Winning markets contd…

The Marketing Process

Two Views of the Value Delivery Process: Traditional physical process sequence

Make the product . . . Sell the product

Value creation and delivery sequence Choose the value . . . Provide the value .

. . Communicate the value

The Marketing Process

Steps in the Marketing Process: Analyzing market opportunities

Developing marketing strategies

Planning marketing programs

Managing the marketing effort

The Marketing Process

Executive summary and TOC

Current situation Opportunity and

issue analysis Objectives

Marketing strategy

Action programs Financial

projections Controls

Marketing Plan Contents

Managing The Marketing Process

Marketing Departments can be organized by: Function Geographic area Products or brands Customers or markets Corporate divisions Global aspects

Managing The Marketing Process

Building a Companywide Marketing Orientation Requires: Commitment from top management Training programs; employee

empowerment Recognitions and rewards programs Modern marketing planning system Process-outcome focus

Managing The Marketing Process

Injecting more creativity into the organization can be beneficial

Successfully implementing programs requires four sets of skills: Diagnostic skills Identification of company level Implementation skills Evaluation skills

Managing The Marketing Process

Types of Control

Annual plan Profitability Efficiency Strategic

Responsibility of top and middle management

Examines whether planned results are achieved

Managing The Marketing Process

Five tools are used to evaluate annual plan performance: Sales analysis Market-share analysis Marketing expense-to-sales analysis Financial analysis Market-based scorecard analysis

Managing The Marketing Process

Types of Control

Annual plan Profitability Efficiency Strategic

Responsibility of

marketing

controller

Examines where

the company is

making and losing

money

Managing The Marketing Process

Types of Control

Annual plan Profitability Efficiency Strategic

Responsibility of line & staff and / or marketing controller

Evaluates and attempts to improve spending efficiency of marketing expenditures

Managing The Marketing Process

Types of Control

Annual plan Profitability Efficiency Strategic

Responsibility of top management and marketing auditor

Examines whether company is pursuing its best opportunities

Managing The Marketing Process

Strategic controls should be conducted periodically via: Marketing-effectiveness reviews Marketing audits

Additional reviews to consider: Marketing excellence review Ethical and social responsibility review

Supporting Marketing Decisions

A Marketing Information System is defined as . . . “people, equipment, and

procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”

Supporting Marketing Decisions

Marketing Information Systems compile information from: Internal records systems Marketing intelligence systems Marketing research Marketing decision support analysis

Supporting Marketing Decisions

Internal Records Systems Order-to-payment cycle is key

Timely sales reports help to better

manage inventory

Customer, product, salesperson and

other databases can be mined for fresh

insights

Supporting Marketing Decisions

Improving the Quality of Marketing Intelligence System Data Requires: Training and motivating sales force to

report developments Motivating channel members to share

important intelligence Collecting competitive intelligence

Supporting Marketing Decisions

Improving the Quality of Marketing Intelligence System Data Requires: Developing a customer advisory panel Purchasing information from commercial

data sources Establishing a marketing information

center within the company

Supporting Marketing Decisions

The Marketing Research Process: Defining the problem and research

objectives Developing the research plan Collecting the information Analyzing the information Presenting the findings Making the decision

Supporting Marketing Decisions

Developing the Research Plan Involves: Gathering secondary and primary data Selecting one or more research approaches

for primary data collection Using the appropriate research instrument Developing a sampling plan Determining subject contact methods

Supporting Marketing Decisions Approaches for primary data

collection include: Observational research Focus-group research Survey research Behavioral data Experimental research

Supporting Marketing Decisions

A Marketing Decision Support System is defined as a . . . “coordinated collection of data,

systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from business and the environment and turns it into a basis for marketing action.”

Forecasting and Demand Measurement

Essential Aspects

The market Market demand Company demand

and sales forecasts Current demand Future demand

Market Potential market Available market Target market

(served market) Qualified available

market Penetrated market

Forecasting and Demand Measurement

Essential Aspects

The market Measuring

demand Company demand

and sales forecasts Current demand Future demand

Market demand Market minimum Market forecast Market potential Nonexpansible vs.

expansible markets

Primary vs. secondary demand

Market forecast Market potential

Forecasting and Demand Measurement

Essential Aspects

The market Measuring demand Company

demand and sales forecasts

Current demand Future demand

Company demand Company sales

forecast Sales quota Sales budget Company sales

potential

Forecasting and Demand Measurement

Essential Aspects

The market Measuring demand Company demand

and sales forecasts Current demand Future demand

Total market potential

Area market potential Market-buildup

method

Forecasting and Demand Measurement

Essential Aspects

The market Measuring demand Company demand

and sales forecasts Current demand Future demand

Many Forecasting Methods: Buyer intentions

survey Composite of sales

force opinions Expert opinion Past-sales analysis Market-test method

Macroenvironmental Trends and Forces

Demographic Environment Worldwide population growth Population age mix Ethnic markets Educational groups Household patterns Geographic population shifts Rise of micromarkets

Macroenvironmental Trends and Forces

Economic Environment

Income distribution

Savings, debt, and credit availability

Macroenvironmental Trends and Forces

Natural Environment Shortage of raw materials

Increased energy costs

Anti-pollution pressures

Changing role of governments

Macroenvironmental Trends and Forces

Technological Environment Accelerating pace of technological

change

Unlimited opportunities for innovation

Varying R&D budgets

Increased regulation of technological

change

Macroenvironmental Trends and Forces

Political-Legal Environment

Legislation regulating business

Growth of special interest groups

Macroenvironmental Trends and Forces

Socio-Cultural Environment

World views that consumers hold of

themselves, others, society,

organizations, nature, and the universe

High persistence of core values

Existence of subcultures