ME 201 Strategic Management of an Engineering Enterprise PSU, Urdaneta City

1. A Global Perspective in Marketing Management
Engr. Arnold Mariñas
Discussant
ME 201 Strategic Management of Engineering Enterprise

2. What is Marketing?
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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3. Marketing = ?
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association
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4. Marketing = ?
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.
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5. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money
Information 5

6. Marketing = ?
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion
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7. The 4 Ps & 4Cs
Marketing Convenience
Mix
Product Place
Customer
Solution Price Promotion
Communication
Customer
Cost
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8. Difference Between - Sales & Marketing ?
Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what
the customer wants
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9. Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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10. Core Concepts of Marketing
Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
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11. Core Concepts of Marketing
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12. Core Concepts of Marketing
 Need – food ( is a must )
 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel
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13. In order to understand Marketing let us begin with the
Marketing Triangle
Customers
Company Competition
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14. Who is a Customer ?
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
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15. Customer –
CUSTOMER has needs, wants, demands and
desires
Understanding these needs is starting point of the
entire marketing
These needs, wants arise within a framework or an
ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship
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16. How Do Consumers Choose Among
Products & Services?
Value - the value or benefits the customers gain from
using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction
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17. Customers - Problem Solution
As a priority , we must bring to our customers
“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems
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18. Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
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19. Strategic Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered
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20. Strategic Planning
Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.
 Also called Strategic Management Process
 All organizations have this
 Can be Formal or Informal
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21. The Strategic-Planning, Implementation,
and Control Process
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22. Business Strategic-Planning Process
External Environment
(Opportunity &
Threat analysis)
Business Goal
Mission Formulation
Internal Environment
(Strength/ Weakness analysis)
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23. Strategy Formulation
Environmental Analysis
Competitor Internal Analysis
Customer
Supplier
Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses
Identity Core Competencies
Identify opportunity
Fit internal Competencies with external opportunities
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Firm Strategies

24. The Marketing Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager
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25. CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control
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26. The Marketing Process
Business
Mission
Statemen
t
Objectives
Situation
or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product Place/Distribution
Promotion Price
Implementation
Evaluation, Control
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27. Marketing Environment

28. Why a product like radio declined
and now once again emerging as
an entertainment medium ?
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29. What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
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30. Why Market Leaders Suffered ?
 HMT vs. Titan
 HLL vs. Nirma
 Bajaj vs. Honda
 Dot.com boom, then bust and now resurgence
 Market leadership today cannot be taken for
granted.New and more efficient companies are able
to upstage leaders in a much shorter period.
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31. Factors
Influencing
Company’s
Marketing
Strategy
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32. External Marketing Environment
External Environment
Social
Social Ever-Changing
is not controllable Change
Change Marketplace
Demographics
Demographics
Economic
Economic
Product
Product Physical / Natural Conditions
Distribution Conditions
Distribution
Promotion
Promotion
Price
Price
Competition
Competition Target Market
Political &
Political &
Legal Factors
Legal Factors
Technology
Technology
Environmental
Scanning
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33. The macro-environment
is the assessment of the external forces that act upon the
firm and its customers, that create threats & opportunities
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34. Product
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35. Product is
Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
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36. Types of Products
PRODUCTS
Consumer Industrial
Services
Products Products
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37. Product Items, Lines, and Mixes
A specific version of a product
A specific version of a product
that can be designated as a
that can be designated as a
Product Item
Product Item distinct offering among an
distinct offering among an
organization’s products.
organization’s products.
A group of closely-related
A group of closely-related
Product Line
Product Line product items.
product items.
All products that an
All products that an
Product Mix
Product Mix organization sells.
organization sells.
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38. Product Mix
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a
product line
Consistency – how closely related the product lines are in
end use
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39. Gillette’s Product Lines & Mix
Width of the product mix
Depth of the product lines
Blades and Writing
razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
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40. What is a Service? Defining the
Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired
change in customers themselves, or their physical
possessions, or intangible assets
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41. Some Industries - Service Sector
Banking, stock broking
Lodging Health care
Restaurants, bars, Education
catering Wholesaling and retailing
Insurance Laundries, dry-cleaning
News and entertainment Repair and maintenance
Transportation (freight and Professional (e.g., law,
passenger) architecture, consulting)
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42. Classification of Services Pure Intangible
Banking
Service
Good Transportation
Major Service with
Minor Product
Business Hotels
Product = Service
Computers
Major Product with
Minor Services
Materials / Components
Pure Tangible Product
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43. Major Characteristic
of Services
 Intangibility – Services are intangibility cannot be seen,
tasted, felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability or Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no
transfer of title
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44. The Marketing Mix
The conventional view of the marketing mix consisted of four
components (4 Ps): Product, Price, Place/ distribution and
Promotion.
Generally acknowledged that this is too narrow today; now includes ,
Processes, Productivity [technology ]People [employees],
Physical evidence
Marketers today are focused on virtually all aspects of the firm’s
operations that have the potential to affect the relationship with
customers.
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45. The “8Ps” of Integrated Service Management
vs. the Traditional “4Ps”
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays
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46. The Give and Get of Marketing
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47. Great Words on Marketing
1. “The purpose of a company is ‘to create a customer…The only
profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing
department.”
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48. Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers
Ability to add value and to differentiate as a firm focuses
more on the top levels
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49. Marketers and Markets
Marketers are focused on stimulating exchanges with
customers who make up markets – B2C or B2B.
The market is comprised of people who play a series
of roles: decision makers, consumers,
purchasers, and influencers.
It is absolutely essential that marketers have a detailed
understanding of consumers, their needs and
wants.
Much happens before and after the sale to affect
customer satisfaction
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50. Stages of Customer Interaction
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51. What Changed in Marketing…
Old Economy New Economy
• Organize by product units • Organize by customer segments
• Focus on profitable transactions • Focus on customer lifetime value
• Look primarily at financial • Look also at marketing scorecard
scorecard
• Focus on shareholders • Focus on stakeholders
• Marketing does the marketing • Everyone does the marketing
• Build brands through advertising • Build brands through performance
• Focus on customer acquisition • Focus on customer retention
• No customer satisfaction • Measure customer satisfaction and
measurement retention rate
• Over-promise, under-deliver • Under-promise, over-deliver
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52. Myth 1 – The larger the range of products, the more
customer-centric I am.
Mythbuster – The range of products has
emerged from being
competition-centric.
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53. Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – Technology
alone does not deliver,
helps people do.
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54. Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately
Mythbuster – Customers need
To be educated too…
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55. Myth 4 – The only way to get a customer is from
competition.
Mythbuster – Customers
are not only present
where competition is.
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56. Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising
will only sell,
Not retain customers.
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57. Myth 6 – No difference between marketing & selling
Mythbuster – “Selling focuses on the needs of the
seller; marketing on the needs of the buyer.
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58. Myth 7 – In the absence of relationships ‘trust’ builds
financial brands
Mythbuster – Trust is not a differentiator at all…
it is the very minimum that the customer expects!!
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59. So what will the differentiators be :
• Technology ?
• Brand ?
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60. The real differentiator of
customer – centricity in a
commoditised world of financial
products -
Customer Service !
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61. References:
• Marketing Management: An Asian Perspective 4th ed. By
P. Kotler, S. Leong, C, Tan
• Basic Marketing- A Global Managerial Approach W.
Perrault
• Handbook of Industrial Engineering
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62. Thank You
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