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ManagetheMarketingProcess

FangxianZhanefinitionsofmarketing‘Marketingisthemanagementprocessthatidentifies,anticipatesandsatisfiescustomerrequirementsprofitably’TheCharteredInstituteofMarketing‘Therightproduct,intherightplace,attherighttime,andattherightprice’

dcocketal

‘Marketingisthehumanactivitydirectedatsatisfyinghumanneedsandwantsthroughanexchangeprocess’

Kotler1980

‘Marketingisasocialandmanagerialprocessbywhichindividualsandgroupsobtainwhattheywantandneedthroughcreating,offeringandexchangingproductsofvaluewithothers’

Kotler1991

ImplicationsofmarketingWhoareourexisting/potentialcustomers?Whataretheircurrent/futureneeds?Howcanwesatisfytheseneeds?Canweofferaproduct/servicethatthecustomerwouldvalue?Canwecommunicatewithourcustomers?Canwedeliveracompetitiveproductofservice?Whyshouldcustomersbuyfromus?ThemarketingconceptchoosingandtargetingappropriatecustomerspositioningyourofferinginteractingwiththosecustomerscontrollingthemarketingeffortcontinuityofperformanceSuccessfulmarketingrequires:ProfitableOffensive(ratherthandefensive)IntegratedStrategic(isfutureorientated)Effective(getsresults) HughDavidson1972MarketingmanagementprocessAnalysis/Audit-wherearewenow?Objectives-wheredowewanttobe?Strategies-whichwayisbest?Tactics-howdowegetthere?(Implementation-Gettingthere!)Control-EnsuringarrivalWhyismarketingplanningnecessary?Systematicfuturisticthinkingbymanagementbetterco-ordinationofacompany’seffortsdevelopmentofperformancestandardsforcontrolsharpeningofobjectivesandpoliciesbetterprepareforsuddendevelopmentsWhyismarketingplanningnecessary?Systematicfuturisticthinkingbymanagementbetterco-ordinationofcompanyeffortsdevelopmentofbetterperformancestandardsforcontrolsharpeningofobjectivesandpoliciesbetterprepareforsuddennewdevelopmentsmanagershaveavividsenseofparticipation2022/11/25CriticismsofmarketingplanningFormalplanscanbequicklyovertakenbyeventsElementsoftheplanmybekeptsecretfornoreasongulfbetweenseniormanagersandimplementingmanagerstheplanneedsasub-schemeofactionsObjectivesofthemarketingplanActsasaroadmapassistinmanagementcontrolandmonitoringtheimplementationofstrategyinformsnewparticipantsintheplanoftheirroleandfunctiontoobtainresourcesforimplementationtostimulatethinkingandmakebetteruseofresourcesAssignmentofresponsibilities,tasksandtimingAwarenessofproblems,opportunitiesandthreatsEssentialmarketinginformationmayhavebeenmissingifimplementationisnotcarefullycontrolledbymanagers,theplanisworthless!ThecontentsandstructureofthemarketingplanTheexecutivesummarytableofcontentssituationalanalysisandtargetmarketmarketingobjectivesmarketingstrategiesmarketingtacticsschedulesandbudgetsfinancialdataandcontrolCautionarynotesforeffectiveplanningDon’tblindlyrelyonmathematicalandstatisticalcalculations.UseyourjudgementaswellDon’teverassumethatpasttrendscanbeexploitedintothefutureforeverifdrawingconclusionsfromstatisticaldata,makesurethesamplesizeissufficientlylargeBehaviouralplanningproblemsPlanningrecalcitrance:resistanceandnon-co-operationbymanagersinplanningfearofuncertaintyinplanning:alackofcomfortinplanningactivitiespoliticalinterestsinplanningactivities:resourcebargaining,paddingofrequirements,andavoidanceofconsensusplanningavoidance:complianceratherthancommitmenttoplanningStandardPlanningFrameworkAnalysis-wherearewenow?Objectives-wheredowewanttobe?Strategies-whichwayisbest?Tactics-howdoweensurearrival?Control-areweontherighttrack?MarketingInformationSystemsMarketingResearchWhatisMarketingResearch?ProcessTerminologyTechniquesMKIS-MarketingInformationSystemsWhatisMKISComponentsofanelectronicMKISMarketingResearch‘thesystematicgathering,recordingandanalysingofdataaboutproblemsrelatingtothemarketingofgoodsandservices’AmericanMarketingAssociationTheMarketingResearchProcessSetobjectivesDefineresearchProblemAssessthevalueoftheresearchConstructaresearchproposalSpecifydatacollectionmethodSpecifytechniquesofmeasurementSelectthesampleDatacollectionAnalysisofresultsPresentinafinalreportTerminologyofMarketingResearchPrimarydata-collectedfirsthandSecondarydata-alreadyexists,deskresearchQuantitativeresearch-statisticalbasisQualitativeresearch-subjectiveandpersonalsampling-studyingpartofa‘population’tolearnaboutthewholeMarketingResearchTechniquesInterviewsface-to-facetelephonepostalquestionnaireAttitudemeasurementcognitivecomponent(know/believeaboutanact/object)affectivecomponent(feelaboutanact/object)conativecomponent(behavetowardsanobjectoract)LikertscalestronglyagreeagreeneitheragreenordisagreedisagreestronglydisagreeSemanticdifferentialscales-differencesbetweenwordse.g.practicalvimpracticalProjectivetechniquessentencecompletionpsychodrama(yourselfasaproduct)friendlymartian(whatsomeoneelsemightdo)GroupdiscussionandfocusgroupPostalresearchquestionnairesDiarypanels-sourcesofcontinuousdataIn-homescanning-hand-heldlightpentoscanbarcodesTelephoneresearchObservationhomeauditdirectobservationIn-storetestingWhatisMKIS?‘MKIS(MIS)isasetofproceduresandmethodsfortheregular,plannedcollection,analysisandpresentationofinformationforuseinmarketingdecisions’AmericanMarketingAssociationThecomponentsofacomputerisedMKISModelBankDataBankStatisticalBankMKISDisplayunitMarketingManagerThecomponentsofacomputerisedMKISDatabank-rawdatae.ghistoricalsalesdata,secondarydataStatisticalbank-programmestocarry-outsalesforecasts,spendingprojectionsAmodelbank-storesmarketingmodelse.gAnsoff’smatrix,BostonMatrixDisplayunit-VDUandkeyboardTheMarketingEnvironmentandCompetitorAnalysisSWOTanalysisPESTanalysisFiveforcesanalysisSWOTanalysisStrengths(internal)Weaknesses(internal)Opportunities(external)Threats(external)PESTanalysisPoliticalfactorsEconomicfactorsSocio-culturalfactorsTechnologicalfactorsPolitical/legalMonopolieslegislationEnvironmentalprotectionlawsTaxationpolicyEmploymentlawsGovernmentpolicyLegislationOthers?EconomicFactorsInflationEmploymentDisposableincomeBusinesscyclesEnergyavailabilityandcostOthers?SocioculturalfactorsDemographicsDistributionofincomeSocialmobilityLifestylechangesConsumerismLevelsofeducationOthers?TechnologicalNewdiscoveriesandinnovationsSpeedoftechnologytransferRatesofobsolescenceInternetInformationtechnologyOthers?Source:AdaptedfromM.E.Porter,CompetitiveStrategy,FreePress,198104ThreatofsubstitutesPotentialentrantsThreatofentrantsSuppliersBargainingpowerSubstitutesBuyersBargainingpowerCOMPETITIVERIVALRYFiveforcesanalysisFiveForcesAnalysis:KeyQuestionsandImplicationsWhatarethekeyforcesatworkinthecompetitiveenvironment?Arethereunderlyingforcesdrivingcompetitiveforces?Willcompetitiveforceschange?Whatarethestrengthsandweaknessesofcompetitorsinrelationtothecompetitiveforces?Cancompetitivestrategyinfluencecompetitiveforces(egbybuildingbarrierstoentryorreducingcompetitiverivalry)?BuyerBehaviourDominantFamilyPurchase-Cozenza1985DemographicFactorsTheConsumerBuyingProcessMaslow’shierarchyofneedsUKsocioeconomicclassificationschemeTypesofbuyerbehaviourTheBuyingDecisionProcessOrganisationalBuyerBehaviourDominantFamilyPurchase-Cozenza1985DemographicFactorsAgeStageinfamilylifecycleOccupationEconomiccircumstancesLifestylesocialinfluencevariablesfamilybackgroundreferencegroupsrolesandstatusTheConsumerBuyingProcessConsumerPurchaseDecisionsProductChoiceLocationChoiceBrandChoiceOtherChoicesPsychologicalInputsCultureAttitudeLearningPerceptionBasedonCohen(1991)MarketingInputsProductPricePromotionPlaceMaslow’sHierarchyofNeedsPhysiologicalSafetySocialEsteemSelfActualisationUKsocioeconomicclassificationschemeTypesofbuyerbehaviourComplexbuyerbehavioure.g.IntelPentiumProcessorDissonance-reducingbehaviour(brandreducesafter-salesdiscomfort)Habitualbuyingbehavioure.g.salt-littledifferencevarietyseekingbehaviour-significantbranddifferencese.gsoappowderTheBuyingDecisionProcessrecognitionoftheneede.ganewPCchoiceofinvolvementlevel(timeandeffortjustified)e.g.twoweekendsidentificationofalternativese.g.Dell,PCWorldevaluationofalternativesI.e.price,customerservice,softwaresupport,printer/scannerpackagedecision-choicemadee.gEpsomactione.gbuyEpsommodelfromCometpost-purchasebehaviourI.e.use,breakdowns,etcOrganisationalBuyerBehaviour‘Thedecision-makingprocessbywhichformalorganisationsestablishtheneedforpurchasedproductsandservices,andidentify,evaluate,andchooseamongalternativebrandsandsuppliers’KotlerandArmstrong1989CharacteristicsoforganisationalbuyerbehaviourOrganisationpurpose-GoodyearTyresDeriveddemand-followscarsandlorriesConcentratedpurchasing-stockholdingsofrubberDirectdealings-largepurchaserofbasicrubber-nointermediariesSpecialistactivities-learnsabouttheproductMultiplepurchaseinfluences-DMU-DecisionmakingunitStrategicDevelopmentProductLifeCycle(Revisitedin‘Product’)Bowman’sCompetitiveStrategyOptionsNewProductDevelopment(NPD)FivestagesofthePLCProductdevelopment-salesarezero,investmentcostsarehighIntroduction-profitsdonotexist,heavyexpenseofproductintroductionGrowth-rapidmarketacceptanceandincreasingprofitsMaturity-slowdowninsalesgrowth.Profitslevel-off.IncreaseoutlaytocompeteDecline-salesfall-offandprofitsdropPLCexerciseTheFordEscortTheMiniCooperTheInternetPhoneCadbury’sFuseTheBoeing747TheMillenniumDomeKITKATSource:BasedontheworkofCliffBowman.SeeC.BowmanandD.Faulkner.CompetitiveandCorporateStrategy,Irwin,1996.Bowman’sStrategyClock1Lowprice/lowaddedvalue Likelytobesegmentspecific2Lowprice Riskofpricewarandlow margins/needtobecostleader 3Hybrid Lowcostbaseandreinvestmentin lowpriceanddifferentiation4Differentiation(a)Withoutpricepremium Perceivedaddedvaluebyuser, yieldingmarketsharebenefits(b)Withpricepremium Perceivedaddedvaluesufficientto bearpricepremiumTheStrategyClock:Bowman’sCompetitiveStrategyOptions

5Focuseddifferentiation Perceivedaddedvaluetoa particularsegment,warranting pricepremium6Increasedprice/standard Highermarginsifcompetitors donotvaluefollow/riskof losingmarketshare7Increasedprice/lowvalue Onlyfeasibleinmonopoly situation8Lowvalue/standardprice LossofmarketshareNew-ProductDevelopmentProcessNewproductstrategyIdeagenerationIdeascreeningConceptdevelopmentandtestingMarketingstrategyBusinessanalysisProductdevelopmentTestMarketingCommercialisationProductsDecisionsProductandServiceClassificationSystemTheProductLifeCycleIntroductiontoproductmatricesBostonMatrix(Growth/Share)Ansoff’sMatrix(ProductMarket)ProductandServiceClassificationSystemConveniencegoods-littleeffort,relativelyinexpensiveShoppinggoods-e.g‘whitegoods’,DIYequipment,moreexpensive,infrequentSpecialitygoods-extensivesearche.gJewellery,gourmetfoodUnsoughtgoods-e.g.doubleglazing,IndustrialgoodsInstallations-‘speciality’goodsofindustrialmarkets-plantandmachineryAccessories-maintenanceandofficeequipmentRawmaterialscomponentsBusinesstobusinesse.g.consultants,accountantsFew:Few:

trialof

trialof

early

earlyadoptersadoptersGrowingadopters:Growingadopters:

trialof

trialof

product/service

product/service

Entryof

EntryofcompetitorscompetitorsGrowingselectivityGrowingselectivity

ofpurchase

ofpurchaseMaybemanyMaybemanySaturationofSaturationof

users

usersRepeatpurchaseRepeatpurchase

reliance

relianceFighttomaintainFighttomaintain

share

shareDrop-offDrop-offinusageinusageExitofsomeExitofsomecompetitorscompetitorsDevelopmentDevelopmentGrowthGrowthMaturityMaturityDeclineDeclineThelifeproductcyclemodelMarketShareMarketGrowthHighLowHighLow1.Stars3.QuestionMark(ProblemChild)2.CashCows4.DogsTheBostonMatrix(Growth/ShareMatrix)MarketShareMarketGrowthHighLowHighLowFUSEMaverickMiniatureHeroesKITKATMARSBARTOPICBOUNTYTheBostonMatrix-ChocolateBarsDiversificationMarketPenetrationMarketDevelopmentProductDevelopmentExistingMarketsNewMarketsExistingProductsNewProductsAnsoff’sMatrix(Product/MarketMatrix)Diversification-relatedorunrelatedE.g.RealignmentsofthemarketingmixE.g.GeographicalexpansionSameoutletsandsalesstrategy-newproductExistingMarketsNewMarketsExistingProductsNewProductsAnsoff’sMatrix(Product/MarketMatrix)ProductsDecisionsProductandServiceClassificationSystem?TheProductLifeCyclestages?Growth/Share?ProductMarket?PricingDecisionsPricingstrategiesPricingexerciseTenwaysto‘increase’priceswithoutincreasingprice-WinklerLowHighLowHighEconomyStrategye.g.TescospaghettiPenetratione.g.TelewestcablephonesSkimminge.g.NewfilmoralbumPremiume.g.BAfirstclassPriceQualityPricingstrategiesPremiumpricingUsesahighprice,butgivesagoodproduct/serviceexchangee.g.Concorde,TheRitzHotelPenetrationpricingofferslowpricetogainmarketshare-thenincreasespricee.g.FranceTelecom-toattractnewcorporateclients(orTelewestcable)Economypricingplacedat‘nofrills’,lowpricee.g.Soups,spaghetti,beans-‘economy’brandsPriceskimmingwherepricesarehigh-usuallyduringintroductione.gnewalbumsorfilmsonreleaseultimatelypriceswillreducetothe‘parity’Psychologicalpricingtogetacustomertorespondonanemotional,ratherthanrationalbasis.e.g99pnot£1.01‘pricepointperspectiveProductlinepricingrationaleofaproductrangee.g.MARS32p,Four-pack99p,Bite-size£1.29Pricingvariations‘off-peak’pricing,earlybookingdiscounts,etce.gGrundigoffersa‘cashback’incentiveforexpensivegoodsOptionalproduct-pricinge.g.optionalextras-BMWfamouslyunder-equippedCaptiveproductpricingproductsthatcomplementotherse.gGilletterazors(lowprice)andblades(highprice)Product-bundlepricingsellerscombineseveralproductsatthesamepricee.gsoftware,books,CDs.PromotionalpricingBOGOFe.g.toothpaste,soups,etcGeographicalpricingdifferentpricesforcustomersindifferentpartsoftheworlde.g.Includeshippingcosts,orplaceonPLCValuepricingusuallyduringdifficulteconomicconditionse.g.ValuemenusatMcDonaldsTenwaysto‘increase’priceswithoutincreasingprice-WinklerRevisethediscountstructureChangetheminimumordersizeChargefordeliveryandspecialservicesInvoiceforrepairsonservicedequipmentChargeforengineering,installationChargeforovertimeonrushedordersCollectinterestonoverdueaccountsProducelessofthelowermarginmodelsinthelineWritepenaltyclausesintocontractsChangethephysicalcharacteristicsoftheproductChannelandDistributionTacticsBucklin’sdefinitionofdistributionToday’ssystemofexchangeChannelintermediariesSixbasicchanneldecisionsSelectionconsiderationPotentialInfluenceStrategies-FrazierandSheth(1989)Frequenciesofuseofinfluencestrategies-FrazierandSummers(1984)AchannelofdistributioncomprisesasetofinstitutionswhichperformalloftheactivitiesutilisedtomoveaproductanditstitlefromproductiontoconsumptionBucklin-TheoryofDistributionChannelStructure(1966)NegotiationPromotionContactTransportingandstoringFinancingPackagingMoneyGoodsToday’ssystemofexchangeProducersUsersChannelintermediaries-WholesalersBreakdown‘bulk’buysfromproducersandsellsmallquantitiestoretailersProvidesstoragefacilitiesreducescontactcostbetweenproducerandconsumerWholesalertakessomeofthemarketingresponsibilitye.gsalesforce,promotions

Channelintermediaries-AgentsMainlyusedininternationalmarketsCommissionagent-doesnottaketitleofthegoods.Securesorders.Stockistagent-hold‘consignment’stockControlisdifficultduetoculturaldifferencesTraining,motivation,etcareexpensiveChannelintermediaries-RetailerMuchstrongerpersonalrelationshipwiththeconsumerHoldavarietyofproductsOfferconsumerscreditPromoteandmerchandiseproductsPricethefinalproductBuildretailer‘brand’inthehighstreetChannelintermediaries-InternetSelltoageographicallydispersemarketAbletotargetandfocusonspecificsegmentsRelativelylowset-upcostsUseofe-commercetechnology(forpayment,shoppingsoftware,etc)ParadigmshiftincommerceandconsumptionSixbasicchanneldecisionsDirectorindirectchannelsSingleormultiplechannelsLengthofchannelTypesofintermediariesNumberofintermediariesateachlevelWhichintermediaries?AvoidintrachannelconflictSelectionconsiderationMarketsegment-mustknowthespecificsegmentandtargetcustomerChangesduringplc-differentchannelsareexploitedatvariousstagesofplcProducer-distributorfit-theirpolicies,strategiesandimageQualificationassessment-experienceandtrackrecordmustbeestablishedDistributortrainingandsupportPotentialInfluenceStrategies-

FrazierandSheth(1989)Indirectinfluencestrategies-informationismerelyexchangedwithchannelmemberpersonnelDirectunmediatedstrategies-consequencesofapoorresponsefromthemarketarestressedRewardandpunishmentstrategies-giventochannelmembersandtheirfirmsDirectunweightedstrategyorrequest-producer’swishesarecommunicated.NoconsequencesareappliedormentionedDirectmediatedstrategies-specificactionisrequestedandconsequencesofrejectionarestressede.g.1controlofretailpricinge.g.2minimumordersizee.g.3salespersontraininge.g.4physicallayoutofstoree.g.5territorialandcustomerrestrictionsFrazierandSummers(1984)FrequenciesofuseofInfluenceStrategiesPromotionsDecisionsElementsinthecommunicationprocessPromotionsmixThepromotionsmessageExecutionsstyleMediachoice?PromotionalobjectivesMediaMessageSenderEncodingResponseFeedbackNoiseDecodingReceiverElementsintheCommunicationProcessSender-partysendingthemessageEncoding-messageinsymbolicformMessage-word,picturesandsymbolsthatthesendertransmitsMedia-thecommunicationchannele.gradioDecoding-receiverassignsmeaningtosymbolsencodedbythesenderResponse-reactionofthereceiverafterbeingexposedtothetothemessageFeedback-thepartofthereceiver’sresponseafterbeingcommunicatedtothesenderNpetitoraction(CreatureComforts?)PromotionsMixPersonalsellingTelemarketingDirectmailTradefairsandexhibitionsCommercialtelevisionNewspapersandmagazinesRadioCinemaPointofsaledisplaysPackagingThePromotionalMessageGrab ATTENTIONExcite INTERESTCreate DESIREPrompt ACTION

AIDAExecutionstylesSliceoflife e.g.OXOLifestyle e.g.AfterEightmintsFantasy e.g.TurkishDelightMoodorimage e.g.TimoteishampooMusical e.g.GapPersonalitysymbol e.g.RichardBransonTechnicalexpertise e.g.VorsprungdurchTechnik-AudiScientificevidence e.g.WhiskersTestimonialevidencee.g.IanBothamMediachoice?MarketingobjectivesDefinitionofprobleme.gfallingawarenessEvaluationofdifferenttoolschoiceofoptimummixofpromotionalmethodsIntegrationintooverallmarketingcommunicationprogrammeExercise-Whatbeliefsandexpectationsdoyouhaveaboutthefollowingbrands?Howfararetheseduetopromotionasopposedtopersonalexperience?FairyliquidPersilwashingpowderMidlandBankVirginRadioNissanTescoPromotionalobjectivesTosupportsalesincreasesToencouragetrialTocreateawarenessToinformaboutafeatureorbenefitToremindToreassureTocreateanimageTomodifyattitudesImplementationTheimplementationprocessAnactionchecklistTotalqualityandmarketingManagingtheorganisation/stakehol

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