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Marketing environment

The document outlines the fundamentals of marketing and marketing management, emphasizing the importance of understanding customer needs and creating value. It discusses various marketing concepts, including the marketing environment, customer orientation, and strategic planning processes. Additionally, it highlights tools and frameworks such as SWOT analysis, Porter’s Five Forces, and the 5-C framework for developing effective marketing strategies.

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0% found this document useful (0 votes)
17 views

Marketing environment

The document outlines the fundamentals of marketing and marketing management, emphasizing the importance of understanding customer needs and creating value. It discusses various marketing concepts, including the marketing environment, customer orientation, and strategic planning processes. Additionally, it highlights tools and frameworks such as SWOT analysis, Porter’s Five Forces, and the 5-C framework for developing effective marketing strategies.

Uploaded by

klydangki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 43

MAKETING

MANAGEMENT
Lecturer: Asso. Prof. Dr. Le Thi My Linh

Class1

Strategic Marketing
Marketing environment

1
What is Marketing?
(American Marketing Association)

Marketing is the activity, set of institutions, and processes


for creating, communicating, delivering, and exchanging
offerings that have
value for customers, clients, partners, and society at large

2
What is Marketing Management?

Marketing management is the


art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

3
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)

6
Customer- oriented organizations
Understand that customers buy benefits not products
Make their key investment in their customers and their
customers’ long –term satisfaction

7
THE CUSTOMER

What do customers buy?


Benefits
Where does the value
of a product lie?
In the customer’s mind
The value of a product is perceived
differently by different people, in
different situations.
Implications for Marketing??

8
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

10
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

▪ collect fuller and richer information about markets, customers,


prospects, and competitors

▪ reach consumers quickly and efficiently via social media and mobile
marketing, sending targeted ads, coupons, and information

▪ improve purchasing, recruiting, training, and internal and external


communications improve their cost efficiency
New Competitive Environment
▪ Deregulation: Many countries have deregulated industries to create greater
competition and growth opportunities

▪ Privatization: public companies to private ownership

▪ Retail transformation

▪ Disintermediation

▪ Private labels: retailers that market their own store brands

▪ Mega-brands: Many strong brands have become mega-brands and extended


into related product categories
Integrated Marketing

Integrated marketing coordinates all marketing


activities and marketing programs and directs
them toward creating, communicating, and
delivering consistent value and a consistent
message for consumers, such that “the whole is
greater than the sum of its parts.
Performance marketing
Performance marketing requires understanding the financial and
nonfinancial returns to business and society from marketing
activities and programs.
ORGANISING THE MARKETING
DEPARTMENT
Functional organization
Geographic organization
Product or brand organisation
Funtional organisation
CMO
The CMO leads all marketing functions in the organization, including product
development, brand management, communication, market research and data
analytics, sales, promotion, distribution management, pricing, and customer
service.
the most important role for any CMO is to infuse a customer perspective in
business decisions affecting any customer touch point (where a customer
directly or indirectly interacts with the company)
Building a Customer-Oriented Organization
The Strategic Planning Processes
Steps in Analyzing the Current Business Portfolio
• Identify key businesses making up the
company
• Assess the attractiveness of its various SBUs
• Decide how much support each SBU deserves

21
Steps in Analyzing the Current Business Portfolio
 Strategic business units make up a company’s
portfolio

 Identify key businesses making up the company:


 A strategic business unit (SBU) is a unit of
the company that has a separate mission and
objectives that can be planned separately from other
company businesses.
 Company division
 Product line within a division
 Single product or brand
Characteristics of SBUs
▪ It is a single business or collection of related businesses
▪ It has its own set of competitors
▪ It has a leader responsible for strategic planning and
profitability
DEVELOPING THE MARKETING
STRATEGY

• Marketing strategy incorporates two key components: the target market in


which the company will compete and the value proposition for the relevant
market entities—the company, its target customers, and its collaborators
The target market in which a company
aims to create and capture value
comprises five factors- the five Cs

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

The market offering is the actual


good that the company deploys in
order to fulfill a particular customer
need
Marketing Tactics: The Seven Tactics (7 Ts)
Defining the Market Offering
The Boston Consulting Group’s Growth-Share Matrix (BCG model)
Developing Strategies for Growth and Downsizing
• The product/market expansion grid is a tool for
identifying company growth opportunities
through market penetration, market
development, product development, or
diversification.

2-33
Porter’s Generic Strategies

Overall cost leadership

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

Steps in the Marketing Process:

Analyzing Marketing Opportunities

Developing Marketing Strategies

Planning Marketing Programs

Managing the Marketing Effort


FACTORS INFLUENCING COMPANY STRATEGY

Channels
Economic Technological
Demographic Natural

Product

Price
Target
Place Publics
Suppliers Consumers

Promotion

Political Social
Legal Cultural
Competitors
41
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
42
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

44

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