-1. marketing mgmt overview

Marketing Overview

Simplicio P. Umali, Jr.Simplicio P. Umali, Jr.

A social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational objectives ( American Marketing Assn)

That an organization aims all its efforts at the satisfaction of the needs and wants of consumers at a profit.

The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

NEED: a state of felt deprivation of some basic satisfaction ( hunger, thirst, love, security, ego, recognition)

WANT: a learned need satisfier, a specific satisfier ( food-softdrinks/ hamburger)

DESIRE: conscious ability and willingness to satisfy a need and want ( buy a McDo)

MARKET: consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.

TARGET MARKET: a fairly homogeneous group of customers to whom a company wishes to appeal

SEGMENTING: an aggregating process that clusters together people with similar needs into a market segment

Focus on ProductsFocus on Products

Selling and Selling and Promoting meansPromoting means

Profits through Profits through sales volume sales volume

Customer needs Customer needs focusfocus

Integrated Integrated Marketing Marketing

Profits through Profits through customer satisfactioncustomer satisfaction

STRATEGIC MARKETING MANAGEMENT

Strategic Marketing Management Process

1. Define organization’s Business, Mission and Goals

2. Identify and frame organizational growth opportunities

3. Formulate Product-Market strategies4. Budgeting marketing, financial and production

resources5. Develop reformulation and recovery strategies

1.Business, Mission and GoalsBusiness define by type of market or customers, needs of customer groups, preferably not

productsMission Scope of organization’s operations apparent in its business definition and reflects

management’s vision of what the organization seeks to do. Crystallizes mgmt’s vision , long term direction and character; provides

guidance for mkt and product opportunities; challenges employees to do things valued by organization and its customers/market.

Goals SMART Objectives- Production, Marketing and Financial

2. Organizational Growth Opportunities Environmental Opportunities

Unmet/changing consumer needs Unsatisfied buyer groups New means or technology

Distinctive Competency Orgn’s unique strengths / qualities Skills, technologies, resources Source of competitive advantage

Success Requirements Matches environmental opportunities and competency

Physical Environment (islands, weather)

Demographic Environment (Age, sex, family size)

Economic Environment (GNP, GDP, interest, forex)

Political & Legal Environment ( laws, leadership)

Socio-Cultural Environment (practices, beliefs)

Technological Environment (obsolescence, trends)

Competitive Environment (direct & substitutes)

Objectives

Resources of the firm (financial, physical)

Organizational structures and personnel

Technology

Capacities (production, distribution)

Systems, Policies and Procedures

Stimulus-Response modelStimulus-Response modelLearning Process: Learning Process:

--Drive-Cue-Response-ReinforcementDrive-Cue-Response-Reinforcement

Problem Solving Method: Problem Solving Method: Marketing Marketing Mixes & Other Stimuli( cultural, social, Mixes & Other Stimuli( cultural, social, personal, psychological) evaluated for personal, psychological) evaluated for purchase decision purchase decision

Cultural: (Culture, Subculture, Social class)

Social: (Reference group, family, roles & statuses)

Personal: (Age and life cycle stage, Occupation, Economic circumstance, Lifestyle, Personality and self-concept)

Psychological: ( Motivation, perception, learning, beliefs and attitudes)

Organizational Growth Opportunities-SWOT Analysis

Strengths Weaknesses Management Marketing Manufacturing Products R&D Organization Finance

Opportunities / Threats Economic Competition Consumer trends Technology Legal / Regulatory Industry/market structure Competition

3. Formulate Marketing StrategyProductPricePlacePromotion

StrategyDo right things

What you should do

The means to fulfilling the end

Tactics ( programs)Do things right

How to do things

The application of strategy

Geographic: Metro Mla, Prov Luzon/ Urban, rural

Demographic: Age, sex, income class (AB, C, D+), family size, education, religion (Christian, Muslim)

Psychographics: social class(novo-rich, old rich),Lifestyle (health buff, fashionista, active) Personality (compulsive, authoritative, followers)

Behavioral: Usage occasion(regular, special occas), Benefits sought (freshness, quality, economy, good taste), User status (light, heavy user), Loyalty status, Readiness stage

Evaluate the market segmentsEvaluate the market segments

Choose the target marketsChoose the target markets

Distinguish market coverage strategyDistinguish market coverage strategy——differentiated vs. undifferentiated differentiated vs. undifferentiated marketing or concentrated marketingmarketing or concentrated marketing

The act of designing the company’s product image and value offer so that the segment’s customers understand and appreciate in his mind what the company or product stands for in relation to competitors.

You position the product in the mind of the prospect.

In positioning, what is most important is how the brand is ranked in your customer’s mind against your competition.

4. Budgeting

Sales Budgets P&L Operating expenses, selling, admin Marketing and Advertising budgets Manufacturing budgets, volumes, capacity

utilization, costs and margins Contribution margins

MARKETING CONTROLS PERFORMANCE MEASURES MARKET RESEARCH FEEDBACK SYSTEMS BUDGETS CONTINGENCY PLANS

ORGANIZING MARKETING Marketing Planning Sales Organization Distribution and Logistics Support Services-Advtg, Media, Creative,

Promotions, Events

5. Reformulation and RecoveryMarketing auditContingency planningAlternative strategies/ programsFeedback system

MARKETING PLAN1. Executive Summary2. Situation Analysis: industry, market, competition3. Marketing objectives4. Marketing Strategy and Programs

Target Market Key Mktg Strategy-positioning, differentiation Product, Price, Promotion, Place plans

5. Organization, Measurement, Review & Controls6. Marketing Budget7. Appendixes