marketing for entrepreneurs 2

8/12/2019 Marketing for Entrepreneurs 2

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“Marketing Theory for EngineeringEntrepreneurs - II”

Gamini Nanda GunawardanaB.Sc.Eng.(Hon.); M.B.A.; C.Eng.; M.I.E.(SL); M.C.S.(SL);M.I.D.P.M.(UK); F.I.A.P.(UK); M.B.C.S.(UK)

Director – Ceylinco [email protected]://groups.yahoo.com/group/gaminigunawardana



What is Marketing?Marketing is the social process by which

individuals and groups obtain what they needand want through creating and exchanging products and value with others. - Kotler.

Marketing is the management process that

identifies, anticipates and satisfies customerrequirements profitably. - The CharteredInstitute of Marketing.

Marketing is essentially about marshalling the

resources of an organization so that they meetthe changing needs of the customer on whomthe organization depends. - Palmer.



Stages in Organizational Planning

Corporate

StrategicPlan

Business Unit

Strategic

PlanStrategic

Marketing

PlanShort Term(Tactical )

Marketing Plan



The Corporate & MarketingStrategy Process

Price PromoBusiness Unit Analysis

Mission &Objectives

Strategy for Each SBU

SBU 1 SBU 2 SBU 3

Marketing Situation Analysis

Target Market Strategy

MarketingPositioning Strategy

Place Product

The Strategic Marketing PlanImplementation

Control and Evaluationof Performance



• Production Concept – Consumers willfavor products that are available and

affordable and the management shouldtherefore focus on improving productionand distribution efficiency.

• Product Concept – Consumers will favorproducts that offer the highest quality,performance and features and that theorganization should therefore devote itsenergy to making continuous productimprovements.

• Selling Concept– Consumers will not buyenough of the organizations products

unless it takes large scale selling nadpromotion effort.



Marketing Role

Market analysis– Target markets– Competition– Customers• Business planning – Defines objectives– Defines revenue & growthopportunities– Match core competenciesheld/needed– Defines whole product– Defining role within valuechain

– Implications• Internal and external

Market analysis– Target markets– Competition– CustomersBusiness planning

– Defines objectives– Defines revenue & growthopportunities– Match core competenciesheld/needed– Defines whole product

– Defining role within valuechain– Implications

Internal and external

Positioning– Company– ProductProduct and programmanagement– Value delivery

Evangelism, partnerships– Channel strategy

Direct, OEM, tiered– Launch planning and execution

Cross functional team leadership

Marketing communications– Collateral, packaging– Public awareness– Lead generation– Sales tools and training

Customer-centric & strategic Customer-centric & tactical



MARKETING STRATEGY PROCESS

SituationAnalysis

MarketingProgram

Development

(Tactics)

Implementingand Managing

MarketingStrategy Designing

MarketingStrategy

SettingObjectives



Analysis ofEnvironmental Factors

Identify Threats &Opportunities

Analysis of KeyCompetitors

Analysis of Firm’s

Resources andLimitations

Product-MarketAnalysis

Situation Assessment



Situation Analysis• Laws and regulations• Politics• The current state of technology• Economic conditions• Sociocultural aspects• Demand trends• Media availability• Stakeholder interests• Competitor - Marketing plans and campaigns• Internal factors such as your own experience and

resource availability



Macro Environment Factors



Analyzing Competition 1. Define Industry Structure & Characteristics

2. Identify &

Describe KeyCompetitors

5. Identify New

Competitors

3. Evaluate KeyCompetitors

PRODUCT- MARKETSTRUCTURE &

MARKET SEGMENTS

4. AnticipateActions byCompetitors



Extent ofMarket Coverage

CustomerSatisfaction

CurrentCapabilities

PastPerformance

CompetitorEvaluation

Evaluating Key Competitors



Forces Driving Competition

PotentialEntrants

Suppliers

Substitutes

Buyers

Bargaining Power of Suppliers Bargaining Power of Buyers

Threat of Substitute Products

Threat of New Entrants

Level ofIndustryRivalry



Set SMART Objectives• Specific - Be precise about what you are

going to achieve• Measurable - Quantify your objectives• Achievable - Are you attempting too

much?• Realistic - Do you have the resource tomake the objective happen (men, money,machines, materials, minutes)?

• Timed - State when you will achieve theobjective



Product-Market Life Cycle The “classic” product -market life cycle curve

is a good reflection of what happens toproduct markets

The key to this model is knowing where youare and adopting the appropriate strategy

Define the product-market at a meaningfullevel (at least: product in application, better:offering to fulfill needs of a segment)Use data to gain an objective view of current

position Develop appropriate strategy for thesituationA common fallacy is to believe that you can

change the course of the curve



Product - Market Life Cycle MARKET

INTRODUCTION

MARKET

GROWTH

MARKET

MATURITY

MARKET

SATURATION

MARKET

DECLINE

Total Industry Sales

Total Industry Profit



Market Life Cycle : How I know where I am MARKET

INTRODUCTION

MARKET

GROWTH

MARKET

MATURITY

MARKET

SATURATION

MARKET

DECLINE



CompetitorsNone to Few Few but

IncreasingSeveralto Many

Several Severalto Few

Product Differentiation

Very High High Diminishing Little Littleto None



Market Life Cycle -Strategic Options MARKET

INTRODUCTION

MARKET

GROWTH

MARKET

MATURITY

MARKET

SATURATION

MARKET

DECLINE



GROW GROW

Maintain

MAINTAIN MAINTAIN

Harvest

HARVEST

Exit



The BCG Matrix

?

Low

High

GROWT

H

RATE

MARKET SHARE

High Low



GE Planning Grid

Protect Position Invest to Build Build Selectively

Selectivity/Manage for

Earnings

LimitedExpansion or

Harvest

Protect andRefocus

Manage forEarnings DivestLow

High

Medium

MediumStrong Weak

Business Position

Strategies

Market Attractiveness

Build Selectively



Strategies

• Which segment ? How will we targ et thesegment? How should we position withinthe segment?

• Why this segment and not a differentone? (This will focus the mind).• Define the segment in terms of

demographics and lifestyle. Show how you intend to 'position' your product orservice within that segment.

http://www.marketingteacher.com/Lessons/lesson_segmentation.htm

http://www.marketingteacher.com/Lessons/lesson_positioning.htm


http://www.marketingteacher.com/Lessons/lesson_targeting.htm



http://www.marketingteacher.com/Lessons/lesson_targeting.htm

http://www.marketingteacher.com/Lessons/lesson_segmentation.htm



Development (Growth) Strategies

3. ProductDevelopment

Diversification(Related or Unrelatedto Core Business)

ExistingMarkets

New Markets

NewProducts

ExistingProducts

1 . MarketPenetration

2. MarketDevelopment



1. Cost LeadershipThe low cost leader in any

market gains competitiveadvantage from being ableto many to produce at thelowest cost. However, lowcost does not always leadto low price.

2. Differentiation

Differentiated goods andservices satisfy the needsof customers through asustainable competitiveadvantage.

3. Focus or Niche strategyWhere an organization can

afford neither a widescope cost leadership nor awide scope differentiationstrategy, a niche strategy

could be more suitable.



Marketing Tactics

• Convert the strat egy into the marketing mix (alsoknown as the 4Ps) . These are your marketing tactics.

• Price Will you cost plus, s kim, match the competitionor penetrate the market?

• Place Will you mar ket direct, use agents ordistributors, etc?• Product Sold individually, as part of a bundle, in bulk,

etc?• Promotion Which media will you use? e.g sponsorship,

radio advertising, sales force, point-of-sale, etc?Think of the mix elements as the ingredients of a'cake mix'.

http://www.marketingteacher.com/Lessons/lesson_marketing_mix.htm



http://www.marketingteacher.com/Lessons/lesson_pricing.htm

http://www.marketingteacher.com/Lessons/lesson_place.htm


http://www.marketingteacher.com/Lessons/lesson_plc.htm


http://www.marketingteacher.com/Lessons/lesson_promotion.htm















Elements of the Marketing Mix Marketing manager

ProductFeatures

Brand namePackagingServiceWarranty

PriceList price

DiscountsAllowancesCredit itemsPayment period

PlaceOutlets

ChannelsCoverageTransportationStock level

PromotionAdvertising

Personal sellingSalespromotionPublicity

Target CustomersIntended Positioning

Cohesive marketing mix

Promotion

Product Place

Price



Market Mix & Life Cycle MARKETINTRODUCTION

MARKET

GROWTH

MARKET

MATURITY

MARKET

SATURATION

MARKET

DECLINEProduct

One or Few

Various - lookfor best

productBuild brandfamiliarity

LittledifferentiationBattle of theBrands

No productdifferentiationOther ways todifferentiate?

Some dropout

Place

Build Value ChainsMaybe selective distribution

Consolidatechannels

Eliminate costs, find betterlow cost channels

Promotion Pioneering, InformingAwareness, Build brand

Informing & PersuadingBuild selective demandDifferentiate brand

Persuade &Remind

Price Skimming orPenetration

Value orPenetration

Add value orMeet competition

Price dealingand price cutting



Promotions• Personal Selling • Sales Promotion • Public Relations

• Direct Mail • Trade Fairs and

Exhibitions • Advertising • Sponsorship



Marketing research • Primary Research.

• 1. Interviews• 2. Mystery shopping• 3. Focus groups• 4. Projective

techniques• 5. Product tests• 6. Diaries

• Secondary Research :• Trade associations• National and local press• Industry magazines• Web sites• Informal contacts• Trade directories• Published company accounts• Business libraries• Professional institutes• Previously gathered marketing

research• Census data• Public records



Control

• Start-up costs• Monthly budgets

• Sales figure• Market share data• Consider the cycle of control



Corporate Image As A

Strategic Weapon• 5th “P” of Marketing:

• Perception Competitors can mimic a product, price,distribution strategy.

The one thing that competitors cannot copyis a well-defined corporate personality .

marketing for entrepreneurs 2

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