Marketing environment
Marketing environment
MANAGEMENT
Lecturer: Asso. Prof. Dr. Le Thi My Linh
Class1
Strategic Marketing
Marketing environment
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What is Marketing?
(American Marketing Association)
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What is Marketing Management?
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Marketing is ubiquitous
Marketing is ubiquitous—it permeates all aspects of the
society.
What is Marketed
10 different domains:
1. goods,
2. services,
3. events,
4. experiences,
5. persons,
6. places,
7. properties,
8. organizations,
9. information, and
10. ideas.
To Apply the Marketing Concept
Need to have an ‘outside-in’ focus rather than ‘inside-out’
Necessary to have:
Market Intelligence Generation
Dissemination of Information within the org’n
Organizational Responsiveness (info used effectively)
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Customer- oriented organizations
Understand that customers buy benefits not products
Make their key investment in their customers and their
customers’ long –term satisfaction
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THE CUSTOMER
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The New Marketing Realities
Key changes in the marketing
environment
▪ Rapid diffusion of information technology
▪ The Growth of the Internet
▪ Globalization of business
▪ Increased value of the organization's customer base
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New Consumer Capabilities
▪ use online resources as a powerful information and purchasing aid
▪ use mobile connectivity to search, communicate, and purchase on the
go
▪ tap into social media to share opinions and express loyalty
▪ actively interact with companies
▪ reject marketing they find inappropriate or annoying
▪ extract more value from what they already own
New Company Capabilities
▪ use the internet as a powerful information and sales channel, including
for individually differentiated goods
▪ reach consumers quickly and efficiently via social media and mobile
marketing, sending targeted ads, coupons, and information
▪ Retail transformation
▪ Disintermediation
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Steps in Analyzing the Current Business Portfolio
Strategic business units make up a company’s
portfolio
5-C framework
• Customers,
• Company,
• Collaborators, and
• Competitors
• Context: environment context/ Climate
The 5-C framework defines the market
based on customer needs rather than on the
industry in which the company competes.
PORTER’S FIVE FORCES
Macro Environment
The marketing manager must also be aware of a variety of larger external factors:
PESTLE Analysis
POLITICAL
1. Political The current and potential influences
from political pressures
2. Economic ECONOMIC
3. Demographic The local, national and world economy
impact
4. Cultural SOCIO-CULTURAL
The ways in which changes in society
5. Technological affect the organisation
TECHNOLOGICAL
6. Natural The effect of new and emerging
technology
LEGAL
The effects of national and world
legislation
ENVIRONMENTAL
The Company’s internal environment
The Company
Internal environment includes:
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
• Marketing
The 3-V Market Value Principle
The market offering
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Porter’s Generic Strategies
Differentiation
Focus
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Market Opportunity Analysis (MOA)
• Can the benefits involved in the opportunity
be articulated convincingly to a defined
target market?
• Can the target market be located and
reached with cost-effective media and trade
channels?
• Does the company possess or have access to
the critical capabilities and resources
needed to deliver the customer benefits?
Market Opportunity Analysis (MOA)
• Can the company deliver the benefits better than any
actual or potential competitors?
• Will the financial rate of return meet or exceed the
company’s required threshold for investment?
THE G-STIC APPROACH TO ACTION PLANNING
The Goal describes the company’s ultimate criterion for success; it
specifies the end result that
the company plans to achieve.
The Strategy provides the basis for the company’s business model by
delineating the company’s
target market and describing the offering’s value proposition in this
market.
Tactics carry out the strategy by defining the key attributes of the
company’s offering
Implementation
Control
Business Strategic Planning
Channels
Economic Technological
Demographic Natural
Product
Price
Target
Place Publics
Suppliers Consumers
Promotion
Political Social
Legal Cultural
Competitors
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Translate strategic objectives into
company’s strategic plans
Company’s
objectives
Company’s
desired position
Environmental
Strategic Functional
forces
gap plans
Company’s
Company’s existing position
advantages
and weaknesses
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Structure of the marketing plan
1. Cover page
2. Executive Summary
3. Table of contents
4. Organization context
5. Situation assessment (external and internal analysis)
6. SWOT analysis
7. Competitive advantage and USP
8. Market opportunities
9. Objectives
10. Strategies (target market and value propositions)
11. Tactical development (4Ps or 7Ts)
12. Implementation
13. Control
14. Appendices
Benefit of the Marketing Plan
To enable the manager to remain in touch with changes in the
external environment
To incorporate those changes into the marketing strategy
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