MGT301

Principles of Marketing

Lecture-8
Summary
of
Lecture-7
 Portfolio Analysis
 Marketing Process
 The Boston Consulting Group’s Growth-
Share Matrix
Stars Question marks
4
20%-
18%- 3
?2 ? 1
?
Market growth rate

16%-
14%-
12%- 5

?
10%-
8%- Cash cow Dogs
6%-
4%-
2%-
8
0 6 7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
 Product/Market Expansion Grid
Current New
products products

Market- Product-
Current penetration development
markets strategy strategy

New Market- (Diversification

markets development
strategy strategy)
Marketing Strategy Planning Process
 Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

Competitors
Current &
Prospective
 Customers
Needs and other
Segmenting
Dimensions

S.
W
Company .
Mission, Objectives, O.
& Resources T.

Competitors
Current &
Prospective

External Market Environment

 Customers
Needs and other
Segmenting
Dimensions

Targeting &
Segmentation
S.
Company W.
Mission, Objectives,
O.
& Resources
T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

Narrowing down to focused strategy with quantitative
and qualitative screening criteria
Customers
Needs and other
Segmenting
Dimensions

Targeting &
Segmentation
S.
Company W.
Mission, Objectives, O.
& Resources T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

Today’s Topics
 Marketing Process

 Analyzing marketing opportunities

 Selecting target markets
 Developing the marketing Mix
 Managing the marketing effort
Demographic- Marketing Technological-
Economic Intermediaries Natural
Environment Environment

ys ng

M lan
ar n
al eti

P
is

ke in
An ark Product

tin g
M

g
Suppliers Place Target Price Publics
Consumers

n
ti o
en ing
M Con

Promotion
ar tr

ta
em et
ke ol

pl rk
tin

Im Ma
g

Political- Social-
Legal Competitors Cultural
Environment Environment
Analyzing marketing opportunities
 Situation Analysis
The Three Cs
•Market Potential
(size, growth rate)

Customers •Customer
Behavior (wants
and needs,
•Industry segmentation,
Structure price sensitivity)
Analysis
(entry/exit
barriers, buyers,
Company
•Economic
sellers,
Analysis (costs,
substitutes)
break-even,
•Competitor profitability)
Response
•Company Fit
Profiles
(capabilities,
Competitors (strengths,
weaknesses,
current and future
resources, culture,
actions)
 changing environment
– opportunities and threats
 changing firm situation
– relative strengths and weaknesses
 Fit - match opportunities with firm’s objectives and resources
(strengths)
 Market Information System
 The Marketing
Information System
Marketing Marketing
managers Marketing Information System environment

Developing information Test

Analysis markets
Assessing Internal Marketing
Planning information Marketing
needs records intelligence
channels
Implemen-
tation Competitors

Control Marketing
decision Marketing Publics
Distributing
information support research
Macro-
analysis environment
forces

Marketing decisions and communication

 Selecting Target Markets
 Firm cannot satisfy everyone
– mass marketing
 Segment total market
– market segmentation
 Target markets
– target marketing
– niche marketing
Developing the Marketing Mix
 Product Price
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to
target market Obtain the product

Target
Customers

Intended
Positioning
Activities that Company activities
persuade target that make the
customers to buy product available
the product
Promotion Place
 Marketing Mix

Product Place
Product Variety
Target Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Packaging List Price
Promotion Transport
Discounts Sales Promotion
Sizes
Allowances Advertising
Services
Payment Period Sales Force
Warranties
Credit Terms Public Relations
Returns
Direct Marketing
The 4 P’s & 4C’s of the Marketing Mix
4 P’s 4 C’s
– Product – Customer Solution
– Customer Cost
– Price – Convenience
– Place – Communication
– Promotion
Managing the marketing effort
 Managing the Marketing Efforts

Marketing Analysis of Company’s Situation

Marketing Control
Planning Marketing Measure
Implementation Results
Develop Strategic
Plans Carry Out Evaluate
The Results
Develop Plans
Take
Marketing Corrective
Plans Action
 Contents of a Marketing Plan

Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing Implementation
Marketing Strategy
Decision
and
Organizational Reward Human
Structure Resources
Action Climate and
Programs Culture

Implementation

Marketing Performance
 Marketing Control Process

Set Measure Evaluate Take

Performance Performance Corrective
Goals
Action
Enough for today. . .
 Summary
Marketing Process

 Analyzing marketing opportunities

 Selecting target markets
 Developing the marketing Mix
 Managing the marketing effort
 Demographic- Technological-
Marketing
Economic Natural
Environment Intermediaries Environment

ys ng

M lan
ar n
al eti

P
is

ke in
An ark Product

tin g
M

g
Suppliers Place Target Price Publics
Consumers

n
ti o
en ing
M Con

Promotion
ar tr

ta
em et
ke ol

pl rk
tin

Im Ma
g

Political- Social-
Legal Competitors Cultural
Environment Environment
 Analyzing marketing opportunities

 changing environment
– opportunities and threats
 changing firm situation
– relative strengths and weaknesses
 Fit - match opportunities with firm’s objectives and resources
(strengths)
 Market Information System
 The Marketing
Information System
Marketing Marketing
managers Marketing Information System environment

Developing information Test

Analysis markets
Assessing Internal Marketing
Planning information Marketing
needs records intelligence
channels
Implemen-
tation Competitors

Control Marketing
decision Marketing Publics
Distributing
information support research
Macro-
analysis environment
forces

Marketing decisions and communication

 Selecting Target Markets

 Firm cannot satisfy everyone

– mass marketing
 Segment total market
– market segmentation
 Target markets
– target marketing
– niche marketing
Developing the Marketing Mix
 Marketing Mix

Product Place
Product Variety
Target Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Packaging List Price
Promotion Transport
Discounts Sales Promotion
Sizes
Allowances Advertising
Services
Payment Period Sales Force
Warranties
Credit Terms Public Relations
Returns
Direct Marketing
Managing the marketing effort
 Contents of a Marketing Plan

Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing Implementation

Marketing Strategy
Decision
and
Organizational Reward Human
Structure Resources
Action Climate and
Programs Culture

Implementation

Marketing Performance
 Marketing Control Process

Set Measure Evaluate Take

Performance Performance Corrective
Goals
Action
 Next….
 Marketing Environment
 MGT301
Principles of Marketing

Lecture-8