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

?2
4
20%-
? 1
Market growth rate

?
18%- 3
16%-
14%- 5

?
12%-
10%-
8%- Cash cow Dogs
6%-
4%- 8
2%-
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 O.
Mission, Objectives, T.
& Resources

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
tio
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
MarketPotential
Potential
(size,
(size,growth
growthrate)
rate)
Customers ••Customer
Customer
Behavior
Behavior(wants
(wants
and
andneeds,
needs,
••Industry
Industry segmentation,
segmentation,
Structure
Structure price
pricesensitivity)
sensitivity)
Analysis
Analysis
(entry/exit
(entry/exit
barriers,
Company
barriers,buyers,
buyers, ••Economic
sellers, Economic
sellers, Analysis
substitutes) Analysis(costs,
(costs,
substitutes) break-even,
break-even,
••Competitor
Competitor profitability)
profitability)
Response
Response ••Company
CompanyFit Fit
Profiles
Profiles
(capabilities,
Competitors (strengths,
(strengths,
(capabilities, weaknesses,
current weaknesses,
currentand
andfuture
future resources,
actions) resources,culture,
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
Marketing Mix
Mix

Product Place
Product Variety
Target
Target Market
Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Packaging List Price
Promoti Transport
Sizes Discounts
on
Allowances Sales
Services
Promotion
Warranties Payment Period
Advertising
Returns Credit Terms
Sales Force
The 4 P’s & 4C’s of the Marketing
Mix
44 P’s
P’s 44 C’s
C’s
––Product
Product –– Customer
Customer Solution
Solution
––Price –– Customer
Customer Cost
Cost
Price
–– Convenience
Convenience
––Place
Place –– Communication
Communication
––Promotion
Promotion
Managing the marketing effort
 Managing the Marketing
Efforts

Marketing
Marketing Analysis
Analysis of
of Company’s
Company’s Situation
Situation

Marketing
Marketing Control
Planning
Planning Marketing
Marketing Measure
Implementation
Implementation Results
Develop
DevelopStrategic
Strategic
Plans
Plans Carry
CarryOut
Out Evaluate
The Results
The
Develop
Develop Plans
Plans
Marketing Take
Marketing Corrective
Plans
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
Marketing Strategy
Strategy
Decision
Organizational and Human
Structure Reward Resources

Action Climate and

Programs Culture

Implementation

Marketing
Marketing Performance
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
tio
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
Marketing Mix
Mix

Product Place
Product Variety
Target
Target Market
Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Packaging List Price
Promoti Transport
Sizes Discounts
on
Allowances Sales
Services
Promotion
Warranties Payment Period
Advertising
Returns Credit Terms
Sales Force
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
Marketing Strategy
Strategy
Decision
Organizational and Human
Structure Reward Resources

Action Climate and

Programs Culture

Implementation

Marketing
Marketing Performance
Performance
 Marketing Control Process

Set Measure Evaluate Take

Performance Performance Corrective
Goals Action
 Next….
 Marketing Environment
 MGT301
Principles of Marketing
Lecture-8