Lecture-8 MGT301 Principles of Marketing

Summary of Lecture-7

 Portfolio Analysis  Marketing Process

The Boston Consulting Group’s Growth- Share Matrix 3 ? 10x 4x 2x 1.5x 1x 20%-18%-16%-14%-12%-10%- 8%- 8%- 6%- 6%- 4%- 4%- 2%- 2%- 0 Market growth rate Relative market share Stars Cash cow Question marks Dogs ? ? ? x.4x.3x.2x.1x

Product/Market Expansion Grid Market- penetration strategy (Diversification strategy) Product- development strategy Market- development strategy Currentmarkets Newmarkets CurrentproductsNewproducts

Marketing Strategy Planning Process

Customers Needs and other SegmentingDimensions Company Mission, Objectives, & Resources Competitors Current & Prospective

Customers Needs and other SegmentingDimensions Company Mission, Objectives, & Resources Competitors Current & Prospective S. W. O. T. External Market Environment External Market Environment

Customers Needs and other SegmentingDimensions Company Mission, Objectives, & Resources Competitors Current & Prospective S. W. O. T. External Market Environment External Market Environment Targeting & Segmentation Positioning & Differentiation

Customers Needs and other SegmentingDimensions Competitors Current & Prospective S. W. O. T. External Market Environment External Market Environment Targeting & Segmentation Positioning & Differentiation Narrowing down to focused strategy with quantitative and qualitative screening criteria Company Mission, Objectives, & Resources

Today’s Topics

Marketing Process  Analyzing marketing opportunities  Selecting target markets  Developing the marketing Mix  Managing the marketing effort

Target Consumers Product PlacePrice Promotion Marketing Implementation Marketing Planning Marketing Control Marketing Analysis Competitors Marketing Intermediaries PublicsSuppliers Demographic- Economic Environment Technological- Natural Environment Political- Legal Environment Social- Cultural Environment

Analyzing marketing opportunities Analyzing marketing opportunities

Company Customers Competitors Market Potential (size, growth rate) Customer Behavior (wants and needs, segmentation, price sensitivity) Market Potential (size, growth rate) Customer Behavior (wants and needs, segmentation, price sensitivity) Industry Structure Analysis (entry/exit barriers, buyers, sellers, substitutes) Competitor Response Profiles (capabilities, current and future actions) Industry Structure Analysis (entry/exit barriers, buyers, sellers, substitutes) Competitor Response Profiles (capabilities, current and future actions) Economic Analysis (costs, break-even, profitability) Company Fit (strengths, weaknesses, resources, culture, goals) Economic Analysis (costs, break-even, profitability) Company Fit (strengths, weaknesses, resources, culture, goals) Situation Analysis The Three Cs

 changing environment –opportunities and threats  changing firm situation –relative strengths and weaknesses  Fit - match opportunities with firm’s objectives and resources (strengths)  Market Information System

The Marketing Information System Marketing managers Analysis Planning Implemen- tation Control Assessing information needs Distributing information Internal records Marketing decisions and communication Marketing environment Test markets Marketing channels Competitors Publics Macro- environment forces Marketing Information System Developing information Marketing intelligence Marketing research Marketing decision support analysis

Selecting Target Markets Selecting Target Markets  Firm cannot satisfy everyone –mass marketing  Segment total market –market segmentation  Target markets –target marketing –niche marketing

Developing the Marketing Mix

Target Customers Intended Positioning Product “Goods-and-service” combination that a company offers a target market Price Amount of money that consumers have to pay to Obtain the product Activities that persuade target customers to buy the product Promotion Company activities that make the product available Place

Marketing Mix Target Market Product Product Variety QualityDesignFeatures Brand Name PackagingSizesServicesWarrantiesReturnsPlaceChannelsCoverageAssortmentsLocationsInventoryTransport Price Price List PriceDiscountsAllowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing

The 4 P’s & 4C’s of the Marketing Mix

4 P’s –Product –Price –Place –Promotion 4 P’s –Product –Price –Place –Promotion 4 C’s –Customer Solution –Customer Cost –Convenience –Communication 4 C’s –Customer Solution –Customer Cost –Convenience –Communication

Managing the marketing effort Managing the marketing effort

Marketing Planning Develop Strategic Plans Develop Marketing Plans Marketing Planning Develop Strategic Plans Develop Marketing Plans Marketing Implementation Carry Out The Plans Marketing Implementation Carry Out The Plans Marketing Analysis of Company’s Situation Control Measure Results Evaluate Results Take Corrective Action Managing the Marketing Efforts

Executive Summary Current Marketing Situation Threats and Opportunity Analysis Objectives and Issues Marketing Strategy Action Programs Budgets Controls Contents of a Marketing Plan

Marketing Strategy Marketing Performance Implementation Climate and Culture Action Programs Decision and Reward Organizational Structure Human Resources Marketing Implementation

Marketing Control Process Set Goals Measure Performance Evaluate Performance Take Corrective Action

Enough for today...

Summary Marketing Process  Analyzing marketing opportunities  Selecting target markets  Developing the marketing Mix  Managing the marketing effort

Target Consumers Product PlacePrice Promotion Marketing Implementation Marketing Planning Marketing Control Marketing Analysis Competitors Marketing Intermediaries PublicsSuppliers Demographic- Economic Environment Technological- Natural Environment Political- Legal Environment Social- Cultural Environment

Analyzing marketing opportunities Analyzing marketing opportunities  changing environment –opportunities and threats  changing firm situation –relative strengths and weaknesses  Fit - match opportunities with firm’s objectives and resources (strengths)  Market Information System

The Marketing Information System Marketing managers Analysis Planning Implemen- tation Control Assessing information needs Distributing information Internal records Marketing decisions and communication Marketing environment Test markets Marketing channels Competitors Publics Macro- environment forces Marketing Information System Developing information Marketing intelligence Marketing research Marketing decision support analysis

Selecting Target Markets Selecting Target Markets  Firm cannot satisfy everyone –mass marketing  Segment total market –market segmentation  Target markets –target marketing –niche marketing

Developing the Marketing Mix

Marketing Mix Target Market Product Product Variety QualityDesignFeatures Brand Name PackagingSizesServicesWarrantiesReturnsPlaceChannelsCoverageAssortmentsLocationsInventoryTransport Price Price List PriceDiscountsAllowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing

Managing the marketing effort Managing the marketing effort

Executive Summary Current Marketing Situation Threats and Opportunity Analysis Objectives and Issues Marketing Strategy Action Programs Budgets Controls Contents of a Marketing Plan

Marketing Strategy Marketing Performance Implementation Climate and Culture Action Programs Decision and Reward Organizational Structure Human Resources Marketing Implementation

Marketing Control Process Set Goals Measure Performance Evaluate Performance Take Corrective Action

Next…. Marketing Environment Marketing Environment

Lecture-8 MGT301 Principles of Marketing