Marketing Management (CNU ISS 2017)
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1 Marketing Management (CNU ISS 2017) Agnieszka Wilczak, PhD Faculty of Management University of Warsaw 1 Course objectives Showing the major decisions that marketing managers face in their efforts to balance the organization s objectives and resources against needs and opportunities in the global marketplace. This course tries to show a new approach to marketing management based on strategies for growing customer value and profitability. 2 1
2 Course outline 1/2 1. Introduction The marketing concept Company s orientations Strategic marketing management and marketing management 2. Strategic marketing management Company s mission Portfolio analysis Strategic planning gap Growth strategies 3 Course outline 2/2 3. Marketing management Analyzing Marketing Opportunities Customer Analysis Market Demands Competitors and SWOT Analysis Designing Marketing Strategies -STP Designing Marketing Strategies Product Promotion Distribution& Price 4 2
3 Lesson1 & 2 Understanding Marketing Management 5 Outline 1. Defining marketing 2. The marketing concept 3. Company sorientation toward the marketplace 4. Marketing management 6 3
4 1. DEFINING MARKETING 7 Company s functions Financing Human Resource Management Research & Development Marketing Understanding thecustomer value Creating the customer vaule Deliveringthe customer value 8 4
5 Defining marketing Marketing is societal process by which individuals and groups (target market) obtain what they need and want through understanding, creating and delivering and freely exchanging products and services of value with others Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p THE MARKETING CONCEPT 10 5
6 Four main rules Customer s needs and wants Marketing research Integrated marketing tools and actions Long term customer s satisfaction 11 Elements of the marketing concept Target market Customer needs and value Understanding of customer value Creating and delivering of customer value Satisfaction Customer, Employee, Supplier, Shareholder 12 6
7 Target market Market segmentation Target market Market segment 1 Target market Product market Market segment 2 Market segment 3 Market segment 4 13 Target market Market Market a collection of buyers Marketplace is physical Marketspace is digital Metamarket a cluster of complementary products and services that are closely related in the minds of customer Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
8 Target market Product market Three dimensional concept of definition product markets (business domain): Products(functions, technologies, or brands) Customer groups Geographical markets Source: D. Abell, Defining the Business. The Starting Point of Planning, Prentice Hall, Englewood Cliffs 1980; J-J. Lambin, Strategiczne zarządzanie marketingowe, PWN, Warszawa 2001, s Customer needs and value Needs are the basic human / organizational requirements Wants needs become wants when they are directed to specific objects that might satisfy the need Customer value ratio between what the customer gets and what he gives Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
9 Customer needs and value Human needs Selfactualization needs Esteem needs Social needs Safety needs Physiological needs Source: A.H. Maslow (1970). Motivation and Personality, 2nd ed., Prentice Hall, Upper Saddle River., 17 Customer needs and value Customer value Product benefits Service benefits Personnel benefits Customer benefits Image benefits Customer value Price Purchasing cost Using cost Customer cost Source:own preparation based on: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
10 Understanding of customer value Marketing intelligence system Managers experience Marketing Research Market information Managers Intuition Source: own preparation. 19 Creating and delivering customer value marketing mix Marketing mix Creating value Delivering value Product Price Personnel Promotion Distribution Procedures Target market Physical evidence Source: own preparation
11 Creating and delivering customer value +3P Personnel Physical Evidence Procedures Source: own preparation based on: R. Lauterborn(1990). New Marketing Litany: Four P s Passe: C-Words Take Over, Advertising Age, 1 October p We go after the attractive 11
12 Abercrombie& Fitch Manhattan David Abercrombie In 1900 Abercrombie& EzraFitch in 1904newname"Abercrombie& Fitch Co." Popular sport apparel(earlyxx) The Limitedin
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17 Na koszulce a w reklamie? 17
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19 3. ORIENTATIONS TOWARD THE MARKETPLACE 37 Company sorientation toward the marketplace 1/2 Production concept Product concept Selling concept Marketing concept Customer concept Societal marketing concept Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
20 Company orientations toward the marketplace 2/2 Concepts Starting point Focus Means Ends Production Factory Widely available and inexpensive products High production efficiency Low cost Mass distribution Product Factory Superior products Making superior products and improving them over time Selling Factory Products Aggressive selling and promotions Profits through volume and low cost Profits through high quality product Profits through sales volume Marketing Target market Customer needs Integrated marketing Profits through customer satisfaction Customer Societal marketing Best long-run interests customer and society Individual customer Customer needs and value Customer needs, customer interests, and long-run societal welfare One-to-one marketing Integration and value chain Integrated marketing and education customer Profits through capturing customer share,loyalty, and lifetime value Profits through customer satisfaction and society s well-being Source: own preparation based on: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
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23 4. MARKETING STRATEGY& MANAGEMENT 46 23
24 Marketing Strategy defining the corporate mission (vision) establishing SBU assigning resources to each SBU planning new business, downsizing & terminating older businesses Marketing Management-1 Marketing management is art and science of choosing target markets and getting, keeping, and growing customers through understanding, creating and delivering superior customer value Source: own preparation based on: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p
25 Marketing Management- 2 analyzing market situation designing marketing strategies implementing and organizing the marketing effort controlling marketing performance 49 Marketingstrategyversus Marketing management Marketing strategy Concerned with overall, long term organisational direction Provides the long-term framework for the organisation Overall orientation needed to match the organisation to its environment Goals and strategies are evaluated from an overall perspective. Relevance of goals and strategies is only evident in the long-term Marketing Management Concerned with day-to-day performance and results Represents only one stage in the organisation s development Functional and professional orientation tends to predominate. Goals are subdivided into specific targets Relevance of goals and strategies is immediately evident 25
26 Analysis Analysis External Internal Microenvironment Macroenvironment S W O T 51 The Organisation s Marketing Environment The economy Cultural forces Suppliers Demography Social factors Market demands The organisation Distributors & dealers Political structures Competitors Technology Customers Legal structures 26
27 Lesson 3, 4 & 5. Marketing Strategy Lesson 3, 4 & 5. Marketing Strategy Outline corporate mission (establishing the corporate mission, influences on objectives and strategy, guidelines for establishing objectives and setting goals) portfolio evaluation (models of portfolio analysis, market attractiveness and business position assessment, criticism of portfolio analysis) growth & consolidation strategies (types of the strategic gap, growth strategies, including: intensive growth, integrative growth and diversification; consolidation strategies) 27
28 Mission describes the organisation s basic function in society explains why the company exists provides the commercial logic for the company needs to be converted into everyday performance is a cultural glue that enables the organisation to function as a unity Corporate Mission -Fundamental Questions What is our business? Who is the customer? What is of value to our customer? What will our business be? What should our business be? 28
29 Infuences on the mission statement company shistory preferences, values and expectations of managers& owners environmentalfactors availableresources distinctivecompetences Workable mission brief easyto understandand remember flexible to accomodate change distinctive to make thefirm stand out 29
30 Mission or/and vision visiongivesgeneral senseof directionto the company, is the orientation point that guides the company visionignoresreal. practicalproblems, vision can degenerate to wishful thinking mission is about here and now, vision refers to the future, mission is designed to motivate, vision not! Harley-Davidson, Inc Slogan / Motto Define your world in a whole new way. Mission We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments. 30
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33 Coca-Cola To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. 33
34 Pepsico Ourmissionistobetheworld'spremier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. Andineverythingwedo,westrivefor honesty, fairness and integrity. 34
35 Nike Corporation To bring inspiration and innovation to every athlete* in the world. * Ifyouhaveabody,youareanathlete. Bill Bowerman 35
36 HBS We educateleaderswhomake a difference in the world Google To organize the world's information and make it universally accessible and useful. 36
37 Skype To be destructive but in the cause of making the world a better place. Facebook, Twitter& Youtube Facebook s mission is to give people the power to share and make the world more open and connected. To instantly connect people everywhere to what s most important to them. Ourmissionistoprovidefastandeasy video access and the ability to share videos frequently. 37
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