Download - The so called marketing?
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Ossama El-Badawy
THE SO CALLED …
MARKETING!! What Is It All About?
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Ossama El-Badawy
Agenda Topic Duration
MARKETING
Concept … Definitions … Evolution … Key Terminologies 10 m
Market Plan
Key Rules, Templates?, Key Components, Situational Analysis, Marketing
Strategy, Marketing Programs, Budget & Controls
15 m
Situational Analysis
Environmental Analysis, Internal Analysis, SWOT Analysis 20 m
Marketing Strategy
STP + 4Ps 10 m
Break 5 m
Marketing Programs, Budgets & Controls 10 m
Special Topic
Internet & Marketing 5 m
What-to-Do summary 5 m
Q&A 10 m
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Ossama El-Badawy
Real Life Cases
XXXXXXXX
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Ossama El-Badawy
Marketing
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Ossama El-Badawy
Science VS. Practice
•It is well known that marketing
as a science did not start
before the 20th century, but
marketing as a practice
started with the start of
mankind!!
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Ossama El-Badawy
Social VS. Managerial
•Marketing originally is a societal
process by which individuals and
groups obtain what they need and
want through interacting freely with
others, but when it comes for
managerial level its more formal
process aiming primarily at selling
products.
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Ossama El-Badawy
Understanding
Market ing
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Ossama El-Badawy
Understanding
Market ing
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Ossama El-Badawy
What is Market?
PEOPLE
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Ossama El-Badawy
BUT - not just ANY people, they have to have
• Willingness to buy
• Purchasing power (money)
• Authority to buy
What is Market?
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Ossama El-Badawy
Formal Def. 1
Process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that satisfy individuals
and organizational objectives.
What is Marketing?
The American Marketing Association
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Ossama El-Badawy
Formal Def. 2
Marketing deals with identifying and
meeting human and social needs. One of
the shortest definitions of marketing is
“meeting needs profitably.”
What is Marketing?
Philip Kotler, Marketing Management, Millenium Edition
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Ossama El-Badawy
What is Marketing?
My Proposed Def.
Marketing is an organizational function
and a set of processes for identifying, creating,
communicating, and delivering value
to customers in ways that benefit the
organization and its stakeholders.
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Ossama El-Badawy
What is Marketing?
It’s your
turn!!
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Ossama El-Badawy
Evolution of Marketing …Concepts Concept
Approach Production Product Sales Marketing
Assumption
Customer will buy anyway
Buyers admire well made product & can praise quality & performance
Good product is no more an assurance for success among alternatives
Customer more knowledgeable and less naive
Focus
Efficiently produce large quantities
Product quality Substantial promotional effort
Find wants and fill them
Strategy Shaped by manufacturing executives
Shaped by designers and engineers
Sales executive more admired
Marketing execs dominating through customer orientation
Sales
Sell the out put
Marketing myopia
Hard sell How to better serve the customer
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Ossama El-Badawy
Evolution of Marketing … Roles
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Ossama El-Badawy
Values, Needs & Wants
Values Needs Wants
Fundamental beliefs about
what is desirable, worthwhile,
and important to an individual
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Ossama El-Badawy
Values, Needs & Wants
Values Needs Wants
A state of felt deprivation;
physical, social or individual.
Fundamental beliefs about
what is desirable, worthwhile,
and important to an individual
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Ossama El-Badawy
Values, Needs & Wants
Values Needs Wants That form taken
from a human
need and shaped
Into certain
SOLUTION of a
value to customers
A state of felt deprivation;
physical, social or individual.
Fundamental beliefs about
what is desirable, worthwhile,
and important to an individual
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Ossama El-Badawy
Marketing Debate
Does Marketing
Create or Satisfy Needs?
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Ossama El-Badawy
NO
Single
Answer
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Ossama El-Badawy
Marketing
Planning
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Ossama El-Badawy
Key Rules
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Ossama El-Badawy
Key Rules
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Ossama El-Badawy
Key Components
Executive Summary (last step)
Situational Analysis
Environmental Analysis
Internal Analysis
Marketing Strategy
Segmentation, Targeting & Positioning
Marketing Mix: 4Ps
Marketing Programs
Budget / Financial Forecasts
Controls
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Ossama El-Badawy
Situational
Analysis
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Ossama El-Badawy
Environmental Analysis
Threat of
Subsitutes
Technology
So
cial
Economic
Po
litic
al
E X T E R N A L F O R C E S - PEST Analysis
Go
vernm
ental
Actio
ns
Po
wer
of
Su
pp
liers
D I R E C T F O R C E S - Porter Analysis
Competition
Rivarly
Power of
Buyers
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Ossama El-Badawy
Political Economic Sociocultural Technological US government is
Constitution-based
federal republic with
strong democratic
tradition (O)
Struggling US economy (T)
Increasing Inflation & unemployment (T)
Energy prices increased, and food prices decreased slightly (T)
Consumer purchasing decision is going more towards low price (O) & (T)
Lower cost
competition regional
and globally (T)
Increasing personal
income (O)
Increasing
environmental
awareness & health
consciousness (O)
Declining mass
market
Increasing diversity of
workforce and
markets
Changing pace and
location of life &
household
composition
The highest
investment of the
USA government in R
& D (O)
extensive
technologically
trends worldwide (O)
& (T)
increasing number of
user of internet (O)
Non-store formats
(Especially Virtual
Stores) grew faster
than the total retail
industry (O)
PEST Analysis
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Ossama El-Badawy
Low
Significant entry
barriers, and economy
of scale
Medium Rising bargaining
power, but there’s a
potentiality to
eliminate suppliers High Rising sales of
substitute Products
Medium High bargaining
power, but market is
growing and there’s a
potentiality new
customer groups
Total =Medium Only government, no
foreign
Porter Analysis XXXXX
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Ossama El-Badawy
Porter Analysis
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Ossama El-Badawy
Internal Analysis
Marketing Audit
Questionnaires
Running Vs. New Business
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Ossama El-Badawy
Internal Analysis
Corporate Resources Marketing Finance R&D Operations Human
Resources
Information
Systems
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Ossama El-Badawy
Environmental Analysis
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Ossama El-Badawy
Internal Analysis
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Ossama El-Badawy
SWOT Analysis
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Ossama El-Badawy
SWOT Analysis
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Ossama El-Badawy
SWOT is not
just a
nice-to-have;
it must be
used!!
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Ossama El-Badawy
Strengths (S)
S1: Highly efficient supply chain management
S2: Virtually connected Stores, and Head
quarters
S3: Every one clearly understand the structure
S4: Marketing and promotion practices.
S5: Value the employees and calling them
associate - partners rather than clerks
Weaknesses (W)
W1: Decreasing Profitability.
W2: The Stores are centralized in
W3: Negative corporate Image.
W4: Tight Liquidity.
W5: No marketing division exists.
W6: No R&D division exists.
Opportunities (O)
O1: The consumer purchasing decision is going
more towards low price
O2: The extensive technologically trends in the
world
O3: Existing only in stores a relatively small number
of countries
O4: The increasing number of internet users
O5: Different store types offer Wal-Mart
opportunities to exploit markets
SO Strategies
S1O1 Continual focus on low prices
S2O2 Utilize technological tools to maintain
and improve information network
S4O2 Use the technology in making innovative
marketing and promotion practices
S4O4 More focusing on the dot com business
WO Strategies
W1O4 Develop more virtual products that can
be online sold
W2O3 Expanding in Europe and by reducing
distribution cost
Threats (T)
T1: Increasing Inflation & unemployment
T2: Being number one means higher exposure to
competition
T3: Lower cost regional and global manufacturing
leading to price competition
T4: Rivalry among competing firms is high
T5: Non-store formats (Especially Virtual Stores)
grew faster than the total retail industry
ST Strategies
S1T1 Use the efficient supply chain in
decreasing the operation cost
S1T3 Use the efficient supply chain to maintain
lower prices than global competitors
S4T2 Always keeping an edge in comparison to
competitors
S2T5 Developing the Wal-Mart virtual store to
lead the market
WT Strategies
W2T2 Expanding outside the to avoid more
exposure to competition
W6T3 Establishing R&D division to innovate
and minimizing costs
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Ossama El-Badawy
Cri
tical Im
pro
vem
en
t A
reas
(CIA
s)
Area Comment
Product
Development
Too narrow product line, and no capability to develop new
products that would keep the company competitive and
enable it to serve new markets/segments
Research and
development
Strong R&D function is essentially to help the company
develop new products, and to track technology changes
and also to help the company having the propriety
technology
Marketing,
and competitive
intelligence
Strong marketing function to develop the company
marketing arm and skills, and support of competitive
intelligence to scan and completely understand the industry
and the market
Costing Higher cost relative to competitors may deprive company
from its current super profitability pricing advantages
Internal
Management
The management skills needs to be fostered with special
focus on human resources management (and more specific
comp. & benefits)
Communication Communications problems hinder the company
performance especially wit regards to the culture diversity
XXXXX CIAs
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Ossama El-Badawy
Marketing
Strategy
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Ossama El-Badawy
Marketing Strategy
Segmentation Targeting Positioning
STP 4Ps
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Ossama El-Badawy
Marketing Strategy
Segmentation Targeting Positioning
STP 4Ps
Customers
Products
Defining different
groups of Customers
who share a similar set
of attributes.
Can be also defined
from products point of
view, so we have
product segments.
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Ossama El-Badawy
Marketing Strategy
Segmentation Targeting Positioning
STP 4Ps
Customers
Products
Defining different
groups of Customers
who share a similar set
of attributes.
Can be also defined
from products point of
view, so we have
product segments.
Targeting
This is simply to
choose a
segment, or in
other cases you
may select to go
mass!!
Single / Multi
Product /
Market
Mass
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Ossama El-Badawy
Marketing Strategy
Segmentation Targeting Positioning
STP 4Ps
Customers
Products
Defining different
groups of Customers
who share a similar set
of attributes.
Can be also defined
from products point of
view, so we have
product segments.
Targeting positioning
Act of designing
the company’s
offerings and
image to occupy
a distinctive
place in the
mind of
the target
market
segment.
PoPs Vs. PoDs
Identity Vs. Image
This is simply to
choose a
segment, or in
other cases you
may select to go
mass!!
Single / Multi
Product /
Market
Mass
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Ossama El-Badawy
Marketing Strategy
Segmentation Targeting Positioning
STP 4Ps
Customers
Products
Defining different
groups of Customers
who share a similar set
of attributes.
Can be also defined
from products point of
view, so we have
product segments.
Targeting positioning
4ps = 4Cs
Product = Customer Solution
Price = Customer Cost
Place = Convenience
Promotion = Communication
This is simply to
choose a
segment, or in
other cases you
may select to go
mass!!
Single / Multi
Product /
Market
Mass
Act of designing
the company’s
offerings and
image to occupy
a distinctive
place in the
mind of
the target
market
segment.
PoPs Vs. PoDs
Identity Vs. Image
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Ossama El-Badawy
Cases Segmentation & Targeting
Product: Residential apartment located in New Cairo
Features: 300sqm –finished lux with full services
Price: LE 500,000
Payment Terms: 35% down payment – 65% 5 years installments
Guess what are the Targeted Segments?
Individual
Consumers
Married with
Children
B+-A
Owning at least
one car
Members in
prestigious club
Culture oriented
Love to live calm
B2B / B2C Demographics Socioeconomic Behavioral
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Ossama El-Badawy
Cases Multi Segments Targeting
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Ossama El-Badawy
Cases Re-Positioning
From Search Engine
to Social Network
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Ossama El-Badawy
Cases Competitive Strategies
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Ossama El-Badawy
Marketing
Strategy
Golden Rule
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Ossama El-Badawy
Cascading Strategies
Place
Promotion
Price
Product
4Ps
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Ossama El-Badawy
Cascading Strategies
• Product Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Size
• Services
• Warranties
• Returning
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Ossama El-Badawy
Cascading Strategies
• Product Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Size
• Services
• Warranties
• Returning
• List Price
• Discounts
• Allowances
• Payment Periods
• Credit Terms
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Ossama El-Badawy
Cascading Strategies
• Product Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Size
• Services
• Warranties
• Returning
• List Price
• Discounts
• Allowances
• Payment Periods
• Credit Terms
• Channels
• Coverage
• Assortments
• Locations
• Inventory
• Transport
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Ossama El-Badawy
Cascading Strategies
• Product Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Size
• Services
• Warranties
• Returning
• List Price
• Discounts
• Allowances
• Payment Periods
• Credit Terms
• Channels
• Coverage
• Assortments
• Locations
• Inventory
• Transport
• Sales Promotion
• Advertising
• Sales Force
• Public Relation
• Direct Marketing
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Ossama El-Badawy
Marketing
Programs
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Ossama El-Badawy
Objectives
• SMART
• Sales Forecast is the key objective
• Other Examples of SMART objectives:
• Traffic??
• Stores??
• Publicity??
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Ossama El-Badawy
Organization
•Organization Chart
•JD
•Key Personnel
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Ossama El-Badawy
Activities
• Promotion
• Offline Vs. Online
• Below the Line Vs. Above the Lone
• R&D
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Ossama El-Badawy
Budget &
Financial
Forecasts
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Ossama El-Badawy
Two Key Figures
• Sales Revenues Forecasts
• Marketing & Sales Expenses
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Ossama El-Badawy
Controls
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Ossama El-Badawy
Control Tools
• Action Planning
• Milestones
• KPIs
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Ossama El-Badawy
Special
Topics
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Ossama El-Badawy
Internet & Marketing
The Internet will create new winners !!
“Kotler @ Millennium”
Now: the wealthiest 10 around the world are
internet made!!
The internet for marketing
Knowledge
Reach
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Ossama El-Badawy
Conclusion
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Ossama El-Badawy
What To Do?
Research Your Market
• Define
• Design
• Collect
• Analyze
• Document
Develop Your Strategy
• STP
• 4Ps
Document into Marketing Plan
• Set Goals (Sales Forecast)
• Plan Activities
• Forecast a Budget
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Ossama El-Badawy
Just email me to receive your copies
of various marketing readings [email protected]
Thank You for Being My Audience
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