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Engr. Ped Salvador, Ph. D. Management Consultant April 15, 2012
• • • • • The implementation process An action checklist Total quality and marketing Managing the organisation/stakeholder interface Activities to establish and build customer relationships • Relationship marketing • McKinsey 7-S framework
The Marketing Implementation Process
Marketing Strategy Tactical Decisions Internal Factors
Implementing the Marketing Mix
Adaptation of strategy/tactics
• Internal problems e.g change of management • External problems e.g. changing competition • Poor planning e.g. Hoover’s flight tickets • Poor intelligence e.g. 1985 Coca-Cola • Poor execution
Implementing a programme an action checklist
• • • • • • • Agree the implementation strategy Agree a timeframe Draw up detailed implementation plans Set up a team of stakeholders Establish good project management Personalise the case for change Ensure participation
• Create a sense of purpose and urgency to tackle real problems which have prevented progress in the past • motivate • be prepared for conflict • Be willing to negotiate • Anticipate stress • Build skills • Build in the capacity for learning • Monitor and evaluate .
• Juran and TQM • zero defects • right first time • continuous improvement • Statistical process control (SPC) • New relationships with suppliers (JIT) • Quality Assurance e.g BS EN ISO 9000 .Total Quality and Marketing • Quality is what customers say it is.
• • • • • External and internal relationships Accountability of managers Marketer projects an image and style Ethical responsibilities towards consumers Social responsibility • • • • dangerous products e.g. cigarettes dishonest marketing and promotion the abuse of power the availability of information Managing the organisation/stakeholder interface .
‘expensive’ in promotional terms Build sales to existing customers Improving service quality Auditing the fulfilment of customer needs Cause a cultural change to a marketing orientation .Marketing Myopia Levitt (1960) .Activities to establish and build customer relationships • • • • • • Need for long term relationships UACCA .
Relationship marketing • The consistent application of up-to-date knowledge of individual customers to product and service design . Customer retention not attraction Long term. ongoing relationships Regular customer contact Spirit of trust . . . Aimed at individual. In order to develop a continuous and long-term relationship’ Cram • • • • • Not mass marketing. .
Mckinsey 7-S framework • • • • • • • Strategy Structure Systems Share values Style Skills Staff .
Marketing Planning .
anticipates and satisfies customer requirements profitably’ The Chartered Institute of Marketing .Definitions of marketing ‘Marketing is the management process that identifies.
‘The right product. at the right time. in the right place. and at the right price’ Adcock et al .
‘Marketing is the human activity directed at satisfying human needs and wants through an exchange process’ Kotler 1980 .
‘Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating. offering and exchanging products of value with others’ Kotler 1991 .
Implications of marketing • Who are our existing / potential customers? • What are their current / future needs? • How can we satisfy these needs? • Can we offer a product/ service that the customer would value? • Can we communicate with our customers? • Can we deliver a competitive product of service? • Why should customers buy from us? .
The marketing concept • choosing and targeting appropriate customers • positioning your offering • interacting with those customers • controlling the marketing effort • continuity of performance .
Successful marketing requires: • Profitable • Offensive (rather than defensive) • Integrated • Strategic (is future orientated) • Effective (gets results) 1972 Hugh Davidson .
Marketing management process • Analysis/Audit .where do we want to be? • Strategies .Getting there! • Control .where are we now? • Objectives .Ensuring arrival .how do we get there? • Implementation .which way is best? • Tactics .
Why is marketing planning necessary? • Systematic futuristic thinking by management • better co-ordination of a company’s efforts • development of performance standards for control • managers have a vivid sense of participation • sharpening of objectives and policies • better prepare for sudden developments .
Criticisms of marketing planning • Formal plans can be quickly overtaken by events • Elements of the plan my be kept secret for no reason • gulf between senior managers and implementing managers • the plan needs a sub-scheme of actions .
Objectives of the Marketing Plan • Acts as a roadmap • assist in management control and monitoring the implementation of strategy • informs new participants in the plan of their role and function • to obtain resources for implementation • to stimulate thinking and make better use of resources .
the plan is worthless! .• Assignment of responsibilities. opportunities and threats • Essential marketing information may have been missing • if implementation is not carefully controlled by managers. tasks and timing • Awareness of problems.
The structure of the marketing plan • • • • • • • • The executive summary table of contents situational analysis and target market marketing objectives marketing strategies marketing tactics schedules and budgets financial data and control .
make sure the sample size is sufficiently large .Cautionary notes for effective planning • Don’t blindly rely on mathematical and statistical calculations. Use your judgement as well • Don’t ever assume that past trends can be exploited into the future forever • if drawing conclusions from statistical data.
padding of requirements.Behavioural planning problems • Planning recalcitrance: resistance and non-cooperation by managers in planning • fear of uncertainty in planning: a lack of comfort in planning activities • political interests in planning activities:resource bargaining. and avoidance of consensus • planning avoidance: compliance rather than commitment to planning .
which way is best? Tactics .how do we ensure arrival? Control .where are we now? Objectives .Standard Planning Framework • • • • • Analysis .where do we want to be? Strategies .are we on the right track? .
Marketing’s Role in Strategic Planning • Process of Selecting Target Consumers – Market Segmentation: determining distinct groups of buyers (segments) with different needs. – Market Targeting: evaluating and selecting which target segments to enter. • Marketing Strategies for Competitive Advantage – – – – Market-Leader Market Challenger Market-Follower Market-Nicher . – Market Positioning: products distinctive and desirable place in the minds of target segments compared to competing products.
The Marketing Process DemographicEconomic Environment Marketing Intermediaries TechnologicalNatural Environment Product Suppliers Place Target Consumers Promotion Price Publics PoliticalLegal Environment Competitors SocialCultural Environment .
Marketing Mix.The Four P’s Product “Goods-and-service” combination that a company offers a target market Price Amount of money that consumers have to pay to obtain the product Target Customers Intended Positioning Activities that persuade target customers to buy the product Company activities that make the product available Promotion Place .
Managing the Marketing Effort Marketing Analysis of Company’s Situation Marketing Planning Marketing Implementation Turn Marketing Plans into Action Plans to Achieve Marketing Objectives Control Measure Results Evaluate Results Take Corrective Action Develop Marketing Strategies to Achieve Marketing Objectives Develop Marketing Plans & Budget .
Elements of a Marketing Plan Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Action Programs Budgets Controls .
Marketing Implementation Marketing Strategy Decision and Reward Organizational Structure Action Programs Human Resources Climate and Culture Implementation Marketing Performance .
Marketing Control Set Marketing Goals Measure Performance Evaluate Performance Take Corrective Action .
Marketing Audits Environment Function Strategy Types of Marketing Audits Systems Productivity Organization .
The Marketing Environment and Competitor Analysis • SWOT analysis • PEST analysis • Five forces analysis .
SWOT analysis • Strengths (internal) • Weaknesses (internal) • Opportunities (external) • Threats (external) .
PEST analysis • Political factors • Economic factors • Socio-cultural factors • Technological factors .
Political/legal • • • • • • • Monopolies legislation Environmental protection laws Taxation policy Employment laws Government policy Legislation Others? .
Economic Factors • • • • • • Inflation Employment Disposable income Business cycles Energy availability and cost Others? .
Sociocultural factors • • • • • • • Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of education Others? .
Technological • • • • • • New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Others? .
Five Forces Analysis Key Questions and Implications • What are the key forces at work in the competitive environment? • Are there underlying forces driving competitive forces? • Will competitive forces change? • What are the strengths and weaknesses of competitors in relation to the competitive forces? • Can competitive strategy influence competitive forces (eg by building barriers to entry or reducing competitive rivalry)? .
p. Free Press. 1980. .Five forces analysis Potential entrants Threat of entrants Suppliers Bargaining power COMPETITIVE RIVALRY Buyers Bargaining power Threat of substitutes Substitutes Source: Adapted from M. Porter. E. 4. Competitive Strategy.
1999.Source: Colliers Jardine citing Mueller. G. Real Estate Rents Growth Rates at Different Points in the Physical Market Cycle.. The General Property Cycle based on Supply & Demand PEAK PEAK OCCUPANCY PERIOD TROUGH TROUGH . Journal of Real Estate Research.R.
Retirement & Vacation City Condo Living Government Infrastructure 05 07 09 8-year cycle until 2011 .PHILIPPINE PROPERTY CYCLE: BOOMS & BUSTS OFW Market Office & BPO Leisure.
* Value Engr. * Master Plumber * Electrical Engr. * Geodetic Engr. * Lawyer * Mechanical Engr. * Structural Engr. * Architect * Landscape Architect * Interior Designer * Marketer BUYER (MARKET) FINANCIERS CONSULTANTS BUYER OFW * Socialized Housing * High-Medium-Low Cost Housing * Timeshare * Community Mortgage Program * Corporate Housing * Cooperative Housing * Retirement Villages * Medical Tourism * Single Professional & Student Condo Sleepers GOVERNMENT CONTRACTOR REAL ESTATE PROFESSIONALS LGU * DAR * DENR * DA * NIA * NWRB * HLURB * LRA * HDMF * HUDCC * NHA * NHMFC * SHFC * PRA * OWWA * HGC * SSS * GSIS DEVELOPERS CREBA * OSHDP * SHDA * NREA * CDP * PCIEE .REAL ESTATE LINKAGES DEVELOPER LAND OWNER Individual * Corporation * Cooperative * Corporative * Family Heirs * Banks (Acquired Assets) * Government FINANCIER Bank * Investor * PagIBIG * Provident Fund * Corporation * OFWs * Insurance Companies * Individuals CONTRACTORS Electrical * Mechanical * Sanitary * Building * Landscape * Supplier * Labor * Civil Works LAND OWNER REAL ESTATE PROFESSIONALS GOVERNMENT Env. * Sanitary Engr. Planner * Broker * Appraiser * Civil Engr.
LAND CERT. OF COMPLETION TARGET MARKET SOURCES OF FUNDS HOMEOWNERS’ ASSOC THE REAL ESTATE PLANNING & DEVELOPMENT CYCLE PLANNING & DESIGN END-USER FINANCING PRESELLING CONSTRUCTION MARKETING .
customer A person or organization who uses the product or services we provide. unknown . Without customer there is no company.
Is every customer equally profitable? .We should know customer……to capture & retain them. . For that customer segmentation is must. If we don’t take of our customers someone else will !! .SO………… How!!! &Why???? . .
We need to be communicating with these customers on a regular basis by telephone. mail. etc. .They represent no more than 20 percent of our customer base. but make up more than 50 percent of our sales. These people are the ones who can and should influence our buying and merchandising decisions . .Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you value it. email.. .Loyal Customer .
. Customer satisfaction will lead to customer expectation. the more you do for them. .. . 1 Satisfied customer will lead to 500 new customers. the more they will recommend you to others.