Contrasting Selling and Marketing Concepts: The Role of Strategic Marketing

1. STRATEGIC TECHNOLOGY MARKETING DR. ISMI RAJIANI

2. Selling and MarketingConcepts Contrasted Starting point Focus Means Ends Factory Existing products Selling and promotion Profits through sales volume (a) The selling concept Target market Customer needs Integrated marketing Profits through customer satisfaction (b) The marketing concept

3. Operational Model for Implementing the Philosophy of the Marketing Concept is the: Marketing Mix

4. The Marketing MixConsists of Four Basic Strategic Variables (the four “P’s”) • Product Strategy • Price Strategy • Promotional Strategy • Place Strategy (Channels of Distribution)

5. Four P’s Product Price Place Promotion Four C’s Customer solution Customer cost Convenience Communication Marketing Mix and the Customer

6. Other Ps for Services(the three “P’s”) • People Strategy • Process Strategy • Physical Evidence Strategy

7. The role of STRATEGIC marketing is to mix or blend these four strategic variables in such a way as to meet the needs of...

8. THE TARGET MARKET Product Price Promotion Place Target Market

9. Marketing as a Strategic Component of the Organization Marketing is elevated to a level of strategicposition in the organization

10. The Four P’s elements

11. Strategic Marketing Consists of Six Major Areas • Defining the organization’s business • Specifying the purpose of the organization • Identifying opportunities • Formulating product/market strategies • Budgeting: financial, production, human resources • Monitoring, evaluating, and adapting

12. Defining the Organization’s Business Type of customers (markets) to be served Needs of those customers Means by which organization will meet the needs Competitive advantage (attainment and sustained)

13. Specifying the Purpose of the OrganizationAspirations of the organization and what it wishes to achieve ie., objectives and goals Marketing Production Finance ROI Output and Sales Volume ROS efficiency Margin measures, e.g. Profit Market Share output per Cash Flow Customer Man hour Satisfaction

14. Identifying Organizational OpportunitiesExternal (environmental) opportunities matched with internal (organizational) capabilities • What do we do best? (distinctive competency) • What must we do? (success requirements) • What might we do? (environmental opportunity)

15. Formulating Product/Market Strategies MARKETS Offerings EXISTING NEW Market Penetration Market Development EXISTING New Offering Development NEW Diversification

16. Budgeting, Financial, Production, and Human Resources Financial implications and allocations relevant to the marketing plan Revenue, expense, and profit projections Cost allocations made

17. Monitoring, Evaluating and Adapting Marketing Strategy Marketing audit --comprehensive, systematic, independent, and periodic examination of the organization’s marketing objectives and strategies to identify problems and opportunities as well as to recommend ways of improving marketing performance

18. Production Concept Product Concept Selling/Sales Concept Evolution of Company Orientation Marketing Concept Holistic Marketing Concept

19. Marketing Management Philosophies • Consumers favor products that are • available and highly affordable. • Improve production and distribution. • Consumers favor products that offer • the most quality, performance, and • innovative features. • Consumers will buy products only if • the company promotes/ sells these • products. • Focuses on needs/ wants of target • markets & delivering satisfaction • better than competitors. • Focuses on needs/ wants of target • markets & delivering superior value. Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept

20. Holistic Marketing Dimensions

33. Revenue Early Adopters Lead Users Early Majority Late Majority Laggards Time Technology Adoption • Product Life Cycle (Based on G. Moore “Crossing the Chasm”) • Innovators  Lead Users : TechnologyEnthusiasts; They want to try it just to see if it works… • Visionaries  Early Adopters : They have the insight to match a new technology to a strategic opportunity • Pragmatists  Early Majority : They fell that some Risk may be taken, but with a good safety nets in place • Conservative  Late Majority : They are Conservatives that are against discontinuous innovations • Sceptics  Laggards : They are Sceptics...

34. Technology Adoption • “The CHASM” is changing  highly industry dependent... 2.5% 13.5% 34% 34% 16% 2% 48 % 29% 16% 5% Lead Users Main Market Main Stream Market Early Market Possible Market (?) Classical Early market VS Mainstream Market The New Reality The CHASM may have moved depending on your industry !!!!

35. Technology Adoption • Evolution of “The CHASM” (1/3) • In the last 10 years, people have become more and more tech-savvy  People are more comfortable with technology • Adoption of technology is faster today thanks to Internet, Twitter, Facebookand other social medias. • The Early Adopters area of the curve is today much larger  50% of the total market is now before the CHASM. Lead Users Main Market Possible Market (?) 50% of Market 50% of Market

36. Conclusions • 1. Marketing Mix • Branding • A strong branding is required to ease market penetration and allow client retention. • Social Medias • Use all social medias on the web to help your market be aware of what you are doing. The difficulty is to do its soon enough but at the same time not too soon. • You must analyze periodically the social medias to know what is been said about your company, group and products. Use those medias to influence perceptions and be close to your clients (customer proximity). • 2. Understanding Market Segment • You must understand your market and this takes time and efforts. If your “beachhead” is very niche or is only a specific program (governmental, defense), you must work on the customer intimacy to influence his decisions toward your solution.