1. Lecture-8 MGT301 Principles of Marketing

2. Summary of Lecture-7

3.  Portfolio Analysis  Marketing Process

4. 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 ? ? ? 5 4 2 1 6 8 7.5x.4x.3x.2x.1x

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

6. Marketing Strategy Planning Process

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

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

9. 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

10. 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

11. Today’s Topics

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

13. 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

14. Analyzing marketing opportunities Analyzing marketing opportunities

15. 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

16.  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

17. 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

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

19. Developing the Marketing Mix

20. 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

21. 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

22. The 4 P’s & 4C’s of the Marketing Mix

23. 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

24. Managing the marketing effort Managing the marketing effort

25. 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

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

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

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

29. Enough for today...

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

31. 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

32. 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

33. 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

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

35. Developing the Marketing Mix

36. 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

37. Managing the marketing effort Managing the marketing effort

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

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

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

41. Next…. Marketing Environment Marketing Environment

42. Lecture-8 MGT301 Principles of Marketing