SMM Spring 2020 - Updated

Developed by: Imran M.
Qureshi, PhD
1
Created: 2010 Updated: April 2020
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)
Developed by: Imran M. Qureshi, PhD

2
MARKETING OUTLINE
OPERATIONS
MARKETING 4Ps Producer/Deliverer
AS A FIELD
OF STUDY Distributor
Product/ Wholesaler Customer
Service Attitude
Retailer Behavior
Characteristics
Existing Concept Necessity

/Desire
RESEARCH
CONSUMER
Developed by: Imran M. Qureshi, PhD BEHAVIOUR 3
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
4
MARKETING • Developing Marketing Strategies and
MANAGEMENT Plans
TASKS • Capturing Marketing Insights
• Connecting with Customers
• Building Strong Brands
• Shaping the Market Offerings
• Delivering Value
• Communicating Value
• Creating Long-term Growth

5
STRATEGY
FORMULATION • Product Level
LEVELS
• Brand Level
• SBU Level
• Corporate Level

6
STRATEGY
PYRAMID

7
MARKEING
Corporate Strategy
STRATEGY
Marketing Strategy Operations Strategy
Financial Strategy HR Strategy

8
MARKETING • Environmental Analysis
STRATEGY
FORMULATION
STEPS
• Performance Analysis
• Analysis of Capabilities
• Overall Strategy Formulation
• Marketing Strategy

9
ANALYSIS TOOLS
• PEST / PESTEL Analysis
• BCG Matrix
• SWOT Analysis / TOWS Analysis
• Strategy Frameworks
• SCORPTIO Technique

10
Strategy
Development
Process -
Memory

11
ENVIRONMENTAL
ANALYSIS
• Internal Environment
MARKET
INTELLIGENCE • External Environment
Market Scanning

12
Internal
ENVIRONMENTAL
Environment
ANALYSIS
Extended
MARKET External
INTELLIGENCE Environment
Market Scanning
Environment
Types/
Capsules
Immediate
External
Environment Created: 2010 Updated: April 2020 13
ENVIRONMENTAL
• Internal elements of organization
ANALYSIS
• Internal Reports – Sales, Prices,
MARKET Inventories
INTELLIGENCE • Order-to-Payment Cycle
• Sales Force
Market Scanning
• Data Warehouses, Data Mining
Internal

14
• Sales Force to spot and report new
ENVIRONMENTAL development
ANALYSIS
• Distributors, Retailers and other
intermediaries
MARKET
INTELLIGENCE • External Networking – competitor products,
trade shows, competitor reports,
Market Scanning • Advisory Panel
• Government data resources
External
• Information Suppliers – Gartner, AC Nielsen,
Biz360
• Customer feed back

15
ENVIRONMENTAL
ANALYSIS • Political - Legal
• Economic
MARKET
• Technological
INTELLIGENCE
• Social & Cultural
Market Scanning
These factors have an impact on all environments

PEST
Analysis

16
ENVIRONMENTAL
ANALYSIS
MARKET
INTELLIGENCE
Market Scanning
PEST
Analysis

17
ENVIRONMENTAL
ANALYSIS
• Demographic Environment
MARKET • Population growth, Age Mix, Household
INTELLIGENCE patterns
• Economic Environment
Market Scanning
• Geographical shifts in population, Income
redistribution, Credit culture
PEST • Social & Cultural Environment
Analysis

18
ENVIRONMENTAL
ANALYSIS
• Social & Cultural Environment
MARKET • Views of themselves
INTELLIGENCE
• Views of others
Market Scanning • Views of organizations
• Views of society
• Views of nature
PEST
Analysis • Views of the universe

19
ENVIRONMENTAL
ANALYSIS
• Social & Cultural Environment
MARKET - Core Values
INTELLIGENCE
- Secondary Beliefs
Market Scanning
PEST
Analysis

20
ENVIRONMENTAL
ANALYSIS
• Natural Environment
MARKET - Consumption of vital resources
INTELLIGENCE
- Oil, Water, Metals, Nuclear
Market Scanning Materials
- Global Warming, Weather
patterns
PEST
Analysis

21
ENVIRONMENTAL
ANALYSIS • Trend – A direction or sequence of events
that has some momentum and durability
MARKET • Fad – A sequence of events that is
INTELLIGENCE unpredictable, short lived and without social,
political and economic significance
Market Scanning
• Mega trends – large social, economic,
political and technological changes that are
Trends slow to form but influence us for sometime
and
Forecast • Forecast – Projecting identified trends to
develop likely future scenarios

22
Define the problem and
MARKET
MARKETING
research objectives
INTELLIGENCE
RESEARCH
Develop the research plan
Collect the Information
Process Analyze the information
Present the findings
Make the decision

23
MARKET
MARKETING
INTELLIGENCE
RESEARCH
 What is the problem?
 Research objectives?
Step - 1

24
MARKET
MARKETING
INTELLIGENCE
RESEARCH DATA SOURCES
 Primary Data
 Secondary Data
Step – 2
Research Plan

25
RESEARCH APPROACHES
MARKET
MARKETING
INTELLIGENCE
RESEARCH
 Observational Research
 Focus Group Research
 Survey Research
Step – 2
 Behavioral Data
Research Plan
 Experimental Research

26
RESEARCH INSTRUMENTS
MARKET
MARKETING
INTELLIGENCE
RESEARCH
 Questionnaires
 Focus Groups
 Qualitative Measures
Step – 2
Research Plan

27
RESEARCH INSTRUMENTS
MARKET
MARKETING
INTELLIGENCE
RESEARCH
 Qualitative Measures
 Shadowing
 Behaviour mapping
 Consumer journey
 Camera journals
Step – 2
 Extreme user interviews
 Unfocus groups
Research Plan

28
MARKET
MARKETING
 Analyze the Information
INTELLIGENCE
RESEARCH
Advanced Statistical Techniques
 Frequencies
 Crosstabs
 Factor Analysis
Step – 2  Cluster Analysis

 Discriminant Analysis
Research Plan  Regression Analysis

29
MARKET
MARKETING
INTELLIGENCE
RESEARCH
 Present the findings
 Make the decision
Step – 2
Research Plan

30
PERFORMANCE
MARKET  Sales Analysis
ANALYSIS
INTELLIGENCE
 Sales variance analysis
 Micro-sales analysis
 Market Share
 Overall Market Share
Measuring
Marketing  Served Market Share
Productivity
 Relative Market Share

31
PERFORMANCE  Market Share
ANALYSIS
 Served Market Share
 Relative Market Share
Measuring Company’s sales expressed as a percentage of total market sales

Marketing
Productivity
Is all the buyers who are willing and able to buy a company’s
product
A market share that is in comparison with the market leader

32
PERFORMANCE  Market Share
ANALYSIS
Overall Market Share = Customer Penetration

X
Measuring
Marketing Customer Loyalty
Productivity X
Customer Selectivity
X
Price Selectivity

33
PERFORMANCE Customer Penetration % of all customers who buy form
ANALYSIS the company
Purchases made by customers as a

Customer Loyalty % of total purchases made from all
suppliers
Size of the average customer purchase

Customer Selectivity from the company expressed as a % of th
Measuring average customer purchase from an
Marketing average company
Productivity
Average price charged by the
Price Selectivity company as a percentage of the
average price charged by all
companies

34
PERFORMANCE  Sales Analysis
ANALYSIS
 Sales variance analysis
 Micro-sales analysis
 Expense to Sales Analysis
 Financial Analysis
Measuring
Marketing  DuPont Analysis
Productivity

35
PERFORMANCE  Profitability Analysis
ANALYSIS
Measuring
Marketing
Productivity

36
PERFORMANCE
ANALYSIS
Profitability
Analysis
Marketing
Ratios

37
PERFORMANCE
ANALYSIS
Profitability
Analysis
Marketing
Ratios

38
PERFORMANCE
ANALYSIS
Profit Impact of
Market Strategy

39
PERFORMANCE
ANALYSIS
Profit Impact of
Market Strategy

40
Demand  Measures of Market Demand
Measurement and
Forecasting
 Potential Market: Is the set of

consumers who profess a sufficient level
of interest in a market offer. They must
have enough income and have access to
the product offer.

41
Measurement and
Forecasting
 Available Market: Is the set of

consumers who have interest, income,
access and qualifications for the
particular market offer.

42
Measurement and
Forecasting
 Target Market: Is the part of the

qualified market that the company
decides to pursue.

43
Measurement and
Forecasting
 Penetrated Market: The set of

consumers who are buying the
company’s product.

44
Demand  Market Demand
Measurement and
Forecasting
Is the total volume that would be bought

by a defined consumer group, in a
defined geographical area in a defined
time period, in a defined marketing
environment under a defined marketing
program

45
Demand  Estimating Future Demand
Measurement and
Forecasting  Past Data Analysis
 Time-Series analysis
 Exponential Smoothing
 Statistical Demand Analysis
 Econometric Analysis

46
Demand  Estimating Future Demand
Measurement and
Forecasting  Survey of buyer’s intentions
 Composite of sales force opinion
 Expert Opinion
 Market Test Method

47
PERFORMANCE
ANALYSIS
Portfolio Analysis
– BCG Matrix
War Horses Dodos

48
PERFORMANCE
ANALYSIS (Revenue in PKR million)
2017 2018 2019
Huawei 30 45 75
Oppo 26 52 40
Portfolio Analysis
– BCG Matrix
Vivo 22 31 42
Nokia 30 27 21

49
PERFORMANCE  Market Growth
ANALYSIS
MG = [(R2 – R1)/R1]X100
 Relative Market Share

Portfolio Analysis
– BCG Matrix RMS(c) = Revenue of company / Revenue
of Market Leader
RMS(ml) = Revenue of Market Leader /
Revenue of closest competitor

50
2017-2018
100% O
PERFORMANCE
M
ANALYSIS
a
r
50%
k H
e 43.5%
41% V
t
Portfolio Analysis
– BCG Matrix
G
r 0 1.15 0.86 0.78 0.6 0.52
0
-10%
o N
w
t
h
Relative Market Share

2018-2019
PERFORMANCE 67% H
M
ANALYSIS
a
r
k
35.5% V
e 16%
t
Portfolio Analysis
– BCG Matrix
G
r 0 1.78 0.79 0.56 0.53 0.26 0
o
w -22% N
t -23% O
h
Relative Market Share

SALES (In thousands)
PRODUCTS
LAPTOPS 2007 2008 2009

Sony 300 400 410
Toshiba 400 450 470
Dell 425 500 490
PERFORMANCE Acer 600 610 500
ANALYSIS IBM 100 90 75
HARD DISK DRIVES

Seagate 900 1050 2000
Toshiba 800 700 900
Samsung 810 811 900
Portfolio Analysis 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 Developed by: Imran M. Qureshi, PhD 400 1000 1200
53
Phillips Created: 2010 Updated: April 2020 1000 950 1100
ANALYSIS OF
CAPABILITIES
 5 Factor’s of Production
 Porter’s Value Chain
 Porter’s 5 Forces model
SWOT

54
ANALYSIS OF  5 Factor’s of Production
CAPABILITIES
– Natural Resources
– Labour
SWOT
– Capital
– Entrepreneur
– Information

55
ANALYSIS OF
CAPABILITIES
Support Activities
• Finance
• IT
• R&D
SWOT
Porter’s
Value Chain

56
ANALYSIS OF
CAPABILITIES New
Entrants
Industry
Suppliers Competition Customers
SWOT
Porter’s
5 Forces
Model
Substitutes

57
ANALYSIS OF Strengths
CAPABILITIES  Bharti Airtel has more than 65 million customers (July
2008). It is the largest cellular provider in India, and also
supplies broadband and telephone services - as well as many
other telecommunications services to both domestic and
corporate customers.
SWOT  Other stakeholders in Bharti Airtel include Sony-Ericsson,

Nokia - and Sing Tel, with whom they hold a strategic
AirTel alliance. This means that the business has access to
knowledge and technology from other parts of the
telecommunications world.
 The company has covered the entire Indian nation with its
network. This has underpinned its large and rising customer
base.

58
ANALYSIS OF Weaknesses
CAPABILITIES
 SBU technical as well as organizational capabilities are
outsourced.
 As opposed to competitors (Hutshison Essar), Key

Infrastructure (Communication Towers) are not owned by
SWOT AirTel.
AirTel  Lack of any resolve to develop future markets once the

Indian market has become mature.

59
ANALYSIS OF 1 Against whom are we competing?
CAPABILITES
2 What strengths and weaknesses do they

possess?
SWOT 3 What are their objectives?

COMPETITION
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?
60
1 Competition consists only of those companies offering a similar
ANALYSIS OF product or service to the target market, utilizing a similar technology,
CAPABILITES 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.
SWOT 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.
COMPETITION 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,
Levels of cars, planes and motorcycles.
Competition 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 buyersDeveloped
it is a choice between a Harley Davidson motorcycle and a
by: Imran M. Qureshi, PhD
61
major consumer durable
Created: such as
2010 Updated: Aprila2020
conservatory or a boat
ANALYSIS OF
CAPABILITES
SWOT
COMPETITION

62
ANALYSIS OF
CAPABILITES
1. Industry Perspective of Competition
SWOT 2. Market Perspective of Competition
COMPETITION

63
ANALYSIS OF
CAPABILITES
SWOT
COMPETITION
Industry
Perspective
of
Competition

64
ANALYSIS OF
CAPABILITES
SWOT
COMPETITION
Type of
Competition

65
ANALYSIS OF
CAPABILITES
1. Conflict
SWOT
2. Competition
COMPETITION 3. Coexistence
Competitive 4. Cooperation
Responses
5. Collusion

66
ANALYSIS OF
CAPABILITES 1. The relaxed competitor
2. The tiger competitor

SWOT
COMPETITION
3. The selective competitor
4. The unpredictable competitor

Types of
Competitors

67
Financial factors
ANALYSIS OF
➡ Cash flow problems
CAPABILITES
➡ Under funding
➡ Low margins
➡ High-cost operations and/or distribution.
Market and performance-related factors
SWOT ➡ Slow/poor growth
➡ An overdependence on one market
COMPETITION ➡ 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
Identifying
➡ Distribution weaknesses
Competitor
➡ Weak segmentation of the market
Weaknesses
➡ Poor/confused and/or unsustainable positioning
➡ A weak reputation and/or poorly defined image.

68
Product-related factors
ANALYSIS OF
➡ Outdated products and a failure to innovate
CAPABILITES
➡ Product weaknesses
➡ Weak or non-existent selling propositions.
Managerial factors
➡ A short-term orientation
SWOT
➡ The poor management of staff
➡ The failure to focus upon what is important
COMPETITION ➡ 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
Identifying ➡ Competitive arrogance, competitive myopia and competitive
Competitor sclerosis
Weaknesses ➡ Bureaucratic structures
➡ A fiscal year short-term fixation
69
ANALYSIS OF
CAPABILITES
SWOT
COMPETITON
Competitive
Intelligence
System

70
ANALYSIS OF
CAPABILITIES
SWOT
Environmental
Risk

71
ANALYSIS OF
CAPABILITIES
• Positive forecasts from PEST analysis as
opportunities
SWOT
Opportunities -
• Negative forecasts from PEST analysis
Threats as threats

72
STRATEGY
DEVELOPMENT
1. Environmental Analysis - PEST
2. Performance Analysis – BCG
Basic Elements 3. Analysis of Capabilities - SWOT
4. Product Life Cycle (PLC) stage
5. Nature, Level and Stage of

Competition
Developed y: Imran M. Qureshi, PhD

73
STRATEGY
DEVELOPMENT
1. BUILD
2. HOLD
3. HARVEST
BCG based 4. DIVEST

strategies

74
STRATEGY
DEVELOPMENT
TOWS Matrix

75
STRATEGY
DEVELOPMENT
Asset and
Competency
based framework

76
STRATEGY
DEVELOPMENT
GE Matrix

77
STRATEGY
DEVELOPMENT
Shell Matrix

78
STRATEGY
DEVELOPMENT
PORTER’S
STRATEGIES

79
GENERIC
MARKET
STRATEGIES
INTELLIGENCE
PORTER’S
STRATEGIES

80
MARKETING
STRATEGY
POSITION BASED
STRATEGIES

81
MARKETING
STRATEGY
SCORPIO
TECHNIQUE

82
MARKETING
STRATEGY
 Industry or Technology thinking
SCORPIO
TECHNIQUE
 Market or Customer Thinking
Industry or
Market

83
MARKETING
STRATEGY ● It defines your real competition
● It defines your customers ’ needs
SCORPIO ● It defines your potential for growth
TECHNIQUE ● It defines your strategic threats and
opportunities
● It can kill you early if you don’t get it right .
Industry or
Market-
Importance

84
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Customer

85
MARKETING
STRATEGY
 Market Research
SCORPIO  Consumer Insights

TECHNIQUE
Customer

86
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Segmentation
and
Targeting

87
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Positioning
and
Branding

88
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Stages of
STP

89
MARKETING
STRATEGY
 VALS Framework
SCORPIO
TECHNIQUE
Stages of
STP
PSYCHOGRAPHIC
VARIABLES

90
Young & Rubicam, 4Cs (a Cross-Cultural
MARKETING Consumer Characterization) for UK
STRATEGY
1 The constrained
(i) the resigned poor
SCORPIO (ii) the struggling poor.
TECHNIQUE
2 The middle majority
(i) mainstreamers
(ii) aspirers
(iii) succeeders.
Psychographic
3 The innovators
Segmentation (i) transitionals
(ii) reformers.

91
Consumer profiling and shopping habits
Source: The Times, 1 February 1997, p. 17.
MARKETING
STRATEGY
• Habit-bound diehards.
• Self-indulgent shoppers.
SCORPIO
TECHNIQUE
• Struggling idealists.
• Comfortable and contenteds.

Psychographic
Segmentation
•Frenzied copers.
• Mercenaries
92
MARKETING
1. Undifferentiated or mass marketing
STRATEGY
2. Product-variety or differentiated
SCORPIO
TECHNIQUE marketing
Target
Marketing 3. Target or concentrated marketing.
Strategies

93
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Positioning

94
MARKETING 1. Single benefit positioning
STRATEGY
2. Primary and secondary benefit positioning

SCORPIO
TECHNIQUE
3. Double benefit positioning
Positioning
4. Triple benefit positioning.

95
MARKETING
STRATEGY 1 Confused positioning, where buyers are unsure of
what the organization stands for
SCORPIO
TECHNIQUE 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
Positioning
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 theDeveloped
competition.
by: Imran M. Qureshi, PhD
96
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Customer
Retention

97
SCORPIO
TECHNIQUE
Customer
Retention

98
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Organization:
Processes
and Culture

99
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Offerings

100
MARKETING
STRATEGY
SCORPIO
TECHNIQUE
Offerings

101

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Developed by: Imran M.

(American Marketing Association)

Developed by: Imran M. Qureshi, PhD

MARKETING 4Ps Producer/Deliverer

Existing Concept Necessity

Understand the marketplace,

Design a Marketing Strategy

Build Profitable relationships

Capture value from customers

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Marketing Strategy Operations Strategy

Financial Strategy HR Strategy

Developed by: Imran M. Qureshi, PhD

• Overall Strategy Formulation

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

These factors have an impact on all environments

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Collect the Information

Process Analyze the information

Present the findings

Make the decision

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

 Focus Group Research

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Step – 2  Cluster Analysis

Research Plan  Regression Analysis

Developed by: Imran M. Qureshi, PhD

 Make the decision

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Measuring Company’s sales expressed as a percentage of total market sales

A market share that is in comparison with the market leader

Developed by: Imran M. Qureshi, PhD

Overall Market Share = Customer Penetration

Developed by: Imran M. Qureshi, PhD

Purchases made by customers as a

Size of the average customer purchase

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

Developed by: Imran M. Qureshi, PhD

 Potential Market: Is the set of