Marketing Slides

MG220 MARKETING MANAGEMENT
PART - I:
Understanding Marketing Management
SESSION 1 - 3
IMPORTANCE OF
MARKETING
SCOPE OF
MARKETING
CORE MARKETING
CHAPTER 1
CONCEPTS
Instructor:
Muhammad Talha Salam | talha.salam@nu.edu.pk
Welcome to the
world of
MARKETING
MG220 Marketing Management | Part - 1
Importance of Marketing
WHY IT IS REQUIRED?
3
Financial success Marketing Ability
Making the right decision - Simple?
Skillful marketing: A never-ending

pursuit
Scope of Marketing
DEFINITIONS
4
Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways
that benefit the organization and its stakeholders
American Marketing Association (AMA)
Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
Approved: July 2013 | Retrieved: Aug 2015
Scope of Marketing
DEFINITIONS
5
Marketing management is the art and science of choosing target

markets and getting, keeping, and growing customers through
creating, delivering, and communicating superior customer value
Philip Kotler
Marketing is a societal process by which individuals and groups

obtain what they need and want through creating, offering, and
freely exchanging products and services of value with others
Societal definition of marketing
Scope of Marketing
DEFINITIONS
6
A simple yet comprehensive definition:

Marketing is..
Meeting Needs
Profitably
Scope of Marketing
WHAT CAN BE MARKETED?
7
Can you market?
Ideas
People
Information
Experiences
How?
What else?
REF: BOOK FOR COMPLETE DISCUSSION
Scope of Marketing
EXCHANGES & TRANSFERS
8
Exchange
Transaction
Transfer
What is the difference?

Scope of Marketing
WHO MARKETS?
9
Marketer, someone who seeks a

Response from another party, called
Prospect
Response can be ?
Marketers are responsible for Demand Management

Different Demand States
Negative | Non-Existent | Latent | Declining

Irregular | Full | Overfull | Unwholesome
Scope of Marketing
WHO MARKETS?
10
Markets, collection of buyers and sellers who transact

over a particular product or product class
Scope of Marketing
WHO MARKETS?
11
Scope of Marketing
WHO MARKETS?
12
Key
Customer Markets
Consumer
Branding | Mass selling | Insights
Business
Professional buyers | well-informed
Global
Adaptability | Operational matters
Non-profit & Government

Highly price sensitive | Competitive pricing
Scope of Marketing
WHO MARKETS?
13
Marketplaces
Physical | buying yourself
Marketspaces
Online | Ordering
Metamarkets
Complimentary products
Core Marketing Concepts

14
Needs
Wants
Basic Human Requirements
Needs which are directed to a specific object
Demands
Wants for specific products backed by ability to

pay (acquire)

15
Understanding Needs (Example: Buying a Jeans)
Pair of jeans
Stated
=>
Quality
Real
=>
Affordable, Branded
Unstated
=>
A good discount deal
Delight
=>
wanna look cool!!!
Secret
=>
ANOTHER
PRODUCT?

16
Satisfying everyoneYes/No? How? Why?
Target Markets & Segmentation
Different segments based on several factors
Segments presenting greatest opportunity
Positioning
Positioned carefully as delivering certain benefits

17
Offering & Brand
Value Proposition by a company to fulfill a need is

crafted into an offering
An offering from a known source
e.g.
Whats the offering of (pick a brand)

18
Value is perceived tangible and intangible

benefits and costs to customers
Satisfaction is fulfillment of a need
*WRONG*
Satisfaction is Persons comparative judgments

resulting from a products perceived performance
If performance < expectations:

dissatisfied/disappointed
If performance>=expectations: satisfied/delighted

19
Marketing Channels
Communication channels
Interacting with target buyers with the message
Distribution channels
Display, sell or deliver the product or service
Service channels
Facilitating transactions with buyers

20
Supply Chain (vs. Marketing

Channel)
Marketing Channel: Marketer to target buyer
While
Supply Chain: A complete value delivery system
From Raw materials to components to final buyers
Raw materials

21
Competition
All the actual and potential rival offerings and substitutes

that a buyer might consider
Think about major competitor(s) brands OR products for:

22
Marketing Environment
Marketing in Practice
Part - 1
Defining
Marketing for Online Retailer:
Daraz.pk
TCS Connect
A review of industry & business model
How this particular industry (of e-shops) evolved?

What all is included in this business?
Is it an easy business?
Discussion Questions (TCS Connect):
Whats in it for TCS? Its so different from their main business (logistics and
shipping) why not focus on the existing business
So why they did it? WHATS CREATIVE ABOUT THIS?
OWN ACTIVITY:
VISIT: www.tcsconnect.com and www.daraz.pk
MG220 MARKETING MANAGEMENT | Fall 2014
PART - I:
Understanding Marketing
Management
SESSION 4 - 5
COMPANY ORIENTATIONS
THE NEW MARKETING
REALITIES
MARKETING & CUSTOMER
VALUE
CORPORATE & BUSINESS
CHAPTER
1-2
PLANNING
Instructor:
Muhammad Talha Salam | talha.salam@nu.edu.pk
Company Orientations toward the

marketplace
25
What are orientations (or concepts) toward the marketplace?
CLASS DISCUSSION: This discussion is important as it deviates slightly

Production
Company
Orientations
from textbook
and helps understand
this critical concept
25

marketplace
26
The Production Concept
Consumers will favor products that are widely available

& inexpensive
Focus on Production
Examples?
26

marketplace
27
The Product Concept
Consumer will favor those products that offer the most

quality, performance or innovation
Focus entirely on Product development
What if: not priced, distributed, advertised and sold
properly?
Examples?
27

marketplace
28
The Selling Concept
Customers (consumers & businesses), if not engaged,

will not buy enough
Aggressive selling & promotion is required
Practiced with unsought goods
Examples?
28

marketplace
29
The Marketing Concept
Replace product-centered make-and-sell with senseand-respond

Reactive market orientation
Proactive market orientation
Examples?
29

marketplace
30
The Holistic Marketing Concept
Everything matters
Based on the development, design and implementation
of marketing programs, processes, and activities that
recognizes their breadth and interdependencies
4 Components:
Relationship marketing | Integrated marketing
Internal marketing | Social responsibility marketing / Performance
Marketing
30

marketplace
31

Other departments
Marketing Department
Senior Management
31

marketplace
32
Evolution of
Marketing Mix
[Traditional]
32
The New Marketing Realities

How businesses are changing
33
The Marketplace isnt what it used to

be
(Selected List*)
General discussion from Pakistani perspective
Changing technology Information Age

Globalization
Deregulation & Privatization
Industry convergence blurring boundaries (what is technology sector)

Retail transformation
Disintermediation new options to deliver
Consumer Information
Consumer Resistance consumers resist to marketing & advertising
* This is selected List For complete list, see book
33
Qarshi
Part - 1
Qarshi
Pakistans leading herbal products brand
Local company
following
Holistic
marketing
Strategy review (Holistic marketing)
Internal marketing (taking employees on board / decisionmaking)
Integrated marketing (following the 4Ps)
Socially responsible marketing
Relationship marketing
(with customers / with channel partners)
Downsides in strategy
Centralized / personal decision-making

OWN ACTIVITY: Visit www.qarshi.com
Review different sections of the site to understand the company, its
history, its brands and strategies FORM YOUR OWN OPINIONS
Marketing & Customer Value

The Value Chain
35
Value Chain: A tool for identifying ways to create more

customer value
Every firm is a synthesis of activities for value-creation/delivery

etc.
Primary Activities (producing & marketing)

Support Activities (management of firm)
35

The Value Chain
36
Firm should estimate its competitors costs and
performances as benchmarks against which it

compares its own costs and performance
Market
sensing
Success
Core
business
dependsprocesses
on core business processes
i.e.
36

Core Competencies
37
Outsource the less critical and

Focus on Core Competency
Characteristics of Core Competency:
A Source of competitive advantage

Has Application in a wide variety of markets
Difficult for competitors to imitate
37

A Holistic marketing orientation & customer value
38
Customer
Conceiving/
Designing
Company
Partners
These are the
activities/
considerations a
firm is involved in
Developing/
Producing
Delivering
38

The Central Role of Strategic Planning
39
What makes companies/brands

successful?
These are some COMMON factors
Focus on Customers
Respond effectively to changing customer needs
Have well-staffed marketing departments
And all other departments in their organizations
understand:
CUSTOMER IS THE KING
39

40
Levels in Strategic Planning

[Typical]
Corporate Level
Division Level
Business Unit Level

Product Level
Marketing Plan
is central instrument for directing and coordinating
marketing effort
Strategic Marketing Plan lays out target markets &
value proposition
Tactical Marketing Plan specifics of marketing activities
40

41
41
Corporate & Division Strategic Planning

Different
Planning Activities
42
Four Planning Activities

(at Corporate & Division level)
1.
2.
3.
4.
Defining the Corporate Mission

Establishing Strategic Business Units
Assigning Resources to each SBU
Assessing Growth Opportunities
42

1.
43
Peter Druckers classic questions
What is our business?

Who is the customer?
What is of value to our customer?
What will our business be?
What should our business be?
43

1.
44
Mission Statements
Focus on LIMITED goals

Stress companys major policies & values
Define the major competitive spheres:
Industry
(in which company operates)

Products & Applications
Competence
Market Segment
Vertical (channels)
Geographical
44

2 & 3.
Defining Business / Establishing SBUs & Assigning Resources to SBUs
45
A business?
is a Customer-satisfying process
is NOT a Goods-producing process
Company
Product
definition
Market definition
Daewoo
Pakistan
We run buses
We are a people-and-goods
mover
Xerox
We make copying
equipment
We improve office
productivity
PSO
We sell gasoline
We supply energy
Columbia
Pictures
We make movies
We entertain people
Beaconhouse
We run schools &
45
We educate people

2 & 3.
Defining Business / Establishing SBUs & Assigning Resources to SBUs
46
A Strategic Business Unit (SBU) is:
Assigning
Resources
to SBU isis done
done using
using
portfolio
portfolio management
management tools
tools
and
and techniques
techniques
e.g.
e.g. BCG
BCG Matrix
Matrix // GE
GE Matrix
Matrix
etc.
etc.
(Not
(Not covered
covered here
here
Google
Google for
for own
own interest)
interest)
46

4.
47
Strategic Planning Gap
47

4.
48
Intensive Growth
Ansoff Product-Market Expansion Grid
48

4.
49
Integrative Growth
Integrations
Backward:
Acquire Suppliers
Forward: Acquire distributors/suppliers
Horizontal: Acquire Competitors
49

4.
50
Diversification Growth
When good opportunities can be found

outside current business
N.B. This relates to new line of business NOT products
Downsizing & Divesting
Pruning & harvesting current portfolio
50
Business Unit Strategic Planning

Process
51
51

SWOT Analysis
52
SWOT
Internal Environment Analysis

Strengths
Weaknesses
External Environment Analysis

Opportunities
Threats
52

Goal Formation
53
Setting objectives &

MBO - Managing by Objectives
Goals should have these characteristics

1.
They must be arranged hierarchically from the
most to least important
2.
Objectives should be
whenever possible
3.
Goals should be
4.
stated quantitatively
realistic
Objectives must be consistent
53

Strategic Formulation
54
Goals: What a business wants to achieve

Porters Generic Strategies
Strategy:
A game plan for getting there
Examples of Strategies
>>
54

Program Formulation & Implementation
55
Great Marketing Strategy can fail - If poorly

implemented
Strategy is one the seven elements in business

practice! (McKinsey) other elements are
Structure
Skills
StrategyValues
Style
Systems
Shared
Staff
important in implementation
55

Feedback & Control
56
track results and monitor

new developments
Need to
Need to
continuously examine
changing environment and to adopt
to new goals and behaviors
56
Product Planning: Marketing Plan

57
Marketing Plan
A written document that summarizes
what the marketer has learned about the
marketplace and indicates how the firm
plans to reach its marketing objectives
57
Product Planning: Marketing Plan

58
Typical Contents of a
MARKETING PLAN>>
Executive Summary & TOC
Very important: Self Read Exercise

Review marketing plan given in book
58
Part - 1
Lakson Group - One of most prolific conglomerates
Planning horizons
What kind of planning will be done at:
Corporate / Division level
Lakson group
(The complete conglomerate)
Media division
(one of the divisions )
Business Unit planning
Express News
(an SBU within media division)
Product Planning
Launching a new News show

(a product for the SBU)
OWN ACTIVITY:
Visit www.lakson.com.pk
Learn about the complete group
Lakson
Group
Planning at different
levels

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MG220 MARKETING MANAGEMENT

MG220 Marketing Management | Part - 1

Financial success Marketing Ability

Making the right decision - Simple?

Skillful marketing: A never-ending

MG220 Marketing Management | Part - 1

Marketing is an organizational function and a set of

Marketing is the activity, set of institutions, and processes for creating,

MG220 Marketing Management | Part - 1

Marketing management is the art and science of choosing target

Marketing is a societal process by which individuals and groups

A simple yet comprehensive definition:

Can you market?

MG220 Marketing Management | Part - 1

What is the difference?

MG220 Marketing Management | Part - 1

Marketer, someone who seeks a

Marketers are responsible for Demand Management

Negative | Non-Existent | Latent | Declining

Markets, collection of buyers and sellers who transact

MG220 Marketing Management | Part - 1

MG220 Marketing Management | Part - 1

Non-profit & Government

MG220 Marketing Management | Part - 1

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Basic Human Requirements

Needs which are directed to a specific object

Wants for specific products backed by ability to

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Understanding Needs (Example: Buying a Jeans)

Core Marketing Concepts

Satisfying everyoneYes/No? How? Why?

Target Markets & Segmentation

Different segments based on several factors

Segments presenting greatest opportunity

Positioned carefully as delivering certain benefits

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Offering & Brand

Value Proposition by a company to fulfill a need is

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Value is perceived tangible and intangible

Satisfaction is fulfillment of a need

Satisfaction is Persons comparative judgments

If performance < expectations:

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Interacting with target buyers with the message

Display, sell or deliver the product or service

Facilitating transactions with buyers

MG220 Marketing Management | Part - 1

Core Marketing Concepts

Supply Chain (vs. Marketing

From Raw materials to components to final buyers

MG220 Marketing Management | Part - 1

Core Marketing Concepts

All the actual and potential rival offerings and substitutes

MG220 Marketing Management | Part - 1

Core Marketing Concepts

MG220 Marketing Management | Part - 1

Marketing for Online Retailer: