Managerial marketing

of 19 Managerial marketing summarized
Managerial Marketing
Summarized
By
Joseph Oloba
jooloba@gmail.com
+256785552288
+256700552288

December 11, 2017

Managerial marketing
 Philip Kotler, the eminent
writer, defines modern
marketing as, “a social and
managerial process by which
individuals and groups obtain
what they need and want
through creating and
exchanging product and
value with others.”
 Marketing is the process of
planning and executing the
conceptions, pricing,
promotion and distribution of
ideas, goods, and services to
create exchanges that satisfy
individual and organizational
goals.
 Marketing is meeting needs
profitably.
Recent trends in marketing
 Ambush Marketing
 Forging
 Intrusion
 Guerrilla Marketing
 Ordering something from
competition
 Visit competitors
 Enquire from competitors
 Request something
 Buy something from
competition
 Compare everything
 Creative Marketing
Steps
 Find the inherent drama
within your offering
 Translate that inherent
drama into meaningful
benefit
 State your benefits
believably
 Get people’s attention
 Motivate your audience to
action
 Communicating clearly
 Measure finished adverts
against strategy
 Referral Marketing

 Referrals come from
persons already known.
 Referrals strengthen the
networks
 Referrals reduce sales
expenses
 Referrals add value to the
sources of the referrals.
Scope of marketing
According to Kotler, marketing
people are involved with ten types
of entities (Gosiipppee)
 Goods
 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas
Main Functions of Marketing
 Selling
 Buying
 Assembling
 Transportation
 Storage
 Standardization
 Grading
 Financing
 Risk Taking
 Market Information
Marketing Challenges of 21st
Century
 Threat of the new entrants
 Bargaining Power of Buyers
 Threat of Substitute
 Bargaining Power of Suppliers
 Rivalry Among Competing
Firms in Industry
 Connecting via technology;

 Connecting with customers
more directly, selectively, and
in a more lasting way;
 Connecting with marketing
partners;
 Inside partners, outside
partners
 Connecting with the
world/Global Marketing due
PESTEL factors.
Core marketing concepts
Marketing philosophies
 The production concept
 The product concept
 The selling concept
 The marketing concept
 The customer concept
 The societal marketing
concept
The SIVA Model
 Product
→Solution
 Promotion →Information
 Price →Value
 Placement →Access
Advertising media options for
national advertiser
 Bulk e-mail advertisements
lists
 Card packs
 Catalog advertising
 Co-op direct mail
 Inside other people’s
products
 Coupon books
 Direct mail

 Inside stores
 Internet and online
advertising
 National association
publications
 National business
newspapers
 National magazines
 Newsletters
Customer relationship management
 The overall process of
building and maintaining
profitable customer
relationships by delivering
superior customer value and
satisfaction.
Factors Influencing Customer
Satisfaction
 Product quality
 Service quality
 Price
 Specific product or service
features
 Consumer emotions
 Attributions for service
success or failure
 Perceptions of equity or
fairness
 Other consumers, family
members, and coworkers
 Personal factors
 Situational factors
6 ways to Identify Consumer
Wants/Needs:
 Study your market and your
customers.

 Study your competitors &
their customers.
 Observe and ask questions –
lots of questions.
 Find out what customers will
respond to in your type of
product or service.
 Find out what is most
important to them.
 What motivates them?
Outcomes of Customer Satisfaction
 Increased customer loyalty
 Positive word-of-mouth
communications
 Increased revenues
 Increased return to
shareholders
What is Service Quality?
 Service quality is the
customer’s judgment of
overall excellence of the
service provided in relation to
the quality that was expected.
The Five Dimensions of Service
Quality
 Reliability
 Providing service as
promised
 Dependability in handling
customers’ service
problems
 Performing services right
the first time
 Providing services at the
promised time
 Maintaining error-free
records
 Assurance
 Employees who instill
confidence in customers
 Making customers feel
safe in their transactions
 Employees who are
consistently courteous

 Employees who have the
knowledge to answer
customer questions
 Tangibles
 Modern equipment
 Visually appealing
facilities
 Employees who have a
neat, professional
appearance
 Visually appealing
materials associated with
the service
 Empathy
 Giving customers
individual attention
 Employees who deal with
customers in a caring
fashion
 Having the customer’s
best interest at heart
 Employees who
understand the needs of
their customers
 Convenient business
hours
 Responsiveness
 Keeping customers
informed as to when
services will be performed
 Prompt service to
customers
 Willingness to help
customers
 Readiness to respond to
customers’ requests
The Service Encounter
 is the “moment of truth”
 occurs any time the customer
interacts with the firm
 can potentially be critical in
determining customer
satisfaction and loyalty
 types of encounters:

 remote encounters, phone
encounters, face-to-face
encounters
 is an opportunity to:
 build trust
 reinforce quality
 build brand identity
 increase loyalty
Technology-Based Service
Encounters
 Themes for satisfying SSTs
 The technology solved an
intensified need
 The technology was better
than the alternative
 The technology did its job
 Themes for dissatisfying SSTs
 The technology itself
failed
 The process failed
 The technology was
poorly designed
 The customer did not use
the technology properly
Determinants of Customer
Relationship Management (CRM)
 Trust
 Value
 Salespeople must::
 Understand customer
needs and problems;
 Meet their commitments;
 Provide superior after
sales support;
 Make sure that the
customer is always told
the truth
 (must be honest); and
 Have a passionate interest
in establishing and
retaining a long-
 term relationship (e.g.,
have long-term
perspective).
Stages in the development of a
Customer Relationship
 The Pre-Relationship Stage

 The Early Stage
 The Development Stage
 The Long-term Stage
 The Final Stage
Functions of Customer Relationship
Management
 Direct functions
 Profit;
 Volume; and
 Safeguard
 Indirect functions
 Innovation:
 Market;
 Scout: and
 Access.
The role of salespeople as
relationship builders and promoters
 identifying potential
customers and their needs;
 approaching key decision
makers in the buying firm;
 negotiating and advancing
dialogue and mutual trust;
 coordinating the cooperation
between the customers and
their company;
 encouraging the inter-
organisational learning
process;
 contributing to constructive
resolution of existing
conflicts; and
 leading the customer
relationship development
team

Managing Customer Relationships
 Initiating the relationship
 Engage in strategic
prospecting and
qualifying;
 Gather and study pre-call
information;
 Identify buying influences;
 Plan the initial sales call;
 Demonstrate an
understanding of the
customer’s needs;
 Identify opportunities to
build a relationship; and
 Illustrate the value of a
relationship with the
customer
 Developing the relationship
 Select an appropriate
offering;
 Customise the
relationship;
 Link the solutions with the
customer’s needs;
 Discuss customer
concerns;
 Summarize the solution to
confirm benefits; and
 Secure commitment.
 Enhancing the relationship
 Assess customer
satisfaction;
 Take action to ensure
satisfaction;
 Maintain open, two-way
communication; and
 Work to add value and
enhance mutual
opportunities

CRM in summary
 CRM is a new business
philosophy based on trust
and value;
 The core function of CRM is
the value creation process;
 Customer relationships
develop over time;
 The role of global salespeople
in the process is that of both
relationship builders and
relationship promoters; and
 The basic premise of CRM is
to offer superior value to
customers in an effort to turn
prospects into customers,
customers into loyal
customers, and loyal
customers into partners.
Market Segmentation
 Demographic segmentation
 Geographic segmentation

 Location or region
 Psychographic
 Product-related
 Economic factors
 Population income or level
of economic development
 Political and legal factors
 Type/stability of
government, monetary
regulations, amount of
bureaucracy, etc.
 Cultural factors
 Language, religion, values,
attitudes, customs,
behavioral patterns
The Market Segmentation Process
 Stage I: Identify
Segmentation Process
 Stage II: Develop Relevant
Profile
 Stage III: Forecast Market
Potential
 Stage IV: Forecast Market
Share
 Stage V: Select Specific
Segment
Criteria for Effective Segmentation
 The market segments must
be measurable in terms of
both purchasing power and
size.
 Marketers must be able to
effectively promote to and
serve a market segment.
 Market segments must be
sufficiently large to be
potentially profitable.
 The number of segments
must match the firm’s
capabilities in terms of
resources.
 Must be responsive to
company strategies
 Differentiable-it must be
distinguishable.

Strategies for Reaching Target
Markets
 Undifferentiated Marketing
 Differentiated Marketing
 Concentrated Marketing
 Micromarketing
Determinants of a market-specific
strategy:
 Company resources
 Product homogeneity
 Stage in the product life-cycle
 Competitors’ strategy
Target Marketing
 Evaluating Market Segments
 Segment size and growth
 Segment structural
attractiveness
- Level of competition
- Substitute products
- Power of buyers
- Powerful suppliers
 Company objectives and
resources
Target Marketing Strategies
Choosing a Target Marketing
Strategy
 Company resources
 The degree of product
variability
 Product’s life-cycle stage
 Market variability
 Competitors’ marketing
strategies
Positioning
 The place the product
occupies in consumers’ minds
relative to competing
products
 Typically defined by
consumers on the basis of
important attributes

 Involves implanting the
brand’s unique benefits and
differentiation in the
customer mind
 Positioning maps that plot
perceptions of brands are
commonly used
Positioning Strategies
 Determine consumers’
perceptions and evaluations
of the product or service in
relation to competitors’.
 Identify competitors’
positions.
 Determine consumer
preferences.
 Select the position.
 Monitor the positioning
strategy.
Types of Positioning
 Attributes position
 Benefits
 Usage occasions position
 Competitors' Positioning
 Product Class
 Quality Positioning
 Price Positioning
 Perceptual mapping
Types of Positioning Errors
 Under positioning
 Over positioning
 Confused positioning
 Doubtful positioning
Differentiation can be based on:
 Products
 Services
 Channels
 People
 Image
Criteria for determining which
differences to promote
 Important
 Distinctive
 Superior
 Communicable

 Preemptive
 Affordable
 Profitable
Possible value propositions:
 More for more
 More for the same
 More for less
 The same for less
 Less for much less
The Marketing Environment
 It refers to the actors and
forces outside marketing that
affects marketing
management’s ability to build
and maintain successful
Micro environment actors
 company departments,
 supplier
 marketing intermediaries,
 customers,
 competitors
 various publics
Macro environment actors:
 Political / Legal Environment
 Economic Environment
 Social Environment
 Technological Environment
Marketing Mix
Marketing mix elements
 Price, product, promotion,
place are the original four (4)
Ps.
Each of the four Ps has its own tools
to contribute to the marketing mix:
 Product: variety, quality,
design, features, brand name,
packaging, services
 Price: list price, discounts,
allowance, payment period,
credit terms

 Place: channels, coverage,
assortments, locations,
inventory, transportation,
logistics
 Promotion: advertising,
personal selling, sales
promotion, public relations
Marketing objectives
 Specific – Can the detail
in the information sufficiently
pinpoint problems or
opportunities?
 Measurable – Can a
quantitative or qualitative
attribute be applied to create
a metric?
 Actionable – Can the
information be used to
improve performance?
 Relevant – Can the
information be applied to the
specific problem faced by the
manager?
 Time-related – Can the
information be viewed
through time to identify
trends?
Marketing tactics
The seven tactics below are
sometimes referred to as the 7Ps
because they all start with the letter
P (State Government of Victoria,
2017)
 Your product or service
 The pricing of your product
or service
 Your position (place) in the
marketplace
 The promotion of your
product of service

 The people in your business
(e.g. salespeople, staff)
 The process/ buying
experience
 The physical environment
The four Ps as the four Cs, as
analyzed by Goi (2009):
The four Ps of the marketing mix
can be reinterpreted as the four Cs.
They put the customer’s interests
(the buyer) ahead of the marketer’s
interests (the seller).
 Customer solutions, not
products: Customers want to
buy value or a solution to
their problems.
 Customer cost, not price:
Customers want to know the
total cost of acquiring, using
and disposing of a product
 Convenience, not place:
Customers want products
and services to be as
convenient to purchase as
possible.
 Communication, not
promotion:
Customers want two-way
communication with the
companies that make the
product.
Product Life-Cycle
 Overestimation of Market
Size
 Product Design Problems
 Product Incorrectly
Positioned, Priced or
Advertised
 Costs of Product
Development

 Competitive Actions
To create successful new products,
the company must:
 understand it’s customers,
markets and competitors
 develop products that deliver
superior value to customers.
Product Life Cycle
Services marketing
Characteristics of services
 Intangibility
 Inseparability
 Variability
 Perishability
 Ownership
Basic Differences Between Goods &
Services
 Customers do not obtain
ownership of services
 Services products may not be
inventoried.
 Intangible elements dominate
value creation.
 Customers may be involved in
the production process.
 Many services are difficulty
for customers to evaluate
To be continued!

Managerial marketing

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