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1 WELCOME TO REGENESYS! Thank you for choosing us as your partner in education. Your educational progress is our top priority, so please share your thoughts and experiences with us via And please remember to order your meal before class if you d like to eat during the break!

2 HIGHER CERTIFICATE IN BUSINESS MANAGEMENT MARKETING MANAGEMENT I Ms Patience Nyoni July 2017

3 THE POWER OF MARKETING Source: Accessed on 29 July 2017

4 What is marketing? What role does marketing play in my life? Is marketing important? Why has marketing attracted much attention of the media?

5 ACTIVITY: INTRODUCTIONS Aim: To get to know each other Time: 20 seconds per person Task: Introductions Please introduce yourself by sharing: Your name Your designation if applicable Something interesting about yourself that colleagues might not know about you Your expectation for the module

6 LEARNING OUTCOMES Upon completing this module, students should be able to: Explain marketing terminology, concepts and principles; Understand market segmentation and positioning principles; Describe the marketing environment; Describe the principles of consumer behaviour; Understand a marketing mix; and Explain the components of a marketing strategy.

7 CONTENT SCOPE AND LEARNING GUIDANCE The Sections that will be covered in this module: SECTION 1: Marketing Terminology, Concepts and Principles. SECTION 2: The Marketing Environment. SECTION 3: Consumer Buyer Behaviour. SECTION 4: Competitor Analysis. SECTION 5: Market Segmentation and Positioning.

8 CONTENT SCOPE AND LEARNING GUIDANCE Section 6: Product Strategies Section 7: Pricing Decisions Section 8: Distribution decisions Section 9: Integrated Marketing Communication Section 10: The marketing plan

9 GROUND RULES Be open-minded When speaking, use I think, I feel, etc (you are a very important aspect of this learning) Listen carefully One conversation at a time Respect the opinions of others Give constructive feedback Build on the ideas of others rather than destroying them Take some risks and share new ideas. Finishing time is 4pm. We will have tea and lunch breaks Have fun and enjoy the experience!

10 REGENESYS INTEGRATED LEADERSHIP AND MANAGEMENT MODEL Holistic focus on individual Interrelationship exists dynamic Individual impact effects team, organisation performance and engages environment Delivery - aligning systems, strategies, structures and culture

11 SECTION 1 Marketing Terminilogy, Concepts and Principles

12 WHAT IS MARKETING? Marketing is a process by which companies create value for customers and build strong relationships in order to capture value from customers in return. (Kotler and Armstrong, 2014:27) Marketing is anticipating and satisfying consumer needs by means of mutually beneficial exchange processes, and doing so profitably and more effectively than competitors by means of efficient managerial processes. (Lamb et al, 2010:5)

13 THREE CENTRAL THEME IN DEFINITIONS FOR MARKETING Creating value for customers; Building strong relationships with customers; Capturing value from customers

14 MARKETING IS BOTH A SCIENCE AND AN ART As a science, marketing has amassed a huge body of (academic and practical ) knowledge over many years based on scientific As an art, marketing managers also need intuition, or gut feel, which only comes from years of experience especially of trial and error in the market. The ability to think creatively, innovatively

15 WHAT ANCHORS MARKETING? Marketing is anchored on the marketing mix, normally named the 4Ps and extended marketing mix 3Ps. The 7Ps are: -Product (most crucial P) -Price -Place (distribution channels) -Promotion (marketing communications) -People -Process -Physical Evidence

16 THE MARKETING PROCESS The basic marketing process: 1. Understand the market place, customer needs and wants. 2. Design a market driven marketing strategy. 3. Construct an integrated marketing program that delivers superior value. 4. Build profitable relationships and create customer delight. 5. Capture value from customers to create profits and customer equity (Kotler and Armstrong, 2014:27).

17 STEP 1: UNDERSTANDING CUSTOMER NEEDS, WANTS AND DEMAND 5 Basic customer and market place concepts Needs, wants and demand Market offerings (product, service and experience) Value and satisfaction Exchanges and relationships; and Markets (Kotler and Armstrong, 2014, 28-29)

18 NEEDS, WANTS AND DEMAND Human needs arise from a state of felt deprivation of some basic satisfaction. (Kotler and Armstrong, 2014, 28-29) Wants are the form human needs take as they are shaped by culture and individual personality. (ibid). Demand are wants for specific products, backed up by the ability and willingness to buy them. (ibid)

19 MARKET OFFERING It is a bundle of benefits fulfilling the customer s needs and wants Market offerings can also be expanded to include other entities, such as persons, organisations, places, information and ideas (ibid)

20 QUESTIONS: STARBUCKS 1. China is a nation of tea drinkers. How has Starbucks changed the behaviour of Chinese people so that they choose coffee over tea? 2. Why do you think this is such a big achievement for Starbucks? 3. Name two aspects of Starbuck s strategy to attract and leverage customers in China. 4. Identify two big difficulties facing Starbucks in China. 5. Who is Starbucks main competitor in China? Why would you say has this competitor been so successful?

21 STEP 2: DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY: Requires that a marketer fully understands consumers and the marketplace. To design a successful marketing strategy, the marketing manager must answer two important questions:? What type of customers will we serve (who s our target market); and? How can we best serve these customers (what s our value proposition)?

22 THE SIX MARKETING PHILOSOPHIES Philosophy is the study of ideas about knowledge, truth and the nature and meaning of life, etc Merriam-Webster.com,2015) 1. Production 2. Product 3. Selling 4. Marketing 5. Societal 6. Relationship

23 STEP 3: PREPARE AN INTEGRATED MARKETING PLAN AND PROGRAMME: To actually deliver the intended value to target customers ; What is Integrated Marketing? The marketing programme is where the basic marketing strategy is transformed into action by means of the marketing mix (Kotler and Armstrong, 2014:34)

24 STEP 4: BUILDING CUSTOMER RELATIONSHIPS The essential aim of the first three steps in the marketing process - the fourth and most important step: Ø Building and managing profitable customer relationships Ø See def. of CRM; Ø Relationship building blocks and Levels of customer satisfaction (Fig. 4) (Kotler & Armstrong, 2014:34; Berman & Evans, 2013: 56).

25 LEVELS OF CUSTOMER SATISFACTION WOW Thrilled Happy Satisfied Fig3: Page 25 in module (Adapted from Berman and Evans, 2013:56)

26 BUILDING BLOCKS OF A CUSTOMER RELATIONSHIP Loyal customers are the lifeblood of any business. To build loyal customers: Meet customer expectations consistently Exceedingly meet the customer s expectations to the point where the customer is emotionally devoted

27 BUILDING BLOCKS OF A CUSTOMER RELATIONSHIP 1. Customer base 2. Customer service 3. Customer satisfaction 4. Customer loyalty programmes

28 STEP 5: CAPTURING VALUE FROM CUSTOMERS In the final step, marketers reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers, as seen in: ü Sales; ü Customer loyalty and retention; ü Share of market and share of customer; ü Profits; and ü Long-term customer equity (Kotler & Armstrong, 2014:27).

29 CUSTOMER RELATIONSHIP GROUPS HIGH PROFIT POTENTIAL Butterflies Strangers True Friends Barnacles LOW SHORT TERM PROJECTED LOYALTY LONG TERM

30 21 ST CENTURY NEW MARKETING TRENDS As the marketplace changes, so must those who serve it. Kotler and Armstrong looks at five major trends and forces that are changing the marketing landscape and challenging marketing strategy today.

31 FIVE MAJOR DEVELOPMENTS: 21 ST CENTURY The changing economic environment The digital age Rapid globalisation Call for more ethics Call for social responsibility

32 SECTION 10 THE MARKETING PLAN

33 INTRODUCTION: Where it all comes together... Good marketing plan provides direction and focus for your brand, product, or company as a whole. M-plan forms part of the co. s overall business plan essential to bring it all together under one plan...

34 PURPOSE AND CONTENT Marketing plan is derived from the company s business plan (master plan covering the entire organisation); M- plan has a narrower focus than the business plan Focus of the m-plan: specific marketing strategies and tactics, with the customer as the starting point. Chapter 2 (*Table 2.2, p.79, prescribed text, outlines the major sections of a typical marketing plan. See also Appendix 1, pp for a sample marketing plan.).

35 RESEARCH FOR MARKETING PLANS Role of Research: M-plans must be based on up-to-date information about the business environment, the market place, and market segments currently served or to be served by the company. Internal and external data is needed through primary and secondary research and analysis. M- plan should outline what marketing research will be conducted and how the findings will be applied. (Kotler and Armstrong, 2014:633).

36 MAJOR ELEMENTS OF A MARKETING PLAN

37 MAJOR ELEMENTS OF A MARKETING PLAN Starting Point of a M- Plan: Co. Mission statement Co. Strategic objectives Marketing objectives Marketing as a whole, can be viewed as a collection of all the elements and activities listed in a marketing plan. Fig. 19 (SG) Major Elements of a M- Plan. (Greenley, Hooley and Saunders, 2002; Aistrup Consulting.com, 2010;

38 MARKETING ETHICS AND SUSTAINABILITY Ethics, Sustainability and Responsibility: Closely related, intertwined concepts The marketing concept, as a business philosophy, means that businesses are part of the society in which they operate and are therefore responsible to that society... For ethically responsible marketers (i.e. those who apply the marketing concept), displaying social responsibility is a fundamental way of doing business (Kotler and Armstrong, 2014: 604)

39 MARKETING ETHICS AND SUSTAINABILITY Corporate Social Responsibility (CSR): See definition (Skinner et al, 2004) However, not all marketers follow the marketing concept. In fact, some companies use questionable marketing practices that serve their own interests, instead of the consumers. Responsible marketers must consider whether their actions are sustainable in the long term (Skinner, Mersham and Von Essen, 2004; Kotler and Armstrong, 2014: 604)

40 MARKETING ETHICS AND SUSTAINABILITY What is Sustainable Marketing? Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs So, there is a need to balance short term needs with long term interests... Complete the case study: Sustainability at Unilever (Skinner, Mersham and Von Essen, 2004; Kotler and Armstrong, 2014: 605)