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MS-06 MARKETING MANAGEMENT

MS-06 MARKETING MANAGEMENT. Marketing Definition. Activities necessary for: Planning and executing the conception ( p roduct), p ricing, p romotion and distribution ( p lace) of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

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MS-06 MARKETING MANAGEMENT

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  1. MS-06MARKETING MANAGEMENT

  2. Marketing Definition • Activities necessary for: • Planning and executing the • conception (product), pricing, promotion and distribution (place) • of ideas, goods and services to • create exchanges • that satisfy individual and organizational objectives

  3. Marketing Mgmt. Philosophies 1. Production 2. Sales 3. Marketing 4. Societal marketing orientations

  4. 1. Production Orientation • Focuses on internal capabilities of firm. • “ Field of Dreams” strategy • “If we build it, they will come” • Best used when • competition is weak • demand exceeds supply • generic products competing solely on price • Problem is that they don’t understand wants/needs of marketplace.

  5. 2. Sales Orientation • People will buy more goods/services if aggressive sales techniques are used. • High sales will result in high profits. • Used with unsought products • life insurance • encyclopedias • Problem is that they don’t understand wants/needs of marketplace.

  6. 3. Marketing Orientation Marketing concept: The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meeting organizational objectives.

  7. 3. Marketing Orientation . . . • Focusing on customer wants so the organization can distinguish its products from competitors’ . • Integrating all the organization’s activities, including promotion, to satisfy these wants. • Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.

  8. 3. Marketing Orientation . . . • Requires: • Top management leadership • A customer focus • Competitor intelligence • strengths • weaknesses • Interfunctional coordination to meet customer wants/needs and deliver superior values.

  9. 4. Societal Marketing Orientation • Organization exists not only to satisfy customer wants/needs and to meet organizational objectives, but also to preserve and enhance individuals’ and society’s long-term best interests. • Extends marketing concept to serve one more customer - society as a whole.

  10. Sales Focus Organization’s needs Selling goods/services Everybody Profit through max. sales volume Intensive promotion Marketing Focus Customer’s needs Satisfying customer wants/needs Specific groups of people Profit through customer satisfaction Coordinated mktg. activities (4 p’s) Differences between Sales & Marketing Orientations

  11. Relationship Marketing • Forging long-term partnerships with customers and contributing to their success. • Companies benefit from • repeat sales/referrals that lead to increases in sales, market share and profits, and • decreased costs - it’s less expensive to serve existing customers than attract new ones.

  12. 3. Relationship Marketing. . . • Keeping a customer costs 1/4 of what it costs to attract new customer. • Probability of keeping current customer = 60%. • Probability of gaining new customer < 30%.

  13. 3. Relationship Marketing. . . • Customers benefit from: • stable relationships with suppliers (especially in business-to-business) • greater value and satisfaction • discounts, perks (frequent flyer programs, shopper clubs, etc.) • sense of well-being/bonding (doctor, hair stylist, etc.)

  14. 3. Relationship Marketing . . . • Successful relationship marketers have: • customer-oriented personnel • effective training programs • employees with authority to make decisions and solve problems • teamwork

  15. The Marketing Process 1. Understand the org.’s mission & the role mktg. plays in fulfilling that mission. 2. Set the marketing objectives. 3. Gather, analyze and interpret the org.’s situation - “SWOT” analysis. • Strengths • Weaknesses • Opportunities • Threats

  16. The Marketing Process . . . 4. Develop marketing strategy • target market • marketing mix 5. Implement marketing strategy. 6. Design performance measures. 7. Periodically evaluate marketing efforts and make changes, if needed.

  17. The 7 p’s • Price • Product • Promotion • Place • People • Packaging • Process

  18. Objectives • To Recognize the Importance of Environmental Scanning and Analysis • To Become Familiar With How Competitive and Economic Factors Affect Organizations’ Ability to Compete and Customers’ Ability and Willingness to Buy Products • To Identify the Types of Political Forces in the Marketing Environment • To Understand How Laws, Government Regulations, and Self-Regulatory Agencies Affect Marketing Activities • To Explore the Effects of New Technology on Society and on Marketing Activities • To Be Able to Analyze Socio-cultural Issues That Marketers Must Deal With As They Make Decisions

  19. Examining and Responding to the Marketing Environment • EnvironmentalScanning

  20. Examining and Responding to the Marketing Environment • EnvironmentalScanning • EnvironmentalAnalysis

  21. Examining and Responding to the Marketing Environment • Reactive Response

  22. Examining and Responding to the Marketing Environment • Reactive Response • ProactiveResponse

  23. Competitive Forces • Types of Competition • Competition Defined • Brand Competitors • Product Competitors • Generic Competitors • Total Budget Competitors • Types of Competitive Structures

  24. Type Number of Ease of Entry Product Competitors into Market Monopoly Oligopoly Monopolistic Competition Pure Competition One Few Many Unlimited Many Barriers Some Barriers Few Barriers No Barriers • Almost No Substitutes • Homogeneous or Differentiated • Product Differ- entiation, with Many Substitutes • Homogeneous Products Competitive Forces Selected Characteristics of Competitive Structures

  25. Competitive Forces • Types of Competition • Competition Defined • Brand Competitors • Product Competitors • Generic Competitors • Total Budget Competitors • Types of Competitive Structures • Monitoring Competition

  26. Economic Forces • Business Cycle • Prosperity

  27. Economic Forces • Business Cycle • Prosperity • Recession • Depression

  28. Economic Forces • Business Cycle • Prosperity • Recession • Depression • Recovery

  29. Economic Forces • Buying Power • Disposable Income

  30. Economic Forces • Buying Power • Disposable Income • Discretionary Income • Wealth

  31. Economic Forces • Buying Power • Disposable Income • Discretionary Income • Wealth • Willingness to Spend

  32. Political Forces • Relationshipto Legal andRegulatoryForces

  33. Legal and Regulatory Forces • Sherman Antitrust Act (1890) • Clayton Act (1914) • Federal Trade Commission (1914) • Robinson-Patman Act (1936) • Wheeler-Lea Act (1938) • Lanham Act (1946) • Celler-Kefauver Act (1950) • Fair Packaging and Labeling Act (1966)

  34. Legal and Regulatory Forces • Magnuson-Moss Warranty (FTC) Act (1975) • Consumer Goods Pricing Act (1975) • Trademark Counterfeiting Act (1980) • Trademark Law Revision Act (1988) • Nutrition Labeling and Education Act (1990) • Telephone Consumer Protection Act (1991) • Children’s Online Privacy Act (1998)

  35. Legal and Regulatory Forces • Procompetitive Legislation • Consumer Protection Legislation • Encouraging Compliance with Laws and Regulations • Regulatory Agencies • Federal Trade Commission (FTC)

  36. Legal and Regulatory Forces • Self-Regulatory Forces • Better Business Bureau • National Advertising Review Board (NARB)

  37. Technological Forces • Impact of Technology • Adoption and Use of Technology

  38. Socio-cultural Forces • Demographic Diversity and Characteristics

  39. Socio-cultural Forces • Cultural Values

  40. Socio-cultural Forces • Consumerism Ralph Nader

  41. TYPES OF MARKETING ENVIRONMENT • MICRO: The environmental forces that are relevant to the firm. It includes organization’s internal environment, suppliers, marketing intermediaries, customers and competitors. • MACRO: Large societal forces which exert influence on firm’s marketing system. It includes demographic, economic, natural, technological, political, legal and cultural forces.

  42. Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting Marketing decisions must relate to broader company goals and strategies Microenvironment Actors The company Suppliers Marketing intermediaries Customers Competitors Publics

  43. Marketers must watch supply availability and pricing Effective partnership relationship management with suppliers is essential Microenvironment Actors • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics

  44. Help to promote, sell and distribute goods to final buyers Include resellers, physical distribution firms, marketing services agencies and financial intermediaries Effective partner relationship management is essential Microenvironment Actors • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics

  45. The five types of customer markets Consumer Business Reseller Government International Microenvironment Actors • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics

  46. Conducting competitor analysis is critical for success of the firm A marketer must monitor its competitors’ offerings to create strategic advantage Microenvironment Actors • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics

  47. A group that has an actual or potential interest in or impact on an organization Seven publics include: Financial Media Government Citizen-action Local General Internal Microenvironment Actors • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics

  48. GOVERNMENT REGULATIONS AFFECTING MARKETING • The Indian Contract Act, 1872 • Sales of Goods Act, 1930 • The Industries (development & regulation) Act, 1951 • The Prevention of food adulteration Act, 1954 • The Drugs and Magic Remedies (objectionable advertisement) Act, 1954 • The Essential commodities Act, 1955 • The Companies Act, 1956 • The Trade marks Act, 1999 • The Monopolies and restrictive Trade Practices Act, 1969 • The Patent Act, 1970

  49. GOVERNMENT REGULATIONS AFFECTING MARKETING 11. The Standards of weights and measures Act, 1976 12. The Consumer Protection Act, 1986 13. The Environment Protection Act, 1986 14. The Bureau of Indian Standards Act, 1986 15. The Agricultural Produce Grading and marketing Act (AGMARK), 1937

  50. BY NOW, YOU SHOULD . . . • Recognize the Importance of Environmental Scanning and Analysis • Know How Competitive and Economic Factors Affect Organizations’ Ability to Compete and Customers’ Ability and Willingness to Buy Products • Be Able to Identify the Types of Political Forces in the Marketing Environment • Understand How Laws, Government Regulations, and Self-Regulatory Agencies Affect Marketing Activities • Know the Effects of New Technology on Society and on Marketing Activities • Be Able to Analyze Socio-cultural Issues That Marketers Must Deal With As They Make Decisions

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