MARKETING MANAGEMENT FLORDELIZA RAMOS-LOMBOY DEFINING MARKETING FOR THE 21ST CENTURY Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. For business market, knowledge and awareness of product is very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. Marketing philosophy employed by any given company has to be mix of organization interest, consumer interest and societal interest. ADAPTING MARKETING TO THE NEW ECONOMY Technology revolution, globalization and market deregulation factors are among many sculpting the new economy. These 3 factors interact with each other at different levels creating the driving force for the new economy. In the old economy focus was on the standardization, mass production and singular marketing policy. However, with the amount of information available in the new economy, companies are best at understanding consumers. The new economy had brought forward challenges and opportunities not only for companies but also for consumer. BUILDING CUSTOMER SATISFACTION, VALUE AND RETENTION Companies are able to achieve this state of total customer satisfaction by incorporating good business practices. These practices are constructed around stakeholders, business process, resource and organization. Companies through creating and delivering value can develop total customer satisfaction. GATHERING INFORMATION AND MEASURING MARKET DEMAND The information system consists of stakeholders, process and equipment to collect, analyze and proliferate information across relevant decision makers. Marketing managers have to admit it is the consumer’s market, which makes it important to gather information to understand their perception through available technology, market research and quantitative models. Understanding customers would help companies estimate total market demand for its products. SCANNING THE MARKET ENVIRONMENT Factors influencing the market can be categorized under 6 different titles: Demographic factors 2. Economic factors 3. Ecological factors 4. Technology factors 5. Political environment 6. Culture environment 1. ANALYZING CONSUMER’S BUYING BEHAVIOR Consumer behavior captures all the aspects of purchase, utility and disposal of products and services. Consumer buying behavior is influenced by individual’s own personality traits. These personality traits do not remain the same but change with the life cycle. ANALYZING BUSINESS MARKETS AND BUSINESS BUYING BEHAVIOR A market consists of two parts consumer market and business market. In a business market, organization buy goods and services for production of goods and services. Business buyer base is smaller in comparison to consumer market. Customer and supplier are very dependent on each for survival. Business buying behavior is influenced by economical, company, individual and interpersonal factors. Buying process consists of following steps- purchase needs, requirement description, product specification, floating intent of purchase, selecting a supplier, confirm delivery modules and timely review of purchase. MARKETING STRATEGY (Meaning and Its Importance) What is Marketing Strategy? Marketing Strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization. A marketing strategy is designed by: 1. Choosing the target market 2. Gathering the marketing mix MARKETING STRATEGY (Meaning and Its Importance) IMPORTANCE OF MARKETING STRATEGY Marketing strategy provides and organization and edge over its competitors. Strategy helps in developing goods and services with best profit making potential. Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps in creating an organizational plan to cater to the customers needs. It helps in fixing the right price for organization’s goods and services based on information collected by market research. MARKETING STRATEGY (Meaning and Its Importance) IMPORTANCE OF MARKETING STRATEGY Strategy ensures effective departmental coordination. It helps an organization to make optimum utilization of its resources so as to provide a sales message to its target market. A marketing strategy helps to fix the advertising budget in advance and it also develops a method which determines the scope of the plan, i.e. it determines the revenue generated by the advertising plan. In short, a marketing strategy clearly explains how an organization reaches its predetermined objectives. COMPETITION STRATEGY (Dealing with the Competition) Michael Porter’s five force model use appropriate in identifying competitive forces, which affect business in any given environment. These five forces are: • threat of companies from same segment • threat of new entrants in the segment • threat from substitute products • threat from the increase in consumer’s bargaining power • threat from supplier’s bargaining power Companies need to understand competitor’s motive and goal to be in the market. To deal with the competition companies need to design an intelligence system. Companies need to identify parameters which will help in analyzing the competition. POSITIONING AND DIFFERENTIATING THE MARKET OFFERING THROUGH PRODUCT LIFE CYCLE A market place has may segments out of which companies have to make a choice in which to operate. Positioning related marketing programs are responsible to pass unique selling proposition on the customer. Companies have to analyze positioning and differentiating strategies at various stages of the product and market life cycle. PRODUCT DEVELOPMENT PROCESS (Developing New Market Offerings) Nowadays, companies are following stage process for product development. 1. The 1st stage is idea generation, i.e. the search for new products. 2. The 2nd stage is idea screening. 3. The 3rd stage begins when ideas move into the development process. 4. The 4th stage involves developing of marketing strategy for new product. 5. The 5th stage involves the development of the business model around the new product. 6. The 6th stage involves the actual product of new product. 7. The 7th stage involves market testing of new product. 8. The 8th stage involves launching of the product across target market backed by a proper marketing and strategy plan. This stage is called commercialization phase. DESIGNING GLOBAL MARKET OFFERINGS Is there a need to be global? DESIGNING GLOBAL MARKET OFFERINGS A company entering global market also has to be aware of cultural, political, legal and technological factors in respective markets. WHY MARKETERS NEED TO FOCUS ON CREATING EXPERIENCES TO THRIVE IN THE NEW ECONOMY Welcome The to the Experience Economy Wheel has Turned Full Circle Technology and the Art of Creating Experiences The Transformation and Mutation of Product Marketing Resembles Services Marketing Exciting Times for Marketers and Consumers Alike HOW TO BUILD A GREAT MARKETING TEAM FOR YOUR BUSINESS Challenges Facing Marketers and Small Business Know where you are, where you want to go, and how to get there. Use the SMART Framework for Goal Setting Hiring and Training your Marketing Team Feedback, Feed In, and the Next Iteration The Buck and the bucks Stop with You WHY A WELL FUNCTIONING JUDICIAL AND LEGAL SYSTEM IS NECESSARY FOR MARKET ECONOMIES There would be Anarchy without a well functioning Legal and Judicial System Need for Well Functioning Legal and Judicial Systems Protectionism and Populism adding Fuel to the Fire How Technology can help here THANK YOU! Req. # 1- Discuss the Marketing side of your institution using the Marketing mixes (5 Ps- product, price, promotion, place, people) Req. # 2- Establishment/Subject Introduction(History, Significance) Evaluate(marketing, technical, management, social desirability/social responsibility) Conclusion Recommendation Documentation Materials : Short bond paper, margins (top-1, bottom-1, left-1.75, right-1.25) font size=12, font style=Calibri, spacing=1.5, softbound Note: No duplication of Establishment/subject to be studied- medium scale enterprise/s.