Marketing Management

March 2015

Marketing
03 October 2015
By
Jennifer H Smith
Marketing Mattersmm

The Four Ps of the Marketing Mix

Marketing-Mix Strategy

Company Orientations towards the

marketplace

Productio
n
concept

Product
concept

Selling
concept

Marketin
g
concept

Societal
concept

Holistic
marketin
g

Trends in Marketing Practices

Social Networks

Online Communities
and Forums

Deregulation

Market Fragmentation
Consumer
Empowerment

Environmental
Concerns

Business Strategic-Planning Process

Factors
Influencing
Company
Marketing
Strategy

Product Portfolio Analysis

SWOT

Strategic planning and

analysis
3. Industry analysis
a.

PESTLE analysis

b.

Industry attractiveness
Porters 5 Forces

Competitive Strategies
Market leader

Market challenger

Market nichers

Market follower

13

Marketing
Information
System

Developing Marketing Information

Marketing research is the systematic design, collection, analysis,
and reporting of data relevant to a specific marketing situation facing
an organization
Consists of 4 steps:

Creating value, satisfaction & loyalty

Factors Affecting Consumer Behaviour

The Buyer Decision Process

Consumer
processes
information to
arrive at brand
choices

Consumer buys
the most
preferred brand
due to attitudes
of others or
Unexpected
situational
factors

Satisfaction or
dissatisfaction
due to
consumers
expectations
and products
perceived
performance.
Customer
satisfaction is a
key to building
profitable
relationships
with consumers

Market Segmentation
Requirements for Effective Segmentation

To be useful, market segments must be:

Measurable

Accessible

Substantial

Actionable

Differentiable

Market Segmentation
Market segmentation is the division
of a market into distinct groups of
buyers who have distinct needs,
characteristics, or behaviour and
who might require separate
products or marketing mixes

Market segment is a group of

consumers who respond in a similar
way to a given set of marketing
efforts

Geographic
segmentation

Demographic
segmentation

Behavioral
segmentation

Psychographic
segmentation

Market Targeting

20

Differentiation and Positioning

Product position is the way the product is defined by consumers on
important attributes the place the product occupies in consumers minds
relative to competing products

Perceptions
Impressions
Feelings

Differentiation and Positioning

Choosing a Differentiation and Positioning Strategy
Identifying a set of possible competitive advantages to build a
position by providing superior value from:

Product differentiation
Service differentiation
Channel differentiation
People differentiation
Image differentiation

Branding
Brand represents the consumers perceptions and feelings about a
product and its performance.

It is the companys promise to deliver a specific set of features,

benefits, services, and experiences consistently to the buyers

Brand
Relationship
Spectrum

Branding Strategy: Building Strong Brands

Brand Development Strategies

Line and Brand Extension defined

Brand Extension expands meaning

What Is a Product?
Product is anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want
Product features are a competitive tool for differentiating a product from
competitors products

Product Life-Cycle Strategies

Product development
Sales are zero and investment costs mount
Introduction
Slow sales growth and profits are nonexistent
Growth
Rapid market acceptance and increasing profits.
Maturity
Slowdown in sales growth and profits level off or decline
Decline
Sales fall off and profits drop

New-Product Decision Process

Service Characteristics
Intangibility

Variability

Perishability

Empty seats

Inseparability

Designing and managing services

Word-of-mouth
communication

Personal needs

Past experience

Expected service
Gap 5

Perceived service

CUSTOMER

PROVIDER

Gap 4

Service delivery
Gap 3

Service quality
specifications

Gap 1
Gap 2

Management perceptions
of customer expectations

External
communications
to customers

Nine Price-Quality Strategies

Setting
Pricing Policy

Integrated Marketing Channels

Channel design is a strategic marketing tool

Four decisions can help a firm design a distribution

channel:
Determine the role distribution will play in achieving its
objectives;
Determine the type of channel needed and if
intermediaries will be needed or not;
Determine the intensity of distribution;
Determine the specific intermediaries which will be used.

Integrated Marketing Channels:

Selecting the Type of Channel

Types of Retailers
Self-Service

Limited Service

Full Service
Self-Selection

Types of Wholesalers
Merchant
wholesalers

Take title to merchandise; Full-service and

limited-service jobbers and distributors

Full-service
wholesalers

Carry stock, maintain a sales force, offer

credit, make deliveries, and provide
management assistance.

Limited line of fast-moving goods. Truck

Limited-service
wholesalers, drop shippers, rack jobbers,
wholesalers
mail-order wholesalers

Brokers and
agents

Facilitate buying and selling; earn 2% - 6%

commission on selling price.

Specialized
wholesalers

Agricultural assemblers, petroleum bulk

plants, and actions companies.

Wholesaler Functions
Selling and Promoting

Warehousing

Buying and
assortment building

Bulk breaking

Wholesaler Functions
Market information

Transportation

Management Services

Risk bearing

Financing

Market-Logistics Objectives

42

Integrated Logistics Systems

Transportation Modes

Tradeoffs

Market-Logistics Decisions
Order Processing

Warehouse Locations

Inventory Levels

Transportation Mode

Marketing Communications Mix

Word-of-Mouth

Advertising
Events and Experiences

Public Relations
and Publicity

Direct and Interactive

Marketing

Sales Promotion
Sales Force

Alternate Advertising Media

45

Public Spaces

Product Placement

Billboards
Point of Purchase

Steps in Developing Effective Communications

Identify target
audience

Determine
objectives

Design
communications

Decide on
media mix

Establish budget

Select channels

Measure results

Manage IMC

Designing the Sales Force

48

Deliverer
Demand
Creator
Solution Vendor

Missionary

Technician

Order Taker

Holistic marketing
is the idea that everything matters with marketing.