Marketing Management

1. Marketing Management Dr. Derek N. Hassay

2. What is Marketing? “Satisfying consumer needs and wants… profitably!”

3. Needs, wants, and demands Goods & Services Core Conceptsin Marketing Value, satisfaction, and quality Markets Exchange, transactions, and relationships

4. What is Marketing? “In the factory we make cosmetics; in the drugstore we sell hope.” Charles Revson

5. General Management Philosophies Societal Marketing Concept Production Concept Marketing Concept Selling Concept Product Concept

6. The Societal Marketing Concept Society (Public Welfare) Consumers (Satisfaction) Company (Profits)

7. Marketing System Goals Maximize Quality of Life Maximize Consumption Maximize Choice Maximize Satisfaction

8. “Worshipping themarketing conceptstifles innovation.”

9. (Product, Service, Personnel, & Image Values) Customer Value Total Customer Value (Monetary, Time, Energy, & Psychic Costs) Total Customer Cost (Profit to the Consumer) - Customer Delivered Value =

10. Value-Building Approaches Financial Benefits Social benefits Structural Ties

11. Customer Satisfaction Expectations Satisfaction Expectations Met The Goal of Customer Satisfaction Customer Delight Expectations Exceeded

12. Types of Loyalty Frequency of Purchase Loyalty Latent Loyalty Always/Often Seldom/Never Positive Spurious Loyalty No Loyalty Attitude/Affect Negative

13. Retaining Customers New Customer Costs Lost Customer Costs Customer Lifetime Value

14. Elements of a Marketing Strategy Product Target Consumers Place Price Promotion

15. Marketing Management “Marketing is not an event, but a process…It has a beginning, a middle, but never an end, for it is a process. You improve it, perfect it, even pause it. But you never stop it completely.” Philip Kotler

16. Defining the Company Mission Steps in Strategic Planning Defining Company Objectives and Goals Corporate Level Designing the Business Portfolio Production, Marketing and Other Functional Strategies Business Level

17. Marketing Strategy Elements Price Target Market Product Place Promotion Marketing Mix (the 4Ps) + Target Market = Marketing Strategy

18. Marketing Management Framework Analysis Planning Product Target Market Product Place Control Implementation Price

19. Strategies Portfolio The Corporate Strategic Plan Mission Objectives The Marketing Management Framework

20. The Marketing Environment Technological Environment Natural Environment Political/Legal Environment Analysis Planning Resources Price Suppliers Product Place Target Marketing Intermediaries Corporate Objectives Control Market Implementation Promotion Competition Publics Demographic Environment Economic Environment Social/Cultural Environment

21. Technological Environment Natural Environment Political/Legal Environment Analysis Planning Resources Price Suppliers Product Place Target Corporate Objectives Marketing Intermediaries Control Market Implementation Promotion Competition Publics Demographic Environment Economic Environment Social/Cultural Environment

23. Competitive Strategy “Induce your competitors not to invest in those products, markets and services where you expect to invest the most … that is the fundamental rule of strategy.” Bruce Henderson, Founder of BCG “One does not rely on the enemy not attacking, but relies on the fact that he himself is unassailable.” Sun Tsu, The Art of War

24. Expand Market Attack leader Defend Market Share Status quo Expand Market Share Strategies of Firms in aHypothetical Market Structure Market leader Market challenger Market follower Market nicher 40% 30% 20% 10% Imitate Specialize

25. End-user specialist Vertical-level specialist Customer-size specialist Specific-customer specialist Geographic specialist Product or product-line specialist Product-feature specialist Job-shop specialist Quality-price specialist Service specialist Channel specialist Pursuing a Niche Strategy

26. (2) Flank defense (3) Preemptive defense (4) Counter- offensive defense Defensive Strategies Attacker Defender (1) Position defense (6) Contraction defense (5) Mobile defense

27. Position Defense

28. Offensive Strategies (4) Bypass attack (2) Flank attack Attacker Defender (1) Frontal attack (3) Encirclement attack (5) Guerilla attack

29. Management Decision-making with “Case Analysis” • Situation Analysis • Identification of Key Marketing Issue • Identification of Objectives (Decision Criteria) • Generation & Evaluation of Alternatives • Recommendation • Implementation Plan

30. Situation Analysis • External Environment: • Opportunities & Threats • Industry (barriers to entry, sales trends) • P.E.S.T. (stability, forecasted changes) • Competition (resources, position) • Customers (preferences) • Channels • Internal Environment: • Strengths & Weaknesses • Marketing Mix • Consumer Awareness • Assets, Skills,Resources

31. Key Marketing Issue(s) • Idea is to present the issue facing the firm in a succinct manner (2-3 sentences). • May not be a problem, may be an opportunity. • Caution: Make sure that you have identified the cause and not the symptom of a problem?

32. Generation of Objectives(Decision Criteria) • Qualitative: • Issues of “fit” • Timeliness • Available Skills • Capacity • Quantitative: • Profit • Market share • Awareness • ROI

33. Generation & Evaluation of Alternatives • Selection of 3-4 feasible, mutually distinct alternatives • Doing nothing (i.e., status quo) is rarely a • feasible alternative • Evaluation (advantages, disadvantages) • of alternatives based upon decision criteria

34. Recommendation • Brief statement outlining: • Why the recommended course of action is the best available alternative. • Decision must be based upon criteria and must be an evaluated alternative Implementation Plan • Specifically what is to be done: • By whom • When • Where