and control.

These decisions are complicated by interactions between the controllable

marketing variables of product, pricing, promotion, and distribution.

The competitive marketing environment and the ever-increasing costs

attributed to poor decision making require that marketing research provide

sound information. Sound decisions are not based on gut feeling, intuition,

or even pure judgment

DO PEOPLE GIVE YOU THE CORRECT ANSWERS?

CORRECT INFORMATION IS THE KEY TO THE MARKETING RESEARCH PROCESS

BUYER BEWARE

USING MARKETING RESEARCH

THE MARKETING RESEARCH PROCESS

DATA IS NOT INFORMATION

IS THIS DATA?

OR THIS?

Below are some prime situations where marketing research can be of

value to the success of your business:

Determining the viability of a new market for your company to enter.

Estimating market size/share/adoption rate for investment or

business planning.

Identifying new product/service opportunities and value-added

offerings.

Risk management - identifying what risks pose the greatest threat to

your business.

THE STRATEGIC IMPORTANCE OF MARKETING RESEARCH

CHARACTERISTICS OF MARKETING RESEARCH

First, marketing research is systematic. Thus systematic planning is required

at all the stages of the marketing research process.

The procedures followed at each stage are methodologically sound, well

documented, and, as much as possible, planned in advance.

Marketing research uses the scientific method in that data are collected and

analysed to test prior notions or hypotheses

Experts in marketing research have shown that studies featuring multiple

and often competing hypotheses yield more meaningful results than those

featuring only one dominant hypothesis

.

Second, marketing research is objective. It attempts to provide accurate

information that reflects a true state of affairs. It should be conducted

impartially.

GLOBAL SUBSTITUTES?

MARKETING RESEARCH EXAMPLE

THE LEXUS LUXURY CAR

Lexus is the luxury vehicle division of Japanese automaker Toyota

Motor Corporation.

First introduced in 1989 in the United States, Lexus is now sold

globally and has become Japan's largest-selling make of premium

cars.

The Lexus marque is marketed in over 70 countries and territories

worldwide and has ranked among the ten largest Japanese global

brands in market value.

Lexus originated from a clandestine flagship sedan project, code-

named F1 (Flagship + Number 1vehicle) , which began in 1983 and

culminated in the launch of the original Lexus LS in 1989.

HYPOTHESIS BY TOYOTA’S CHAIRMAN?

Can we create a luxury vehicle to challenge

the world's best?

THE APPROACH TAKEN BY TOYOTA

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market

research on luxury consumers.

During that time, several F1 designers rented a home in Laguna Beach, California to

observe the lifestyles and tastes of American upper class consumers.

Meanwhile, F1 engineering teams conducted prototype testing on locations ranging

from the German autobahn to U.S. roads

Toyota’s market research concluded that a separate brand and sales channel

were needed to present its new flagship sedan, and plans were made to develop

a new network of dealerships in the U.S. market.

ACTIVITIES PURSUED?

1989, after an extended development process involving 60 designers, 24 engineering

teams, 1,400 engineers, 2,300 technicians, 220 support workers, around 450

prototypes, and over US$1 billion in costs, the F1 project was completed

The resulting flagship, the Lexus LS 400, had a unique design that shared no major

elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-

wheel drive. Testing locations for the LS 400 included the German autobahn.

BRAND DEVELOPMENT

In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a specialized

unit, Team One, to handle marketing for the new premium brand.

Image consulting firm Lippincott & Margulies was hired to develop a list of 219

prospective names

CHOICE OF NAME……BRANDING?

Vectre

Verone

Chaparel

Calibre and

Alexis were chosen as top candidates.

While Alexis quickly became the front runner, concerns were raised that the name

applied to people more than cars (being associated with the Alexis Carrington character

on the popular 1980s primetime drama Dynasty) and as a result the first letter was

removed and the "i" replaced with a "u" to morph the name to Lexus

The marque's etymology has also been attributed

to the combination of the words "luxury" and

"elegance

QUESTIONNAIRE DESIGN PROCESS FLOW

TYPES OF RESEARCH

PRIMARY RESEARCH

PURPOSE OF PRIMARY RESEARCH

SECONDARY RESEARCH

INTERNAL AND EXTERNAL SOURCES

INTERNAL SOURCES

Company Accounts

Internal Reports and Analysis

Stock Analysis

Retail data - loyalty cards, till data, etc.

EXTERNAL SOURCES

Government Statistics

EU - Euro Stat

Trade publications

Commercial Data - Gallup, Mintel, etc.

Household Expenditure Survey

Magazine surveys

Other firms’ research

Research documents – publications, journals, etc.

SAMPLING METHODS

RANDOM SAMPLING

Equal chance of anyone being picked

May select those not in the target group –

indiscriminate

Sample sizes may need to be large to be

representative

Can be very expensive

STRATIFIED OR SEGMENT RANDOM SAMPLING

Samples on the basis of a representative

strata or segment

Still random but more focussed

May give more relevant information

May be more cost effective

QUOTA SAMPLING

Again – by segment

Not randomly selected

Specific number on each segment are

interviewed, etc.

May not be fully representative and is a

cheaper method

CLUSTER SAMPLING

Primarily based on geographical areas or

‘clusters’ that can be seen as being

representative of the whole population

MULTI STAGE AND SNOW-BALL SAMPLING

MULTI-STAGE SAMPLING

Sample selected from multi-stage sub-

groups

SNOWBALL SAMPLING

Samples developed from contacts of

existing customers – ‘word of mouth’ type

approach!

THE LIKERT SCALE

Format of a typical five-level RENSIS LIKERT

scale

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

BIO-SOCIAL DATA 1

1. ETHNICITY?

(a) African (b) Amerindian (c ) Chinese

(d) European (e) Indian (f) Portuguese (g) Mixed

2. WHAT RELIGION DO YOU PRACTICE? (a) Christianity (b) Hinduism ( c) Islam (d ) Other

3. AGE?

(a) Less than 15 (b) 15 –25 ( c ) 26-35

(d) 36-45 ( e) 45-55 (f) 56+

4. SEX?

(a) Male (b) Female (c ) Other

5. WHICH COMMUNITY ARE YOU FROM?

(a) Georgetown (b) Essequibo ( c ) East Coast (d) West Coast ( e) Berbice (f) Linden

6. ARE YOU ORIGINALLY FROM THIS COMMUNITY?

(a) Yes (b) No

7. MARITAL STATUS?

(a) Married (b) Single (c ) Common Law (d) Widow/Widower

GENERAL VIEWS

1. DO YOU FEEL YOU ARE IN GOOD OR EXCELLENT HEALTH? (a) Yes (b) No

2. DO YOU FEEL YOU ARE IN BAD HEALTH? (a) Yes b) No

3. HOW MANY TIMES A YEAR DO YOU VISIT A DOCTOR?

(a) Once (b) Twice (c ) Three times (d) More than 3 (e) Not at all

4. DO YOU ONLY GO WHEN YOU FEEL ILL OR WHEN THERE IS AN EMERGENCY? (a) Yes (b) No

5. IS THERE A DOCTOR RESIDENT IN YOUR COMMUNITY? (a) Yes (b) No

6.

6. IS THERE A NURSE IN YOUR COMMUNITY? (a) Yes (b) No

7. IS THERE A HEALTH CENTER IN YOUR COMMUNITY? (a) Yes (b) No

8. IF NO, WHERE IS THE NEAREST HEALTH CENTER AND HOW FAR DO YOU HAVE TO

TRAVEL?

(a) __________ (b) ___miles

9. IF THERE IS NO DOCTOR IN YOUR COMMUNITY, DOES ONE VISIT THE COMMUNITY? (a) Yes (b) No

10. HOW OFTEN DOES THIS DOCTOR VISIT THE COMMUNITY EVERY MONTH?

(a) _________

11. . ARE THERE ADEQUATE MEDICAL SUPPLIES IN THE HEALTH CENTER? (a) Yes (b) No

FISHBOWL TECHNIQUE

FISHBOWL TECHNIQUE

The Fishbowl Technique is a highly-structured format for holding large group discussions

with an inner and outer circle of students following specific guidelines.

Divide your students into two groups. Form a circle with chairs and have the first group sit in

the chairs. Call that circle the “Inner Fishbowl.” Then form an outer circle of chairs (“Outer

Fishbowl”) for the second group.

The students in the Inner Fishbowl should follow these guidelines:

Listen while others are talking

Do not speak when someone else is talking.

Raise your hand when you have an idea to share

Answer questions in complete sentences.

The outer fishbowl should follow these guidelines:

Listen quietly while the students in the Inner Fishbowl are talking

Keep your eyes on both the teacher and the student who is talking.

Take written or mental notes on what you hear and observe.

Be prepared to share your observations with the class.

FISHBOWL TECHNIQUE

The teacher asks a question and calls on someone to answer.

After the student responds, others in the Inner Fishbowl may add their

thoughts

. When no one else has a contribution, you proceed to the next question.

After the Inner Fishbowl completes its discussion, the Outer Fishbowl shares

its observations, ideas, and insights about the contents of the discussion

and the interaction of the participants.

Then have the two groups trade places and sets of rules.

OPEN SPACE TECHNIQUE

OPEN SPACE TECHNIQUE

END OF MODULE 3