Red/Blue Pill Marketing

MARKETING

Meeting needs Profitably

3

Presented by Hazem Sobhi

THE NATURE AND SCOPE OF MARKETING
Difficulties of
orientation
development
Factors affect
CRM marketing
Orientation

Chapter
Impact of Contribution of
marketing marketing

Cross Functional Marketing
role Orientation
4


MARKETING ESSENTIALS

5


1.1 THE EVOLUTION OF MARKETING
ORIENTATION

6


1.1 THE EVOLUTION OF MARKETING ORIENTATION

PRODUCTION ORIENTATION

 Cheap as possible.
 Keep prices Low.

7



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.
8



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.
10


1.2 CONTRIBUTION OF MARKETING

11


1.2 Contribution Of Marketing

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

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

12



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
goods
13



MARKET IN PRACTICE

14



MARKET IN PRACTICE
 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? 15


1.3 ASPECTS OF MARKET- ORIENTATION
APPROACH
Study tip
If you were put in charge of
the organization you work
for.

What is Market - orientation
approach?

16


1.3 Aspects Of Market- Orientation Approach

MARKETS VIEWS

A dynamic
As the As the operation,
A
process of driving requiring A catalyst
managerial
managing philosophy analysis, for change
Function
Exchange of business planning
and action

Managing the process means that each party will
be better off than they were before

17



MARKETS VIEWS

A dynamic
A
managerial
Function
and action

The firm devoted to meet customer and every decision
taken at every level of the firm is taken with the

18



MARKETS VIEWS

A dynamic
A
managerial
Function
and action

Manage the company nearer to its

19



MARKETS VIEWS

A dynamic
A
managerial
Function
and action

Marketers here need to think on their feet and be prepared
to as circumstances.

20



MARKETS VIEWS

A dynamic
A
managerial
Function
and action

Marketers are the of view advocate all time

21



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?

22


1.4 Difficulties in developing a marketing orientation.

HINT ON MARKETING

23



HINT ON MARKETING
 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 24



1.4 DIFFICULTIES IN DEVELOPING A
MARKETING ORIENTATION.

Even though marketers might
feel that a market
orientation is the obvious
way for thee firm to go.

In practice there are likely to be
barriers to developing such an
orientation. Some of these come
from senior management,
colleagues, or organizational
inertia.
25



Lack of
committed
leadership and
vision
Transactional
approach to Lack of
business customer
knowledge

Preference for Difficulties
Lack of
a production or infrastructure
sales focus.

Conflict
between
Autocratic
marketing and
leaders
other
functions. 26



DIFFICULTIES

 Lack of committed
leadership and vision.
 Senior‘s obligation to put
the shareholder interests
first and ignoring the
customer.s values

27



DIFFICULTIES
 Lack of customer
knowledge
 Details about your
customer behavior,
example a retailers may
not be able to keep
detailed information
about its customers

28



DIFFICULTIES
 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

29



DIFFICULTIES
 Conflict between
marketing and other
functions
 Engineer redesign and
customer needs
 Sell what we can make
rather than make what
we can sell

30



DIFFICULTIES
 Customer
orientation takes
time to develop and
show results
 Sales person gets
results within a few
days.
 Production
orientation make
cost saving almost
immediately.
31



DIFFICULTIES

 Transactional
approach to business
 If the firm takes the
attitude that the sale
is the end of the
process

32



HINT ON MARKETING

Marketing has been
never about
theories and
science, it is about
your gut feelings
and perspective.

Take that word in consideration 33


1.5 MARKETING‘S CROSS-FUNCTIONAL
ROLE

 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.

34


1.5 Marketing‘s cross-functional role.

MARKET IN PRACTICE

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.

35



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
construction
36



MARKET IN PRACTICE

Rules
• People are encouraged to
touch.
• Educational

• Place in children eye level.

• Children Oriented.

• WOW factor in the entrance

37



MARKET IN PRACTICE

 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?

38


1.6 THE IMPACT OF MARKETING ON SOCIETY,
CONSUMERS AND THE ENVIRONMENT.

Marketers usually accused by:
 Creating needs

 Persuading people to buy things they don‘t need.

 Being anti-environementalist.

Take that word in consideration too

CSR corporate social responsibility
Societal marketing 39


1.6 The Impact of marketing

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.

Hearing only what you want to hear
40



INTERNAL MARKETING

 How do we do internal
marketing?
 Training for current
employees
 Proper select of new
Employees

41



EMPLOYEES TRAINING

42



WHAT IS THE 4P‘S AND THE 7P‘S?

 Product
 It is the value within,
that the customer get

43




 Place
 Where I am going to
sell it.

44




 Price
 Price with respect to value
and perspectives

45




 Promotions.
 Promotional Mix
 Billboards.
 T.V.

 Catalogues.

46




47




 People
 Your staff
 They can interact
effectively.

48




 Process
 ‫انبُك االههى و بيىقراطية استخراج انفيسا‬
 ‫ضببط انشرطة فى انًرور‬
 Cross-functionality.

49




 Physical Evidence.
 Layout.
 Sales and tuxedo.

50



4P‘S & 4C‘S

 4 P’s
 Product
 Price
 Place
 Promotion

•4 C‘s
•Customer Solution
•Cost
•Convenience
•Communication

51


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).

52


1.6 CRM

ETHICS
 Ethics is the science that
determines what is right
and what is wrong.
Ethical & Ideal
Legal
Unethical & Alcohols &
Legal Cigarettes
Unethical & Drugs
Illegal
Ethical & German
Illegal Sales
Promotion
53


1.6 CRM

ETHICS AND THE 4P‘S

 Product: should be
valuable and
beneficial.
 Chinese products.

54


1.6 CRM


 Prices
 Price discriminations.
 Skimming
 Prices according to
regions.
 Hotels local and
international.

55


1.6 CRM

 Promotions
 CK
 Axe
 ‫بيريـــــم‬

56


1.6 CRM

Unethical because of message perspectives
Birell ads.

57


1.6 CRM

Unethical because of message perspectives
Birell ads.

58


1.6 CRM

UNETHICAL PROMOTION
 Difference Between value and Message.

59


1.6 CRM

UNETHICAL PROMOTION
 Attack Other products unethically.

60


1.6 CRM

Unethical because of competition rules
PEPSI ads.

61


1.6 CRM

SOCIAL RESPONSIBILITIES
 It is the obligation of any company to increase its
positive effect and decreases its negative on the
society.

62


1.6 CRM

CONSUMERISM

 It is increased power and
importance of consumers

63


1.6 CRM

CONSUMERISM

64


1.6 CRM

CONSUMERISM

 Right to safety.
 Cigarettes.
 Genetic Foods.

65


1.6 CRM

CONSUMERISM

 Right to be informed

66


1.6 CRM

CONSUMERISM
 Right to chose.

67


1.6 CRM

CONSUMERISM

 Right to be heard

68


1.6 CRM

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.
69


1.6 CRM

RELATIONSHIP

Relationship marketing
has the aim of building
mutually satisfying
long-term relationships
with key parties—
customers, suppliers,
distributors, and other
marketing partners.

70


1.6 CRM

RELATIONSHIP LEVELS

 Basic.
 Reactive.

 Accountable.

 Proactive.

 Partnership.

71


1.6 CRM

RELATIONSHIP MARKETING

It is the process of creating,
building and manage the
long term relationship

72


1.6 CRM

WHAT IS THE B2B & B2C?

 Business to business =
Industries.
 Business to consumer =
FMCG.

73


1.6 CRM

COMPONENTS OF TRUST

Customer
Orientation
Dependability Competence

Honesty Trust Likability

74


1.6 CRM

COMPONENT OF TRUST

 Knowledge.
 Mind.

 Appearance.

 Listening.

 Attitude.

 Body Language.

 Business education.

75


1.6 CRM

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

76


1.6 CRM

MARKET AND MARRIAGE ANALOGY

A Awareness

E Exploration

E Expansion

C Commitment

D Dissolution

77


1.6 CRM

LADDER OF LOYALTY

 Suspect.
 Prospect

 Customer

 Client

 Support

 Advocate

78


BUDGETING AND PLANNING

 Plan: is a way to
achieve something e.g.
the shopping list you
take to the
supermarket.

79



 Strategy: the method
used to achieve
objectives e.g. we will
achieve our objective
of increasing profits
by growing market
share in existing
market.

80



 Tactics: how
resources are deployed
in an agreed strategy
e.g we will setup a
new telephone call
centre and target new
customers.

81



 Goals: what you are
trying to achieve.

82



 Objective: quantified
goal e.g. increase
profits by 30% over
the next 12 months.

83


 Comprehensive plan
provides for:
 Analysis of situation.
 SWOT, PESTEL & 5
Forces
 Planning: Objectives,
strategies.
 SWOT, Competitive &
Growth.
 Implementation and
budgeting.
 Control
84


Budgeting & Planning

THE THREE LEVEL OF BUSINESS PLANNING
1. Strategic Planning:

is the managerial
decision process that
matches the firm‘s
resources and
capabilities to its
market opportunities
for long term growth

85



2. Functional planning:

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.

86



3. Operational planning:

focuses on the day-to-
day execution
functional plan and
includes detailed
annual semiannual, or
quarterly plans.

87



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.
88


Contents and Structure of the MRKT plan

THE MARKETING PLANNING
PROCESS STEPS ARE
 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.
89


Situational analysis

SITUATIONAL ANALYSIS

90



SWOT ANALYSIS
Internal Factors External Factors

 Strength: a specific skill  Opportunities: any feature
the organization has which of the external environment
will aid it in achieving the that could create potential
objectives. advantages to the
organization.

 Weakness: any aspect of  Threats: any feature of the
the firm that could make it external environment that
difficult to achieve its could make it difficult to
specific objectives achieve success.
91



SWOT EXAMPLES
Internal External

 Strength  Opportunities
 Prestigious.  ‫يصبئب قىو عُذ قىو فىائذ‬
 Cheap.  New standards.
 High quality.
 New technology.
 Monopoly.

 Weakness  Threats.
 Low quality.  New competitors.
 High price.  Chinese products.
 Fake Products
―Counterfeited products‖
92



SWOT RANKING
Opportunities Threats

 Attractiveness/prospec  Probability of
tive rate. occurrence.
 Degree of matching  Impact and damage.
with organizational
success factors.
 How you can exploit
them.
 Success-based on risk
upon them
93



PESTEL
 Political
 Taxation.
 Pressure groups
 ,‫جًعيبت حقىق انحيىاٌ, حًبية انبيئة‬
‫...البذ اٌ ال يكىٌ نهب عالقة ببنحكىية‬
 Political orientation.
 Trade unions.
 Egypt trade agreement.
 Agadir agreement.
 COMESA agreement.
 EFTA agreement.
 Euro-Med Partenership.
 GAFTA.
 Egypt-Turkey FTA. 94



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. 95



PESTEL

 Social:
 Social Class.
 Life Style.
 Reference Group.
 Demographic.
 Education.
 Religion.

96



PESTEL

 Cultural.
 Language.
 Working hours.
 Aesthetics.
 Etiquette.
 Dress.
 Religion.
 Customs.

97



PESTEL

 Technology
 Product life cycles.
 Development in
technology.

98



PESTEL

 Ecological
 Environmental
friendly products.
 Ex. Cars.
 Freon.

99



PESTEL
 Legal.
 Competition Law.
 Employment Laws.
 Contract Law.
 Customer protections
laws.
 Environment law.
 Patency.

100



PROCESS STEPS ARE
 Marketing Audit.
 Objectives.
 Implementation.
 Getting there.
 Controlling.
101



FIVE FORCES ANALYSIS (MICHAEL PORTER )

102



PORTER‘S 5 FORCES
Threat of new entrant: Example

 Barriers of entrants ‫ انتحىيم يٍ يىبيُيم انى‬
 Brand loyalty. .‫إتصالت‬
 Know how.
.‫حب يىبيُيم‬ 
 Knowledge.
.‫تكُىنىجيب االتصبل‬ 
 Distributor channels.
 Economy of scale. .‫يحالت و شبكة انتىزيع‬ 

 Patents. .‫سعر انذقيقة أقم‬ 

 Cost of switching. .‫ح ّل بُفس انرقى‬‫ى‬ 
 Service difference. ‫ا‬
ً‫خذية أقم سعر‬ 
 Capital requested. .‫أفضم كفبئة‬ 
103



PORTER‘S 5 FORCES
Threat of substitutes Examples:

 More advanced  Ultrasonic watching
product. machines.
 More retarded  Coca-cola and
product. Juhaina.
 Videophone and land
lines. In case of
cancer.
 Airplanes and Maglev.

104



PORTER‘S 5 FORCES
Bargaining power of
customers

 Volume of purchase
and frequency.
 Switching Cost.
 Existing of
substitutes.
 Threats of backward
integration.
 Customer knowledge.
 Quality of products.
 Package. 105



PORTER‘S 5 FORCES
Bargaining power of
supplier

 Number of suppliers.
 New suppliers.

 Vital product.

 No. of customer
relative to the
supplier.

106



PORTER‘S 5 FORCES
Rivalry

 Number of balanced
competitors.
 Fixed Cost.

 Industry growth rate
and technology.

107



PROCESS STEPS ARE
 Objectives.
 Budgeting.
 Implementation.
 Getting there.
 Controlling.
108



OBJECTIVES

1. profitability.
2. R.O.I
3. Growth.
4. Earning per share.
5. Survival.

109


Objectives

OBJECTIVES
Objectives should be
smart.
1. Specific.

2. Measurable.

3. Achievable.

4. Relevant.

5. Time bounded.

110



PROCESS STEPS ARE
 Objectives.
 Budgeting.
 Implementation.
 Getting there.
 Controlling.
111



STRATEGIES.

 SWOT strategies.
 Competitive strategies.
 Growth strategies.

112


Strategies

SWOT STRATEGIES

113


Strategies

SWOT STRATEGIES.
Convert Match.

 Weakness to strength.  Merge and
 Untrained employees acquisitions.
to trained employees.  3DFX and nvidea.
 Threats to  Chevrolet and
opportunities. Daewoo.
 Coca-Cola and  Schneider strategies.
needles.

114


Strategies

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.
115


Strategies

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.
116


Strategies

PORTER‘S (GENERIC STRATEGIES)
3. Focus
• Cost focus: advantage in
its segment
• Differentiation focus: the
firm seeks differentiation
in its segment.

• Jaguar and Porsche.

117


Strategies

GROWTH STRATEGY (ANSOFF‘S MATRIX)

118


Strategies

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.

119


Strategies

2. New market
Development.
 New market segment.
 New market
geographically.
 New usuer for
products.

120


Strategies

3. New product
development.
 Complete new product
or modified one.
 Levi‘s and Docker line

121


Strategies


 Diversification
 Related.
 Unrelated.

122


Strategies

1.How: add new stores 2. How: Review new
in current market demographics ―senior
customers, or
areas, improvement geographic (Asians,
in advertising, Europeans &
prices,..etc Australians)‖

3. How: increase food 4. How: currently testing
two new restaurant
offerings, extend to concepts – café
frappuccino drinks. starbucks and
circadian, or branded
123
casual clothing.


Strategies

DEALING WITH COMPETITION

Leader 40%
Challenger 30%
Follower 20%
Niches 10%

124



PROCESS STEPS ARE
 Objectives.
 Budgeting.
 Implementation.
 Getting there.
 Controlling.
125


Budgeting

BUDGETING

 Task Method.
 Percentage of sales.

 Competitive party.

 All you can offer.

 S.A.L.T

126



PROCESS STEPS ARE
 Objectives.
 Budgeting.
 Implementation.
 Getting there.
 Controlling.
127


Monitoring and Control

MONITORING AND CONTROL.

Establish of
performances
measures KPIz

Evaluation of actual
Corrective actions performances
relative to measures

128


129


130


MARKETING THEORIES

 Sigmund Freud and
human behavioral
analysis.
 Mass and collective
mind control.
 Conscious and un-
conscious thoughts.

131


MARKETING THEORIES

 The real father and the
dawn of marketing
 Edward Bernays

132


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

136


Red/Blue Pill Marketing

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