1、Manage the Marketing Process,Fangxian Zhang13719350566,Definitions of marketing,Marketing is the management process that identifies, anticipates and satisfies customer requirements profitablyThe Chartered Institute of Marketing,The right product, in the right place, at the right time, and at the rig
2、ht price dcock et al,Marketing is the human activity directed at satisfying human needs and wants through an exchange process Kotler 1980,Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of
3、value with others Kotler 1991,Implications of marketing,Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs? Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitiv
4、e product of service? Why should customers buy from us?,The marketing concept,choosing and targeting appropriate customers positioning your offering interacting with those customers controlling the marketing effort continuity of performance,Successful marketing requires:,Profitable Offensive (rather
5、 than defensive) Integrated Strategic (is future orientated) Effective (gets results) Hugh Davidson 1972,Marketing management process,Analysis/Audit - where are we now? Objectives - where do we want to be? Strategies - which way is best? Tactics - how do we get there? (Implementation - Getting there
6、!) Control - Ensuring arrival,Why is marketing planning necessary?,Systematic futuristic thinking by management better co-ordination of a companys efforts development of performance standards for control sharpening of objectives and policies better prepare for sudden developments,Why is marketing pl
7、anning necessary?,Systematic futuristic thinking by management better co-ordination of company efforts development of better performance standards for control sharpening of objectives and policies better prepare for sudden new developments managers have a vivid sense of participation,Criticisms of m
8、arketing planning,Formal plans can be quickly overtaken by events Elements of the plan my be kept secret for no reason gulf between senior managers and implementing managers the plan needs a sub-scheme of actions,Objectives of the marketing plan,Acts as a roadmap assist in management control and mon
9、itoring the implementation of strategy informs new participants in the plan of their role and function to obtain resources for implementation to stimulate thinking and make better use of resources,Assignment of responsibilities, tasks and timing Awareness of problems, opportunities and threats Essen
10、tial marketing information may have been missing if implementation is not carefully controlled by managers, the plan is worthless!,The contents and structure of the marketing plan,The executive summary table of contents situational analysis and target market marketing objectives marketing strategies
11、 marketing tactics schedules and budgets financial data and control,Cautionary notes for effective planning,Dont blindly rely on mathematical and statistical calculations. Use your judgement as well Dont ever assume that past trends can be exploited into the future forever if drawing conclusions fro
12、m statistical data, make sure the sample size is sufficiently large,Behavioural planning problems,Planning recalcitrance: resistance and non-co-operation by managers in planning fear of uncertainty in planning: a lack of comfort in planning activities political interests in planning activities:resou
13、rce bargaining, padding of requirements, and avoidance of consensus planning avoidance: compliance rather than commitment to planning,Standard Planning Framework,Analysis - where are we now? Objectives - where do we want to be? Strategies - which way is best? Tactics - how do we ensure arrival? Cont
14、rol - are we on the right track?,Marketing Information Systems,Marketing Research What is Marketing Research? Process Terminology Techniques MKIS - Marketing Information Systems What is MKIS Components of an electronic MKIS,Marketing Research,the systematic gathering, recording and analysing of data
15、 about problems relating to the marketing of goods and servicesAmerican Marketing Association,The Marketing Research Process,Set objectives Define research Problem Assess the value of the research Construct a research proposal Specify data collection method Specify techniques of measurement Select t
16、he sample Data collection Analysis of results Present in a final report,Terminology of Marketing Research,Primary data - collected firsthand Secondary data - already exists, desk research Quantitative research - statistical basis Qualitative research - subjective and personal sampling - studying par
17、t of a population to learn about the whole,Marketing Research Techniques,Interviews face-to-face telephone postal questionnaire Attitude measurement cognitive component (know/believe about an act/object) affective component (feel about an act/object) conative component (behave towards an object or a
18、ct),Likert scale strongly agree agree neither agree nor disagree disagree strongly disagree Semantic differential scales - differences between words e.g. practical v impractical Projective techniques sentence completion psychodrama (yourself as a product) friendly martian (what someone else might do
19、),Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous data In-home scanning - hand-held light pen to scan barcodes Telephone research Observation home audit direct observation In-store testing,What is MKIS?,MKIS (MIS) is a set of procedures and method
20、s for the regular, planned collection, analysis and presentation of information for use in marketing decisionsAmerican Marketing Association,The components of a computerised MKIS,ModelBank,Data Bank,Statistical Bank,MKIS,Displayunit,Marketing Manager,The components of a computerised MKIS,Data bank -
21、 raw data e.g historical sales data, secondary data Statistical bank - programmes to carry-out sales forecasts, spending projections A model bank - stores marketing models e.g Ansoffs matrix, Boston Matrix Display unit - VDU and keyboard,The Marketing Environment and Competitor Analysis,SWOT analysi
22、s PEST analysis Five forces analysis,SWOT analysis,Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external),PEST analysis,Political factors Economic factors Socio-cultural factors Technological factors,Political/legal,Monopolies legislation Environmental protection laws
23、 Taxation policy Employment laws Government policy Legislation Others?,Economic Factors,Inflation Employment Disposable income Business cycles Energy availability and cost Others?,Sociocultural factors,Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of educat
24、ion Others?,Technological,New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Others?,Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1981 04,Threat of substitutes,Potential entrants,Threat of entrants,Suppliers,Barg
25、ainingpower,Substitutes,Buyers,Bargainingpower,COMPETITIVERIVALRY,Five forces analysis,Five Forces Analysis: Key Questions and Implications,What are the key forces at work in the competitive environment? Are there underlying forces driving competitive forces? Will competitive forces change? What are
26、 the strengths and weaknesses of competitors in relation to the competitive forces? Can competitive strategy influence competitive forces (eg by building barriers to entry or reducing competitive rivalry)?,Buyer Behaviour,Dominant Family Purchase - Cozenza 1985 Demographic Factors The Consumer Buyin
27、g Process Maslows hierarchy of needs UK socioeconomic classification scheme Types of buyer behaviour The Buying Decision Process Organisational Buyer Behaviour,Dominant Family Purchase - Cozenza 1985,Demographic Factors,Age Stage in family life cycle Occupation Economic circumstances Lifestyle socia
28、l influence variables family background reference groups roles and status,The Consumer Buying Process,Consumer,Purchase Decisions Product Choice Location Choice Brand Choice Other Choices,Psychological Inputs Culture Attitude Learning Perception,Based on Cohen (1991),Marketing Inputs Product Price P
29、romotion Place,Maslows Hierarchy of Needs,Physiological,Safety,Social,Esteem,Self Actualisation,UK socioeconomic classification scheme,Types of buyer behaviour,Complex buyer behaviour e.g. Intel Pentium Processor Dissonance-reducing behaviour (brand reduces after-sales discomfort) Habitual buying be
30、haviour e.g. salt - little difference variety seeking behaviour - significant brand differences e.g soap powder,The Buying Decision Process,recognition of the need e.g a new PC choice of involvement level (time and effort justified) e.g. two week ends identification of alternatives e.g. Dell, PC Wor
31、ld evaluation of alternatives I.e. price, customer service, software support, printer/scanner package decision - choice made e.g Epsom action e.g buy Epsom model from Comet post-purchase behaviour I.e. use, breakdowns, etc,Organisational Buyer Behaviour,The decision-making process by which formal or
32、ganisations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliersKotler and Armstrong 1989,Characteristics of organisational buyer behaviour,Organisation purpose - Goodyear Tyres Derived demand - follows cars and lorries Con
33、centrated purchasing - stockholdings of rubber Direct dealings - large purchaser of basic rubber - no intermediaries Specialist activities - learns about the product Multiple purchase influences - DMU - Decision making unit,Strategic Development,Product Life Cycle (Revisited in Product) Bowmans Comp
34、etitive Strategy Options New Product Development (NPD),Five stages of the PLC,Product development - sales are zero, investment costs are high Introduction - profits do not exist, heavy expense of product introduction Growth - rapid market acceptance and increasing profits Maturity - slowdown in sale
35、s growth. Profits level-off. Increase outlay to compete Decline - sales fall-off and profits drop,PLC exercise,The Ford Escort The Mini Cooper The Internet Phone Cadburys Fuse The Boeing 747 The Millennium Dome KIT KAT,Source: Based on the work of Cliff Bowman. See C.Bowman and D.Faulkner. Competiti
36、ve and Corporate Strategy, Irwin, 1996.,Bowmans Strategy Clock,1 Low price/low added value Likely to be segment specific2 Low price Risk of price war and lowmargins/need to be cost leader 3 Hybrid Low cost base and reinvestment inlow price and differentiation4 Differentiation(a) Without price premiu
37、m Perceived added value by user,yielding market share benefits(b) With price premium Perceived added value sufficient tobear price premium,The Strategy Clock: Bowmans Competitive Strategy Options,5 Focused differentiation Perceived added value to a particular segment, warranting price premium6 Incre
38、ased price/standardHigher margins if competitors do not value follow/risk of losing market share7 Increased price/low value Only feasible in monopoly situation8 Low value/standard priceLoss of market share,New- Product Development Process,New product strategy Idea generation Idea screening Concept d
39、evelopment and testing Marketing strategy Business analysis Product development Test Marketing Commercialisation,Products Decisions,Product and Service Classification System The Product Life Cycle Introduction to product matrices Boston Matrix (Growth/Share) Ansoffs Matrix (Product Market),Product a
40、nd Service Classification System,Convenience goods - little effort, relatively inexpensive Shopping goods - e.g white goods, DIY equipment, more expensive, infrequent Speciality goods - extensive search e.g Jewellery, gourmet food Unsought goods - e.g. double glazing,Industrial goods Installations -
41、 speciality goods of industrial markets - plant and machinery Accessories - maintenance and office equipment Raw materials components Business to business e.g. consultants, accountants,Few:,Few:,trial of,trial of,early,early,adopters,adopters,Growing adopters:,Growing adopters:,trial of,trial of,pro
42、duct/service,product/service,Entry of,Entry of,competitors,competitors,Growing selectivity,Growing selectivity,of purchase,of purchase,May be many,May be many,Saturation of,Saturation of,users,users,Repeat purchase,Repeat purchase,reliance,reliance,Fight to maintain,Fight to maintain,share,share,Dro
43、p-off,Drop-off,in usage,in usage,Exit of some,Exit of some,competitors,competitors,Development,Development,Growth,Growth,Maturity,Maturity,Decline,Decline,The life product cycle model,Market Share,Market Growth,High,Low,High,Low,1. Stars,3. Question Mark (Problem Child),2. Cash Cows,4. Dogs,The Bost
44、on Matrix (Growth/Share Matrix),Market Share,Market Growth,High,Low,High,Low,FUSE,Maverick Miniature Heroes,KIT KAT MARS BAR,TOPIC BOUNTY,The Boston Matrix - Chocolate Bars,Diversification,Market Penetration,Market Development,Product Development,Existing Markets,New Markets,Existing Products,New Pr
45、oducts,Ansoffs Matrix (Product/Market Matrix),Diversification - related or unrelated,E.g. Realignments of the marketing mix,E.g. Geographical expansion,Same outlets and sales strategy - new product,Existing Markets,New Markets,Existing Products,New Products,Ansoffs Matrix (Product/Market Matrix),Pro
46、ducts Decisions,Product and Service Classification System? The Product Life Cycle stages? Growth/Share? Product Market?,Pricing Decisions,Pricing strategies Pricing exercise Ten ways to increase prices without increasing price - Winkler,Low,High,Low,High,Economy Strategy e.g. Tesco spaghetti,Penetra
47、tion e.g. Telewest cable phones,Skimming e.g. New film or album,Premium e.g. BA first class,Price,Quality,Pricing strategies,Premium pricing Uses a high price, but gives a good product/service exchange e.g. Concorde, The Ritz Hotel Penetration pricing offers low price to gain market share - then inc
48、reases price e.g. France Telecom - to attract new corporate clients (or Telewest cable) Economy pricing placed at no frills, low price e.g. Soups, spaghetti, beans - economy brands,Price skimming where prices are high - usually during introduction e.g new albums or films on release ultimately prices
49、 will reduce to the parity Psychological pricing to get a customer to respond on an emotional, rather than rational basis .e.g 99p not 1.01 price point perspective Product line pricing rationale of a product range e.g. MARS 32p, Four-pack 99p, Bite-size 1.29 Pricing variationsoff-peak pricing, early
50、 booking discounts,etc e.g Grundig offers a cash back incentive for expensive goods,Optional product-pricing e.g. optional extras - BMW famously under-equipped Captive product pricing products that complement others e.g Gillette razors (low price) and blades (high price) Product-bundle pricing sellers combine several products at the same price e.g software, books, CDs. Promotional pricing BOGOF e.g. toothpaste, soups, etc,
