MARKETING MANAGEMENT 13th edition

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MARKETING MANAGEMENT13th edition

• Chapter 2Developing Marketing Strategies and
  Plans

by Dr. Paitoon Chetthamrongchai ??. ???????
?????????? paitoon9_at_hotmail.com 081-989-0098
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What is the Value Chain?

• The value chain is a tool for identifying was to
  create more customer value because every firm is
  a synthesis of primary and support activities
  performed to design, produce, market, deliver,
  and support its product.

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A Holistic Marketing Orientation and Customer
Value

• A company needs to take a more holistic view of
• the target customers activities, lifestyle, and
  social space.
• the companys channels and supply chain.
• the companys communications.
• the companys stakeholders interests.
• Holistic marketing will require strong software
  support.

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A Holistic Marketing Orientation and Customer
Value

• Value exploration how can a company identify new
  value opportunities?
• Value creation How can a company efficiently
  create promising new value offering?
• Value delivering

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Strategic Planning

• Strategic plan key areas and four activities
• Defining the corporate mission
• Establishing strategic business unit
• Assessing resource to each SBU
• Assessing growth opportunity

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Strategic Planning

• Corporate level is responsible for designing a
  corporate strategic plan for each division.
• Division plan establishes a division plan
  covering the allocation of funds
• Business unit
• Product level

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Strategic Planning

• Marketing plan is the central instrument for
  direction and coordinating the marketing effort.
• Strategic marketing plan lays out the target
  markets and the value proposition that will be
  offered, based on analysis the best
  opportunities.
• Tactical marketing plan specifies the marketing
  tactics.

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Corporate and Division Strategic Planning

• All corporate headquarters undertake four
  planning activities
• Defining the Corporate Mission Specific mission
  when the business starts Amazon.com/ Ebay.com
• Establishing Strategic Business Units (SBUs)
• Assigning resources to each SBU
• Planning new businesses, downsizing, or
  terminating older businesses

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The Boston Consulting Groups Growth-Share Matrix
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• The Growth-Share Matrix
• Question Marks business that operate in high
  growth markets but have low relative market share
  requires a lot of cash
• Stars the market leaders in a high growth
  market, the company must spend substantial fund
  to keep up
• Cash Cows falling growth rate but still have
  the largest market share, produce a positive cash
  flow
• Dogs weak market shares in low growth market

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• SBU Strategies
• Build for question
• Hold for cash cow
• Harvesting for decisioning to cash in on its
  crop to milk its business
• Divest for dog and question mark if resources
  can be better used elsewhere

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The Strategic-Planning Gap
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Corporate and Division Strategic Planning

• Planning New Businesses, Downsizing Businesses
• management will have to develop new business
• Intensive growth opportunities to achieve
  further growth within current business. Akiko
• Integrative growth opportunity to build or
  acquire business that are related to current
  business backward or forward
• Diversification growth opportunity to add
  attractive business that are unrelated to current
  business.

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Three Intensive Growth Strategies
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MARKETING MANAGEMENT12th edition

• Chapter 3Scanning the Marketing Environment

by Dr. Paitoon Chetthamrongchai ??. ???????
?????????? paitoon9_at_hotmail.com 01-989-0098
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The Marketing Environment

• Environmental scanning and analysis
• The process of collecting and interpreting
  information about the forces in the marketing
  environment
• The environment changes constantly
• Marketing must
• Predict change
• Respond to and take advantage of change

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Identifying and Responding to the Major
Macroenvironment Forces

• The substantial speedup of international
  transportation, communication, and financial
  transactions, leading to the rapid growth of
  world trade and investment, especially tripolar
  trade (North America, Western Europe, Far East)
• The movement of manufacturing capacity and skills
  to lower cost countries.
• The rising economic power of several Asian
  countries in world markets.
• The rise of trade blocks such as the European
  Union and NAFTA signatories.

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Identifying and Responding to the Major
Macroenvironment Forces

• The severe debt problems of a number of
  countries, along with the increasing fragility of
  the international financial system.
• The increasing use of barter and countertrade to
  support international transactions.
• The move toward market economies in formerly
  socialist countries along with rapid
  privatization of publicly owned companies.
• The rapid dissemination of global lifestyles.
• The gradual opening of major new markets, namely
  China, India, eastern Europe, the Arab countries,
  and Latin America.

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Identifying and Responding to the Major
Macroenvironment Forces

• The increasing tendency of multinationals to
  transcend their locational and national
  characteristics and become transnational firms.
• The increasing number of cross-border corporate
  strategic alliancesfor example, MCI and British
  Telecom, and Texas Instruments and Hitachi.
• The increasing ethnic and religious conflicts in
  certain countries and regions.
• The growth of global brands in autos, food,
  clothing, electronics.

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Identifying and Responding to the Major
Macroenvironment Forces

• Demographic Environment
• Worldwide Population Growth
• Population Age Mix
• Ethnic and Other Markets
• Educational Groups
• Household Patterns
• Geographical Shifts in Population
• From a Mass Market to Micromarkets

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Identifying and Responding to the Major
Macroenvironment Forces

• Economic Environment
• Income Distribution
• Savings, Debt, and Credit Availability

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Identifying and Responding to the Major
Macroenvironment Forces

• Natural Environment
• Shortage of Raw Materials
• Increased Energy Cost
• Anti-Pollution Pressures
• Changing Role of Governments

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Identifying and Responding to the Major
Macroenvironment Forces

• Technological Environment
• Accelerating Pace of Change
• Unlimited Opportunities for Innovation
• Varying RD Budgets
• Increased Regulation of Technological Change
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Identifying and Responding to the Major
Macroenvironment Forces

• Political-Legal Environment
• Legislation Regulating Business
• Growth of Special-Interest Groups
• Consumerist movement

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Problems faced by Global brands

• Companies find it difficult to succeed in new
  markets that are culturally unfamiliar.
• They often underestimate differences in the
  patterns of daily life in the new markets.
• This makes it difficult to develop products and
  services that fit peoples lives,
• It is difficult to extend their brand, and manage
  culturally diverse teams.

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The Micro Environment

• Micro-Environmental Factors
• Customers
• Competitors
• Suppliers
• Intermediaries
• Publics

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MARKETING MANAGEMENT12th edition

• Chapter 6Analyzing Consumer Markets and Buyer
  Behavior

by Dr. Paitoon Chetthamrongchai ??. ???????
?????????? paitoon9_at_hotmail.com 081-989-0098
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Objectives

• How do consumer characteristics influence buying
  behaviour?
• What are major psychological processes responses
  to the marketing programme?
• How do consumers make purchasing decision?

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What are influences consumer behaviour?
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What are influences consumer behaviour?

• Consumer Trends for the Future
• Gives an idea of what marketers can expect to
  encounter in the year 2010

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Old Chain Format
Processor Drove Demand Down the Chain
Processor
Wholesale Retail Food Service
producer
Consumer
No Transparency
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Todays Chain Format
Consumer Drives Demand Signals up the Chain
Consumer
producer
Wholesale Retail Food Service
Processor
Transparency (Visible Value to the Consumer)
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• What are influences consumer behaviour?

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Influencing Buyer Behavior

• 1. Cultural Factors is the fundamental
  determinant of persons wants and behaviour.
• A set of values, perceptions, preferences and
  behaviours.
• Each culture consists of
• Subcultures go to be larger market (Diversity
  marketing) -gt Multicultural marketing
• Social class is indicated by a set of variables
  such as occupation, income, wealth education and
  value orientation.

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Problems faced by Global brands

• Companies find it difficult to succeed in new
  markets that are culturally unfamiliar.
• They often underestimate differences in the
  patterns of daily life in the new markets.
• This makes it difficult to develop products and
  services that fit peoples lives,
• It is difficult to extend their brand, and manage
  culturally diverse teams. Western companies are
  now paying a great deal of attention to the
  growing number of people with expendable income
  in China, India, and other developing regions
  where the cultures are very different from those
  in the West.

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Influencing Buyer Behavior

• 2. Social Factors references groups, family, and
  social roles and statuses
• Reference Groups have direct or indirect
  influence on the persons attitudes or behaviour
  (Membership groups)
• Primary groups family, friend etc
• Secondary groups religious, professional etc
• Aspirational groups are those person hopes to
  join
• Dissociative groups are those whose value or
  behaviour an individual rejects
• Opinion leader

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Influencing Buyer Behavior

• Family the most important consumer-buying
  organisation in society, and family members
  constitute the most influential primary reference
  group.
• Roles and Statuses
• Role
• Status

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Influencing Buyer Behavior

• 3. Personal Factors
• Age and Stage in the Life Cycle
• Family life cycle
• Occupation and Economic Circumstances
• Lifestyle
• Personality and Self-Concept
• 4. Psychological Factors
• Motivation biogenic and psychogenic

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Influencing Buyer Behavior

• Maslows
• Theory
• Hierarchy
• of Needs

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Globalization and the rise of Asia
Population Change, 2005-2015
World population 6.4 bil Developed world 1.2 bil
2050 close to 9.0 bil
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Demographicsaging is not equal across markets

• Low fertility rates and increasing life
  expectancy are increasing the average age of the
  population
• In developed countries the median age is 39
  years, 14 years more than in developing countries
• Median age is increasing in all cases
• Population aging is more severe in developed
  countries and some developing ones

CAGR for selected population segments, 2004-2014

Source Rabobank analysis based on UN data
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Lifestyle Influences

• Multi-tasking
• Time-starved
• Money-constrained

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Influencing Buyer Behavior

• Perception the process by which an individual
  selects and organises and interprets information
  inputs to create a meaningful picture.
• Selective attention
• People are more likely to notice stimuli than
  relate to a current need
• People are more likely to notice stimuli than
  they anticipate
• People are more likely to notice stimuli whose
  deviations are large in relation to the normal
  size of the stimuli 50
• Selective distortion interpret information in a
  way that will fit into personal meanings.
• Selective retention remember good point

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Influencing Buyer Behavior

• Learning
• Beliefs and Attitudes

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The Buying Decision Process

• How consumers actually make their buying
  decision, marketers need to understand behaviour
  questions in terms of who, what, when, where
  how and why

• Step1 Problem recognition a problem or need
• Step2 Information search
• Personal sources
• Commercial sources
• Public sources
• Experiential sources

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The Buying Decision Process

• Step 3 Evaluation of Alternatives
• Potential Attributes of interest consider need,
  product solution, satisfy.
• Brand beliefs
• Brand image

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The Buying Decision Process

• Step 4 Purchase Decision

Steps Between Evaluation of Alternatives and a
purchase decision
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The Buying Decision Process

• Step5 Post purchase Behavior
• Postpurchase Satisfaction
• Disappointed
• Satisfied
• Delighted
• Step6 Post purchase Actions
• Postpurchase Use and Disposal

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The Buying Decision Process

• Buying Roles
• Initiator first suggests the idea of buying
  product
• Influencer who view or advise influences the
  product
• Decider
• Buyer
• User

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MARKETING MANAGEMENT13th edition

• Chapter 4
• Conducting Marketing Research

by Dr. Paitoon Chetthamrongchai ??. ???????
?????????? paitoon9_at_hotmail.com 081-989-0098
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The Marketing Research

• Consumer Market Knowledge
• Marketing Research is the systematic design,
  collection, analysis, and reporting of data and
  findings relevant to a specific marketing
  situation facing the company.

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The Marketing Research Process
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Marketing Research System

• The Marketing Research Process
• Step 1 Define the Problem, the Decision
  Alternatives, and the Research Objectives
• Must be careful not to define the problem too
  broadly or to narrowly.
• Example Offering New First Class Service

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Marketing Research System

• The Marketing Research Process
• Step 2 Develop the Research Plan
• Data Sources secondary/ primary data
• Research Approaches
• Observational research -
• Focus group research
• Survey research
• Behavioral data purchasing behaviour/ direct
  marketing
• Experimental research to capture cause and
  effects relationship/ can explain the results.

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Marketing Research System

• Research Instruments
• Questionnaires closed-end/ opened
  questionnaires
• Quantitative measures unstructured
  measurement approaches.
• Mechanical Devices technology media/ diaries

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Marketing Research System
Closed-end Questions
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Marketing Research System
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Marketing Research System
Open-end Questions
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Marketing Research System

• Sampling Plan
• Sampling unit Who is to be surveyed?
• Sample size How many people should be
  surveyed?
• Sampling procedure How should the respondents
  be chosen?

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Probability and Nonprobability Samples
Probability Sample
Simple random sample Every member of the population has an equal chance of selection
Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview
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Probability and Nonprobability Samples
Nonprobability Sample
Convenience sample The researcher selects the most accessible population members
Judgment sample The researcher selects population members who are good prospects for accurate information
Quota sample The researcher finds and interviews a prescribed number of people in each of several categories
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Marketing Research System

• Contact Methods
• Mail questionnaire
• Telephone Interview
• Personal interviewing
• Online interview

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Marketing Research System

• Step 3 Collect the Information
• Step 4 Analyze the Information
• Step 5 Present the Findings
• Step 6 Make the Decision