Transcript University of Salford School of Management

INTRODUCTION TO MARKETING
MANAGEMENT
By
Elisante Ole Gabriel (Tanzania)
Chartered Marketer
[email protected],
www.olegabriel.com
+255-784-455-499
7/18/2015
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SIX COMMANDMENTS OF MARKETING
MANAGEMENT (By Gabriel)
•
•
•
•
•
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Create Superior performance
Sustain Superior performance
Understand your core business (Value NW)
Know your Competitor as you know yourself
Make sure you are sophisticated
Understand your Internal and External
Target market and react to the feedback
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(A): BASIC CONCEPTS
• What is Marketing ?
This is a social and managerial process by
which individuals and groups obtain their
needs through creating and exchanging
products and values with others.
There is always a consideration connected to
this exchange, which can be in a
material/kind form.
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WHAT IS BUSINESS?
This is a specific activity for specific
objectives, for specific people, to be
performed by specific people within a
specified period of TIME.
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Business Scope
• Business is beyond just Creating,
Promoting, and delivering goods & Services
to consumers and Business.
• Nowadays, Marketers are involved in
marketing ten types of entities:
– goods, services, experiences, events, persons,
places, properties, organizations, information,
and ideas.
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What is Management ?
• This is an art of coping with complexities
• If compared to Leadership, they differ in the
sense that leadership tends to cope with
changes.
• Leadership can either be: Autocratic,
Bureaucratic or Participatory
• Sometimes a combination is the way
forward: ‘no one is superior to another’
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Why studying Marketing
Management ?
• Changes in Market structure
• Competition
• Cultural dynamics
• Micro & Macro Factors
• Impact of Technology
• Marginal Propensity to Save/Consume
• Changes in Buyers’ Behavior
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• Heterogeneity
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Generic philosophies (Concepts)
in Marketing
• The Production Concept (the oldest)
• Consumers will prefer products that are widely
available and affordable
• The Product Concept:
Consumers will favour those products that offer the
most quality, performance, or innovative features
(Fallacy & Myopia)
eg: GM:…how can they know …until they see?..
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Selling Concept
• Consumers and business if left alone, will
normally buy a small quantity of
Organization’s products. For this very
reason, the Organization must undertake an
aggressive selling and promotion effort
• - Buying inertia (resistance)
• - The battery for effective selling to
stimulate more buying
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The Marketing Concept
• The Organizational goals could be achieved
if the Company will be more effective than
competitors in creating, delivering, and
communicating customer value to its
chosen target markets
• - Start and end with the customer
• - Love the customer not the product
• - Profits through customer satisfaction
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Four Pillars of the Marketing
Concept
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•
•
•
Target Market
Customer needs
Integrated Marketing
Profitability
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Selling Vs Marketing Concept
• Theodore Levitt of Harvard University gave
this perceptive contrast:
• Selling focuses on the needs of the seller;
Marketing on the needs of the buyer.
Selling is preoccupied with the seller’s
need to convert his product in to cash;
Marketing with the idea of satisfying the
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needs of the customer using synergy
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Societal Marketing Concept
• The Organization should determine the
needs and interests of target markets and
serve them while maintaining Consumer’s
and society well-being
This philosophy considers the aspects of;
environment, resources, demographic
factors,Worldwide economic problems,
neglected Social services, etc
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TWO ADDITIONAL CONCEPTS
• Relationship Marketing
There is a need to maintain a good
relationship with your customers than just
saving them with products. Mutual
relationship will increase success in
business than transactional.
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• One-to-one Marketing
With the power of TECHNOLOGY in the market,
marketer can now serve ‘him’ and not
‘them’. A customer can be served exactly
according to his demand and convenience
(eg UPS & FEDEX). Find More customers for
products and more products for customers
(Ref. Don Pepper’s Video Cassette)
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Analytical Models
• BCG: Boston Consulting Group (USA)
This model has been developed by students
of Boston College in USA. The Company
classifies all its SBUs according to the
growth-Share Matrix. The BCG Matrix has
two axes. The vertical one represents
Market Growth rate (market attractiveness)
whereas the Horizontal one represents
Relative Market share (Market strength) 16
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Components of BCG
• Problem Children/ Question Marks
These are low-share SBUs in high Growth
Markets. Management should think with
due care, which SBU to build and which to
phase out
• Stars
These are both of High Growth rate and
Market share. They should be held carefully
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Cash Cows
These are of Low-growth with high Market
share. They need less investment to retain
them in the Market. The Management
should harvest cash from these SBUs and
pay for bills and support other SBUs
• Dogs
These SBUs are of Low-growth and Low
Market-share. Low cash generation
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BCG MODEL
STAR
(Hold)
PROBLEM
CHILD
(Build)
CASH COW
DOG
(Harvest)
(Divest)
HIGH
LOW
Relative Market Share (% Competitor)
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Micro & Macro Environment
• Micro
This is an internal environment. It entails
dynamic forces within the industry. These
factors include: Vendors, Competitors,
Customers
• Macro
This is the general environment, which
sometimes is referred as external. It
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includes the following factors; (SLEEP-TIN) 20
SWOT Analysis
• SW = Strength and Weakness (INTERNAL)
• OT = Opportunities and Threats (EXTERNAL)
This analysis is also useful in assessing the
position of a product or SBU/SBA/SME. The
internal assessment deals with the
Organizational capability of the SBU,
including managerial competence. OT
deals with external variables (Eg. Mobile Vs
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Ear disease, Alcohol/Pork Vs Faith)
SYNERGY
• This is a concept in Marketing
management, which outlines that, system
approach is more effective for higher
performance. The concept claims that, the
result of the combined efforts of
individuals (as a system) is greater than
when they perform the same separately.
• Mathematically: 1+1 > 2. (TEAM WORK)
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Customer Vs Consumer
• Customer
This is the one whom you interact with for the
service encounter, Moment of truth, Closing
the sale. This can be an individual or an
Organization (Eg Wholesalers are ………….)
• Consumer
The one who uses/consumes the product in
the real sense (Eg a of a bar of chocolate)
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Finally
TYPES OF CUSTOMERS
Customers can be categorized in different
forms. They can;
• Person Vs Non-Person = Consumer Vs
Organizational/Industrial/Institutional
• New Vs Existing
In Consumer Market, for instance, Individuals
can represent nine types of customers.
These to include; Snobbish, timid, nervous, .
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