Marketing Management

Prashan Costa
(MBA (Col-Merit), B.Sc.(Col-Hons), ACMA(UK), CGMA, ACIM(UK), Dip M, CPM(Asia)

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Lesson Outline Lesson Outline
• Introduction to Marketing
• Definitions
• Modern customer/consumer
• Key concepts in Marketing
• Marketing Management Tasks
• Strategic Marketing Audit
1.0 Environmental Analysis

1.1 Macro Environment Analysis : PESTEL

1.2 Micro Environment Analysis : Porter’s Five Forces

2.0 Internal Analysis

•2.1 Resources and Competence Analysis

•2.2 Value Chain Analysis

3.0 Analysis on Culture

•Mckinsey 7s Analysis

4.0 Stakeholder Analysis

•Mendelow’s Matrix

5.0 SWOT Analysis

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What is Marketing?
What is Marketing?

Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value
to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.
Kotler & Keller, 2011

Marketing is the management process responsible for

identifying, anticipating and satisfying customer
requirements profitably.
CIM,UK

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What Is Marketing?
What is Marketing?
• Marketing is the management
process responsible for; • Management Process
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ENVIRONMENT SCANNING &
IDENTIFYING and ANTICIPATING MARKETING INTELLIGENCE

CUSTOMER REQUIREMENTS Consumer behavior | STP

SATISFYING STRATEGIES: 4P/7P

PROFITABLY
MARKETING CONTROLS/FINANCE

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Generation Marketing
Generations

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What can be Marketed?
What Can be Marketed?

• What cannot be marketed?

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Fresh Air Fresh Air???

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What is Marketing Management?
What is Marketing Management?

Marketing management is the art and science of choosing target arkets

and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.

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Marketing Management Tasks Tasks
Marketing Management

• Develop market strategies and

plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Deliver value
• Communicate value
• Create long-term growth

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Marketing & Finance?

BRANDS

Source: Beloved Brands – Graham Robertson (2018)

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 Marketing and Financial Returns

BRANDS

Source: Beloved Brands – Graham Robertson (2018)

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Core Concepts
Core Concepts in Marketing

• Needs, wants, and demands • Marketing channels

• Target markets, positioning, • Supply chain
segmentation
• Competition
• Consumer Buying Behavior
• Marketing environment
• Offerings and brands
• Value and satisfaction • Marketing Mix
• New Product Development • Marketing planning

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Company Orientations
Core Concepts

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Market Orientation
Market Orientation

• Narver and Slater (1990) define “Market orientation as an

organisational culture where beating competition through
the creation of superior customer value is the paramount Narver & Slater Model on Market
objective throughout the business”. The following Orientation
characteristics are introduced as typical behaviors
displayed in a truly market led organisation.

• Collective customer orientation

• Alert to the competitive situation
• A high degree of co-operation between functions
• Emphasis on profit, not turnover
• Expeditious responsiveness to changes

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Holistic Marketing Holistic Marketing

Kotler & Keller

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Marketing Planning Process

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Environmental Analysis

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Environmental Analysis
Environmental Analysis

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EnvironmentalEnvironmental
Analysis Analysis

Global Regional National Industry Segment

MCO + PCMO remains the Faster

Growing Segment
Low Mid High

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VUCA VUCA

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GLOBAL MEGA TRENDS
Global Mega Trends

• Demographic shifts: migration of global spending

power to emerging economies
• Shifts in economic power: investments in
emerging economies and volatile and rapidly
changing conditions
• Accelerated urbanization: more than half of the
world’s population live in urban areas and almost
all of the new growth will take place in lesser
known medium-sized cities of developing
countries.
• Climate change and resource scarcity: increased
population, urbanization and prosperity will
increase the demand for energy, food and water
supplies.
• Technological breakthroughs: digital revolution has
no boundaries or borders and changing behavior
and expectations as much as the tools to deliver
new services and experiences.

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- South Asia

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Sri Lanka 2019 Q2 - Nielsen

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 Embracing Change in Modern Retailing

https://www.stingconsultants.com/articles/race-king-retail/ 31
 Growing 2 Wheeler
Segment Population

(7.65%CAGR 5Yrs)

Growing vehicle Population

MCO + PCMO remains the Faster Growing

Segment
~ 7.6 Million
Growing Scooters
Automotive
(8.3% CAGR 5Yrs) Low Mid High

Motorcycles
Spilt 30%

Dual Purpose Tractors

Vehicle Lorry 6% Scooters
4% 7% 70%
Buses/Motor
Coaches
1%

Three Wheelers
15%
Dedicated Scooter Oil
Motor Cycles
56%

Motor Cars
11%

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Strategic Drift

Johnson, G. and Scholes, K. (1999). Exploring corporate

strategy. London: Prentice Hall Europe.

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Strategic Marketing Audit

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External Analysis
Macro – PESTEL Internal Analysis
Micro – 5 Forces Stakeholder Analysis
Global Market Strengths/Weakness
Analysis

Strategies

STP 36
Strategic Marketing
Strategic Audit
Marketing Audit

1.0 Environmental Analysis

1.1 Macro Environment Analysis : PESTEL

1.2 Micro Environment Analysis : Porter’s Five Forces

2.0 Internal Analysis

• 2.1 Resources and Competence Analysis

• 2.2 Value Chain Analysis

3.0 Analysis on Culture

• Mckinsey 7s Analysis

4.0 Stakeholder Analysis

• Mendelow’s Matrix

5.0 SWOT Analysis

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 1.0 External
1. External Environment
Environment

Analysis Tool

1.1 Macro
• Define scope of Business
• PESTEL

1.2 Mircro
A. Porter’s 5 Forces
B. Competitor analysis
B1. Market Share
B2. Financial
performance
B3. Piercy Model

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Steps in Scanning Macro MACRO
Steps in Scanning Environment
Enviroment
1. Definition and scope of business
2. Establishing MACRO drivers
3. How does each driver impact business?
4. Opportunity (reward) or threat (risk) impact?
5. High, medium or low impact?
6. Scenario Planning

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i. Definition and scope of business
• The first challenge is to carefully define the boundary of your business in the present
context. It is useful to make this a collective effort and meet minds on this within the
organisation. Kotler and Armstrong (2008) suggest that organizations continually
need to ask them-selves what business are we in and what are we in business for?
Let us examine a few examples;
• Example 1. American Express Credit cards
• Banking & finance business - Broad scope, many competitors
• Payments business - Cash, traveller’s cheques, debit credit cards, electronic fund transfers,
Mobile payments form competitors
• Plastic Payment cards business - Narrow scope, credit, debit, prepaid and gift cards as
competitors.
• Credit card business - Fewer number of competitors and narrowly defined.
• If American Express in Sri Lanka defines it self to be in the business of payments, as
opposed to the credit cards business, it widens its scope and may be mindful of
other substitutes such as cash transactions, which has a large share than any other
direct credit card issuer. Therefore by widening the scope of the business, the
marketer may redefine the businesses competitive landscape.

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ii. Establishing MACRO drivers

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 Macro Analysis – PESTEL
Analysis
Macro Drivers Impact Importance
Environment (Opportunity/Threat) (L/M/H)

Factor
Political 1.
2.
3.
Economical
Social
Technological
Ecological
Legal

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vi. Scenario Planning

• Scenario planning is all about identifying a diverse range of

potential futures the senior management team can undertake.
A simple approach involves the following four steps:
• Identify the critical variables
• Develop a possible string of events
• Refine the scenarios
• Identify the issues arising-those scenarios which survive need to be
reviewed. Have any critical events or outcomes been identified, would
they have a major impact on the organisation?

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External Environment

Analysis Tool

• Macro
• PESTEL

• Mircro
• Porter’s 5 Forces

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1.2 Micro Industry Analysis

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 1.2Micro Industry Analysis
Porter’s Five Force Theory Analysis Tool
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Porter’s 5 Forces illustration

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1.2 Micro Industry Analysis
B. Competitor Analysis

B1. Market Share Analysis

B2 Competitor financial performance analysis
B2. Piercy’s competitor capability analysis

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B1. Market Share Analysis

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B2. Competitor Financial performance analysis

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B3. Piercy’s competitor capability analysis

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External Environment Analysis

Analysis Tool

• Macro
• PESTEL

• Mircro
• Porter’s 5 Forces
• Competitor
Analysis
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2.0 Internal
2.0 Internal Analysis
Environment Analysis
 2.0 Internal
2.0 Internal Analysis
Environment Analysis
• There are internal influences as well as outside influences on the firm
and its choice of strategies. One of the ways of thinking about the
strategic capability of an organisation is to consider its strengths and
weaknesses (what it is good or not so good at doing, or where it is at a
competitive advantage or disadvantage, for example).
• Considering the resource areas of a business such as its physical plant,
its management, its financial structure and its products may identify
these strengths and weaknesses.
• Again, the aim is to form a view of the internal influences and
constraints on strategic choice. The expectations of
different stakeholders are important because they will affect what will
be seen as acceptable in terms of the strategies advanced by
management.
• However,the beliefs and assumptions that make up the culture of an
organisation, though less explicit, will also have an important influence.

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 Internal
2.0 Internal AnalysisAnalysis
Environment

Competing in a business involves performing a

set of discrete activities through the utilization
of resources in which competitive advantage
resides.

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 Internal
2.0 Internal AnalysisAnalysis
Environment

Analysis Tool

• In order to identify them you can carry the following

analysis;
• Resources and Competency Analysis

• Value Chain Analysis

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 Resources
2.0 Internal & Competency
Environment Analysis
Analysis – Resources & Competence

Analysis Tool

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Threshold vs UNIQUE

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 Competitive Advantage
Creating Competitive Advantage

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McKinsey 7s Model
McKinsey 7s Model

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McKinsey 7s Model

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Cultural Analysis Cultural Analysis

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Understanding an organisations culture
through the cultural web
• Stacey (2003) defines organisational culture as a
set of beliefs, customs, practices and ways of
thinking that they have come to share with each
other through being and working together.
According to Aaker (2009) organisational culture
involves (a) A set of shared values of dominant
beliefs that definean organisation’s priorities (b) A
set of norms of behavior, and (c) Symbols and
symbolic activities used to develop and nurture
those shared values and norms. Johnson et al
(2011), provides a helpful framework, or a
paradigm, with which a person may understand
the underlying assumptions that govern
organisational behavior.

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Cultural Web

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Blake and Mouton leadership Grid

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Stakeholder Analysis
Stakeholder Analysis
Mendelow’s Matrix

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SWOT Analysis

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SWOT Analysis

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The 6 Step SWOT Analysis
Step 1 (Analysis)
• List the businesses/ strategic business units strengths and weaknesses that are internal to the organisation
and opportunities and threats, which are external to the organization

Step 2 (Converting)
• Take each weakness and discuss plans as to how that can be converted to a strength.

Step 3 (Matching)
• All strengths must be matched with corresponding opportunities

Step 4 (Generating Key Issues)

• Key issues are the basis of a good Strategic plan and these are the critical issues a company must address
or overcome.

Step 5 (Strategic Strengths versus Critical success factors) -

• list the critical success factors of the industry

Step 6 (Leverage, Overcome, Exploit and Mitigate)

• The final step is to go though each item in the SWOT and brainstorm as to how all strengths can be
leveraged, overcome weaknesses, exploit opportunities and mitigate threats.

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Strategic Marketing AUdit
Strategic Marketing Audit

Analysis Tool

• Macro
• PESTEL
S
• Mircro
• Porter’s 5 Forces W
• Competitor Analysis
• Internal Analysis O
• Resources &
Competences T
• Culture
• Stakeholders
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 Contemporary Thoughts
Contemporary in Marketing
Thoughts in Marketing
• Neuromarketing
DI
GI
• Sensory Marketing TI
LIZ
AT
• The GlOCAL Offering
IO
N
• Mod-Tradi Consumerism in Sri Lanka
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Global Sri Lankan Brands
Sri Lankan Brands going GLOBAL

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 Thank You!!!
• Lets meet up next week with Strategies in Marketing!!!

STP, Consumer Buying Behavior, Marketing Mix(4Ps), Brands,

New Product Development,

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