Marketing Management
Question
marketing activities in line with marketing concept analyses, and using marketing concept to analyses the product activity in your company
Answer
MOHAMMED,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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MARKETING CONCEPT
It is a fundamental idea of marketing that organizations survive
and prosper through meeting needs and wants of customers.
This important perspective is commonly known as the marketing
concept.
The marketing concept is about matching a company's
capabilities with customer wants.
What are customer wants?
A want is a desire for a speciifc product/service to satisfy
the underlying need.
Customer wants are usually quite narrow.
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MARKETING CONCEPT
The marketing concept is the philosophy that the firm should analyze
the needs of their customers[ current /potential ] and then make
the decisions to satisfy those needs , better than the competition.
DEFINITION OF MARKETING.
What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea to satisfy
the people's needs / wants.
2.Needs mean when a person feels deprived of something.
3.Wants mean when a person's need is formed / shaped
by personality, culture, and knowledge.
4.Value means the benefits that the customer gains from
owning and using the product and the cost of the product.
5.Satisfaction means the extent to which a product's
perceived performance matches a buyer's expectation.
6.Exchange means the act of obtaining a needed/ wanted
object by offering something in return.
7.Transactions mean a trade off between a buyer / a seller
that involves an exchange at agreed conditions.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.
It encompasses
- market research,
-product planning / development ,
-product pricing,
-product marketing
-SALES
-promotion,
-distribution,
-customer care,
-BRANDING
-merchandising
-retailing
-website marketing
and much more.
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- market research,
[conducts marketing research continuosly--pre-product/during product launch/
during the maturity/ consumer research/retail research/test marketing etc etc
==================================================
-product planning / development ,
[they plan/ develop products in a scientific manner, tailoring
it to the exact taste of the consumers]
=====================================
-product pricing,
[conduct price research and position the price point
where the consumer can afford / the company makes good profit.]
==========================================
-product marketing
[the company conducts one of the most effective product marketing
programs ]
==============================================
-SALES
[the company has a wide network of sales representatives
in almost over .]
======================================
-promotion,
[the company applies varieties of promotions including
sales promotion/trade promotion/consumer promotion/
advertiisng/ public relations ]
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-distribution,
[when it comes to distribution, they have an unmatched distribution network.
they go for extensive and intensive coverage of the market---that covers
supermarkets/corner stores/gas stations/ schools/colleges/convenience stores/sports complex etc
================================================
-customer care,
[the company has a well crafted customer care program for
the consumers.]
============================================
-BRANDING
[when it comes to branding, IT HAS AN EFFECTIVE BRANDING PROGRAM]
=====================================
-merchandising
[the company has an extensive program on merchandising like
external displays / internal displays ]
==========================================
-retailing
[ the company has a strong presence in the retail field
supported by active merchandisers]
====================================
-strategic marketing management
[the company has a strong team to manage the
strategic aspects of market--it is highly research based]
==============================================
-market forecast.
[the company uses the finest software to develop
the demand planning and market forecast and sales forecast]
==============================================
-consumer behavior
[the company continuously monitors the consumer behavior
with respect their products]
=====================================
-organizational buyer behavior.
[the company continuously monitors the organization buying behavior
with respect their products ---like schools/ colleges/ business houses]
==========================================
-Strategic market Planning
[the company has a strong team to manage the
strategic aspects of market--it is highly research based]
=============================================
-Market Development.
[ the company develops the market through
*geographical coverage increase.
*current customers usage increase
*new customers increase
etc
============================================
-marketing environments
[the company is sensitive to the environment
and has a number of societal marketing programs.
================================================
-market segmentation/ targeting
[THE company uses the segmentation techniques
heavily targeting the ......... age group]
====================================
-field sales planning / development
[the company carries out regular field sales
planning and development program to sharpen/ tune
the field sales team.
===================================
MARKETING COMCEPT/ MARKETING COMMUNICATION IN BUSINESS.
HOW IT AFFECTS THE GROWTH/DEVELOPMENT OF BUSINESS.
MARKETING CONCEPTS HELPS TO FILTER MARKETING
COMMUNICATION INTO THE BUSINESS PIPELINE.
Marketing communications has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. It is recognised that there is some cross over between individual elements (e.g. Is donating computers to schools, by asking shoppers to collect vouchers, public relations or sales promotion?) Here are the key of the marketing communications mix.
Personal Selling ,
-here the marketing communication is used
*to inform the customers/ prospects
*to create awareness
*to present the product
*to influence the customer
*to sell benefits
*to help the customer to make the buying decision
*to seek commitment
*to help to close the sale.
--------------------------------------
Sales Promotion
-here the marketing communication is used
*to inform the customers
*to physically present
*to influence the customers
*to help the customers to feel the product
*to help the customer to make the buying decision
*to offer consumer incentives
*to help the final transactions
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Public Relations (and publicity)
-here the marketing communication is used
*to publicise the company
*to publicise the product
*to publicise the company's research/ development
*to publicise the company image
*to create the company brand
*to inform public
*to communicate with the community.
*to establish relations with government
*to establish community relations
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Direct Mail
-here the marketing communication is used
*to inform
*to talk to individuals
*to focus on niche market
*to inform the decision makers directly
*to advertise cost efficiently
*to promote selected market segments
*to contact individuals for one-to-one marketing
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Trade Fairs and Exhibitions
-here the marketing communication is used
*to inform individuals
*to provide visibility
*to talk to individuals
*to inform the decision makers directly
*to advertise cost efficiently
*to promote person to person
*to contact individuals for one-to-one marketing
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Advertising (above and below the line)
-here the marketing communication is used
ABOVE THE LINE
*to MASS inform the customers/ prospects
*to create MASS awareness
*to present the product
*to influence the customer
*to sell benefits
*to help the customer to make the buying decision
BELOW THE LINE
*to physically present
*to make it visible at the point of sale.
*to influence the customers
*to help the customers to feel the product
*to help the customer to make the buying decision
*to offer consumer incentives
*to help the final transactions
*to display and promote
*to merchandise the product
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Sponsorship
-here the marketing communication is used
*to MASS inform the customers/ prospects
*to create MASS awareness
*to present the product
*to influence the customer
*to sell benefits
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Packaging -here the marketing communication is used
-here the marketing communication is used
*to MASS inform the customers/ prospects
*to create MASS awareness
*to present the product
*to influence the customer
*to make it visible at the point of sale
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Merchandising (and point-of-sale)
-here the marketing communication is used
*to create visiblity at the point of sale.
*to influence the customers
*to help the customers to feel the product
*to help the customer to make the buying decision
*to offer consumer incentives
*to help the final transactions
*to display and promote
*to merchandise the product
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EMarketing (and Internet promotions)
-here the marketing communication is used
*to inform
*to talk to individuals
*to focus on niche market
*to inform the decision makers directly
*to advertise cost efficiently
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Branding (and corporate identity)
-here the marketing communication is used
*to create an unique position for the company
*to create an unique position for the product
*to create unique visibility
*to make it easy to identify
*to make it easy to buy
*to make it easy to sell
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ALL THE MARKETING COMMUNICATION EFFORTS ARE DIRECTED
-TO MAKE IT EASY FOR THE CUSTOMERS TO MAKE THE BUYING DECISION.
-HENCE MORE SALES
-HENCE GROWTH IN BUSINESS
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MARKETING CONCEPT / MARKETING AND BUSINESS MANAGEMENT
MARKETING CONCEPT, THRU MARKETING INFORMATION SYSTEMS
-PROVIDE INFORMATION FOR DECISION MAKERS TO MAKE SOLUTIONS
FOR THE MOST CHALLENGING BUSINESS SITUATIONS.
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-PROVIDE INFORMATION FOR MAKING STRATEGIC DECISIONS
IN A COMPETITIVE BUSINESS SITUATION.
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-PROVIDE INFORMATION FOR STRATEGIC BUSINESS PLANNING
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-PROVIDE INFORMATION FOR MARKETING PLANNING
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-PROVIDE INFORMATION FOR BUSINESS PROCESS ENGINEERING
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-PROVIDE INFORMATION FOR BUSINESS PRICING MANAGEMENT
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-PROVIDE INFORMATION FOR ALLOCATING OF RESOURCES FOR BUSINESS
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-PROVIDE INFORMATION FOR MANAGEMENT INFORMATION SYSTEMS
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-PROVIDE INFORMATION TO SEE Changes in market conditions, technical advances, and economic issues will all affect THE INDUSTRY / BUSINESS in the future.
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-PROVIDE INFORMATION WHICH helps organizations realize the most value from their assets.
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-PROVIDE THE RIGHT INFORMATION for a clear and disciplined approach to
BUSINESS financial planning is vital to ensure success.
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-PROVIDE INFORMATION FOR the execution of effective business planning and sound management usually defines these differences in profitability.
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-PROVIDE INFORMATION TO analyze and prioritize the BUSINESS drivers to help to achieve a superior competitive position. Vital to this process is an understanding of the economic advantages of scale and scope.
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-PROVIDES INFORMATION FOR Operational excellence results in the attainment of world-class quality and productivity in the delivery of services to customers
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When running a BUSINESS, the right MARKETING information systems can have a critical impact operating costs, operating effectiveness, and customer satisfaction.
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AN EFFECTIVE MARKETING CONCEPT provides
the business
-consumer research data
-market research data
-market surveys
-market analysis
-competitors analysis
-product analysis
-product test analysis
-product plans
-test market results
-market strategy analysis
-sales analysis
-distribution analysis
-media analysis
-promotion analysis
-customer satisfaction survey
-retail audit data
-marketing auditing data
-market forecast
-sales forecast
-sales planning data
-distribution planning
-customer analysis
-market segment analysis
-consumer [ socio/economic /demographic/psychographic] data
ETC ETC.
==================================================
WHY DO THE BUSINESS NEED THIS marketing information system ?
THEY NEED THE DATA FOR
-new product development
-new product planning
-new product testing
-new product test marketing
-new product market forecast
-new product sales forecast
-annual market forecast
-annual sales forecast
-annual market planning
-annual sales planning
-annual distribution planning
-annual target marketing
-market segmentation
-annual sales development programs
-annual market development programs
-annual sales planning
-annual distribution planning
-annual merchandising planning
ETC ETC
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ALL THESE MEAN MARKETING CONCEPT
CAN HELP THE BUSINESS
-make market oriented business decisiion
-which means more customer satisfaction
-which means more sales
-which means more profit.
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Product Concept
Developing products that are aligned with current or emerging customer needs . Technology companies are often challenged to develop competitive new products while meeting short windows of opportunity. Success requires effective decision making about product features, packaging, positioning, and pricing.
PRODUCT CONCEPT approach helps to achieve this.
Product CONCEPT involves:
Exploratory research
Needs Segmentation
Opportunity Assessment
Voice of the Customer
Concept Viability
Competitive Assessment
Concept Optimization
Ideation
Portfolio Management
Business Case Rationale
Product Retrieval
Market Research
Trend Monitoring
New Product Concept
There are as many methods to screen new product ideas as there are consultants. Perhaps most, if not all of them, are valid. But small companies cannot afford to incur costly product development failures as part of "the normal course of big business." Even one product failure in a small company may threaten its survival if a large amount of time, scarce resources, and personnel are committed to it.
A small company often survives on its reputation with key customers, which can be threatened or weakened with product development failures. The risks of product development failure can be reduced with carefully constructed marketing strategies, even for small companies.
Step 1. Screen concepts against your company's marketing strategies. Concept screening against new or pre-existing company marketing strategies will reinforce company focus and use of scarce resources to successfully introduce new products.
A good overall company marketing strategy acts as a guideline for action. The marketing strategy should:
define the target buyer, demographically and by lifestyle, if appropriate
translate the company mission into a measurable annual objective
tell how the goal will be accomplished in terms of:
marketing spending vs. competition in the category
brand positioning
pricing actions
product quality
establish new product introduction standards
frequency
achievement of overall marketing objective
response to competitive new product introductions
If the new product concept does not fit the company's overall marketing strategy, serious consideration must be given to either changing the company marketing strategy or not pursuing the new product concept.
Step 2. Screen new products against company sales and profitability minimums. A new product must have the potential to generate minimum sales and profitability goals for the company with THE RIGHT PRICING STRUCTURE. For example, many large consumer goods companies have minimum sales goals of $20 to $50 million per year, with a minimum gross margin before spending an overhead of 60 percent (i.e., cost of goods = 40 percent).
If a small company is competing with much larger companies, knowledge of these large company new product minimums can provide the basis for a successful new product development and marketing strategy. Most small companies would be very pleased with dominating niche market segments that amount to $5 to $20 million in total competition sales per year.
Step 3. Screen your new product concept with key customers and buyers. An important step that large and small companies often overlook is obtaining input and evaluation of new product ideas at an early stage with key customers (e.g., key account buyers and their management) and end user buyers. Business owners or managers may become so committed to a favorite new product development concept that they proceed to full development of a product prototype before outside input is obtained.
In certain high-tech industries and pharmaceuticals, where years and millions of dollars are committed to each new product development project, high security and long, complex development timetables may be necessary. Foregoing key customer and end-user input is part of the risk and cost of doing business in these industries.
QUALITITATIVE AND QUANTITATIVE CONSUMER RESEARCH can be invaluable in this stage, as well as in earlier development stages.
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NEW PRODUCT
SEARCHING FOR OPPORTUNITY
Information that can help to shape the development of the
NEW product plan.
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NEW PRODUCT
SEARCHING FOR OPPORTUNITY
Information that can help to shape the development of the
product plan.
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STEP ONE
INDUSTRY MARKET RESEARCH & ANALYSIS
WHAT IS THE MARKET SIZE/ POTENTIAL FOR THIS PRODUCT
GROUP ?
SALES VOLUME AND TRENDS
By dollar volume and unit sales.
By specific product.
By geographic design.
By customer use pattern.
By manufacturer and marketer.
By buying power.
By distribution channel.
By price.
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STEP TWO
TECHNOLOGY RESEARCH
WHAT TECHNOLOGY WOULD BE REQUIRED TO MAKE THIS
PRODUCT?
BASIC TECHNOLOGY
By parts, raw materials, labor.
By process.
By patent barriers.
By purchasing.
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STEP THREE
COMPETITION RESEARCH
WHAT WOULD BE THE NATURE OF COMPETITION FOR THIS
PRODUCT?
COMPETITION
By product specifications.
By product volumes.
By market share.
By end‑user.
By trade channel.
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STEP FOUR
CONSUMER RESEARCH
WHO ARE THE REAL POTENTIAL USERS FOR THIS
PRODUCT?
CONSUMER DEFINITION
By CONSUMER use.
By geographic characteristics.
By industry.
By pricing effects.
By alternative and substitute products.
By seasonal purchase.
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STEP FIVE
OTHER AREAS OF RESEARCH
WHAT OTHER AREAS WOULD BE REQUIRED TO RESEARCHED?
OTHER FACTORS
Import regulations.
Government regulations.
Economic situations
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OPPORTUNITY IDENTIFICATION RESEARCH
PHASE 1
The process includes:
*Define targets.
*Forecast rough volume and share.
*Perform a risk ratio analysis.
*Conduct a preliminary feasibility study using secondary data and professional expert opinion ‑ no prototypes or no trial runs.
*Assess competitive reactions, exclusivity, regulations, protections and constraints.
*Look at exceptional technical hurdles.
*Consider legal and policy issues.
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CONCEPTION RESEARCH – PHASE 2
This phase translates market facts into product concepts and customer positioning communication, prior to extensive research and development. The objective is to create and to refine a variety of appropriate product concepts in the form of customer communications, which may then be screened down to a workable number of the most appealing ones that may be carried forward into the prototype modelling phase.
1 . INPUT RESEARCH
This is a backgrounding step, often required where "hands‑on" experience, technical education, patent and literature review, as well as special consultant professionals, are needed for complete understanding of the opportunity area.
2. IDEATION
Ideation is the generation of large quantities of unconstrained possibilities, utilising a variety of stimulus techniques ‑brainstorming, group discussion, etc.
3. IDEA FORMS
This is the shaping of concepts into single‑minded, clear communications. The goal is a clear communication that neither goes beyond nor falls short of a real world summary statement of each concept.
4.PRE‑SCREENING CONCEPTS
Broad‑brush selection methods are applied to eliminate or improve concepts that are difficult to target.
5.SCREENING RESEARCH
This process rates many concepts rapidly ‑ individually
and in relationship to each other.
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PROTOTYPE MODELLING --PHASE 3
At this phase, preliminary concepts have survived several selection steps. Now it is necessary to bring the narrowed number of proposed new products closer to reality in the form of prototype products and prototype communications. The target customer prospect should see the concept "in the round" as closely as is timely and economically feasible. Prototype modelling accomplishes the development of such stimulus materials.
1 . DESCRIPTORS
This step involves the product category and preliminary brand name development.
2. PROTOTYPES
This covers all aspects of the product and its communications. Included are:
Product.
Package.
Brand name and description.
Communications theme development.
Prototype of communications.
Prototype testing.
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DEVELOPMENT - PHASE 4
This phase of product development encompasses a number of different activities.
1 . VITRO TRIALS
In‑house double check of the prototype in the research and development.
2. PILOT PRODUCTION
This involves a small‑scale replication of mass production. It helps to debug the system and devise productions controls, systems and equipment design. it is basic to determining on‑stream cost estimates.
3. SCALING UP (COMMERCIALISATI ON)
Manufacturing resources.
Marketing factors.
Distribution.
Service.
Financial.
Legal.
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MARKETING - PHASE 5
The marketing plan should include the following elements:
Prototype introduction.
Test simulation.
Sales and distribution.
Creative strategy.
Media programme.
Trade promotion.
PR plans.
Start‑up plan.
Test marketing.
Assessment plan.
Expansion plan.
Finance and production requirements.
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TEST MARKETING ‑PHASE 6
Evaluation of:
Awareness, attitude, usage.
Distribution.
Sales.
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MAJOR INTRODUCTION -- PHASE 7
Finally comes the moment of truth ‑ the major introduction.
Expanding the sales territory.
Close monitoring of performance vs. plan.
Evaluating opportunities.
Comments
In my opinion, the detail of these Lesson should link to another pages and this page should only post the information related to class and all members. :-)
Thanks for your kind sharing comments.
I will post detailed lessons in another page.
Thanks.