Marketing Management BBA powerpoint2.pptx

marketing managment

1. Marketing Management Module-2 Santosh M Biradar

2. Marketing Planning Peter Drucker defines market planning as “a continuous process of making present entrepreneurial decisions systematically and with best possible knowledge of their futurity, organising systematically the effort needed to carry out these decisions against expectations through organised feedback”. Planning- Designing the blueprint for the future. Strategic planning is the long term planning by the top management. Top level management– Corporate Planning Middle Level Management– Business Unit Planning Lower Level Management– Operational Planning Santosh M Biradar

3. Characteristics of a good marketing plan Santosh M Biradar

4. Importance of marketing planning Santosh M Biradar

5. Marketing Competitiveness Santosh M Biradar

6. Ways to Improve Marketing Competitiveness Customer values  - Customer values should be viewed not only in terms of product characteristics, but also in terms of processes which deliver the product. Both the product and process concept have to be right to achieve customer satisfaction. Identify and Promote USP  - Unique Selling Proposition is something that sets a product apart from its competitors in the eyes of existing customers as well as new customers. Marketers are required to identify USP of their product and effectively communicate it with the target audience. Cost efficient operations  - Business is required to be organized and operated efficiently, so that the cost of production and distribution be minimized.  Customer delight  - Business organizations must provide proper customer services to delight its customers. The above points can lead a business to a situation where it has an competitive advantage over its competitors by being able to offer better value, quality, and service. Santosh M Biradar

7. Competitive advantage Santosh M Biradar

8. Customer Value Customer values  are the combination of several benefits offered for a given price, and comprises all aspects of the physical product and the accompanying services. Customer values should be viewed not only in terms of product characteristics, but also in terms of processes which deliver the product. Both the product and process concept have to be right to achieve customer satisfaction. What is value? Value for money = Price x Quality Santosh M Biradar

9. What is Customer Value? Customer Value is the incremental benefit which a customer derives from consuming a product after paying in return. The term value signifies the benefits that a customer gets from a product. It is the difference between the benefits (sum of tangible and intangible benefits) and the cost. Customer value is dependent on the three factors – Quality, Service and Price. Hence, these three together form the ‘Customer Value Triad’. The value of a product increases with its quality and service, as the benefits increase. On the other hand, the value decreases with increase in price because of the increase in costs increase in this case. Santosh M Biradar

10. Customer Value Parameters These parameters can be used by the sellers to define the customer value they want their product or service to deliver. Santosh M Biradar

11. Customer Value Example Let us imagine a cake shop selling pineapple pastry with basic ingredients and look. The pastry has cake at the bottom and some cream in the middle with a slice of pineapple at the top a ₹20 per piece. The customer who buy it don't return nor review the pastries well. This shows that at ₹20 per piece the customer may or may not be getting the actual value he or she perceived before buying. Let us see the scenarios below : The same seller started selling the pastry at ₹10 per piece. Suddenly the sales rose and customer started coming back. This may have happened because at ₹ 1 the customer is happy with the pastry he is getting even if it is just average pastry. The same seller made the pastry different with small pieces of pineapple included in the cream as well as added 2 pieces of pineapple on the top. Again similar customer response followed as scenario 1. Again the answer can be increase in actual value at ₹20 a piece. The above 2 scenarios show how product can be changed either in attributes or price to alter the value it can deliver. Santosh M Biradar

12. Marketing Planning Process Santosh M Biradar Mission Situation Analysis Marketing Strategy Marketing Mix Implementation and Control

13. Marketing Planning Process Santosh M Biradar

14. Step one:- MISSION First, identify and understand the company’s mission. Maybe it’s written down and promoted throughout the organization. If not, talk to stakeholders to find out why your company exists. A mission statement explains why a company is in business and how it can benefit consumers. Sometimes, the mission statement is aspirational, motivating staff and inspiring customers. Or it is simply a straightforward statement about who you are. Either way, you can’t plan a marketing strategy without knowing clearly what business you are in and why. Santosh M Biradar

15. Step Two: Situation Analysis The second step of the strategic marketing process is to evaluate internal and external factors that affect your business and market. Your analysis will illuminate your strengths and the challenges you face — either with internal resources or with external competition in the marketplace. Situation analysis provides a clear, objective view of the health of your business, your current and prospective customers, industry trends, and your company’s position in the marketplace. Santosh M Biradar

16. SWOT Strengths: What do you do well? What are the factors that you control? What is your competitive advantage? How are your products and services superior to others in the marketplace? Weakness: Where are you underperforming? What is limiting your ability to succeed? Where do limited resources affect your success? Opportunities: What are untapped markets? Where is the potential for new business? Can you take advantage of any market trends? Threats: What are the obstacles? Which external factors (political, technological, economic) can cause a problem? Santosh M Biradar

17. 5C Analysis Here are some questions you can ask when working on a 5C analysis: Company: How successful are your product lines? What is your image in the marketplace? How effectively are you achieving your goals? How does your company’s culture affect your performance? Customers: Who is your audience and what is the market size? How much is your customer base growing? What motivates customers to buy your product or service? What are overall sales trends and how is the buying process changing?  Competitors: Who are your direct, indirect, and future competitors? What are their products and market shares? How are they positioned in the market? What are their strengths and weaknesses? Collaborators: Who are your suppliers, distributors, partners, and agencies? How can they help you grow your business? How does the stability of their business affect the success of your business? Climate: What are the governmental policies and regulations that affect the market? What economic factors (inflation, interest rates) are at play? What trends influence your customers? What is the impact of technology on the demand for your product or how could technology give you an advantage over your competitors? Santosh M Biradar

18. PEST Analysis Here are some questions you can ask when performing a PEST analysis: Political: What laws and regulators affect consumers? What’s the impact of trade regulations, employment laws, and tax guidelines? How stable are the foreign markets and countries in which you sell products, contract with suppliers, or offer services? Economic: How do interest rates, inflation, taxes, and exchange rates affect your customers and your bottom line? What is the impact of the stock market on your business? What are the local business cycles and overall economic growth? Social: What lifestyles and attitudes affect the buying habits of your consumers? What are the demographics of your customers (age, gender, education, etc.)? How are they changing?   Technical: What patents, innovations and licenses can influence your company? Which manufacturing trends can increase your production levels or drive down costs? How can information technology help or hurt your product placement, positioning, and promotion? Santosh M Biradar

19. Step Three: Marketing Plan Now that you’ve identified opportunities through your analysis, you should prioritize and map out which ones you are going to pursue. Writing a marketing plan will specify your target customers and how you will reach them, and should also include a forecast of the anticipated results. These questions can help: How will customers respond to your marketing efforts?  How much will the plan cost?  How will your competition respond? Santosh M Biradar

20. Define Your Target Audience Santosh M Biradar

21. Segmentation Even though you may have some information about your customers based on your situation analysis, you may need to conduct more research on their needs and wants. With research, you can create detailed profiles or personas of your ideal customers. The more you know about your target audience, the more effectively you can offer them value through your product or service. Nothing matters more than how you make customers feel about your company. Santosh M Biradar

22. Set Measurable Goals  How will you know if your plan succeeds? You need specific, measurable goals with milestones that measure your progress. Do you want to increase your sales? The goal you set should specify how much you want to grow the sales number, and the timeframe for meeting that target. Each goal should be actionable and attainable through tactics you control. At this stage, avoid contingent goals, which are dependent on circumstances beyond your control. With each goal, list the tactics or steps you will take to achieve it. Combine simple, clear, and precise goals (whether it’s gaining customers, improving brand recognition or something else) with a detailed plan that defines the tactics to meet your goal. Santosh M Biradar

23. Identify and Set a Marketing Budget  Santosh M Biradar

24. Step Four: Developing Marketing Mix Decisions Santosh M Biradar At this stage of the strategic marketing process, it’s time to focus on the “how” of planning. Your marketing mix is based on the 4Ps of marketing, including Product, Price, Promotion, and Place.   In 1960, E. J. McCarthy first expressed the 4Ps, and it is probably the best-known way to describe the marketing mix. The 4Ps will guide the way you convey the value of your product to your customers. You are positioning your product and its competitive advantage. You need to be clear about what you are marketing: convenience or quality? And you need to know who is likely to buy your product or service.  By using the market research conducted in step two, you can develop the ideal marketing mix for your target audience and the type of product or service you sell. Although there are dozens of marketing channels, you will want to choose the tactics that will reach your prospects when they’ll be most receptive to your message.

25. 4P’s of Marketing Mix Santosh M Biradar

26. Product A product is a good or service that meets the needs of your target market. Even more, products solve problems. Whether you are developing a marketing plan for Coca-Cola, a luxury hotel, or a cell phone, you have to know what problem it solves and why your product is a unique solution. Make sure you have a clear understanding of all the details of your product, including its features, branding, and packaging. What is the product or service? What does the customer want from it? What needs does it satisfy? What features does it have to meet these needs? How and where will the customer use it? How does it compare with similar products? Who are the competitors?  Santosh M Biradar

27. Price The price is the amount of money your target market is willing to pay for your product. Factors for price include any discounts, payment periods, and list price, as well as how much it costs your company to produce the product. You also need to consider overall marketplace conditions and your competition. How healthy is the economy? How much are your competitors charging for a similar product? Do they have the same business model?   The marketing message around your price depends on your market and your audience. Maybe it’s a way to position your product in a crowded marketplace. It might be a competitive advantage or a way of demonstrating the value of your product. What is the value of the product to the customer? Are there existing price points for similar products? If so, what are they? Will a small decrease give you extra market share? How much will that affect the product’s perceived value? Will discounts to certain market segments be part of your strategy? Santosh M Biradar

28. Promotion The way you communicate with your target audience about the value and benefit of your product is promotion. Think of promotion as an opportunity to educate your customers about your products and services. You teach them the value of what you offer and how your product meets their needs or solves their problem. There are countless ways to educate them through marketing channels including direct marketing, paid search and social, advertising, public relations, and sales promotions that create brand awareness. This extends to almost every aspect of how you present the product to your target market, and is everything that teaches your audience about your product or brand.  Where can you get your marketing messages across to your target market? Options include advertising on TV and billboards, direct marketing, public relations, sponsored events, and promotions. Consider the details you used when segmenting your audience. What marketing channels does your target market use on a regular basis? Where and when are they most ready to buy your product? When is the best time to promote? How do your competitors do their promotions? Santosh M Biradar

29. Place Santosh M Biradar

30. Step Five: Implementation and Control Now it’s time to put your plan into action. Identify how and when you will launch your plan. At this stage of the strategic marketing process, you will reach out to customers to inform and persuade them about your product or service. Your next steps include getting the resources (cash and staffing) to market your product, organizing the people who will do the work, creating calendars to keep the work on track, and managing all the details for each goal. It will help you stay focused and energized if you create monthly benchmarks and projects, weekly action steps, and daily marketing appointments. Remember, the strategic marketing process is dynamic. You need to regularly measure and evaluate the results of your plan in order to succeed. This will help you see whether you are accomplishing your goals and where you need to adjust tactics to improve your results. This can include looking at revenue, sales, customer satisfaction, the number of views your website receives, or other metrics. If the numbers aren’t meeting your projections, you can make changes to get back on track. You also need to monitor the actions of your competitors. How does the success of your product affect the price of similar items on the market? Are new products being released that could be perceived of greater value by your audience? Use this information to make informed decisions about the 4Ps for your product. Santosh M Biradar

31. Identifying and analysing the competitors Santosh M Biradar In this competitive world there is no business that operates in isolation, there are many businesses that are marketing products like or substitute of products you are marketing. These organizations are your rivals, and you must compete with your rivals. Business competition is the rivalry of two or more businesses that target the same customers, for example Coca-Cola and Pepsi , or McDonald's and Burger King . Business organizations to be successful in long run have to identify their competitors and analyse their strengths and weaknesses to defeat them.

32. Meaning of Competitor Santosh M Biradar

33. Identifying Competitors Santosh M Biradar In the process of developing a successful marketing strategy, the first step is to identify the key competitors in your market. Competitor identification is important to increase managerial awareness of competitive threats and opportunities. Identification of key competitors is necessary to gain competitive advantage by offering your customers a greater value than the competitors. Not only current competitors are required to be identified, but future competitors are also to be anticipated.

34. According to Ferrell, Hartline, Lucas, and Luck, 1998 , there are different varieties of competitors :- Santosh M Biradar

35. Analysing Competitors Santosh M Biradar

36. Defining the Competitive Strategy Well said by Will Durant - "The future never just happened. It was created" . A business organization has to define its competitive strategy to guide and focus its future decisions, and to gain sustainable competitive advantage over its rivals to make the organization successful in long run. Organizational results are the consequences of the decisions made by its leaders. The framework that guides and focuses competitive positioning decisions is called competitive strategy. The purpose of competitive strategy is to gain sustainable competitive advantage over the rivals. Competitive strategies are essential to organizations competing in markets that are heavily saturated with alternatives for consumers. To be successful in such type of market it is necessary for an organization to define its winning proposition in simple and compelling way. Santosh M Biradar

37. Definition of Competitive Strategy According to Porter ME , 1980 competitive strategy can be defined as the "plan for how a firm will compete, formulated after evaluating how its strengths and weaknesses compare to those of its competitors. For example, a small meatpacking firm may decide to concentrate on a special niche product offered in limited areas after determining it cannot compete on price with major competitors. Competitive Strategy can be defined as a "framework for making decisions which priorities actions that create results in a competitive market." Santosh M Biradar

38. Meaning of Competitive Strategy Santosh M Biradar

39. Definition of Competitive Advantage Competitive advantage can be defines as a "superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation.“ According to Salonar , Shepard, Podolny - "most forms of competitive advantage mean either that a firm can produce some service or product that its customers value than those produced by competitors or that it can produce its service or product at a lower cost than its competitors." John Kay (1993: 14) defines distinctive capabilities as ones derived from characteristics that others lack and which are also sustainable and appropriable. "A distinctive capability becomes a competitive advantage when it is applied in an industry or brought to a market." According to Michael Porter sustainable competitive advantage can be achieved through three ways - cost leadership, differentiation, and focus. Santosh M Biradar

40. Competitive strategy is a long-term action plan that is devised by an organization to gain sustainable competitive advantage over its rivals. Santosh M Biradar

41. Marketing control process It is true to say that planning gives direction to an organisation, planning enable an organisation to achieve its objectives, but without control measures planning is of no mean, it's just an empty exercise without control.  Business organisations do marketing planning to incorporate overall marketing objectives, strategies, and programs of actions designed to achieve marketing objectives. Marketing Planning involves setting objectives and targets, and communicating these targets to people responsible to achieve them. After an organisation develops and implements the marketing plan, next task is to control the marketing performance. Marketing plans and strategies are required to be monitored, evaluated, and adapted to meet the changing market environment, market needs, and market opportunities. The process by which an organisation adapts its marketing plans and strategies to reach its marketing objectives is called marketing control. Santosh M Biradar

42. Definition of Marketing Control Santosh M Biradar

43. Meaning of Marketing Control Developing and implementing marketing plan is not enough to reach marketing objectives; marketing plans and strategies are required to be monitored, evaluated, and adapted to meet the changing market environment, needs, and opportunities. Marketing control ensures performance improvement by minimising gap between desired results and actual results. If the actual results are found deviated from the expected results, plans and strategies are adapted to bring the results back to the desired level. Santosh M Biradar

44. Marketing control is a four step process Santosh M Biradar

45. Resources are scarce and costly so it is important to control marketing plans. Controlling  marketing plan is not an one time activity, it is a series of actions, and it is required to be done regularly. Marketing control process starts with the review of the marketing objectives.  After defining/redefining marketing objectives, performance standards are set. Performance standards provide benchmarks to enable managers and employees to decide how they are progressing towards achieving objectives. Actual results are compared against standards. If the actual results are in direction to the expected results, their is no problem in marketing plan and its execution. If actual results are deviated from the expected results, their is requirement to correct and alter marketing plan to bring the results back to the desired level. Santosh M Biradar

46. End of Module 2 Santosh M Biradar