Marketing Management

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Marketing Management

• Exam One
• Lecture Three

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Presentation Themes

• Marketing Plans
• Analyzing the Competition
• Product/Market Structures
• Understanding Customers

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• What is a Marketing Plan for?
• To summarize marketplace knowledge
• To show what marketing will accomplish
• To detail marketing strategies, activities
• To show how progress will be measured
• To explain implementation control

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• Marketing Plan Contents
• Executive summary, table of contents
• Current situation (with SWOT)
• Objectives and issues analysis
• Target market
• Marketing strategy and programs
• Financial plans
• Implementation controls

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Evaluating a Marketing Plan

• Is the plan simple?
• Is the plan specific?
• Is the plan realistic?
• Is the plan complete?

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• Researching the Current Situation
• Examine external environment
• Assess internal capabilities
• Understand competitors strategies
• Analyze stakeholders influence

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Markets Impact Strategies

• Market changes often require altering strategies
• Forces of change create both market opportunities
  and threats
• Inherent danger in faulty market sensing

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Competitive Forces

• Rivalry among existing firms.
• Threat of new entrants.
• Threat of substitute products.
• Bargaining power of suppliers.
• Bargaining power of buyers.

Source Michael E. Porter, Competitive
Advantage, Free Press, 1985, 5.
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MARKETS AND COMPETITIVE SPACE

• The Challenges ?
• Markets are increasingly complex, turbulent, and
  interrelated.
• Importance of a broad view of the market.
• Essential to develop a vision about how the
  market is likely to change in the future.
• Continuous Monitoring is Necessary to
• Find promising opportunities
• Identify shifts in value requirements
• Understand competitors positioning
• Guide targeting and positioning decisions

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ANALYZING COMPETITION
1. Define Industry Structure and Characteristics
2. Identify and Describe Key Competitors
5. Identify New Competitors
PRODUCT- MARKET STRUCTURE AND MARKET SEGMENTS
4. Anticipate Actions by Competitors
3. Evaluate Key Competitors
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Extent of Market Coverage
Competitor Evaluation
Customer Satisfaction
Current Capabilities
Past Performance
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Examples of Levels of Competition
Baseball cards
Bottle water
Video Games
Fast Food
Regular colas
Diet lemon limes
Ice Cream
Beer
Diet-Rite Cola
Diet Coke
Fruit flavored colas
Diet Pepsi
Wine
Product from competition diet colas
Lemon limes
Product category competition soft drinks
Juices
Coffee
Generic competition beverages
Budget competition food entertainment
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Industry Analysis

• Industry size, growth, and composition
• Typical marketing practices
• Industry changes that are anticipated (e.g.
  consolidation trends)
• Industry strengths and weaknesses
• Strategic alliances among competitors

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Value Migrations

• Customers shift purchasing to new business
  designs with enhanced value offering
• Beware of disruptive technologies
• Market sensing and organizational learning are
  essential

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Matching Needs with Product Benefits

• A product market matches people with needs to
  the product benefits that satisfy those needs
• A product market is the set of products judged
  to be substitutes within those usage situations
  in which similar patterns of benefits are sought
  by groups of customers.

Srivastava, et al. (1984) Journal of Marketing,
Spring, 32.
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Illustrative Product Market Structure

• Generic Product Class

Food and beverages for breakfast meal

• Product Type

Cereals

• Variant A

Ready to eat
Regular
Natural

• Variant B

Pre-sweetened

Nutritional

• Brands

Life
Special K
Product 19
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• Understanding Markets/Customers
• Learn about markets and customers
• Examine needs, wants, attitudes
• Research buying behaviors

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Needs and Trends
Fad
Trend
Megatrend
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10 Megatrends Shaping the Consumer Landscape

• Aging boomers
• Delayed retirement
• Changing nature of work
• Greater educational attainment
• Labor shortages

• Increased immigration
• Rising Hispanic influence
• Shifting birth trends
• Widening geographic differences
• Changing age structure

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Population and Demographics

• Size
• Growth rate
• Age distribution
• Ethnic mix
• Educational levels

• Household patterns
• Regional characteristics
• Movement

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• Planning Segmentation, Targeting, and
  Positioning
• Identify segments, decide which to target
• Create competitively distinctive position in the
  minds of targeted customers

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• Planning Direction, Objectives, and Marketing
  Support
• Determine strategic direction
• Set objectives
• Plan customer service support
• Plan internal marketing support

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• Approaches to Growth

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Identifying and Describing Buyers
DESCRIBING AND ANALYZING END-USERS
How Buyers Make Choices
Building Customer Profiles
Environmental Influences
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Identifying and Describing End-Users

• Illustrative buyer characteristics in consumer
  markets
• Family size, age, income, geographical location,
  sex, and occupation
• Illustrative factors in organizational markets
• Type of industry
• Company size
• Location
• Type of products

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Building Customer Profiles

• Start with the generic product market
• Move next to product- type and variant profiles
  gtgt increasingly more specific
• Customer profiles guide decision making (e.g.
  targeting, positioning, market segmentation etc.)

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How Buyers Make Choices

• BUYING DECISION PROCESS
• Problem recognition
• Information search
• Alternative evaluation
• Purchase decision
• Post-purchase behavior

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Environmental Influences

• External factors influencing buyers needs and
  wants
• Government, social change, economic shifts,
  technology etc.
• These factors are often non-controllable but can
  have a major impact on purchasing decisions

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Economic Environment

• Purchasing Power
• Income Distribution
• Savings Rate
• Debt
• Credit Availability

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Natural Environment
Shortage of raw materials
Increased energy costs
Anti-pollution pressures
Governmental protections
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• Preparing to Track Progress and Control
  Implementation
• Develop sales forecasts
• Create budgets and schedules
• Plan to measure performance
• Diagnose results
• Adjust activities as needed

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• Guiding Principles for Marketing
• Expect change
• Emphasize relationships
• Involve everyone
• Seek alliances
• Be innovative