THE BCG MATRIX

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MARKETING MANAGEMENT
Dr. Pramono Hariadi, MS
DEFINISI
“Marketing adalah penciptaan
dan penyampaian standar
hidup yang lebih tinggi”.
“Marketing adalah proses manajerial
dan sosial dengan cara ini individu dan
kelompok menemukan apa yang
mereka butuhkan (need) dan inginkan
(want) melalui penciptaan, penawaran
dan pertukaran nilai barang dan jasa
dengan pihak lain”.

Kata kunci
 Kebutuhan (needs) dan Keinginan
(wants) pelanggan
 Permintaan dan pasar
 Pilihan, dalam upaya
memaksimalkan nilai atau
kegunaan
PROSES PEMASARAN
Pemasaran
Kebutuhan,
Keinginan,
Permintaan
Produk
P
E
N
J
U
A
L
A
N
M
A
R
K
E
T
T
I
N
G
Nilai biaya
Kepuasan
Pertukaran,
Transaksi,
hubungan
Pasar
SCOPE MARKETING
Marketers
terkait dengan
10 hal:
1. Physical Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
A SIMPLE MARKETING SYSTEM
COMMUNICATION
GOODS & SERVICES
INDUSTRY
(A collection
of sellers)
MONEY
INFORMATION
MARKET
(A collection
of buyers)
STRUKTUR PRTUKARAN PADA EKONOMI
MODERNS
Resources
Resources
Resource
Markets
Money
Taxes &
Goods
Manufacturer
Markets
S&m
Government
Markets
Money
Services
& Money
Services
Consumer
Markets
Taxes
Taxes &
Goods
S&m
T&g
Money
Money
Intermediary
Markets
Goods & Services
Goods & Services
KONSEP-KONSEP PEMASARAN

Ada lima jenis konsep marketing:

The PRODUCTION CONCEPT : konsumen lebih
menyukai produk yang tersedia secara luas di
pasar dan murah.

The PRODUCT CONCEPT: konsumen
menyukai suatu produk yang memiliki
kelebihan kualitas, penampilan atau fitur yang
inovatif .


The SELLING CONCEPT : konsumen tidak
akan membeli produk perusahaan cukup
banyak, oleh karena itu perusahaan harus
melakukan upaya penjualan dan promosi.
The MARKETING CONCEPT : kunci
pencapaian tujuan perusahaan adalah dalam
penciptaan, penghantaran dan komunikasi
nilai pelanggan yang lebih efektif terhadap
sasaran pasar yang telah ditetapkan.
 The SOCIETAL MARKETING : tugas
organisasi (perusahaan) adalah untuk
menetapkan kebutuhan, keinginan dan
ketertarikan konsumen yang menjadi
sasaran pasar serta menghantarkan
kepuasan yang dibutuhkan yang lebih
efektif dari pesaing.
The Core Concepts of Marketing
1
3
2
Needs
Value
Products
Wants
Demands
Cost
Satisfaction
4
Exchanges
Transactions
Relationships
6
5
Marketing
Markets
Marketers
CUSTOMER RELATIONSHIPS
CREATING CUSTOMER VALUE AND
SATISFACTION

Total customer value: the bundle of benefits
customers expect from a given product or
service.
 Total customer cost: the bundle of costs
customers expect to incur in evaluating,
obtaining, using, and disposing of the product
or service.
 Customer delivered value: the difference
between total customer value and total
customer cost.
(continued)
CREATING CUSTOMER VALUE AND
SATISFACTION

Example of Customer Delivered Value:
a) Buyers perception of offer’s worth = Rp.200,000,b) Company’s cost of manufacture = Rp.140,000,c) Company’s price = Rp.160,000,1. Customer Delivered Value: = Rp.40,000,2. Customer Delivered Value: = 1.25 (as a ratio)
(continued)
CREATING CUSTOMER VALUE
AND SATISFACTION
Customer Satisfaction: Whether a customer is
satisfied after purchase depends on the offer’s
performance in relation to the buyer’s
expectations. We may define it as:
“Customer satisfaction or dissatisfaction is a
person’s feeling of pleasure or disappointment
resulting from comparing a product’s
perceived performance (or outcome) in relation
to the person’s expectations”.
THE NATURE OF HIGH
PERFORMANCE BUSINESSES
Set strategies
to satisfy key
stakeholders …
… by improving
critical business
processes …
… and aligning
resources and
organization.
STAKEHOLDERS
PROCESSES
RESOURCES
ORGANIZATION
MARKET-ORIENTED
STRATEGIC PLANNING
Ref: Chapter 4 of Core Text
STRATEGIC PLANNING:
THE FOUR LEVELS
 Most
large companies consist of four
organizational levels:
 The Corporate level
 The Division level
 The Business Unit level
 The Product level
THE STRATEGIC PLANNING, IMPLEMENTATION &
CONTROL PROCESSES
PLANNING
IMPLEMENTING
Corporate
Planning
Organizing
Division
Planning
Implementing
Business
Planning
Product
Planning
CONTROLLING
Measuring
Results
Diagnosing
Results
Taking
Corrective
Action
DEFINING THE CORPORATE
MISSION

Peter Drucker’s Classic Questions:
1. What is our business?
2. Who is the customer?
3. What is value to the customer?
4. What will our business be?
5. What should our business be?
Ref: Chapter 4 of core Text
GOOD MISSION STATEMENTS

Good mission statements have three
major characteristics:
1. They focus on limited number of goals.
2.They stress the major policies and values
the company wants to honor.
3. They define the major competitive
scopes within which the company will
operate.
Ref: Chapter 4 of Core Text
COMPETITIVE SCOPES OF A
COMPANY
 Industry
scope
 Products and applications scope
 Competence scope
 Market segment scope
 Vertical scope
 Geographical scope
Ref: Chapter 4 of Core Text
ESTABLISHING STRATEGIC
BUSINESS UNITS

Large companies normally manage different
businesses, each requiring its own strategy. These are
termed as Strategic Business Units (SBUs). An SBU has
three characteristics:

It is a single business or a collection of related
businesses that can be planned separately from
the rest of the company.
 It has its own set of competitors.
 It has a manager who is responsible for strategic
planning and profit performance and who
controls most of the factors affecting profit.
Ref: Chapter 4 of Core Text
ASSIGNING RESOURCES TO SBUs
(THE BCG GROWTH-SHARE MATRIX)
The Boston Consulting Group (BCG), a leading
management consulting firm, popularized the growthshare matrix. It is divided into four cells, each
indicating a different type of business. The marketgrowth rate on the vertical axis indicates the annual
growth rate of the market in which the business
operates. The relative market share, measured on the
horizontal axis, refers to the SBUs market share
relative to that of the largest competitor in the segment.
Ref: Chapter 4 of Core Text
THE BCG GROWTH-SHARE MATRIX
RELATIVE MKT SHARE
20%
STARS
QUESTION MARKS
MKT
GROWTH
10%
DOGS
0% CASH COWS
10x
1x
0.1x
Marketing Management
Marketing Factors
Product
Purchase Process
Personal & Environmental
Factors
Problem
Recognition
Information
Seeking
Price
Place
Promotion
Evaluation
of
Alternatives
Purchase
Decision
PostPurchase
Evaluation
Psychological
Personal
Social
Cultural


Market Segmentation
Segmentation is dividing the market into groups
whose members have similar characteristics.
Levels of segmentation:
– Mass marketing – sell the same product to as
many perole as possible
– Niche Marketing – finding small/profitable
market segments and designing for them
– One-to-One Marketing – unique mix of goods
and services for each customer

Best segmentation is to use many bases to come
up with a target market that is sizeable,
reachable and profitable.
Market Segmentation: Target
Marketing

Target market:
– any group of potential customers who have similar
wants and needs and can be expected to show interest
in the same products
– Focus on:
 Geographic region
 Customer demographics
 Customer psychographics
 Product-use variables
THE BCG MARIX (CONTD)

QUESTION MARKS: New businesses of the
company in high growth-rate markets.

STARS: Successful Question-mark businesses become
stars that gain market share and generate profits for
the company.

CASH COWS: When market-growth rate slows down
as competitors enter the segment, businesses that
remain successful become Cash Cows. They fund Stars
and new Question-mark businesses.

DOGS: These are businesses in decline and the
company has the option to “harvest” or “divest”.
THE MARKETING PROCESS
 The
Marketing Process consists of:
 Analyzing Marketing Opportunities
 Researching and Selecting Target Markets
 Designing Marketing Opportunities
 Planning Marketing Programs
 Organizing, Implementing, and
Controlling the Marketing Effort
Ref: Chapter 4 of Core Text
MARKETING
ENVIRONMENT & SYSTEM
Ref: Chapter 6 of Core Text
MARKETING ENVIRONMENT
FACTORS
Demographic Environment
Economic Environment
Natural Environment
Technological Environment
Political-legal Environment
Social-cultural Environment
DEMOGRAPHIC ENVIRONMENT
 Worldwide
Population Growth
 Population Age Mix
 Ethnic Markets
 Educational Groups
 Household Patterns
 Geographical Shifts in Population
 Shift from Mass to Micromarkets
Ref: Chapter 6 of Core Text
ECONOMIC ENVIRONMENT
 Income
Distribution
 Subsistence economies
 Raw-material-exporting economies
 Industrializing economies
 Industrial economies
 Savings, Debt, and Credit Availability
Ref: Chapter 6 of Core Text
NATURAL ENVIRONMENT
 Shortage
of Raw Materials
 Increased
Energy Costs
 Increased
Pollution Levels
 Changing
Role of Governments
Ref: Chapter 6 of Core Text
TECHNOLOGICAL
ENVIRONMENT
 Accelerating Pace
of Technological
Change
 Unlimited Opportunities for Innovation
 Varying R&D Budgets
 Increased Regulation of Technological
Change
Ref: Chapter 6 of Core Text
POLITICO-LEGAL
ENVIRONMENT
 Legislation
 Growth
Regulating Business:
of Special Interest Groups
Ref: Chapter 6 of Core Text
SOCIO-CULTURAL
ENVIRONMENT
 Persistence
of Core Cultural Values:
 Core
beliefs
 Secondary beliefs
 Existence
of Subcultures
 Shifts
of Secondary Cultural Values
Through Time
Ref: Chapter 6 of Core Text
ANALYZING CONSUMER
BEHAVIOR
Ref: Chapter 7 of Core Text
ANALYZING CONSUMER
BEHAVIOR

FACTORS INFLUENCING CONSUMER
BEHAVIOR

BUYING ROLES

TYPES OF BUYING BEHAVIOR

THE BUYING DECISION PROCESS
Ref: Chapter 7 of Core Text
FACTORS INFLUENCING
CONSUMER BEHAVIOR

CULTURAL FACTORS:
 Culture

Sub-culture
 Social Class

SOCIAL FACTORS:
 Reference groups

Family
 Roles & statuses
Ref: Chapter 7 of Core Text
FACTORS INFLUENCING
CONSUMER BEHAVIOR(2)






PERSONAL FACTORS
Age and Life-Cycle Stage
Occupation
Economic Circumstances
Lifestyle
Personality & Self-concept
Ref: Chapter 7 of Core Text
FACTORS INFLUENCING
CONSUMER BEHAVIOR (3)

PSYCHOLOGICAL FACTORS
 Motivation
 Learning
 Perception
 Beliefs
& Attitudes
Ref: Chapter 7 of Core Text
BUYING ROLES

INITIATOR: The first person to suggest the idea
of buying.




INFLUENCER: A person whose views impact the
buying decision.
DECIDER: The person who decides on what,
when & where to buy the product or service.
BUYER: The actual purchaser.
USER: The person who uses/consumes the
product or service.
Ref: Chapter 7 of Core Text
TYPES OF BUYING BEHAVIOR
DEGREE OF INVOLVEMENT
HIGH
HIGH
DEGREE OF
DIFFERENCES
IN BRANDS
LOW
LOW
COMPLEX
BUYING
BEHAVIOR
VARIETYSEEKING
BUYING
BEHAVIOR
DISSONANCEREDUCING
BUYING
BEHAVIOR
HABITUAL
BUYING
BEHAVIOR
TYPES OF BUYING BEHAVIOR

COMPLEX BUYING BEHAVIOR: High
involvement, very expensive, infrequently
purchased,very risky, self-expressive products
(designer jewelry, custom-designed sports cars,
housing).

DISSONANCE REDUCING BUYING
BEHAVIOR: High involvement, expensive,
infrequently purchased, self-expressive
products (furniture, white goods, PCs).
Ref: Chapter 7 of Core Text
TYPES OF BUYING BEHAVIOR
(CONTD)
 VARIETY
SEEKING BUYING
BEHAVIOR: Low involvement,
frequently purchased, inexpensive
products (pastries, biscuits, snacks).
 HABITUAL BUYING BEHAVIOR: Low
involvement, frequently purchased,
inexpensive products (sugar, salt, flour,
commodities).
Ref: Chapter 7 of Core Text
THE BUYING DECISION PROCESS
 Problem/need
Recognition
 Information Search
 Evaluation Of
 Purchase
Alternatives
Decision
 Postpurchase
Behavior
Ref: Chapter 7 of Core Text
PROBLEM/NEED RECOGNITION

From Internal Stimuli:
 Hunger
 Thirst
 Fear





From External Stimuli:
Neighbor’s Purchases
Advertisements
Window Shopping
Newspapers & Magazines
Ref: Chapter 7 of Core Text
INFORMATION SEARCH
 From
Personal
Sources:
 Family
 Friends
 Neighbors
 Acquaintances
 From
Commercial
Sources:
 Advertisements
 Dealers
 Salespersons
 Packaging
 Displays
Ref: Chapter 7 of Core Text
INFORMATION SEARCH
(CONTD)
 From
Commercial Sources:
 Advertisements
 Dealers
 Salespersons
 Packaging
 Displays
Ref: Chapter 7 of Core Text
INFORMATION SEARCH
(CONTD)
 From
Public
Sources:
 Mass Media
 Chambers of
Commerce
 Consumer Rating
Magazines
 From
Experiential
Sources:
 Handling the
Product
 Examining the
Product
 Using the Product
Ref: Chapter 7 of Core Text
EVALUATION OF ALTERNATIVES
 Successive
Sets in Consumer
Decision-Making:
 Total Set
 Awareness Set
 Consideration Set
 Choice Set
 Buying Decision
(continued)
Ref: Chapter 7 of Core Text
EVALUATION OF ALTERNATIVES
TOTAL
SET
AWARENESS
SET
CONSIDERATION
SET
CHOICE
SET
BUYING
DECISION
Ref: Chapter 7 of Core Text
PURCHASE DECISION
 Interfering
Factors:
 Attitudes of Others: Opposing and intense
opinions of family members, close friends
and acquaintances
 Unanticipated situational factors: Changes
in income, job transfer, loss of
employment, change of priority e.g.
sudden payment of educational fees etc.
Ref: Chapter 7 of Core Text
POSTPURCHASE BEHAVIOR
 Post
purchase Satisfaction:
 Keep the Product
 Store the Product
 Convert to a Second Use
 Post purchase Dissatisfaction:
 Try to return the product/take legal
recourse
 Rent it
 Get rid of it/Throw it
Ref: Chapter 7 of Core Text
BUSINESS MARKETS VERSUS
CONSUMER MARKETS
 Business
Markets:
 Fewer Buyers
 Larger Buyers
 Close SupplierCustomer
Relationship
 Geographically
Concentrated
Buyers
 Inelastic Demand
 Derived
Demand
 Professional
Purchasing
 Multiple Buying
Influences
 Direct Purchasing
 Reciprocity
 Leasing
Ref: Chapter 8 of Core Text
MARKET SEGMENTATION
Ref: Chapter 10 of Core Text
MARKET SEGMENTATION:
VARIABLES
 Geographic Segmentation
 Demographic
Segmentation
 Psychographic
Segmentation
 Behavioral Segmentation
Ref: Chapter 10 of Core Text
SEGMENTATION VARIABLES
(CONTD)
 Geographic Segmentation:
 By
Nations
 By Regions
 By States
 By Cities
 By Localities
Ref: Chapter 10 of Core Text
SEGMENTATION VARIABLES
(CONTD)
 Demographic
Segmentation:
 By
Age
 By Gender
 By Income
 By Education Level
 By Religion/Race
 By Nationality
Ref: Chapter 10 of Core Text
SEGMENTATION VARIABLES
(CONTD)
 Psychographic
Segmentation:
 By
Personality
 By
Lifestyle
 By
Social Class
Ref: Chapter 10 of Core Text
SEGMENTATION VARIABLES
(CONTD)
 Behavioral
Segmentation:
 By
Usage Pattern
 By Occasion
 By Loyalty Factor
 By Attitude Towards The Product
Ref: Chapter 10 of Core Text
THANK YOU ALL FOR
YOUR PARTICIPATION IN
THIS PROGRAMME
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