Marketing Management

Having a Marketing
Orientation
 Agenda
 Questions/Concerns
 Continue Marketing Orientation
 Why are some companies/brands
more successful than their
competitors?
Competitive Advantage
 Resource Based
 Competency Based
Marketing Mix
 Both
 Resource-Based View of
the Organization
 Profits flow to those with “unique”
resources – “Comparative
Advantage”
Owned or Controlled by the Firm
Difficult to Imitate
Differentiate the Firm from
Competition
Contribute to Satisfying Customer
Needs
 Resource-Based View
Resources Not
Patented Product Generic Product
Secret Formula Common formula

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 Competitive Advantages
 Competitive advantage
 Our marketing mix is perceived as offering
superior value
 Examples
 Superior product features
 Service quality
 People and Process
 Distribution
 Communications
 Lower prices
Perhaps Marketing Can
Help…
Situation Analysis
Customers  Competitors  Company
Situation Analysis
 Context  Collaborators  Customer Analysis
 Competition Analysis
Marketing Strategy  Company Analysis
Segmentation  Targeting  Positioning
 Context Analysis
 Collaborator Analysis
Marketing Mix
Product  Promotion  Place  Price  SWOT Analysis
People  Process  Physicality
 Marketing Strategy
Market Monitoring  Marketing Mix
Market-Based Metrics
 Customer Analysis
 Market Segmentation
 Decision Making Unit (DMU)
 Decision Making Process (DMP)
 Customer Analysis
 Understand Buyer  Know Which
Preferences Customers…
 Competitor Analysis
Identifying
 Who are our Competitors

competitors?
 What are their Assessing
positions? Competitors

 What are they

likely to do?
Competitor’s Own
Behavior Behavior
 Competitor Analysis
 Anticipating
Responses
 Context Analysis
 How favorable are the
most important D.P.E.S.
T. factors affecting our
business?
 Demographics
 Political/Legal
 Economic/Ecological
 Social/Cultural
 Technological
 What are the most likely
future scenarios?
 Company Analysis
 How favorable is our position?
What are our goals & objectives?
What is our strategy & tactics?
What are our capabilities?
Is the organization well-aligned?
Is implementation efficient &
effective?
How is our performance?
 What is sustainable?
 Collaborator Analysis
 Who are the best partners?
 How do our partners compare to
competition’s partners?
 How can we make our partners better?
 How can they help make us better?
 How can we establish the best win-win
for our partners and us?
 SWOT
Analysis
 Identify key problems &
opportunities to consider
in arriving at a final
judgment
 External ‘opportunities and
threats’ (OT)
 Internal ‘strengths and
weaknesses’ (SW)
 Prioritize factors
identified
 Is the situation favorable
or not? Why?
 Opportunities
 External
 No control
 Positive trends or activities in the
market place for which your
capabilities are well suited to
leverage
 “Establishes the need”
 Threats
 External
 No control
 Trends or activities in the market
place which can negatively impact
the brand
 Strengths &
Weaknesses
 Performance
 Importance
 Categories
Marketing
Finance
Manufacturing
Organization
 Priorities
Opportunities Threats

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LEVERAGE

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Strengths Weaknesses
 Marketing Strategy
 The goal of marketing strategy (STP) is
to achieve the strongest possible
competitive position in an attractive
target segment(s), given marketplace
dynamics
 Segmentation: Identifying groups of similar
buyers
 Targeting: Selecting which customers to
serve and NOT serve
 Positioning: Determining ‘points of
difference’ that will be competitive
 Marketing Mix
 The marketing mix is how the
organization creates value for the
customer and re-captures value for
itself
 The organization & all its activities must
be aligned with the marketing mix
 All elements of the mix must reinforce
one another and the value proposition
 Marketing Mix
Product

Physicality Place

Packaging Positioning
Target
Process Audience Price

People Promotion
 Marketing Objectives
 Corporate
 Business Unit
 Product
 Marketing Metrics
 Internal and Market-Based Metrics
 Marketing Program
Marketing
Strategy

+ = Marketing
Decisions

Marketing
Marketing
Mix + = Plan

Implementation, The Firm’s

Control, and + = Marketing
Other ‘Details’ Program
(including
proforma) Other
Marketing
Plans
 Delivering Value
 Two fundamental types of
positions satisfy the marketing
concept
Benefit leadership
Cost leadership
 Higher m
iu
Inferior r em
Value P

Relative
r ity
Costs to Pa
Customers
y
om
n
Eco Superior
Lower Value

Inferior Superior
(Day 1990)
Relative Benefits Perceived by Customers
 Value
Drivers
 Each industry has unique value drivers
 ‘Generic’ value drivers cut across
industries
 Product quality
 Service quality
 Relationship quality
 Brand equity
 Assurance
 Convenience
 Price
 Customer Delivered
Value
SW Wal-
Value Driver Amazon Dell Harley Honda Schwab
Air Mart

Product X X X
Service X X
Relationship X
Reputation X
Assurance X
Convenience X X X X
Price X X X
 Customer Delivered
Value
 The positioning process may be
‘market-driven’ or ‘market-driving’
 The goal is to create the best
possible fit between firm
capabilities and target market
needs, given marketplace
dynamics
Market-Driven Market-Driving
Positioning Position Positioning
For a given A sustainable For an envisioned
set of capabilities perceived value position positioning strategy,
and marketplace given the dynamics What capabilities
conditions, of customers, do we require?
what is competitors, How can we create
our best and the DPEST more favorable
positioning marketplace
strategy? conditions?
 Delivering Value
How Dell Delivers Value
Total
E-Commerce Customer
Efforts Benefits

User-Friendly, Value-added
Shopping, Service and/or Total
Information Interface Customer
Value

Cost-Effective Supply,
Design, Production & Total
Distribution Profits
Customer
and
Costs
Growth

Costs
 Delivering Value
 Competitive Advantage
All Advantages Are Not Created Equal
What Makes Competitive Advantage
Sustainable?
 The Marketing Plan
 Strategic  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of  Pricing
marketing  Sales channels
opportunities
 Service
 Corporate Planning
Activities
 Define the corporate mission
 Establish SBUs
 Assign resources to each SBU
 Assess growth opportunities

2-
 Good Mission
Statements
 Focus on limited number of goals
 Stress major policies and values
 Define major competitive spheres
 Major Competitive
Spheres
 Industry  Market segment
 Products  Vertical channels
 Competence  Geographical
 eBay
“We help people trade anything on
earth. We will continue to enhance
the online trading experiences of
all – collectors, dealers, small
businesses, unique item seekers,
bargain hunters, opportunity
sellers, and browsers.”
Characteristics of SBUs
 It is a single business or collection
of related businesses
 It has its own set of competitors
 It has a leader responsible for:
Strategic planning
Profitability
Efficiency
 Organizations
 Culture
 Policies
 Structure
 Market Opportunity
Analysis (MOA)
 Can the benefits involved in the
opportunity be articulated convincingly to
a defined target market?
 Can the target market be located and
reached with cost-effective media and
trade channels?
 Does the company possess or have access
to the critical capabilities and resources
needed to deliver the customer benefits?
 Market Opportunity
Analysis (MOA)_2
 Can the company deliver the
benefits better than any actual or
potential competitors?
 Will the financial rate of return
meet or exceed the company’s
required threshold for investment?
 Marketing Plan
Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
 Evaluating the Plan
 Is the plan simple?
 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?
Assignment for Week 3
 Review Chapters 4 & 5
 Continue reading Positioning
 Find second marketing book
 Find, analyze and write a report on
an article about the importance of
the customer