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Marketing Management 101Professor Enrique Soriano III

Marketing Means Change Change has been constant throughout the history of marketingMarkets are in a constant state of changeTo survive, you have to move with the marketTo do this, you have to change your marketing

Everything ChangesCustomers grow old, develop new tastes, acquire new values, earn different amounts and prioritize new needsNew competitors emerge, laws and regulations change and technology sends out shockwavesThe world and marketing are changingIn short, NOTHING STAYS THE SAME!

Todays winners may be tomorrows losers

Guess what percentage of the worlds 500 most successful (Fortune 500) companies in 1957 still exist today?

33% or one third who were at the top in 1957 still survive today

Success is the temporary suspension offailure

In search of excellence?The book highlighted 46 outstandingly excellent companies How many of these so-called excellent companies of the 80s have survived today?6

Dot.com companies?Jump forward to the turn of the millennium (2000) and 95-98 per cent of the dot coms were forecasted to failYou can see them falling today Its not just new on-line companies but well established major businesses that get left behind by the relentless pace of change and changing markets

The pattern continuesContinual success requires continual monitoring and responses to change often before the change actually occurs

Marketers must keep their antennae outWe must observe change and respond to itWe must look towards long term changes and future market trend that may affect directly and indirectly their marketsTodays marketers must have to be keen observers of change

As Jack Welch ex CEO of General Electric pointed out

If the rate of change inside a company is less than the rate of change outside a company, then the end is in sight

Why are most companies weak in marketing?Consider this recent list of pathetic marketing95% do not design customer experiences to evolve specific emotions85% do not identify customer expectations70% of major Asian companies do not reply to an email inquiry in 4 days70% of Asian companies could not identify customers at risk of defection80% of Asian companies were unable to identify why they lose customers

What is Marketing?There are many different definitions of marketingIt can be defined as a range of activities including advertising, selling, PR, sales promotion, direct mail, pricing, market research and so on,It is a management process responsible for identifying, anticipating and satisfying customer requirements profitably.

What is Marketing?The great thing about marketing is that it takes an hour to learn and a lifetime to masterDrucker, the great management theorist had an equally appealing phrase which said The role of marketing is to make the sales force redundant

What is Marketing?Classic definition of marketing Getting the right products in the right place at the right price at the right level of promotion

What is Marketing?Marketing is about identifying consumer needs, meeting those needs in terms of product development and very effectively communicating to customers that you have met their needs and that includes pricing , that includes the right communication channels, it includes the right messages and the right media for those messages.

What is Marketing?I define Marketing as looking at peoples needs and wants and matching them with certain products that are available now, today and in the future!

Marketing is about A Focus on Benefits

Customers buy products but they want benefits

What people really desire are not products but satisfying experiences

Ray Croc built McDonalds on one simple formula:Quality, Service and Cleanliness

Doing yesterday better

Who Needs Marketing?The key is to approach marketing in a proper, disciplined approach

That stays close to the customer, collects feedback and develops new and improved products for tomorrow

The time is ripe for your organization to adopt marketing excellence!

Who Needs Marketing?Everyone needs marketing

Its not just big corporations that use marketing techniques

Even religious groups and non profit organizations and even our police force employ marketing techniques to a certain degree

What is Marketing?In short

Marketing is common sense applied!

Why bother with researching needs and wants?Customers are at the centre of the marketing concept

Customer needs and wants are not always apparent

They have to be continually researched

Why bother with researching needs and wants?We have basic needs for food, shelter, love and so on

Wants are specific desires some would prefer hamburger, others vegetarian meal, others Indian, Chinese or Mexican

The same person in a different situation, might only want a plain bar of chocolate

Why bother with researching needs and wants?Understanding customers needs and wants is absolutely vital for long term survivalNot everyone can spot a new product opportunity or a relevant market trend that satisfies a customers, often hidden, needsEven the best get it wrong, and misinterpret customer needs and wants

Is Marketing an Artor a science?Can marketing managers predict what will happen when they mix marketing ingredients together?

If they reduce price will sales go upor down?

Or if they increase advertising will sales go up or down?... This week, this month, next year or in the long term what will happen?

Is Marketing an Art or a science?Are human beings conditioned by TV advertising, or by their neighbors or are they totally free Agents

With the advertising intensity of the cellular business, suddenly the SMS craze change the behavior patterns of 30 million Filipinos

Marketing moves beyond the realm of physical responses and into the realm of mental responses such as shifts in awareness, attitudes, intentions to purchase, and so on

Is Marketing an Art or a science?Can marketers buy share of mind i.e. calculate how many advertisements it takes to achieve carefully determined levels of brand awareness

Marketers can predict aggregate numbers of customers who will respond to direct mail shots or TV advertisements

Or is there so much creativity in marketing that many would consider it to be an art form? So it an art, a science or both? Time to think

ESTIMATED MONTHLY INCOME (Source: PSRC/AGB data)

% Pop HHEstimated Monthly IncomeTotal PhilippinesMetro Manila Upper AP 100, 000 +1%6%Upper BP 50, 001 - 99, 999Upper Middle C1P 30, 001 - 50, 0007%14%Middle C2P 15, 001 - 30, 00018%28%Lower DEP 15, 000 - Below74%52%

Is Marketing an Artor a science?Or is there so much creativity in marketing that many would consider it to be an art form? So it an art, a science or both? Time to think

Are markets becoming more competitive?Somewhere out there, as I speak, competitors are Analyzing And Targeting our customers

Are markets becoming more competitive?Markets are becoming more competitive today than ever before

Partly because of global competition and partly because reaction times are quicker and product life cycles are shorter

No market is safe from competition

Competition can attack an organizations sales,Market share or profits anytime

Are markets becoming more competitive?That is why we need to spend time studying

Customers

Competitors

Market Trends

Applying segmentation in your organizationIt is a unique group of customer (or potential customers) who share some common characteristics that make them different from other groups of customers

Some segments have different needs, require different versions of the same product, pay different prices, buy in different places, can be reached by different media

Applying segmentation

Customers and prospective customers can be grouped together or segmented in lots of different ways age, sex, where they live, how they live, what they earn, and so on

Knowing your customer!

Allocate time to know your customers as each segment that is chosen or targeted needs to be treated differently in some way.

Segmenting and selecting the best target segments is called target marketing

This is a vital marketing skill

Knowing your customer!In the 60s, we had mass marketing

In the 70s segmentation became more popular

In the 80s target marketing became so precise that narrower, smaller segments or niche markets emerged

In the 90s one to one grew as technology spread and named individuals where targeted directly through database marketings mail and telesales

Knowing your customer!Marketers today satisfy smaller and smaller segments, right down to individual requirements

Mass Customization

New millennium strategy that will compel many products and services to tailor-made their offerings to thousands and even millions of individual requirement i.e. newspapers, publications and websites

Stay Close to your Customers!It also helps to see the target customers more effectively

It allows the marketer to break up the market, focus on the best segments and find new customers who might otherwise have been lost in the madding crowd

Sloppy targeting not only waste resources but it can also damage an organizations reputation

Stay Close to your Customers!The closer understanding of customer needs helps protect an organizations existing customer base from the inevitable onslaught of competitors and their offerings

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