1. Principles of Marketing Lecture-8

2. Summary of Lecture-7

3.  Portfolio Analysis  Marketing Process

4. The Boston Consulting Group’s Growth-Share Matrix

5. 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

6. Product/Market Expansion Grid

7. Market- penetration strategy (Diversification strategy) Product- development strategy Market- development strategy Currentmarkets Newmarkets CurrentproductsNewproducts

8. Marketing Strategy Planning Process

9. Customers Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources Competitors Current & Prospective

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

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

12. Customers Needs and other Segmenting Dimensions 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

13. Today’s Topics

14. Marketing Process

15.  Analyzing marketing opportunities  Selecting target markets  Developing the marketing Mix  Managing the marketing effort

16. 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

17. Analyzing marketing opportunities

18. Situation Analysis The Three Cs

19. 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)

20.  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

21. 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

22. Selecting Target Markets

23.  Firm cannot satisfy everyone – mass marketing  Segment total market – market segmentation  Target markets – target marketing – niche marketing

24. Developing the Marketing Mix

25. 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

26. Marketing Mix Target Market Product Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Place Channels Coverage Assortments Locations Inventory Transport Price List Price Discounts Allowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing

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

28. 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

29. Managing the marketing effort

30. 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

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

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

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

34. Enough for today...

35. Summary

36. Marketing Process

37.  Analyzing marketing opportunities  Selecting target markets  Developing the marketing Mix  Managing the marketing effort

38. 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

39. Analyzing marketing opportunities

40.  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

41. 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

42. Selecting Target Markets

43.  Firm cannot satisfy everyone – mass marketing  Segment total market – market segmentation  Target markets – target marketing – niche marketing

44. Developing the Marketing Mix

45. Marketing Mix Target Market Product Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Place Channels Coverage Assortments Locations Inventory Transport Price List Price Discounts Allowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing

46. Managing the marketing effort

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

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

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

50. Next….

51. Marketing Environment

52. Principles of Marketing Lecture-8