Transcript BE 200 - منتديات طلاب الجامعة

BE 200
Summary for:
Principles of Marketing
Done by: Wael Bu-Holigah
Arab Open University - KSA / Dammam Branch
Approved by: Mr. Saad Al Shahrani
Marketing definitions
• Marketing is: managing profitable customer
relationships.
• Marketing is: A social and managerial process
by which individuals and groups obtain what
they need and want through creating and
exchanging products an value with others.
• Marketing is: A managerial process deployed
by an organisations (individual or group).
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
2
Aim of marketing
• The aim of marketing is: to make selling
unnecessary. The aim is to “know and
understand the customer so well that the
product or service fits...and sells itself”.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
3
Figure 1.1 Page 7
Marketing process
1
2
Understand the marketplace
and customer needs and
wants.
5
Design a customer-driven
marketing strategy.
Construct an integrated marketing
programme that delivers superior
value.
3
4
Capture value from customers to
crate profits and customer equity
Build profitable relationships
and create customer delight.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
4
Needs, wants and demands
• Needs: States of felt deprivation. They include
basic physical needs for food, clothing,
warmth and safety.
• Wants: The form that human needs take as
shaped by culture and individual personality.
• Demands: Human wants that are backed by
buying power.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
5
The market offering
• Market offering is: some combination of
products, services, information or experiences
offered to a market to satisfy a need or want.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
6
Customer Value
• Customer value: The consumer’s assessment
of the product’s overall capacity to satisfy his
or her needs.
• Customer value: is the difference between the
values the customer gains from owning and
using a product and the costs of obtaining the
product.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
7
Customer satisfaction
• Customer satisfaction depends on a product’s
perceived performance in delivering value
relative to a buyer’s expectations.
So, If the product’s performance falls short of
expectations, the buyer is dissatisfied. If
performance matches or exceeds
expectations, the buyer is satisfied or
delighted.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
8
Exchange
• Exchange: The act of obtaining a desired
object from someone by offering something in
return.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
9
Transaction & Relationship marketing
• Transaction: A trade between two parties that
involves at least two things of value, agreed
upon conditions, a time of agreement and a
place of agreement.
• Relationship marketing is: the process of
creating, maintaining and enhancing strong,
value0laden relationships with customers and
other stakeholders.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
10
Market
• Market: The set of all actual and potential
buyers of a product or service.
Please, check Figure 1.2 page 13 in the book.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
11
Marketing management
• Marketing management: The art and science
of choosing target markets and building
profitable relationships with them.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
12
Demarketing
• Demarketing: Marketing to reduce demand
temporarily or permanently.
• The aim is not to destroy demand, but only to
reduce or shift it.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
13
Production concept
• Production concept: The philosophy that
consumers will favour products that are
available and highly affordable, and that
management should therefore focus on
improving production and distribution.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
14
Product concept
• Product concept: The idea that consumers will
favour products that offer the most quality,
performance and features, and that the
organisation should therefore devote its
energy to making continuous product
improvements.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
15
• Selling concept: The idea that consumers will
not buy enough of the organisation’s products
unless the organisation undertakes a largescale selling and promotion efforts.
Starting Point:
Factory
Means:
Selling and
Promoting
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
Focus:
Existing
products
Ends
Profits through
sales volume
16
Figure 1.3 page 17
Selling concept
Figure 1.3 page 17
Marketing concept
• Marketing concept: The marketing management
philosophy which holds that achieving organisational
goals depends on determining the needs and wants of
target markets and delivering the desired satisfactions
more effectively and efficiently than competitors do.
Starting Point
Market
Focus
Customer needs
Means
Integrated
marketing
Ends
Profits through
customer
satisfaction
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
17
• Societal marketing concept: A principle of enlightened
marketing which holds that an organisation should make
good marketing decisions by considering consumers’
wants, the company's requirements, consumers’ long-run
interests and society’s long-run interests.
Society
(human welfare)
Consumers
(wants satisfaction)
SOCIETAL
MARKETING
CONCEPT
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
Company
(profits)
18
Figure 1.4 page19
Societal marketing concept
Sustainable marketing concept
• Sustainable marketing concept: A principle of
marketing that holds that an organisation
should meet the needs of its present
consumers without compromising the ability
of future generations to fulfil their own needs.
Please check Figure 1.5 page 21 in the book.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
19
Customer relationship management
(CRM)
• Customer relationship management: The
overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
20
Customer perceived value
• Customer perceived value: The customer’s
evaluation of the difference between all the
benefits and all the costs of a market offering
relative to those of competing offers.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
21
Customer satisfaction
• Customer satisfaction: The extent to which a
product’s perceived performance matches a
buyer’s expectations.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
22
Customer lifetime value
• Customer lifetime value: The value of the
entire stream of purchases that a customer
would make over lifetime of patronage.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
23
Share of customer
• Share of customer: The share of the
customer’s purchasing that a company gets in
its product categories.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
24
Customer equity
• Customer equity: The total combined
customer lifetime values of all of the
company’s customers.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
25
High
Profitability
Low
Profitability
Short-term customers
Long-term customers
Butterflies
True Friends
Good fit between
company’s offerings
and customer’s needs;
high profit potential
Good fit between
company’s offerings
and customer’s needs,
highest profit potential.
Strangers
Barnacles
Little fit between
company’s offerings
and customer’s needs;
lowest profit potential.
Limited fit between
company’s offerings
and customer’s needs;
low profit potential.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
26
Figure 1.6 page 30
Customer relationship groups
Market Segment & Segmentation
• Market Segment: A group of consumers who
respond in a similar way to a given set of
marketing efforts.
• Market Segmentation: Dividing a market into
distinct groups of buyers with different needs,
characteristics or behaviour, who might
require separate products or marketing mixes.
“ Simple criteria, like age, gender and social
class, do little to inform marketers”.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
27
Market targeting
• Market targeting: The process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
28
Market positioning
• Market positioning: Arranging for a product to
occupy a clear, distinctive and desirable place
relative to competing products in the minds of
target consumers. Formulating competitive
positioning for a product and a detailed
marketing mix.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
29
Product’s position
• Product’s position: The way the product is
defined by consumers on important attributes
– the place the product occupies in
consumers’ minds relative to competing
products.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
30
Market leader
• Market leader: The firm in an industry with
the largest market share; it usually leads other
firms in price changers, new product
introductions, distribution coverage and
promotion spending.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
31
Marketing mix
• Marketing mix: The set of controllable tactical
marketing tools: Product, Price, Place and
Promotion – that the firm blends to produce
the response it wants in the target market.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
32
Product
• Product: Anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfy a want or
need. It includes physical objects, services,
persons, places, organisations and ideas.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
33
Price
• Price: The amount of money charged for a
product or service, or the sum of the values
that consumers exchange for the benefits of
having or using the product or service.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
34
Place
• Place: All the company activities that make
the product or service available to target
customers.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
35
Promotion
• Promotion: Activities that communicate the
product or service and its merits to target
customers and persuade them to buy.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
36
Figure 1.8 page 49
The four Ps:
The Marketing Mix
Marketing Mix
Product
Variety
Quality
Design
Features
Brand
name
Packaging
Services
Warranties
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
Price
List price
Discounts
Allowances
Payment
period
Credit terms
Promotion Place
Advertising
Promotions
Personal
selling
Publicity
Target market
Channels
Coverage
Assortments
Locations
Inventory
Transport
37
The Four Cs
• Customer needs and wants.
• Cost of the customer.
• Communication.
• Convenience.
Please check Figure 1.9 “An expanded model of
the marketing process” Page 52 in the book.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
38
Long-run consumer benefit
Immediate satisfaction
Low
High
High
Salutary Products
Desirable Products
Low
Deficient Products
Pleasing Products
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
39
Figure 2.3 Page 100
Societal classification of new products
Strategic Planning (Chapter 3)
“Failing to plan
means planning to
fail”
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
40
Annual plan
• Annual plan: A short-term plan that describes
the company’s current situation, its objectives,
the strategy, action programme and budgets
for the year ahead, and controls.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
41
Long-range plan
• Long-range plan: A plan that describes the
principal factors and forces affecting the
organisation during the next several years,
including long-term objectives, the chief
marketing strategies used to attain them and
the resources required.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
42
Strategic plan
• Strategic plan: A plan that describes how a
firm will adapt to take advantage of
opportunities in its constantly changing
environment, thereby maintaining a strategic
fit between the firm’s goals and capabilities
and its changing market opportunities.
Please check Figure 3.1, page 130 in the book.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
43
Mission Statement
• Mission statement: is a statement of the
organisation’s purpose – what it wants to
accomplish in the wider environment.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
44
External & Internal audit
• External audit: a detailed examination of the
markets, competition, business and economic
environment in which the organization
operates.
• Internal audit: an evaluation of the firm’s
entire value chain.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
45
SWOT Analysis
• SWOT Analysis: a distillation of the findings of
the internal and external audits which draws
attention to the critical organizational
strengths and weaknesses and the
opportunities and threats facing the company.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
46
Business portfolio
• Business portfolio: The collection of
businesses and products that make up the
company.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
47
Portfolio Analysis
• Portfolio Analysis: A tool by which the
management identifies and evaluates the
various businesses that make up the company.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
48
The Boston Consulting Group (BCG)
Four types of Strategic business unit (SBUs) according to BCG:
• Stars: High-growth, high-share businesses or products that often
require heavy investment to finance their rapid growth.
• Cash cows: Low-growth, high-share businesses or products;
established and successful units that generate cash that the company
uses to pay its bills and support other business units that need
investment.
• Question marks: Low-share business units in high-growth markets
that require a lot of cash in order to hold their share or become stars.
• Dogs: Low-growth, low-share businesses and products that may
generate enough cash to maintain themselves, but do not promise to
be large sources of cash.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
49
Product / Market expansion grid
• Product / Market expansion grid: A portfolioplanning tool for identifying company growth
opportunities through market penetration,
market development, new product
development or diversification.
• In the next slid, Figure 3.4 page 146 from the book explaining
the “Product / Market expansion grid”.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
50
Figure 3.4 page 146
Developing growth strategies
Existing Products
Market Penetration
Existing
Markets
A strategy for company
growth by increasing sales
of current products to
current market segments
without changing the
product.
New Products
Product Development
A strategy for company
growth by offering
modified new products to
current market segments.
Diversification
Market Development
New
Markets
A strategy for company
growth by identifying and
developing new market
segments for current
company products.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
A strategy for company
growth through starting
up or acquiring
businesses outside the
company’s current
products and markets.
51
Downsizing
• Downsizing: Reducing the business portfolio
by elimination products of business units that
are not profitable or that no longer fit the
company’s overall strategy.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
52
Value chain
• Value chain: The series of departments that
carry out value-creating activities to design,
produce, market, deliver and support a firm’s
products.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
53
Value-delivery network
• Value-delivery network: The network make
up of the company, suppliers, distributors and
ultimately customers who ‘partner’ with each
other to improve the performance of the
entire system.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
54
Table 3.2 page 152 “Contents of Marketing plan”
Section
Purpose
Executive summary
Presents a quick overview of the plan for quick
management review.
Current marketing situation
The marketing audit that presents background date
on the market, product, competition and
distribution.
SWOT Analysis
Identifies the company’s main strengths and
weaknesses and he main opportunities and threats
facing the product.
Objectives and issues
Defines the company’s objectives in the areas of
sales, market share and profits, and the issues that
will affect these objectives.
Marketing strategy
Presents the broad marketing approach that will be
used to achieve the plan’s objectives.
Marketing implementation
Specifies what will be done, who will do it, when it
will be done and what it will cost.
Budgets
A projected profit-and-loss statement that forecasts
the expected financial outcomes from the plan.
Controls
Indicates how the progress of the plan will by
55
monitored.
Marketing audit
• Marketing audit: A comprehensive,
systematic, independent and periodic
examination of a company’s environment,
objectives, strategies and activities to
determine problem areas and opportunities,
and to recommend a plan of action to improve
the company’s marketing performance.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
56
Current marketing situation
• Current marketing situation: The section of a
marketing plan that describes the target
market and the company’s position in it.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
57
Marketing strategy
• Marketing strategy: The marketing logic by
which the business unit hopes to achieve its
marketing objectives.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
58
Market segmentation
• Market segmentation: Dividing a market into
distinct groups of buyers who have distinct
needs, characteristics or behaviour and who
might require separate products or marketing
programmes.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
59
Market segment
• Market segment: A group of consumers who
respond in a similar way to a given set of
marketing efforts.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
60
Market targeting
• Market targeting: The process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
61
Positioning
• Positioning: Arranging for a product to occupy
a clear, distinctive and desirable place relative
to competing products in the minds of target
consumers.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
62
Differentiation
• Differentiation: Differentiating the market
offering to create superior customer value.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
63
Marketing implementation
• Marketing implementation: The process that
turns marketing strategies and plans into
marketing actions in order to accomplish
strategic marketing objectives.
Done by: Wael Bu-Holigah, Arab Open
University - KSA / Dammam Branch,
Approved by: Mr. Saad Al Shahrani
64
Marketing control
• Marketing control: The process of measuring
and evaluating the results of marketing
strategies and plans, and taking corrective
action to ensure that marketing objectives are
attained.
Done by: Wael Bu-Holigah, Arab Open University
- KSA / Dammam Branch, Approved by: Mr. Saad
Al Shahrani
65
SMART Objective must be
•
•
•
•
Measurable
Achievable.
Realistic.
Timed.
Done by: Wael Bu-Holigah, Arab Open University - KSA /
Dammam Branch, Approved by: Mr. Saad Al Shahrani
66