Marketing for Non-Marketers

Experience Inbound15th November, 2014

Nihal Hassan, MBA

Outlines

• Marketing Definition

• Strategic Marketing Planning• Situation Analysis

• External environmental forces “PESTL”

• Internal Forces “SWOT”

• Positioning & Differential Advantage

• Target Market

• Marketing Mix• Product

• Price

• Place

• Promotion

• Services’ Marketing Mix

• BCG Matrix

• ANSOFF Matrix

What is Marketing

YES No

Marketing is Planning

Marketing is Pricing

Marketing is Promoting

Marketing is Distributing

What is Marketing (Cont’d)

Marketing is a total system of business activities designed to plan, price,

promote and distribute WANT-SATISFYING products/services/ideas to

target market to achieve organizational objectives

Marketing is the process by which companies create value for customers

and build strong customer relationships in order to capture value from

customers in return. “Kotler”

Strategic Marketing Planning

• Conducting Situation Analysis

• Developing marketing objectives

• Segmenting the market

• Profile the market segments

• Positioning

• Marketing Mix

Situation Analysis

• Situation Analysis covers External environmental forces

“PESTL” as well as Internal Forces “SWOT”.

• Situation Analysis is a critical task as it includes numerous

subjective as well as objective judgments.

• SWOT Analysis is the most Famous assessment Framework.

External environmental forces “PESTL”

• Economic

• GDP trends

• Interest rates

• Money supply

• Inflation rates

• Unemployment levels

• Wage/price controls

• Devaluation/revaluation

• Energy availability and

cost

• Disposable and

discretionary income

• Technological

• Total government

spending for R&D

• Total industry

spending for R&D

• Focus of

technological efforts

• Patent protection

• New products

• New developments in

technology transfer

from lab to

marketplace

• Productivity

improvements through

automation

• Political-Legal

• Antitrust regulations

• Environmental

protection laws

• Tax laws

• Special incentives

• Foreign trade

regulations

• Attitudes toward

foreign companies

• Laws on hiring and

promotion

• Stability of

government

• Socio-cultural

• Lifestyle changes

• Career expectations

• Consumer activism

• Rate of family

formation

• Growth rate of

population

• Age distribution of

population

• Regional shifts in

population

• Life expectancies

• Birth rates

Internal Forces “SWOT”

StrengthsYour specialist

marketing expertise

A new, innovative product or

service

WeaknessLack of

marketing expertise

Poor quality goods or services

OpportunitiesA developing

market such as the Internet

A market vacated by an

ineffective competitor

Threats

A new competitor in

your home market

Taxation is introduced on

your product or service

Marketing Objectives

The objective is the starting point of the marketing

plan.

Objectives should seek to answer the question

'Where do we want to go?'. The purposes of

objectives include:

• To enable a company to control its marketing plan.

• To help to motivate individuals and teams to reach a

common goal.

• To provide an agreed, consistent focus for all functions of anorganization.

Positioning & Differential Advantage

• Positioning is all about “perception”

• Positioning: Refers to a product’s image in relation to directly

competitive products as well as other products marketed by

the same company.

• Differential Value: Refers to any feature of an organization or

brand perceived by customer to be desirable and different

from those of the competition.

Defining Target Market

Target Market: Refers to a group of people or organizations

at which a firm directs a marketing program through knowing:

◦ Demographics

◦ Geographic

◦ Socioeconomic

◦ Psychographics

Defining Target Market – Cont’d

Marketing MixThe marketing mix is probably the most famous marketing

term. Also known as the Four P's, the marketing mix

elements are:

Marketing Mix

Product

Price

Place

Promotion

Marketing Mix – Cont’d

Marketer Perception

Four Ps

Product

Price

Place

Promotion

Customer Perception

Four Cs

Customer solution

Customer cost

Convenience

Communication

Marketing Mix – Cont’d

Marketing Mix - Product

Marketing Mix – Product – Cont’d

1) Introduction.

The product is promoted to create awareness.

The product has no or few competitors, & a skimmingprice strategy is employed.

Limited numbers of product are available in few channelsof distribution.

2) Growth.

Competitors are attracted into the market with verysimilar offerings.

Products become more profitable.

Advertising spend is high and focuses upon building brand.

Market share tends to be stabilized.

Marketing Mix – Product – Cont’d

3) Maturity

• Producers attempt to differentiate products and brands arekey to this.

• Price wars and intense competition occur.

• Producers begin to leave the market due to poor margins.

• Promotion becomes more widespread and use a greatervariety of media.

4) Decline

• Declining happens either because more innovativeproducts are introduced or consumer tastes have changed.

• There is intense price-cutting and many more products arewithdrawn from the market

Marketing Mix - Price

Promotional Pricing

Promotional pricing including approaches such as BOGOF (Buy One Get One Free).

Value Pricing

Is used where external factors such as recession exists

Economy Pricing

The cost of marketing and manufacture are kept at a minimum

Penetration Pricing

Price is set artificially low in order to gain market share. Once this is achieved, the price is increased

Premium Pricing

High price where there is a uniqueness about the product Used for luxuries Products/Services

Marketing Mix - Place

“A channel of distribution comprises a set of institutions which perform all of

the activities utilized to move a product and its title from production to

consumption” Bucklin -Theory of Distribution Channel Structure (1966)

• Sold through every available outlets.Intensive

• Sold through multiple but not all possible outletsSelective

• Sold through one single outlet Exclusive

• Sold only through the company’s outletsDirect

• Sold through direct and/or indirect channels Indirect

Marketing Mix - Promotion

What does Promotion mean?

Advertising

Sales Promotion

NO

NO

Marketing Mix - Promotion (Cont’d)

• The elements of the promotions mix are:

Personal Selling

Sales Promotion

Public Relations

Direct Marketing

Internet and Interactive Marketing

Advertising

Personal Selling

• Personal Selling is an effective way to manage personalcustomer relationships.

• sales people are very expensive and should only be usedwhere there is a genuine return on investment.

• The sales person acts on behalf of the organization

Sales Promotion

• Sales promotion tend to be thought of as being allpromotions apart from advertising.

• BOGOF promotion, or Buy One Get One Free. Othersinclude couponing, money-off promotions, freeaccessories.

• Sales promotion is generally broken into two majorcategories:

• Consumer-oriented activities.

• Trade-oriented activities.

Public Relations (PR)

• Public Relations is defined as 'the deliberate, planned andsustained effort to establish and maintain mutualunderstanding between an organization and its publics'

• Public relations uses publicity and a variety of other tools-including:

• Special publications

• Participation in community activities

• Fund-raising

• Sponsorship of special events

• Various public affairs activities-to enhance an organization'simage.

Direct Marketing

• In Direct marketing organizations communicate directlywith target customers to generate a response and/or atransaction.

• Direct marketing is much more than direct mail and mail-order catalogs.

Advertising

Advertising is a 'paid for' communication.

It is used to develop attitudes, create awareness, andtransmit information in order to gain a response from thetarget market.

There are many advertising 'media' such as newspapers(local, national, free, trade), magazines and journals,television (local, national, terrestrial, satellite) cinema,outdoor advertising (such as posters, bus sides).

Internet and Interactive Marketing

• Interactive media allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time.

• The new media allow users to perform a variety of functions such as:

• Receive and alter information and images.

• Make inquiries.

• Respond to questions.

• Make purchases

Selecting Promotion Activities

• Selection of promotional activities is based on five elements

• Nature of Product or Services

• Competition

• Budget: Power to spend

• Market Condition: Recession / Active market

• Product Stage: status of product on the PLC

Services’ Marketing Mix

Product

Price

Place

Promotion

• Additional elements for the services Marketing Mix

Process

Physical evidence

people

BCG Matrix

ANSOFF Matrix

Thank You