MARKETING

MANAGEMENT
PRESENTED BY:
GALAXY-TECH COMPANY
 WHAT IS MARKETING
 MANAGEMENT?
MARKETING - is defined as an exchange between a firm and its
customers
 MANAGEMENT - is the processes of planning, organizing, directing
motivating and coordinating and controlling of various activities of a
firm
 MARKETING MANAGEMENT
the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and
communicating superior customer value' (Kotler and Keller, 2008: 5)
 FUNCTIONS OF MARKETING
 MARKETING OBJECTIVES - Marketing management determines the
marketing objectives. They have to be in coherence with the aims and objectives
of the organization.
 PLANNING - This includes sales forecast, marketing programmes formulation,
marketing strategies.
 ORGANIZING - involves the collection and coordination of required means to
implement a plan and to achieved pre determined objectives. The organization
involves structure of marketing organization, duties, responsibilities and powers
of various members of the marketing organization.
 COORDINATING - It involves coordination among various activities such as
sales forecasting, product planning, product development, transportation,
warehousing etc.
 DIRECTING - Direction in marketing management refers to development of
new markets, leadership of employees, motivation, inspiration, guiding and
supervision of the employees.
 CONTROLLING - It involves the determination of standards, evaluation
of actual performance, adoption of corrective measures.
 STAFFING - The market manager coordinates with the Human
Resource Manager of an organization to be able to hire the staff with
desired capability.
 ANALYSIS AND EVALUATION - The marketing management
involves the analysis and evaluation of the productivity and performs
mace of individual employees.
DUTIES OF MARKETING
MANAGER
 CONVERSIONAL MARKETING
The task of conversional marketing is to convert negative demand into positive demand
in order to eventually equal the positive supply level.
 STIMULATIONAL MARKETING
During a period of no demand a marketing manager will use stimulational marketing to
create positive demand by connecting a product or service with an existing need and/or
create an environment where a particular need is felt.
 DEVELOPMENTAL MARKETING
When a large number of consumers share a need that is not being fulfilled there is an
opportunity to develop and market a new product or service.
 REMARKETING
When consumers no longer find a use for a product or there are alternatives available, it
is the task of the marketing manager to recreate demand.
 SYNCRO-MARKETING
It is used in periods of regular demand, often found in seasonal products. The task is
to streamline demand to meet supply capacity.
 MAINTENANCE MARKETING
Even during times of high demand, marketing managers must remain vigilant of the
market, competitors, and potential threats.
 DEMARKETING
When supply substantially out-paces demand some marketing managers will decide
to attempt demarketing in order to reduce demand. It also be used when a company
wants to exit the market.
 COUNTER MARKETING
Marketing managers will try to destroy demand when that demand is considered
unwholesome
THE MARKETING FRAMEWORK

5Cs STP 4Ps

Customer Segmentation Product
Company Targeting Price
Context Positioning Place
Collaborators Promotion
Competitors
 THE 5Cs
are a good guideline to make the right decisions, and construct a well-
defined marketing plan and strategy

Customer
are the central players in the marketing exchange
Company
Context – includes the backdrop of macroenvironmental factors: How is our
economy and that of our suppliers? What legal constraints do we face, and re
these changing? What cultural differences do our global segments manifest?
Collaborators – are the companies and people they work with
Competitors – those they compete against
 THE STP
is useful because it helps you identify your most valuable types of customer, and then
develop products and marketing messages that ideally suit them. This allows you to
engage with each group better, personalize your messages, and sell much more of your
product.

Segmentation - is the process of breaking down large target markets in to smaller sub
markets made of consumers with commonalities.
Targeting - once the consumer market has been divided into segments, the marketer
proceeds to the second step of picking exactly who he should target. The targeting stage
involved matching the abilities of the marketing plan with the needs of the consumers.
Positioning - the final stage in the STP strategy is positioning the product in the
market. It is based on price, product competition, and end-goal strategy.
 THE 4Ps
is a model for enhancing the components of your ‘marketing mix’ – the way in
which you take a new product or service to market. It helps you to define your
marketing options in terms of price, product, promotion, and place so that your
offering meets a specific customer need or demand.

Price - refers to the value that is put for a product.

Product - refers to the item actually being sold.
Place - refers to the point of sale.
Promotion - refers to all the activities undertaken to make the product or service
known to the user and trade.
 MARKETING STRATEGY
 ANSOFF’S PRODUCT-MARKET GROWTH
MATRIX
CURRENT PRODUCTS NEW PRODUCTS

MARKET PRODUCT
CURRENT MARKETS PENETRATI DEVELOPME
ON NT

MARKET
DEVELOPME DIVERSITY
NEW MARKETS
NT
Ansoff’s Product-Growth Matrix
- was created by Igor Ansoff as a way to create growth strategies for
corporations based on markets and products. According to Ansoff, there are four
possible combinations:
1. Marketing penetration – This growth strategy uses current products and
current markets with the goal to increase market share.
2. Market development – This growth strategy uses existing products to
capture new markets.
3. Product development – This growth strategy uses new products in the
existing market.
4. Diversification – This strategy creates completely new opportunities for the
company by creating new products and new markets.
  THE BCG MATRIX
RELATIVE MARKET SHARE
High Low

MARKET GROWTH RATE

High
Low

BCG Matrix: The BCG Matrix helps a company determine its investment priorities
BCG matrix
is a framework created by Boston Consulting Group to evaluate the strategic
position of the business brand portfolio and its potential. It classifies business
portfolio into four categories based on industry attractiveness (growth rate of that
industry) and competitive position (relative market share).
Stars - The business units or products that have the best market share and generate
the most cash are considered stars.
Cash cows - These are business units or products that have a high market share but
low growth prospects
Dogs - are units or products that have both a low market share and a low growth rate.
Question marks - These parts of a business have high growth prospects but a low
market share. They consume a lot of cash but bring little in return.
 THE GENERAL ELECTRIC MODEL
was developed by Mckinsey and Company consultancy group in the 1970s. The
nine cell grid measures business unit strength against industry attractiveness.
General Electric Model
GE multifactoral analysis is a technique used in brand marketing and product
management to help a company decide what product(s) to add to its product
portfolio and which opportunities in the market they should continue to invest in.

 Market attractiveness – external element

- is demonstrated by how beneficial it is for a company to enter and
compete within this market.
 Business/competitive strength – internal element
- it helps decide whether a company is competent enough to compete in
the given market(s).
Grow/Invest:
Units that land in this section of the grid generally have high market
share and promise high returns in the future so should be invested in.
Hold/Selectivity:
Units that land in this section of the grid can be ambiguous and should
only be invested in if there is money left over after investing in the profitable
units.
Harvest/Divest:
Poor performing units in an unattractive industry end up in this section of
the grid. This should only be invested in if they can make more money than is
put into them. Otherwise they should be liquidated.
Industry Attractiveness:

Factors you could choose to base this

on include:

• Environmental
 Market size
• Legal
 Market growth
 Porters five forces
 Pestel factors
• Competitive rivalry
• Political
• Buyer power
• Economical
• Supplier power
• Social
• Threat of new entrants
• Technological
• Threat of substitution
Business Unit Strength:

Factors to determine how strong a unit is compared to others in its industry

include:

 Market share
 Growth in market share
 Brand equity
 Profit margins compared to competition
 Distribution channel process – the strength of
 PORTER’S GENERIC STRATEGY
Porter called the generic strategies "Cost Leadership" (no frills),
"Differentiation" (creating uniquely desirable products and services) and "Focus"
(offering a specialized service in a niche market).
The Cost Leadership Strategy
- is about minimizing the cost to the organization of delivering products
and services.

Porter's generic strategies are ways of gaining competitive advantage – in other

words, developing the "edge" that gets you the sale and takes it away from your
competitors. There are two main ways of achieving this within a Cost
Leadership strategy:
 Increasing profits by reducing costs, while charging industry-average prices.
 Increasing market share through charging lower prices, while still making a
reasonable profit on each sale because you've reduced costs.
The Differentiation Strategy
- involves making your products or services different from and more
attractive than those of your competitors. How you do this depends on the
exact nature of your industry and of the products and services themselves,
but will typically involve features, functionality, durability, support, and
also brand image that your customers value.

To make a success of a Differentiation strategy, organizations need:

 Good research, development and innovation.
 The ability to deliver high-quality products or services.
 Effective sales and marketing, so that the market understands the benefits
offered by the differentiated offerings.
The Focus Strategy
- Companies that use Focus strategies concentrate on particular niche
markets and, by understanding the dynamics of that market and the unique needs
of customers within it, develop uniquely low-cost or well-specified products for
the market. Because they serve customers in their market uniquely well, they
tend to build strong brand loyalty amongst their customers.

In a 1996 Harvard Business Review article and in an earlier book, Porter

argues that competitive strategy is "about being different." He adds, "It
means deliberately choosing a different set of activities to deliver a unique
mix of value."
 TREACY AND WIERSEMA STRATEGY
According to them, there are three different value discipline strategies that
organizations can implement in order to create added value and distinctive character
relative to its competitors. They distinguish the following strategies:
 Operational Excellence
 Product Leadership
 Customer Intimacy
Michael Treacy is a management and strategy consultant and former Professor of
Management at the Sloan School of Management at Massachusetts Institute of
Technology (MIT).
Fred Wiersema is a former business school professor and best selling author with a
Doctorate from Harvard Business School.
Together they formulated the Strategic Value Disciplines model to help organisations
 OPERATIONAL EXCELLENCE
is the ability to deliver products or services smoothly, reliable. In some
industries, it is necessary; e.g., a package delivery company or cell phone
company wouldn’t go far if they could not provide excellent operations.
 PRODUCT LEADERSHIP
is achieved by providing predictability excellent quality in products and
services or by being the market leader in terms of innovations in those products
and services.
 CUSTOMER INTIMACY
involves the knowledge of a customer’s fuller set of needs and trying to
offer a full package of benefits, highly tailored to their unique desires.
REMEMBER: If you think about your customers, and
try to think like your customers, and simply try to
please your customers, you will beat the competition.

THANK YOU FOR YOUR

COOPERATION!!!