1. Strategic Marketing Management “ Marketing is Managing profitable customer relationships.” “ Fulfilling customers wants and desires in order to make a profit” “ The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”

2. Strategic Marketing Management New Definition of Marketing (est. in 2007) Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (American Marketing Association)

3. Product/ Service Producer/Deliverer Retailer Distributor Wholesaler Customer RESEARCH Attitude Behavior Characteristics Necessity/Desire Existing Concept MARKETING OUTLINE MARKETING AS A FIELD OF STUDY OPERATIONS CONSUMER BEHAVIOUR 4Ps Strategic Marketing Management

5. Strategic Marketing Management MARKETING PROCESS Understand the marketplace, customer needs and wants Design a Marketing Strategy Construct a marketing program Build Profitable relationships with Customers Capture value from customers in return

6. Strategic Marketing Management Marketing Management Orientations Production Concept Product Concept The idea that consumers will favour products that are available and highly affordable The idea that consumers will favour products that offer the most in quality, performance and features and that organizations should therefore devote all its efforts to make continuous product improvements

7. Strategic Marketing Management Selling Concept Marketing Concept The idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort The marketing management concept holds that achei8ving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Marketing Management Orientations

8. Strategic Marketing Management Marketing Management Orientations A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants, the company’s requirements, consumer’s long term interests and society’s long run interests Societal Marketing Concept

9. Psychological Factors Perception Learning Beliefs & Attitudes Motivation

10. Model of Consumer Behavior Consumer Psychology Motivation Perception Learning Memory Purchase Decision Product choice Brand choice Dealer choice Purchase timing Purchase amount Consumer characteristics Cultural Social Personal Psychological Buying Decision process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Other stimuli Economic Technological Political Cultural Marketing stimuli Product Price Place Promotion

11. Strategic Marketing Management NEED RECOGNITION INFORMATION SEARCH PURCHASE DECISION POSTPURCHASE BEHVIOR EVALUATION OF ALTERNATIVES BUYER DECISION PROCESS

12. Steps Between Evaluation of Alternatives and a Purchase Decision Evaluation of alternatives Purchase decision Unanticipated situational factors Attitude of others Purchase intention

13. Strategic Marketing Management

22. Problem Recognition Post Purchase Purchase Info Search/ Eval Need Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review

23. Participants in the Business Buying Process Gatekeepers Initiators Buyers Influencers Deciders Users Approvers

24. Four Types of Buying Behavior Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior Significant differences between brands Few differences between brands High Involvement Low Involvement

25. Product Place Promotion Price (features, quality, service, support, product line etc.) (channel of distribution, exclusive vs. intensive, etc.) (advertising, sales force, brochures, coupons, etc.) (list price, discount, deals, both end-user and channel) The Marketing Mix

26. Packaging (Physical Evidence) Positioning (Process) People The Marketing Mix

27. Product Place Promotion Price (features, quality, service, support, product line etc.) (channel of distribution, exclusive vs. intensive, etc.) (advertising, sales force, brochures, coupons, etc.) (list price, discount, deals, both end-user and channel) The Marketing Mix

38. Marketing Management MARKET INTELLIGENCE IDENTIFYING MARKET SEGMENTS AND TARGETS PSYCHOGRAPHIC VARIABLES Innovators Survivors Thinkers Believers Achievers Strivers Experiencers Makers Ideals Achievement Self-Expression Primary Motivation High Resource High Innovation Low Resource Low Innovation

47. Marketing Management MARKET INTELLIGENCE IDENTIFYING MARKET SEGMENTS AND TARGETS CONVERSION MODEL - Users COMMITTMENT LOW HIGH CONVERTIBLE SHALLOW AVERAGE ENTRENCHED

48. Marketing Management MARKET INTELLIGENCE IDENTIFYING MARKET SEGMENTS AND TARGETS CONVERSION MODEL – Nonusers BALANCE OF DISPOSITION LOW HIGH AVAILABLE AMBIVALENT WEAKLY UNAVAILABLE STRONGLY UNAVAILABLE

49. Marketing Management MARKET INTELLIGENCE IDENTIFYING MARKET SEGMENTS AND TARGETS BUSINESS MARKETS SEGMENTATION

56. Product Core Benefit Actual Product Brand Name Quality Level Packaging Features Design Augmented Product Delivery & Credit Installation Warranty After sales service

57. Product PRODUCT LINE A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges PRODUCT MIX The set of all product lines and items that a particular seller offers for sale

61. Product Line Extension: Different versions of the same product Brand Extension: New products are added under the name of an existing brand Multibrands: Different brands of the same product.

69. Customer Value and Loyalty “ A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior” - Oliver Loyalty Value Proposition Consists of the whole cluster of benefits a company promises to deliver to its customers Strategic Marketing Management

84. MARKET INTELLIGENCE MARKETING RESEARCH Define the problem and research objectives Develop the research plan Collect the Information Analyze the information Present the findings Make the decision Process Strategic Marketing Management

95. MARKET INTELLIGENCE MARKETING RESEARCH Measuring Marketing Productivity Customer Penetration Customer Loyalty Customer Selectivity Price Selectivity % of all customers who buy from the company Purchases made by customers as a % of total purchases made from all suppliers Size of the average customer purchase from the company expressed as a % of the average customer purchase from an average company Average price charged by the company as a percentage of the average price charged by all companies Strategic Marketing Management

106. Analysis of Capabilities Porter’s Value Chain Strategic Marketing Management SWOT - TOWS

107. Analysis of Capabilities Porter’s 5 Forces Model Strategic Marketing Management New Entrants Suppliers Industry Competition Substitutes Customers SWOT - TOWS

110. Analysis of Capabilities Environmental Analysis Strategic Marketing Management SWOT - TOWS

111. Analysis of Capabilities Environmental Analysis Strategic Marketing Management SWOT - TOWS

112. Analysis of Capabilities Environmental Risk Strategic Marketing Management SWOT - TOWS

113. Analysis of Capabilities Environmental Analysis Strategic Marketing Management SWOT - TOWS

114. Analysis of Capabilities Environmental Analysis Strategic Marketing Management SWOT - TOWS

115. Analysis of Capabilities Ratios Strategic Marketing Management Performance Analysis

116. Analysis of Capabilities Marketing Ratios Strategic Marketing Management Performance Analysis

117. Analysis of Capabilities Profit Impact of Market Strategy Strategic Marketing Management Performance Analysis

118. Analysis of Capabilities Profit Impact of Market Strategy Strategic Marketing Management Performance Analysis

119. Analysis of Capabilities Strategic Marketing Management Portfolio Analysis

120. Analysis of Capabilities Strategic Marketing Management Portfolio Analysis War Horses Dodos

122. Analysis of Capabilities Strategic Marketing Management Portfolio Analysis SALES (In thousands) PRODUCTS LAPTOPS 2007 2008 2009 Sony 300 400 410 Toshiba 400 450 470 Dell 425 500 490 Acer 600 610 500 IBM 100 90 75 HARD DISK DRIVES Seagate 900 1050 2000 Toshiba 800 700 900 Samsung 810 811 900 TV Sony 2000 2100 1500 LG 980 1500 2000 Samsung 1000 920 1700 Sharp 800 900 800 Toshiba 1200 1800 1300 DVD PLAYERS Toshiba 700 900 1800 Sony 1000 2000 1070 LG 900 1600 1500 Samsug 400 1000 1200 Phillips 1000 950 1100

123. Model of Consumer Behavior Consumer Psychology Motivation Perception Learning Memory Purchase Decision Product choice Brand choice Dealer choice Purchase timing Purchase amount Consumer characteristics Cultural Social Personal Psychological Buying Decision process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Other stimuli Economic Technological Political Cultural Marketing stimuli Product Price Place Promotion

124. Four Types of Buying Behavior Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior Significant differences between brands Few differences between brands High Involvement Low Involvement Strategic Marketing Management

131. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management 1 Against whom are we competing? 2 What strengths and weaknesses do they possess? 3 What are their objectives? 4 What strategies are they pursuing and how successful are they? 5 How are they likely to behave and, in particular, how are they likely to react to offensive moves?

132. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Levels of Competition 1 Competition consists only of those companies offering a similar product or service to the target market, utilizing a similar technology, and exhibiting similar degrees of vertical integration. Thus, Nestlé (which makes Nescafé) sees General Foods, with its Maxwell House brand, as a similar competitor in the instant coffee market, while Penguin sees its direct competitors in the chocolate snack bar market to be Kit-Kat’s six pack, Twix and Club. 2 Competition consists of all companies operating in the same product or service category. Penguin’s indirect competitors, for example, consist of crisps and ice-creams. 3 Competition consists of all companies manufacturing or supplying products that deliver the same service. Thus, long-distance coach operators compete not just against each other, but also against railways, cars, planes and motorcycles. 4 Competition consists of all companies competing for the same spending power. An example of this is the American motorcycle manufacturer, Harley Davidson, which does not necessarily see itself as competing directly with other motorcycle manufacturers. Instead, for many buyers it is a choice between a Harley Davidson motorcycle and a major consumer durable such as a conservatory or a boat

133. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management

135. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Industry Perspective of Competition

136. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Industry Perspective of Competition

139. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Identifying Competitor Weaknesses Financial factors ➡ Cash flow problems ➡ Under funding ➡ Low margins ➡ High-cost operations and/or distribution. Market and performance-related factors ➡ Slow/poor growth ➡ An overdependence on one market ➡ An overdependence on one or a small number of customers ➡ Strength in declining market sectors ➡ Little presence in growing and high margin markets ➡ Low market share ➡ Distribution weaknesses ➡ Weak segmentation of the market ➡ Poor/confused and/or unsustainable positioning ➡ A weak reputation and/or poorly defined image.

140. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Identifying Competitor Weaknesses Product-related factors ➡ Outdated products and a failure to innovate ➡ Product weaknesses ➡ Weak or non-existent selling propositions. Managerial factors ➡ A short-term orientation ➡ The poor management of staff ➡ The failure to focus upon what is important ➡ Managerial predictability and the adherance to well-tried formulae ➡ Product or service obsolescence/weaknesses ➡ An over- and ill-justified confidence ➡ Managerial arrogance and a belief that the organization has an inalienable right to a place in the market ➡ Competitive arrogance, competitive myopia and competitive sclerosis ➡ Bureaucratic structures ➡ A fiscal year short-term fixation

141. MARKET INTELLIGENCE COMPETITION Strategic Marketing Management Competitive Intelligence System

142. MARKET INTELLIGENCE SEGMETATION, TARGETTING & POSITIONING Strategic Marketing Management Stages of STP

144. MARKET INTELLIGENCE SEGMETATION, TARGETTING & POSITIONING Strategic Marketing Management Segmentation Psychographic Young & Rubicam, 4Cs (a Cross-Cultural Consumer Characterization) for UK 1 The constrained (i) the resigned poor (ii) the struggling poor. 2 The middle majority (i) mainstreamers (ii) aspirers (iii) succeeders. 3 The innovators (i) transitionals (ii) reformers.

146. MARKET INTELLIGENCE SEGMETATION, TARGETTING & POSITIONING Strategic Marketing Management Target Marketing Strategies 1. Undifferentiated or mass marketing 2. Product-variety or differentiated marketing 3. Target or concentrated marketing.

147. MARKET INTELLIGENCE SEGMETATION, TARGETTING & POSITIONING Strategic Marketing Management Positioning

149. MARKET INTELLIGENCE SEGMETATION, TARGETTING & POSITIONING Strategic Marketing Management Positioning 1 Confused positioning, where buyers are unsure of what the organization stands for 2 Over-positioning, where consumers perceive the organization’s products as being expensive and fail to recognize the full breadth and value of the range 3 Under-positioning, where the message is simply too vague and consumers have little real idea of what the organization stands for or how it differs from the competition.

151. MARKET INTELLIGENCE GENERIC STRATEGIES Strategic Marketing Management GE MATRIX based strategies

152. MARKET INTELLIGENCE GENERIC STRATEGIES Strategic Marketing Management Shell Matrix

153. MARKET INTELLIGENCE GENERIC STRATEGIES Strategic Marketing Management PORTER’S STRATEGIES

154. MARKET INTELLIGENCE GENERIC STRATEGIES Strategic Marketing Management PORTER’S STRATEGIES

155. MARKET INTELLIGENCE GENERIC STRATEGIES Strategic Marketing Management POSITION BASED STRATEGIES

156. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management

158. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Industry or Market-Importance ● It defines your real competition ● It defines your customers ’ needs ● It defines your potential for growth ● It defines your strategic threats and opportunities ● It can kill you early if you don’t get it right .

159. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Customer

161. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Segmentation and Targeting

162. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Positioning and Branding

163. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Customer Retention

164. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Customer Retention

165. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Organization: Processes and Culture

166. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Offerings

167. MARKET INTELLIGENCE SCORPIO TECHNIQUE Strategic Marketing Management Offerings