MARKETING MANAGEMENTDr. Ahmed A Shalaby

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Learning Levels Cognitive Knowledge Application Diagnosis / Trouble-shooting Creating new knowledge / Theory

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Course OutlineI. II. III. IV. V. VI. VII. VIII. IX. X. Introduction From corporate strategy to marketing strategy and plan Creating customer satisfaction and loyalty Buying behavior Competitive analysis and competitive strategy Market segmentation and targeting Market positioning Branding Marketing mix decisions Marketing information system 3

How does marketing create, deliver and communicate

value to target customers? What are the key marketing processes: the marketing

work? What is the role of core competencies in creating

sustainable competitive advantage? What are Mega trends? Are they threats and/or

opportunities? How can we manage them?4

What is Marketing Management?Marketing management is the art and science of: choosing target markets, getting, keeping, and growing customers through Creating, communicating, and delivering superior customer value5

Competitive Advantage Competitive advantage: A company's ability to perform in one or more ways that competitors cannot or will not match. Marketing focuses on advantages relevant to customers.

How to create and sustain it? By fitting a companys core competencies and distinctive capabilities into operational systems for value exploration, creation and delivery in ways that are hard to imitate by competitors.

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The Four Cs Marketing Mix ProductCustomer Solution Place Convenience Price Customer Cost Promotion Communication7

The Role of Marketing in the CompanyProduction MarketingCustomer

The customer is the focal point Marketing is the integrative function

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II- FROM CORPORATE TO MARKETING STRATEGY What is Strategy, Strategic plan, and Operational plan? How are they

related?

What are the levels of strategic management? (Corporate, business unit, functional (e.g. marketing), product or market) What is strategic analysis in marketing? What are the tools? (e.g. portfolio models, Porters five forces model, growth models, SWOT analysis). How can we use them to formulate strategies?

Marketing Plan, Marketing Control

In preparing for battle I have always found that plans are useless but planning is indispensable Dwight Eisenhower Why?9

Market-Oriented Strategic Planning Integrating Intuition & analysisWhen is strategic analysis relevant? Uncertainty Competition Longer term Need for flexibility Major choices

Objectives

Resources

Strategic Fit Core CompetenciesOpportunities

What is the relationship between strategic planning and operational planning?

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Efficiency versus Effectiveness

Strong Strong

Weak

1. Thrive

2. Die slowly

Weak

3. Survive

4.Die quickly11

Porters Generic Strategies for Competitive Advantage Overall cost/efficiency leadership. How? (economies of scale, modify supply chain, lean manufacturing..) Differentiation. How? (Strong branding, in-depth understanding of customers, unique quality)12

Marketing Alliance Strategies

Product or Service Alliances. Promotional Alliances. Logistical Alliances.

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Planning Process

External Audit Vision & Mission SWOT Goals Strategies Operational Planning Feedback & Control

Internal Audit

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Levels of Strategic Planning Corporate Strategic business unit (SBU). * Pros and cons Functional (e.g. Marketing strategies) Product / Market15

Portfolio Models: How healthy is your portfolio of SBUs or Products?THE MODELS HELP TO: DIAGNOSE THE HEALTH OF THE PORTFOLIO GUIDE RESOURCE ALLOCATION (build, hold, harvest or divest) IMPROVE CASH FLOW MANAGEMENT

FOCUS ON TWO DIMENSIONS Market attractiveness (market size, market growth, profitability, competition etc.) Business strength (market share, share of growth, product quality, unit costetc.)

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Portfolio Models: Boston Consulting Group Growth-Share Model20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0

Stars

Question Marks

Market Growth Rate

4 5Cash Cow

2 1Dogs

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High

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1 Relative Market Share