Red/Blue Pill Marketing

Presented by Hazem Sobhi

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MARKETING

Meeting needs Profitably

3


THE NATURE AND SCOPE OF MARKETING

Chapter

Difficulties of orientation

development

Factors affect marketing Orientation

Contribution of marketing

Marketing Orientation

Cross Functional role

Impact of marketing

CRM

4


MARKETING ESSENTIALS

5


1.1 THE EVOLUTION OF MARKETING

ORIENTATION

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PRODUCTION ORIENTATION

Cheap as possible.

Keep prices Low.

1.1 THE EVOLUTION OF MARKETING ORIENTATION

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PRODUCT ORIENTATION

Compete Effectively

Large Number of Features

High Cost.

Too much Features that

no one use.


CONSUMERS FAVOR PRODUCTS THAT OFFER THE MOST QUALITY, PERFORMANCE, AND INNOVATIVE FEATURES.

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SALES ORIENTATION

People will only buy Under

pressure.


Has Nothing to do with

practicing the sell.

CONSUMERS WILL BUY PRODUCTS ONLY IF THE COMPANY MAKES SUBSTANTIAL EFFORT TO PROMOTE/ SELL THESE PRODUCTS. 9


MARKET ORIENTATION

Needs and wants Wal-Mart and trolli


FOCUSES ON NEEDS/ WANTS OF TARGET MARKETS & DELIVERING SATISFACTIONS BETTER THAN COMPETITORS.

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1.2 CONTRIBUTION OF MARKETING

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Meeting Customer Need effectively is the most way of creating an exchange (usually Financial).

HINT ON MARKETING

1.2 Contribution Of Marketing

So it is about providing products and services at a price that people regard as reasonable or good value for money.

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MARKET IN PRACTICE


1929 Pile it high, sell it cheap

1930 Super Market & recession

1948 Prices Superiority

1964 Prices Fixation vs. stamps &

gifts.

1967 Edge-of-town superstore.

•Bulk Buyers.

•Range of goods.

•Car owner ease.

•Lower store cost.

1974 Lower petrol prices.

1997 Return to cities with non-food

goods13



MARKET IN PRACTICE

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Low cost of Tesco made him profitable, in the 1950s, why Cohan lobbied for the abolition of resale price maintenance?

Customer-focused cost money. Why not simply cut prices even further?

Why have separate own brand lables?

What is the difference between the trading-stamps and loyality cards system?

MARKET IN PRACTICE


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Study tip

If you were put in charge of

the organization you work

for.

1.3 ASPECTS OF MARKET- ORIENTATION

APPROACH

What is Market - orientation

approach?

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MARKETS VIEWS

As the process of managing Exchange

As the driving

philosophy of business

A managerial

Function

A dynamic operation, requiring analysis, planning

and action

A catalyst for change

1.3 Aspects Of Market- Orientation Approach

Managing the process means that each party will

be better off than they were before

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The firm devoted to meet customer and every decision

taken at every level of the firm is taken with the

MARKETS VIEWS


As the driving


A managerial

Function


and action


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Manage the company nearer to its

MARKETS VIEWS


As the driving


A managerial

Function


and action


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Marketers here need to think on their feet and be prepared

to as circumstances.

MARKETS VIEWS


As the driving


A managerial

Function


and action


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Marketers are the of view advocate all time

MARKETS VIEWS


As the driving


A managerial

Function


and action


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ACTIVITY

Obtain a copy of your company‘s mission statement

or corporate strategy statement. Where do you

thing marketing fits into the overall picture?

How does this coincide with your view of where

marketing sits within the firm.

If possible ask non-marketing colleague what is

their views on this, is marketing still separate

function?


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HINT ON MARKETING

1.4 Difficulties in developing a marketing orientation.

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Reactive marketing

orientation:

understanding and meeting

consumers’ expressed needs.

Proactive marketing

orientation:

researching or imagining

latent consumers’ needs

through a “probe-and-learn”

process e.g. Wal Mart

HINT ON MARKETING


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Even though marketers might

feel that a market

orientation is the obvious

way for thee firm to go.

1.4 DIFFICULTIES IN DEVELOPING A

MARKETING ORIENTATION.

In practice there are likely to be

barriers to developing such an

orientation. Some of these come

from senior management,

colleagues, or organizational

inertia.


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Difficulties

Lack of committed

leadership and vision

Lack of customer

knowledge

Lack of infrastructure

Autocratic leaders

Conflict between

marketing and other

functions.

Preference for a production or

sales focus.

Transactional approach to

business


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DIFFICULTIES

Lack of committed

leadership and vision.

Senior‘s obligation to put

the shareholder interests

first and ignoring the

customer.s values


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Lack of customer

knowledge

Details about your

customer behavior,

example a retailers may

not be able to keep

detailed information

about its customers

DIFFICULTIES


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Autocratic leaders.

Decisions based on leader

experience.

This is a barrier because the

orientation of the company

comes from the customer need.

The manager is unlikely to be

prepared to listen to

customers

DIFFICULTIES


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Conflict between

marketing and other

functions

Engineer redesign and

customer needs

Sell what we can make

rather than make what

we can sell

DIFFICULTIES


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Customer

orientation takes

time to develop and

show results

Sales person gets

results within a few

days.

Production

orientation make

cost saving almost

immediately.

DIFFICULTIES


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Transactional

approach to business

If the firm takes the

attitude that the sale

is the end of the

process

DIFFICULTIES


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Marketing has been

never about

theories and

science, it is about

your gut feelings

and perspective.

HINT ON MARKETING


Take that word in consideration 33


Marketing will have a role

in coordinating all the

activities of the firm at

every level. Each

department, and indeed

each individual, should be

carrying out his or her

role with customers’

welfare in mind.

1.5 MARKETING‘S CROSS-FUNCTIONAL

ROLE

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MARKET IN PRACTICE

1.5 Marketing‘s cross-functional role.

Fifty years ago the children‘s toy

market was invaded by a little

plastic brick with eight studs on it

In 1999, Kalcher opened the first Lego store in Britain.

‗There‘s no such thing as children. It doesn‘t mean anything‘ Kalcher.

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MARKET IN PRACTICE


Lego licensing Watches,

clothing, the Lego Island CD-

ROM, and of course the

legoland theme park.

The store is designed as

friendly as possible for its

diminutive customers. With

hold to heritage within its

construction36


MARKET IN PRACTICE


Rules

• People are encouraged to

touch.

• Educational

• Place in children eye level.

• Children Oriented.

• WOW factor in the entrance

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What is lego doing that most of its competitors

are not doing?

Lego‘s consumer are children, but the customers

are the parents. How does lego address this?

What is the co-ordincating role of Lego's

marketing approach?

How is lego using its marketing philosophy to

extend the business?

MARKET IN PRACTICE


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Marketers usually accused by:

Creating needs

Persuading people to buy things they don‘t need.

Being anti-environementalist.

1.6 THE IMPACT OF MARKETING ON SOCIETY,

CONSUMERS AND THE ENVIRONMENT.

CSR corporate social responsibility

Societal marketing

Take that word in consideration too

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INTERNAL MARKETING

What is marketing

Myopia?

That the company have

straight but narrow view

that it work as a product

based business rather

than working on a

marketing based business.

1.6 The Impact of marketing

Hearing only what you want to hear 40


How do we do internal

marketing?

Training for current

employees

Proper select of new

Employees

INTERNAL MARKETING


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EMPLOYEES TRAINING


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WHAT IS THE 4P‘S AND THE 7P‘S?

Product

It is the value within,

that the customer get


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Place

Where I am going to

sell it.



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Price

Price with respect to value

and perspectives



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Promotions.

Promotional Mix

Billboards.

T.V.

Catalogues.

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People

Your staff

They can interact

effectively.



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Process

انبك االههى و بيىقراطية استخراج انفيسا

ضببط انشرطة فى انرور

Cross-functionality.



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Physical Evidence.

Layout.

Sales and tuxedo.



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4P‘S & 4C‘S

4 P’s

Product

Price

Place

Promotion

•4 C‘s

•Customer Solution

•Cost

•Convenience

•Communication


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COMMUNICATION STRATEGY

Push

The company stimulates intermediaries to carry,

promote and sell its products through the use of trade

sales promotions.

Pull

The company uses advertising and promotions to

induce consumers to ask intermediaries for the

product.

Strategy Mix (push and pull).

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ETHICS

Ethics is the science that

determines what is right

and what is wrong.

1.6 CRM

Ethical &

Legal

Ideal

Unethical &

Legal

Alcohols &

Cigarettes

Unethical &

Illegal

Drugs

Ethical &

Illegal

German

Sales

Promotion

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ETHICS AND THE 4P‘S

Product: should be

valuable and

beneficial.

Chinese products.

1.6 CRM

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Prices

Price discriminations.

Skimming

Prices according to

regions.

Hotels local and

international.


1.6 CRM

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Promotions

CK

Axe

بيريـــــم

1.6 CRM

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Unethical because of message perspectives

Birell ads.

1.6 CRM

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Unethical because of message perspectives

Birell ads.

1.6 CRM

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UNETHICAL PROMOTION

Difference Between value and Message.

1.6 CRM

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UNETHICAL PROMOTION

Attack Other products unethically.

1.6 CRM

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Unethical because of competition rules

PEPSI ads.

1.6 CRM

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SOCIAL RESPONSIBILITIES

It is the obligation of any company to increase its

positive effect and decreases its negative on the

society.

1.6 CRM

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CONSUMERISM

It is increased power and

importance of consumers

1.6 CRM

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CONSUMERISM

1.6 CRM

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CONSUMERISM

Right to safety.

Cigarettes.

Genetic Foods.

1.6 CRM

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CONSUMERISM

Right to be informed

1.6 CRM

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Right to chose.

CONSUMERISM

1.6 CRM

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CONSUMERISM

Right to be heard

1.6 CRM

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WHY WE SHOULD USE JOHN KENNEDY‘S 4

RIGHTS

To be informed and protected against fraudulent

deceitful and misleading statements,

advertisements, labels, etc.; and to be educated as

to how to use financial resources wisely.

To be protected against dangerous and unsafe

products.

To be able to choose from several available goods

and services.

To be heard by government and business regarding

unsatisfactory or disappointing practices.

1.6 CRM

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RELATIONSHIP

Relationship marketing

has the aim of building

mutually satisfying

long-term relationships

with key parties—

customers, suppliers,

distributors, and other

marketing partners.

1.6 CRM

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RELATIONSHIP LEVELS

Basic.

Reactive.

Accountable.

Proactive.

Partnership.

1.6 CRM

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RELATIONSHIP MARKETING

It is the process of creating,

building and manage the

long term relationship

1.6 CRM

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WHAT IS THE B2B & B2C?

Business to business =

Industries.

Business to consumer =

FMCG.

1.6 CRM

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COMPONENTS OF TRUST

TrustHonesty

Dependability

Customer Orientation

Competence

Likability

1.6 CRM

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COMPONENT OF TRUST

Knowledge.

Mind.

Appearance.

Listening.

Attitude.

Body Language.

Business education.

1.6 CRM

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TYPES OF RELATIONSHIPS IN MARKETING

Transactional Relationship

Extra features Focus Customer value

Sales Orientation Customer

Limited Focus Customer services High & Focus

Discontinuous Customer contact Continuous

Product Concern All stuff

Short Time scale Long

1.6 CRM

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MARKET AND MARRIAGE ANALOGY

A Awareness

E Exploration

E Expansion

C Commitment

D Dissolution

1.6 CRM

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LADDER OF LOYALTY

Suspect.

Prospect

Customer

Client

Support

Advocate

1.6 CRM

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BUDGETING AND PLANNING

Plan: is a way to

achieve something e.g.

the shopping list you

take to the

supermarket.

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Strategy: the method

used to achieve

objectives e.g. we will

achieve our objective

of increasing profits

by growing market

share in existing

market.


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Tactics: how

resources are deployed

in an agreed strategy

e.g we will setup a

new telephone call

centre and target new

customers.


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Goals: what you are

trying to achieve.


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Objective: quantified

goal e.g. increase

profits by 30% over

the next 12 months.


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Comprehensive plan

provides for:

Analysis of situation.

SWOT, PESTEL & 5

Forces

Planning: Objectives,

strategies.

SWOT, Competitive &

Growth.

Implementation and

budgeting.

Control


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THE THREE LEVEL OF BUSINESS PLANNING

is the managerial

decision process that

matches the firm‘s

resources and

capabilities to its

market opportunities

for long term growth

1. Strategic Planning:

Budgeting & Planning

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is accomplished by the

various function areas of

the firm, such as

marketing, financing and

human resource.

Functional planning

typically include both a

broad five-year.

2. Functional planning:



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focuses on the day-to-

day execution

functional plan and

includes detailed

annual semiannual, or

quarterly plans.

3. Operational planning:



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CONTENTS & STRUCTURE OF THE

MARKETING PLAN.

1. Executive summary.

2. Situational Analysis.

3. Objectives.

4. Strategies.

5. Tactics.

6. Marketing mix.

7. S.T.P

8. Budget.

9. Control.


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THE MARKETING PLANNING

PROCESS STEPS ARE


Contents and Structure of the MRKT plan

Situational analysis SWOT,PESTEL, 5 Forces

Objectives. Where are we now?

Deciding Strategy. Which is the best approach.

Deciding Tactics. How do we get there?

Budgeting.

Implementation. Getting there.

Controlling. Ensuring arrival.

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SITUATIONAL ANALYSIS



Situational analysis

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SWOT ANALYSIS

Strength: a specific skill

the organization has which

will aid it in achieving the

objectives.

Weakness: any aspect of

the firm that could make it

difficult to achieve its

specific objectives

Opportunities: any feature

of the external environment

that could create potential

advantages to the

organization.

Threats: any feature of the

external environment that

could make it difficult to

achieve success.

Internal Factors External Factors




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SWOT EXAMPLES

Strength Prestigious.

Cheap.

High quality.

New technology.

Monopoly.

Weakness Low quality.

High price.

Opportunities

يصبئب قىو عذ قىو فىائذ

New standards.

Threats.

New competitors.

Chinese products.

Fake Products ―Counterfeited products‖

Internal External




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SWOT RANKING

Attractiveness/prospec

tive rate.

Degree of matching

with organizational

success factors.

How you can exploit

them.

Success-based on risk

upon them

Probability of

occurrence.

Impact and damage.

Opportunities Threats




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PESTEL

Political

Taxation.

Pressure groups

, حبية انبيئة, جعيبت حقىق انحيىا

البذ ا ال يكى نهب عالقة ببنحكىية...

Political orientation.

Trade unions.

Egypt trade agreement.

Agadir agreement.

COMESA agreement.

EFTA agreement.

Euro-Med Partenership.

GAFTA.

Egypt-Turkey FTA.




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PESTEL

Economical.

Business cycle.

Rate of exchange.

Inflation rate IR.

Interest rate i.

CPI consumer product index.

T-bill ―Treasury bills‖.

يؤشرات تذل عهى ى اقتصبد انبهذ

GDP gross domestic products.

GNP growth national products.




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Social:

Social Class.

Life Style.

Reference Group.

Demographic.

Education.

Religion.




PESTEL

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PESTEL

Cultural.

Language.

Working hours.

Aesthetics.

Etiquette.

Dress.

Religion.

Customs.




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PESTEL

Technology

Product life cycles.

Development in

technology.




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PESTEL

Ecological

Environmental

friendly products.

Ex. Cars.

Freon.




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PESTEL

Legal.

Competition Law.

Employment Laws.

Contract Law.

Customer protections

laws.

Environment law.

Patency.




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PROCESS STEPS ARE




Situational analysis Marketing Audit.






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FIVE FORCES ANALYSIS (MICHAEL PORTER )




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PORTER‘S 5 FORCES

Barriers of entrants

Brand loyalty.

Know how.

Knowledge.

Distributor channels.

Economy of scale.

Patents.

Cost of switching.

Service difference.

Capital requested.

انتحىيم ي يىبييم انى

.إتصالت

حب يىبييم.

تكىنىجيب االتصبل.

يحالت و شبكة انتىزيع.

سعر انذقيقة أقم.

حىل بفس انرقى.

خذية أقم سعرا

أفضم كفبئة.

Threat of new entrant: Example




103


PORTER‘S 5 FORCES

More advanced

product.

More retarded

product.

Ultrasonic watching

machines.

Coca-cola and

Juhaina.

Videophone and land

lines. In case of

cancer.

Airplanes and Maglev.

Threat of substitutes Examples:




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PORTER‘S 5 FORCES

Volume of purchase and frequency.

Switching Cost.

Existing of substitutes.

Threats of backward integration.

Customer knowledge.

Quality of products.

Package.

Bargaining power of

customers




105


PORTER‘S 5 FORCES

Number of suppliers.

New suppliers.

Vital product.

No. of customer

relative to the

supplier.

Bargaining power of

supplier




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PORTER‘S 5 FORCES

Number of balanced

competitors.

Fixed Cost.

Industry growth rate

and technology.

Rivalry




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PROCESS STEPS ARE







Budgeting.



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OBJECTIVES

1. profitability.

2. R.O.I

3. Growth.

4. Earning per share.

5. Survival.



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OBJECTIVES

Objectives should be

smart.

1. Specific.

2. Measurable.

3. Achievable.

4. Relevant.

5. Time bounded.



Objectives

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PROCESS STEPS ARE







Budgeting.



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STRATEGIES.

SWOT strategies.

Competitive strategies.

Growth strategies.



112


SWOT STRATEGIES



Strategies

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SWOT STRATEGIES.

Weakness to strength.

Untrained employees

to trained employees.

Threats to

opportunities.

Coca-Cola and

needles.

Merge and

acquisitions.

3DFX and nvidea.

Chevrolet and

Daewoo.

Schneider strategies.

Convert Match.



Strategies

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PORTER ―GENERIC STRATEGIES‖

1. Cost leadership.

Control the market

and have the lowest

price among your

competitors.

To achieve this point

your firm should

have a costing

advantage,

technological

advantages or

economical scale.



Strategies

115


PORTER‘S (GENERIC STRATEGIES)

2. Differentiation. It aims to offer products

that are recognizable as unique.

As the product is unique and associate customer loyalty as it as it protects the firm from competition.

The customer must feel that the extra feature more than compensate for the price premium.

Sainsbury‘s USA

Generic ―Prices‖.

Alfa Market.



Strategies

116


PORTER‘S (GENERIC STRATEGIES)



Strategies

3. Focus

• Cost focus: advantage in its segment

• Differentiation focus: the firm seeks differentiation in its segment.

• Jaguar and Porsche.

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GROWTH STRATEGY (ANSOFF‘S MATRIX)



Strategies

118



1. Market penetration

Increase share of

current market with

current product.

Cutting profit to

compete.

Methodes:

Turn non-user into

user.

Increase the

consumption.

Take from competition.



Strategies

119


2. New market

Development.

New market segment.

New market

geographically.

New usuer for

products.




Strategies

120


3. New product development.

Complete new product or modified one.

Levi‘s and Docker line




Strategies

121


Diversification

Related.

Unrelated.




Strategies

122


1.How: add new stores

in current market

areas, improvement

in advertising,

prices,..etc

3. How: increase food

offerings, extend to

frappuccino drinks.



Strategies


2. How: Review new demographics ―senior customers, or geographic (Asians, Europeans & Australians)‖

4. How: currently testing two new restaurant concepts – café starbucks and circadian, or branded casual clothing.

123


Leader 40%

Challenger 30%

Follower 20%

Niches 10%



Strategies

DEALING WITH COMPETITION

124



PROCESS STEPS ARE







Budgeting.



125


BUDGETING

Task Method.

Percentage of sales.

Competitive party.

All you can offer.

S.A.L.T



Budgeting

126



PROCESS STEPS ARE







Budgeting.



127


MONITORING AND CONTROL.

Establish of performances

measures KPIz

Evaluation of actual performances

relative to measuresCorrective actions



Monitoring and Control

128


129


130


MARKETING THEORIES

Sigmund Freud and

human behavioral

analysis.

Mass and collective

mind control.

Conscious and un-

conscious thoughts.

131


The real father and the

dawn of marketing

Edward Bernays

MARKETING THEORIES

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133


BACK DOORS OF MARKETING

Noam Chomsky – Profit over People.

Noam Chomsky – the media control.

Ray bradberry - Fahrenheit 451.

George orwell – 1984.

H.G.wells – when the sleeper awakes.

BBC4 - The Century of the Self (Adam Curtis).

134


RESOLUTION

Any thing could be used in a good way or bad one. So you

could use the marketing as a good function or deceiving

function

135


Thank You

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Documents

Red/Blue Pill Marketing