1. Winning markets contd…

2. The Marketing Process Two Views of the Value Delivery Process: Traditional physical process sequence Make the product... Sell the product Value creation and delivery sequence Choose the value... Provide the value... Communicate the value

3. The Marketing Process Steps in the Marketing Process: Analyzing market opportunities Developing marketing strategies Planning marketing programs Managing the marketing effort

4. The Marketing Process Executive summary and TOC Current situation Opportunity and issue analysis Objectives Marketing strategy Action programs Financial projections Controls Marketing Plan Contents

5. Managing The Marketing Process Marketing Departments can be organized by: Function Geographic area Products or brands Customers or markets Corporate divisions Global aspects

6. Managing The Marketing Process Building a Companywide Marketing Orientation Requires: Commitment from top management Training programs; employee empowerment Recognitions and rewards programs Modern marketing planning system Process-outcome focus

7. Managing The Marketing Process Injecting more creativity into the organization can be beneficial Successfully implementing programs requires four sets of skills: Diagnostic skills Identification of company level Implementation skills Evaluation skills

8. Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of top and middle management Examines whether planned results are achieved

9. Managing The Marketing Process Five tools are used to evaluate annual plan performance: Sales analysis Market-share analysis Marketing expense-to-sales analysis Financial analysis Market-based scorecard analysis

10. Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of marketing controller Examines where the company is making and losing money

11. Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of line & staff and / or marketing controller Evaluates and attempts to improve spending efficiency of marketing expenditures

12. Managing The Marketing Process Types of Control Annual plan Profitability Efficiency Strategic Responsibility of top management and marketing auditor Examines whether company is pursuing its best opportunities

13. Managing The Marketing Process Strategic controls should be conducted periodically via: Marketing-effectiveness reviews Marketing audits Additional reviews to consider: Marketing excellence review Ethical and social responsibility review

15. Supporting Marketing Decisions A Marketing Information System is defined as... “people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”

16. Supporting Marketing Decisions Marketing Information Systems compile information from: Internal records systems Marketing intelligence systems Marketing research Marketing decision support analysis

17. Supporting Marketing Decisions Internal Records Systems Order-to-payment cycle is key Timely sales reports help to better manage inventory Customer, product, salesperson and other databases can be mined for fresh insights

18. Supporting Marketing Decisions Improving the Quality of Marketing Intelligence System Data Requires: Training and motivating sales force to report developments Motivating channel members to share important intelligence Collecting competitive intelligence

19. Supporting Marketing Decisions Improving the Quality of Marketing Intelligence System Data Requires: Developing a customer advisory panel Purchasing information from commercial data sources Establishing a marketing information center within the company

20. Supporting Marketing Decisions The Marketing Research Process: Defining the problem and research objectives Developing the research plan Collecting the information Analyzing the information Presenting the findings Making the decision

21. Supporting Marketing Decisions Developing the Research Plan Involves: Gathering secondary and primary data Selecting one or more research approaches for primary data collection Using the appropriate research instrument Developing a sampling plan Determining subject contact methods

22. Supporting Marketing Decisions Approaches for primary data collection include: Observational research Focus-group research Survey research Behavioral data Experimental research

23. Supporting Marketing Decisions A Marketing Decision Support System is defined as a... “coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from business and the environment and turns it into a basis for marketing action.”

24. Forecasting and Demand Measurement Essential Aspects The market Market demand Company demand and sales forecasts Current demand Future demand Market Potential market Available market Target market (served market) Qualified available market Penetrated market

25. Forecasting and Demand Measurement Essential Aspects The market Measuring demand Company demand and sales forecasts Current demand Future demand Market demand Market minimum Market forecast Market potential Nonexpansible vs. expansible markets Primary vs. secondary demand Market forecast Market potential

26. Forecasting and Demand Measurement Essential Aspects The market Measuring demand Company demand and sales forecasts Current demand Future demand Company demand Company sales forecast Sales quota Sales budget Company sales potential

27. Forecasting and Demand Measurement Essential Aspects The market Measuring demand Company demand and sales forecasts Current demand Future demand Total market potential Area market potential Market-buildup method

28. Forecasting and Demand Measurement Essential Aspects The market Measuring demand Company demand and sales forecasts Current demand Future demand Many Forecasting Methods: Buyer intentions survey Composite of sales force opinions Expert opinion Past-sales analysis Market-test method

29. Macroenvironmental Trends and Forces Demographic Environment Worldwide population growth Population age mix Ethnic markets Educational groups Household patterns Geographic population shifts Rise of micromarkets

30. Macroenvironmental Trends and Forces Economic Environment Income distribution Savings, debt, and credit availability

31. Macroenvironmental Trends and Forces Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Changing role of governments

32. Macroenvironmental Trends and Forces Technological Environment Accelerating pace of technological change Unlimited opportunities for innovation Varying R&D budgets Increased regulation of technological change

33. Macroenvironmental Trends and Forces Political-Legal Environment Legislation regulating business Growth of special interest groups

34. Macroenvironmental Trends and Forces Socio-Cultural Environment World views that consumers hold of themselves, others, society, organizations, nature, and the universe High persistence of core values Existence of subcultures