Functional Marketing Management

DiplomaDiploma

INTRODUCTION TO MARKETING FUNCTIONINTRODUCTION TO MARKETING FUNCTION

Facilitator: Munif Ahmad

Marketing Function

What is Marketing?

Marketing consists of management tasks and decisions directed at successfully meeting opportunities and threats in a dynamic environment, by effectively developing and transferring a need-satisfying market offering to consumers in such a way that the objectives of the business, the consumer and society will be achieved.

Key Topics

1. Introduction to marketing2. Marketing research3. Customer behaviour4. Market segmentation5. The marketing mix6. The marketing strategy7. Public relations

Target Customers

IntendedPositioning

Price

Amount of moneythat consumers

have to pay to obtainthe product

Product

“Goods-and-service”combination that a company offers a

target market

Activities that persuade target

customers to buythe product

Promotion

Company activitiesthat make the

product available

Place

Marketing Mix- The Four P’s

Marketing ResearchWhy?Know the research processMarket forecasting

1. Define the problem to be investigated2. Formulate hypotheses3. Investigate hypotheses4. Compile a questionnaire5. Test the questionnaire6. Select sample7. Train fieldworkers and do fieldwork8. Analyse data9. Interpret the results10. Compile the report11. Management studies report12. Management implements findings

Sales forecastingProfit forecasting

Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior patterns of decision making units (individuals & households) directly involved in the purchase and use of products, including the decision-making processes preceding and determining these behaviour patterns.

Study consumer behavior to answer:

“How do consumers respond to marketing efforts the company might use, why do they behave the way they do?”

Customer behaviour

Awareness of need Gathering information Evaluation Purchase action Post purchase evaluation

INDIVIDUAL FACTORS

MotivationAttitude

PerceptionLearning ability

PersonalityLifestyle

GROUP FACTORS

FamilyReference groupOpinion leadersCultural group

Individual Factors

MotivationMotivation

PerceptionPerception

LearningLearning

Beliefs and Attitudes

Beliefs and Attitudes

PersonalityAnd

lifestyle

PersonalityAnd

lifestyle

Factors Affecting Consumer Behavior: Individual

Market segmentation

What is a market?Different types of markets:

• consumers• industrial• resellers• government

Approaches to the market – see fig 13.3

Requirements for successful segmentation:• Identifiable and measurable• Substantial• Accessible• Responsive

CompanyCompany

ConsumerMarkets

InternationalMarkets

GovernmentMarkets

BusinessMarkets

ResellerMarkets

Customer Markets

• Size, purchasing power, profiles of segments can be measured.

• Segments must be effectively reached and served.

• Segments must be large or profitable enough to serve.

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

ActionableActionable

• Segments must respond differently to different marketing mix elements & actions.

• Must be able to attract and serve the segments.

Requirements for Effective Segmentation

Bases for segmentation

Demographic – Who they areGeographic – Where they arePsychographic – What they think they areBehavioural – How do they behave

All of the above determine the consumer profile – draw a picture

Targeting and positioning

Geographic

DemographicAge, gender, family size

and life cycle, or income

PsychographicSocial class, lifestyle, or personality

BehavioralOccasions, benefits, uses, or responses

Nations, states, regions or cities,

density

Bases for Segmenting Consumer Markets

The marketing instruments (mix)

1. Product

― Product concept― Product classification― Brand decisions― Packaging decisions― Differentiation― Obsolescence― Multi- product decisions― New product decisions

The marketing instruments – Product (cont.)

New Product Development Process Develop new ideas Screen ideas Eliminate non viable ideas Develop product Develop strategy Test marketing Commercialisation

Shopping ProductsShopping Products

> Buy less frequently> Gather product information> Fewer purchase locations> Compare for:

• Suitability & Quality • Price & Style

Convenience ProductsConvenience Products

> Buy frequently & immediately> Low priced> Many purchase locations> Includes:

• Staple goods• Impulse goods• Emergency goods

Specialty ProductsSpecialty Products

> Special purchase efforts> Unique characteristics> Brand identification> Few purchase locations

Unsought ProductsUnsought Products

> New innovations> Products consumers don’t want to think about> Require much advertising & personal selling

Classification of ProductClassification of Product


2. Price

Types of prices cost price market price target price final price

Price adaptations skimming penetration market price leader price odd price bait price


3. Distribution

Type of channelChannel leadershipMarket coveragePhysical distribution

Refer to box on page 326

Direct

Indirect

Direct

Indirect

MM WW WW RR CC

MM WW RR CC

MM RR CC

MM CC

Channel 1

Channel 2

Channel 3

Channel 4

Channel Level - A Layer of Intermediaries that Perform Some Work in Bringing the Product and it’s Ownership Closer to the Buyer.

Consumer Marketing Channels & Levels

to inform, persuade and remind advertising personal selling sales promotion publicity


4. Marketing communication

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.

The Marketing The Marketing Communications MixCommunications Mix

Time

ProductDevelop-

ment

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

Sales andProfits ($)

Sales and Profits Over the Product’s Life From Introduction to Decline

Product Life Cycle

Marketing Planning and Control

Planning

o Strategic planningo Functional planning

Control

o Set objectiveso Measure performanceo Evaluate performanceo Take corrective action

Public Relations

A deliberate, planned and sustained process of communication between a

business and its internal and external publics. Its purpose is obtaining, maintaining and/or improving good relations and

understanding.

Developed from:ManipulationInformationMutual influence

What is Public Relations?

•Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events.

•Major functions are:– Press Relations

– Product Publicity

– Public Affairs

– Lobbying

– Investor Relations

–Development

SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Public Service

Activities

Public Service

Activities

Web SiteWeb Site

Major Public Relations Tools

Public Relations Management

1. Planningo Scanning the environmento Setting objectives

2. OrganisingoOrganisational structureoOutside consultants

3. LeadingoEstablish corporate culture

4. Evaluation and control

Publicity

• Methods of obtaining publicity:

Unique special events Unique communication messages News releases Sponsorships

• Social responsibility and business ethics

• Areas of social responsibility:

Consumers Suppliers Competitors Employees Owners and shareholders The community