MARKETING MANAGEMENT

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• MARKETING MANAGEMENT
• WEEK 1
• Market Orientation
• Marketing Strategy

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One of your two lecturers

• Helene Cherrier
• Education
• Phd in Marketing 2003 Arkansas - USA
• DEA 2000
• Universite Catholique de Louvain - Belgium
• MBA 1999
• Bryant College, Rhode Island - USA
• Bachelor of Business - Finance, 1997
• IFAM, Paris - France

Lecturer / Researcher 2007-Today Luiss
University, Rome, Italy 2005-2007 University of
Sydney, Australia 2003-2005 Wesminster
University, London, England Internal Auditor
USA / Canada / Mexico 1997 - 1998
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My Philosophy of Learning

• Learning is not compulsory.neither is survival.
• Edwards Deming
• Questions are the creative acts of
  intelligence."
• I have never in my life learned anything from
  any man (and women too of course) who agreed with
  me. 
• Dudley Field Malone

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Format

• How do I/we teach/lecture?
• I/we see my/ourselves as facilitators in your
  learning experience ( not as high-school
  teachers pouring you information which is anyways
  available in the textbooks).
• What to do with in-class Case Studys?
• First, read them thoroughly (individually) work
  with your group / peer(s).
• A) Make SWOT analysis for each case (as much as
  you are able to
• from the info. given in the case
  available),
• B) Define the main problem (the big picture),
• C) Explain your solutions to the main problem,
  and
• D) Answer the questions at the end of the cases
  (if available).
• E) Write a very short team report, and

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About the Course

• The aims of this course are
• Introduce you to marketing using the basic
  aspects of strategic marketing, consumer
  behaviour, management
• considers environmental factors and studies how
  marketing strategies are affected by those
  environmental factors.
• Increase awareness and understanding of marketing
  concepts and highlight their importance in a
  rapidly changing economy.
• develop your skills in designing and implementing
  marketing strategies in diverse contexts.

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Structure of the course

• Lecture with two different lecturers
• Case study
• Class discussion
• Guest speakers

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Assessments

• Group project 70
• Final exam 30

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Plan Report (Group) 70

• Considering (a) entering a new market, or (b)
  considering the entry of a new product/service to
  an existing market, or (c) both.
• How the environmental variables (i.e., cultural,
  economic, political and legal- affect the
  marketing activities of the firm
• Strategic planning (positioning strategies,
  competitive advantage)
• Timing and mode of entry
• The 4Ps (product, place, promotion and price)
• Managing, measuring and controlling the
  international marketing effort.
• In MARCH 26th, a proposal is due!!.

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MARKETING - A Brief Recap

• Business has only two basic functions- marketing
  and innovation
• Drucker (1954)

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What is Marketing?

• The delivery of customer value and satisfaction
  at a profit
• (Kotler, Brown, Adam Armstrong, 2004 p.5)
• A social and managerial process by which
  individuals and groups obtain what they need and
  want through creating and exchanging products and
  values with others. (Kotler, Brown, Adam
  Armstrong, 2004 p.8)
• Marketing as an organizational function and a
  set of processes for creating, communicating and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders (American
  Marketing Association 2006)
• Marketing is the delivery of customer
  satisfaction at a profit.
• processes for creating, communicating and
  delivering value to customers e.g.
  Key-Mart/Wal-Mart (always low prices) FedEx
  (fast, reliable, small-package delivery Ritz
  (memorable experiences) Always Coco-cola (always
  with food, cool, part of your life)

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• Marketing is the identification and satisfaction
  of consumers needs
• Consumers may or may not be able to articulate
  those needs
• Consumers may or may not know what will satisfy
  them
• The term needs is interpreted very (very)
  broadly

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The evolution of marketing
The evolution of marketing
Simple trade orientation
Production orientation
Focus each producer made products
for themselves neighbours
Sales-orientation
Focus if we can make it, it will sell
Marketing department orientation
Focus sales turnover in the face of competition
Marketing company orientation
Focus coordinate all customer contacts
Societal marketing orientation
Focus long-run customer satisfaction
Focus the good life
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New approach to marketing
TO Finding products that are right for each
customer
TURN the process through 90 degrees
FROM Finding customers that are right for each
product

• To achieve this we need to align around
• Organization and culture
• Business processes and skill
• Measurement and incentives
• Information management
• Technology

Products 1 2 3 4 5 ..
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Customer concept/1
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Customer concept/2
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Customer concept/3
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Customer concept/4
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Customer concept/5
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Customer concept/6
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Customer concept/7
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Customer concept/8
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Customer concept/9
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Customer concept/10
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Customer concept/11
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Customer concept/12
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• The Role of
• Marketing Department
• in the Firm

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The Role of Marketing in the Firm

• Generally, a firm consists of 5 main departments
  with several sub departments
• (1) Accounting Finance with sub departments of
  
• Credit,
• Costs,
• Purchasing, and,
• Electronic data processing (EDP), also called
  information technology (IT).
• (2) Technology, Engineering, Production
  departments
• Research and development (RD) departments

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The Role of Marketing in the Firm (cont.1)

• (3) Operations (especially in services)
• (4) Human resources (HR) Education/Training
  department
• (5) Marketing department with sub departments of
• Sales,
• Advertising and sales promotions,
• Public relations (PR)
• Direct marketing,
• Marketing research .

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Organisation Chart of a Firm
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Organisation Chart of the Marketing Department
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Activities

• Market research and analysis
• Competitive intelligence
• Product development
• Product design and planning
• Pricing
• Communication design and planning
• Distribution design and planning
• Services (before, during and after-sale)
• Planning and monitoring
• Organization and human resources management

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Actors (people, organizational units)

• VP-Marketing and sales
• Marketing, product, category manager
• New products manager
• Communication, advertising manager
• PR
• Market research manager
• Sales manager
• Account manager
• Trade marketing manager
• Client administration

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Resources

• Tangible
• Financial
• Wharehouses
• Transports and logistics
• ICT Infrastructures
• Intangible
• Brand
• Market knowledge
• Relational capital
• Social capital
• Human
• Research, Design
• Sales, Services
• Communication

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• The Significance of Marketing on your way to be
  the Managing Director in the Firm

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The Significance of Marketing on your way to be
the Managing Director in the Firm

• Only the marketing department has direct links
  and a say to all of these departments for 5 main
  reasons
• (1) First, due to the nature and definition of
  marketing concept and the marketing mix elements
  (the 4 Ps product, price, place, promotion),
  and because of this facts
• (2) marketing has the knowledge and research
  results of what the company should sell hence,
  it gives details on product (including size,
  package, shape) and production.
• That is, through market mktg research
  marketing receives the first and direct
  information about market, competition, and
  consumer needs problems at first hand and
  accordingly finds out what kind of products
  consumers need, and assist the firm on what to
  produce.

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The Significance of Marketing on your way to be
the Managing Director in the Firm (cont.1)

• (3) Only the marketing receives the first and
  direct information on market at first hand on at
  what prices the products are sellable hence, it
  decides on price.
• (4) Marketing decides where to sell the products
  hence, it decides on the physical distribution of
  products and distribution channel members.
• (5) And only marketing decides how to inform the
  people that a useful product is available on the
  market via sales, advertising, sales promotions,
  PR, publicity and direct marketing tools.
• Therefore, together with his field of expertise,
  heads/chairs of marketing departments have
  knowledge on production and operations, and
  finance, HR by recruiting, motivating, and
  managing a bulk of sales people.

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Why Study Marketing?
Why Study Marketing?
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Reason 1

• Marketing is a fundamental human activity
• its ubiquitous in daily life
• it happens around the world
• we can learn to make better consumer decisions

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Reason 2

• Marketing impacts the economy
• Marketing (broadly conceptualized) is
• about 50 of retail sales expenses
• Healthy marketing systems support economic advance

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Reason 3

• Marketing management is essential to
  organizational success
• Drucker (1954) suggested that business
  enterprise has two- and only two functions
  marketing and innovation

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Reason 4

• Marketing can contribute to societal well-being?
• Cherrier, Hélène and Jeff B. Murray (2004). The
  Sociology of Consumption The Hidden Facet of
  Marketing, Journal of Marketing Management, Vol.
  20, No 5-6, p. 509-526.

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Reason 5

• Its about people (consumers) and its fun.
• (Well, its more fun than calculus anyway)

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Reason 6

• Try to Image a world without marketing
• No commercial television, radio or newspapers
• No brands
• Limited Choice
• Empty Supermarket Shelves
• No incentive to have products available for us
  when and where we need them
• No opportunity to complain.

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Group Discussion

• In small groups discuss the following questions
  before presenting your thoughts to the rest of
  the class.
• What factors might influence the way you might
  purchase the following items
• Lunch.
• A holiday.
• ? A present for a close friend.
• ? A new car.
• List the main factors that would affect your
  decision (spend about 10 minutes to discuss these
  items.)

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CONCEPTS

• Low versus high involvement products
• Importance of the context
• Gift giving receiving giving back overt and
  concealed motivations

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AGENDA for Lecture 2

• Recap for previous lecture The Importance on
  Marketing Illustrated
• Strategic Market Planning
• A discussion of the Marketing plan you are
  required to complete
• Identifying Market Opportunities
• Form Groups for the Marketing Plan
• 4-5 members in a group

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Marketing strategy and management

• Strategic marketing planning

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AGENDA

• Vision
• what marketing strategy planning is
• Be familiar with the framework for marketing
  planning
• Understand that marketing plans are a written
  statement of the strategy Envision the
  development of your Marketing Planning project
• Discussion for group formation

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Why are WE here? DESIRES

• Get a grade hopefully a good grade!
• Diplomas requirement
• Experience Rome
• Hope to become a marketing manager in the fashion
  industry / non profit organization / global
  corporation.
• Become a professor

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Marketing TermVision (Strategic Intent)

• Vision What do we want to be?
• More than a goal
• Inspiring
• Creates a sense of purpose
• Common corporate destiny

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Vision

• 5 Minutes for THINKING
• In group of two write down the vision for the
  following companies
• Kodak
• Coca-ColaBritish Airways

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Vision

• Some examples
• Kodak
• to be the World leader in imaging
• Coca-Cola Putting a coke within arms reach of
  desire
• British Airways Worlds favourite airline

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Vision

• What makes a Vision effective?
• Clear
• Challenging
• Stretching
• Make sense in the marketplace
• Stable but constantly challenged internally
• Empower employees first - customers second

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• In addition to understanding what we want to be
  (VISION),
• We need to understand who/what we are

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Strengths and Weaknesses

• What am I good at? What am I poor at?

Strong at Weak Points ________________
________________ ________________
________________ ________________
________________
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(SWOT) Analysis
Internal
External
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Strengths

• What do you do particularly well?
• What do you do that is unique in the
  marketplace?
• What do your customers/clients/patrons ask for
  you to do over and over again?
• What do you have the right tools/resources to
  accomplish?

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Weaknesses

• What do you not feel as comfortable doing?
• What needed resources, staff, or skills do you
  lack?

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Opportunities

• Are there new situations coming down the road
  that you can take advantage of?
• Are there gaps in the market that you can fill?
• Are there partnerships that might be fruitful?

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Threats

• Who is your competition and what do they offer
  that you cant do as well or at all?
• Are there environmental changes or situations
  that could cause problems for you and your
  programs?
• What other roadblocks are being thrown in your
  path?

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SWOT Issues analysis

• What steps can you take to
• Capitalize on your strengths
• Overcome or minimize your weaknesses
• Take advantage of some new opportunities
• Respond to the threats

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SWOT Analysis
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The marketing plan

• Marketing plana written statement of a marketing
  strategy and the time-related details for
  carrying out the strategy
• Spells out, in detail
• What marketing mix is offered
• To what target market
• For how long
• What resources (costs) are needed and at what
  rate
• What results are expected (e.g. sales and
  profits)
• What control procedures will be used

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The Marketing Plan that you are required to
complete

• Choose an organisation, or use the company you
  work for as the basis for this assessment (March
  26 provide a proposal of the company you
  choose).
• This assignment can be based on the company
  itself, one of its product lines, an individual
  brand or a geographical unit.

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The Marketing Plan that you are required to
complete

• Choose a company (IBM), product line (Holden-Four
  Wheel drives) geographic unit (Harley Davidson -
  Rome) or an individual brand (Nokia 8910 Nokia
  8890)

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Structure of a marketing plan

• Executive summary
• Introduction and Background
• Critical Situation Analysis including a SWOT
  analysis
• Critical Analysis of the current Marketing
  Strategy
• Revised Marketing Strategy / Recommendations.
• Implement and Control the revised marketing
  strategy

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Executive summary

• A complete 12 page summary of the marketing
  plan
• An overview of the major goals and elements of
  the plan
• Key underlying assumptions
• Relevant corporate objectives
• External environmental factors

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Introduction and Background

• Background about company
• Key performance trends and any desired changes
• Set the scene and assess the companys past
  strategy
• Structure of your plan
• What is the difference between an executive
  summary and an introduction?

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Situation analysis and SWOT

• Environment scanning for relevant trends
• Demographic
• Economic
• Social and cultural
• Technological
• Political and legal
• Competitors
• Company Analysis
• SWOT Analysis

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Critical Analysis of the current Marketing
Strategy

• By undertaking secondary research (databases,
  company websites, newspapers, and journal
  articles) critically analyze the companys
  current strategy. Clearly take a stand on each
  of the key issues arguing whether the companys
  current strategy is good or it needs to be
  revised. Clearly justify your judgment. It is
  very important in this section that you develop
  clear arguments for your judgments.
• Segmentation and Targeting positioning
• Marketing Objectives
• Strategic options
• Tactical Elements-Marketing Mix

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Revised Marketing StrategyRecommendations.

• Based on the discussion in the previous section,
  design a better marketing strategy for your
  organization. This may include, changing the
  positioning (segmentation, targeting and
  positioning), revising the strategic options, or
  the marketing mix. As before, your argument for
  revising these strategies must be clear. Your
  argument should be justified by primary data!

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Implement and Control the revised marketing
strategy

• What controls will you use to make sure that your
  revised marketing plan is on track? Other
  relevant issues include forecasting and timing
  of the proposed tactics

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Presentation of the written report

• Presentation Structure
• Grammar / Readability
• Rigour/consistency in referencing (10 journal
  articles)
• Contents page
• Appendices
• Indication of the word count

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What we will be doing in the next lecture

• In the next lecture we will be discussing the
  identification of marketing opportunities,
  including
• The resources required for searching for
  opportunities
• Understanding how the macro-environment
  influences strategy planning
• Understanding the screening and evaluation of
  marketing strategy opportunities