Consumer Costs and benefits Organization

1. Created by Jude Asongwe Consumer Costs and benefits Organization Individual Patient Student Volunteer Voter Reader Source: Principles of marketing by Dr. Frances Brassington & Dr Stephen Pettitt; chp 1 pg 7 MARKETING PRESENTATION FOR PROFESSIONAL CERTIFICATE IN MARKETINGOVERVIEWING THE MARKETING PROCESS: MARKETING AS AN EXCHANGE PROCESS: Slake thirst Medical treatment Insurance premiums H Private hospital Fees Education University Non-profit Youth group Time Sense of community service Political party Vote Sense of economic/social progress Public library Taxes A good read

2. http://www.valuebasedmanagement.net/

3. Created by Jude Asongwe MARKETING PRESENTATION FOR PROFESSIONAL CERTIFICATE IN MARKETING • Situational influences • Sociocultural • Technological • Economic/competitive • Political/legal Decision-making process • Individual influences • Personality • Perception • Motivation • Attitude. Consumer buying decision making process and its influencing factors: Problem recognition Information search Information evaluation/evaluation of alternatives • Group influences • Social class • Culture/subculture • Reference groups • family • Marketing mix • Product • Price • Place • promotion Purchase decision Post-purchase evaluation

4. Summary: PROFESSIONAL CERTIFICATE IN MARKETING IS DIVIDED IN TO FOUR PARTS: DISTRIBUTION CHANNEL IN CONSUMER MAREKT Producer Consumer • Part A: Marketing Fundamentals • Part B: Marketing Environment • Part C: Marketing in Practice • Part D: Customer Communication. Producer Retailer Consumer Producer Wholesaler Retailer Consumer Wholesaler Producer Retailer Consumer Agent Producer Business Customer Producer Business distributor Business Customer Producer Sales branch Business customer Sales branch Business distributor Producer Business customer DISTRIBUTION CHANNEL IN ORGANISATIONAL MARKET

5. Created by Jude Asongwe CONTENTS of PART A: Marketing Fundamentals The development of marketing and marketing orientation Marketing planning and budgeting The marketing mix: Product The marketing mix: new product development and portfolio management The marketing mix: price The marketing mix: place The marketing mix: promotion The marketing mix: People (service and customer care). Marketing in context Marketing Fundamentals Source: CIM course book

6. MARKETING FUNDAMENTALS: LEARNING OBJECTIVES By the end of this module you should be able to: • Understand the development of marketing and its changing role within a variety of organizations • Understand the various tools of the marketer and evaluate their strengths and weaknesses • Recognise the impact achievable through modifying the marketing mix for (re)positioning the product and service offerings • Understand the importance of planning in the management of the marketing activity • Develop an awareness and understanding of thetechnological advances in marketing and the impact of information technology on the marketing mix decisions • Understand the importance of customers and their behaviour relating to marketing decisions

7. Marketing Fundamentals-The development of marketing and marketing orientation. • What is marketing? • The marketing concept: marketing orientation. • Factors contributing to the need to be marketing oriented • Marketing as a form of competition: creating customer value • Building a marketing culture • Difficulties in managing the introduction of a customer-oriented culture • Market segmentation • The tools of marketing management: the marketing mix • Overviewing the marketing process: marketing as an exchange process. • The changing role of marketing Marketing Fundamentals Source: CIM course book

8. Created by Jude Asongwe Marketing FundamentalsWhat is Marketing? • Marketing is ‘the management process which identifies, anticipates and satisfies customer requirements efficiently and profitably. (CIM definition) • Consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas ( by Dibb, 2000) Marketing Fundamentals. Source: CIM course book

9. Created by Jude Asongwe Marketing Fundamentals • Marketing means working with markets to bring about exchanges for the purpose of satisfying human needs and wants. It is a process by which individuals and groups obtain what they need and want creating and exchanging products and value with others. (Kotler, 2000). Marketing Fundamentals Source: CIM course book

10. Marketing Fundamentals- THE MARKETING CONCEPT ( MARKETING ORIENTATION).1960s-today • The marketing concept focuses on customers. • A company that adopts the marketing concepts does the following • Puts customers at the centre of all business decision-making and planning • Marketing research to better satisfy customers. Marketing Fundamentals Source: CIM course book

11. Marketing Fundamentals : Other forms of orientation. • Production-orientation(1900-1930s) • Product-orientation • Sales-orientation(1930s-1960s) Marketing Fundamentals Source: CIM course book

12. Marketing Fundamentals–The Production Orientation or concept • The production concept concentrates on production and distribution economies. • This is based on the notion that customers will choose lower priced products that are readily available. Marketing Fundamentals Source: CIM course book

13. Marketing Fundamentals-Marketing Orientation- PRODUCT ORIENTATION Marketing Fundamentals Source: CIM course book

14. Marketing Fundamentals:The sales (selling) concept or orientation. • This is of course based on the notion that customers need to be persuaded to buy through aggressive selling and promotion. Marketing Fundamentals Source: CIM course book

15. MARKETING HISTORY AND BUSINESS ORIENTATIONS - SUMMARY

16. Marketing fundamentals: Factors underpinning the need to be market oriented. • Demand • Average disposable income • General level of education • Mass media/ access to information • Supply/industry capacity • Competition • Broad political, economic, social,technological, ecological and legal factors (PESTEL) factors. Marketing Fundamentals Source: CIM course book

17. Marketing Fundamentals- : Marketing as a form of competition: creating customer value • Marketers are recognizing that it is important to be competitor as well as customer oriented. • The achievement of organisational and marketing objectives rests on whether the company can beat the competition • Provision of value to customers is important • Marketing research will help better satisfy customers • Good customer service and customer care • Market intelligence about competitors. • Reliability of service, speedier delivery, low prices, high quality; can create superior customer value. • Superior customer value should reflect customers needs. Source: Source: CIM course book Marketing Fundamentals

18. Marketing fundamentals-Building a marketing culture • ‘Thinking about customers’ through how we view and define the business is the first step in developing a marketing culture. • Thinking about customers must permeate all functions and levels of the organization and not just the marketing function or even senior management. • Communication among managers and employees from different function is important • Marketing Research and market intelligence. • Co-ordination between functions based on customer needs. • Marketing planning • Company-wide communication on customer needs. • Right attitudes, practices throughout the company. Source: CIM course book

19. Marketing Fundamentals-ASSESSING THE EXTENT OF THE MARKETING CULTURE: An Assessmentof the following issues are concerned in order to know the extend to which businesses have been successful or unsuccessful in marketing orientation • Management • Employees • Products • Services • Competitors • Prices • Distribution of products • Market • Strategies Marketing Fundamentals Source: CIM course book

20. Marketing Fundamentals-DIFFICULTIES IN MANAGING THE INTRODUCTION OF A CUSTOMER-ORIENTED CULTURE: • Managers fail to realize or understand the true concept of market orientation. • Resistance to change • Power struggle between departments. • Separation of the responsibility for marketing strategy and implementation. • Lack of co-ordination • Lack of technology/inability to use latest technology. • Poor planning • Influence of macro factors (PESTEL Analysis) • Influence of micro factors: Employees, management, suppliers, distributors, media and competitors. • Inadequate finance • No strategic direction Marketing Fundamentals Source: CIM course book

21. Marketing fundamentals – MARKETING AS A MANAGEMENT FUNCTION: • Marketing is the function of management. • Management has to control, co-ordinate, plan, motivate, analyze and organize marketing activities: • The marketing manager has to perform the following: • Marketing / market research • Planning • Environmental analysis • Market segmentation, targeting and positioning. • Marketing mix implementation • Marketing is not only the function of the marketing manager. • Marketing should be part and parcel of each and every department of the company. • The various departments such as Human Resource, Production, Logistics, Finance, Stock and Technical departments have to corporate with the marketing department Marketing Fundamentals Source: CIM course book

22. Marketing fundamentals – MARKET SEGMENTATIONLearning objectives • To understand what is market segmentation • To examine the reasons for segmenting the market • To examine the bases for segmenting the market. • To examine the importance of segmenting the market. Marketing Fundamentals Source: CIM course book

23. Marketing Fundamentals -MARKET SEGMENTATIONDefinition • What is market segmentation? Market segmentation is the process of identifying and classifying customers according to their different needs and wants. Marketing Fundamentals Source: CIM course book

24. Marketing Fundamentals- MARKET SEGMENTATION. Definition continues • It is the division of market in to groups of customers and using the marketing mix to target customers in these groups. • It is the splitting up of customers in to segments and using the marketing mix to target customers. Marketing Fundamentals Source: CIM course book

25. Marketing fundamentals- MARKET SEGMENTATIONREASONS FOR SEGMENTING THE MARKET • Because of differences that exist among customers with regards to the following: • Age Psychology • Sex Life cycle • Marital status Life style. • Behaviour Inadequate finance. • Location • Income • Culture • Social status Marketing Fundamentals Source: CIM course book

26. Marketing fundamentals- MARKET SEGMENTATIONTHE CRITERIA FOR SEGMENTING THE MARKET • Identifiable • Profitable • Recognisable • Accessible • Actionable • Stable (reliable) • Substantial • Measurable • Affordable Marketing Fundamentals Source: CIM course book

27. Marketing fundamentals- MARKET SEGMENTATIONBASES FOR SEGMENTING THE MARKET IN CONSUMER MARKET • Demographic: age,gender,income,occupation, marital status and Life cycle • Geographic: regions, counties, nations, cities, town, villages and continents. • Geo-demographic: Segmentation according to geography and demography. This is used by ACORN: The post office also uses this. • Psychographic: social class and perception of customers. • Behaviour: User status, usage rate, usage occasion, loyalty status and purchase rate. Marketing Fundamentals Source: CIM course book

28. M1 M2 M3 M1 M2 M3 P1 Targeting P1 Single segment target P2 P2 P3 P3 M1 M2 M3 P1 Product specialisation P2 Multi-segment target M1 M2 M3 P1 P3 P2 M1 M2 M3 P3 P1 Full market coverage Market Specialisation P2 P3 M=Market and P= Product

29. Targeting Strategy Segment 1 MARKETING MIX Segment 2 Concentrated strategy/marketing Segment 3 Segment 1 MARKETING MIX 1 Segment 2 MARKETING MIX 2 Segment 3 MARKETING MIX 3 Differentiated strategy/marketing Whole market MARKETING MIX Undifferentiated strategy/marketing

30. POSITIONING • Positioning means designing a product to occupy a distinct and valued place in the minds of customers. • Companies can position the market in terms of price, product, quality, brands, promotion, and customer service. • The essence of positioning is to enable the company to have more competitive advantage over its competitors. • When positioning, the company should identity customers needs, produce the product targeted at customers. • The product packaging, labelling, styling, branding, designing, pricing, promotion and distribution should seriously be analysed. • A good marketing programme such as marketing research, Marketing mix, segmentation, targeting, new product development and market expansion will boost the company’s competitive advantage.

31. POSITIONING • Companies need to find out what position they are in, in relation to their competitors. Am I a market leader or a market follower? This is a question that should be asked by organisations. • Marketing planning, and marketing strategies should be implemented to enable the company to have competitive advantage.

32. Created by Jude Asongwe POSITIONING Consistency Clarity KEYS TO SUCCESSFUL POSITIONING Source: Principles and practice of marketing- 2nd edition by David Jobber Successful positioning Credibility Competitiveness

33. POSITIONING . . . High price . A POSITIONING MAP OF SUPERMARKETS: Source: Principles and practice of marketing- 2nd edition by David Jobber B C D . . . Narrow product range . Wide product range G F X E Low price A PERCEPTUAL MAP OF SUPERMARKETS

34. BUSINESS TO BUSINESS BUYING BEHAVIOUR: Otherwise known as industrial or organisational buyer behaviour: • Business to business transaction is when one business transact business with another. • Certain factors influence business to business buyer behaviour. • Marketing mix: price,product, place , promotion • Environmental influences • Organisational factors • Group influences: reference groups e.g decision making unit such as users, influencers, deciders, approvers, gate keepers and buyers.

35. Example of a shoe manufacturer Hides and skin producer Leather producer distributor Shoe manufacturer Agent Wholesaler Retailer Consumers Example of cloths manufacturer Cotton producer Distributors Textile Industry/manufac turer Agents Wholesalers Retailers Consumers Business to Business Marketing/Business to business buyer behaviour Example of biscuit manufacturer Sugar/flour Banana p Distributor Producer Agent Wholesaler Retailer Consumers Example of bread manufacturer Flour producer Distributor Retailer Producer Agent Wholesaler Consumer Example of car manufacturer Iron and steel Tyre producers Distributor Consumers Car producer Wholesaler Retailer Example of aircraft manufacturer Accessories producer Aircraft producer e.g Boeing Wholesaler Consumer

36. STRATEGIC MANAGEMENT • Strategic analysis Strategic Choice Strategy implementation A basic model of strategic management process Source: Exploring Corporate Strategy by Gerry Johnson Kevan Scholes

37. STRATEGIC MANAGEMENT Culture and stakeholder expectation Resources And strategic capabilities The environment Strategic analysis Planning And allocating resources Strategic choice Identifying Strategic options Strategy implementation Organisation structure and design Evaluating options Managing Strategic change Selecting strategy

38. CORPORATE SOCIAL RESPONSIBILITY This is the responsibility that corporate businesses have on the environment. They are supposed to produce goods and services under social and environmentally friendly conditions: CORPORATE SOCIAL RESPONSIBILITY TOUCHES THE FOLLOWING AREAS: • Employees Suppliers Retailer Distributors • Customers Government Shareholders Competitors • Products Services Banks Media Green issues • Local community Environmental pollution CORPORATE SOCIAL RESPONSIBILITY CAN BE VIEWED FROM TWO ANGLES: Internal Aspects:This focus on the company’s internal structure E.g Employees, Shareholders, Management, Products, Services, and Resources. External Aspects:This focus on the society : For example Pressure Groups, local community, government, media, suppliers, distributors and Retailers

39. SWOT ANALYSIS

40. Marketing fundamentals-THE TOOLS OF MARKETING MANAGEMENT: THE MARKETING MIX • What is the marketing mix • The components of the marketing mix. Marketing Fundamentals Source: CIM course book

41. Marketing fundamentalsThe tools of the marketing management: THE MARKETING MIX - definition • It is the strategic blending of product, price, place, promotion, people, physical evidence and processes in order to achieve marketing objectives • It is a combination of 7p’s which marketers use in order to satisfy the market. Marketing Fundamentals Source: CIM course book

42. Marketing fundamentalsThe tools of the marketing management: THE MARKETING MIX – definition Continues • Marketing mix is the tactical toolkit of the 7’ps ; namely product, price , place, promotion, people, physical evidence and processes. Source: CIM course book

43. THE MARKETING MIX - PRODUCT We will examine the following issues under product: • Product Definition • Product Classification • Various levels of a product • The Product Mix • The Product Life cycle • Product Packaging • Product Labeling • Product quality • Product lines • Branding • The product adoption process • New Product Development Process • The importance of New Product Development • Portfolio Analysis • Product Pricing • Product Placing • Promotion of product.

44. THE MARKETING MIX - PRODUCT PRODUCT CLASSIFICATION: Consumer Products • Shopping goods: e.g. television, cloths, shoes, watch & cameras • Unsought goods: e.g life assurance, grave stones,grave yard, • Convenience goods • Speciality goods Producer products • Materials and parts • Machinery • Services

45. THE MARKETING MIX - PRODUCT THE VARIOUS LEVELS OF A PRODUCT: Potential product Augmented product Expected product Actual/Basic product Core product

46. Firm infrastructure Technology development Human resource management Procurement Inbound Operations Outbound Service Logistics Logistics Marketing and sales 46

47. McKinsey’s Seven Ss model • The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an holistic and effective way. • Together these factors determine the way in which a corporation operates. • Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. • They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.

48. Origin of the 7-S Framework. History The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascal and Anthony Athos in 1981. They had been investigating how Japanese industry had been so Successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman,and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model.

49. McKinsey’s Seven Ss model Shared Values (also called Superordinate Goals). The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent Strategy Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers. Structure The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc.

50. McKinsey’s Seven Ss model System The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems. Staff Numbers and types of personnel within the organization. Style Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare: Management Styles. Skill Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences.