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EM - Module 4 - Marketing (AU) For Class
EM - Module 4 - Marketing (AU) For Class
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• THE SEGMENT OF THE MARKET FOR WHICH YOU DESIGN YOUR OFFERING IS
KNOWN AS YOUR TARGET MARKET.
• THE STARTING POINT FOR SUCCESSFULLY MARKETING YOUR OFFERING IS TO
MAKE SURE THAT YOU PROVIDE SOMETHING THAT IS APPEALING TO YOUR TARGET
MARKET.
• GROUP IS LARGE ENOUGH TO SUPPORT YOUR BUSINESS.
• YOUR OFFERING HAVE TO APPEAL TO ONE OR MORE SEGMENTS OF THE MARKET
• DO MORE EFFECTIVELY THAN THE OFFERINGS OF COMPETITIVE BUSINESSES.
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• PHILIP KOTLER HAS DEFINED ‘MARKETING MIX’ AS “THE SET OF CONTROLLABLE TACTICAL MARKETING
TOOLS – PRODUCT, PRICE, PLACE AND PROMOTION THAT THE FIRM BLENDS TO PRODUCE THE RESPONSE IT
WANTS IN THE TARGET MARKET” 17
PROMOTION
PLACE
Advertisement,
Channels, Coverage,
Personal Selling, Sales
Location, Inventory,
Promotion (Offers),
Transportation
Public Relation
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• CURRENT MARKETING RESEARCH – DETERMINING WHO THE CUSTOMERS ARE, WHAT THEY WANT AND HOW
THEY BUY
• SALES RESEARCH AND ANALYSIS – PROMOTING AND DISTRIBUTING PRODUCTS ACCORDING TO MARKETING
RESEARCH FINDINGS
• MARKETING INFORMATION SYSTEM – COLLECTING, SCREENING, ANALYZING, STORING, RETRIEVING AND
DISSEMINATING MARKETING INFORMATION ON WHICH TO BASE PLANS, DECISIONS AND ACTIONS
• SALES FORECASTING – HISTORICAL SALES DATA FROM MARKET, COORDINATING PERSONAL JUDGEMENT WITH
RELIABLE MARKET INFORMATION
• EVALUATION – IDENTIFYING AND ASSESSING DEVIATIONS FROM MARKETING PLANS.
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• DO SALESPEOPLE CALL ON THEIR MOST QUALIFIED PROSPECTS ON A PROPER PRIORITY AND TIME-ALLOCATION
BASIS?
• DOES THE SALES FORCE CONTACT DECISION MAKERS?
• ARE TERRITORIES ALIGNED ACCORDING TO SALES POTENTIAL AND SALESPEOPLE’S ABILITIES?
• ARE SALES CALLS COORDINATED WITH OTHER SELLING EFFORTS, SUCH AS TRADE PUBLICATION ADVERTISING,
TRADE SHOWS AND DIRECT MAIL?
• DO SALESPEOPLE ASK THE RIGHT QUESTIONS ON SALES CALLS? DO SALES REPORTS CONTAIN APPROPRIATE
INFORMATION? DOES THE SALES FORCE UNDERSTAND POTENTIAL CUSTOMERS’ NEEDS?
• HOW DOES THE GROWTH OR DECLINE OF A CUSTOMER’S OR A PROSPECT’S BUSINESS AFFECT THE COMPANY’S
OWN SALES?
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A MARKETING INFORMATION SYSTEM COMPILES SALES FORECASTING IS THE PROCESS OF PROJECTING FUTURE
AND ORGANISES DATA RELATING TO COST, SALES THROUGH HISTORICAL SALES FIGURES.
REVENUE AND PROFIT FROM THE CUSTOMER BASE.
5. EVALUATION
THIS INFORMATION CAN BE USEFUL FOR
MONITORING THE STRATEGIES, DECISIONS AND THE FINAL CRITICAL FACTOR IN THE MARKETING PLANNING
PROGRAMS CONCERNED WITH MARKETING. AS PROCESS IS EVALUATION. BECAUSE A NUMBER OF VARIABLES
WITH ALL INFORMATION SYSTEMS DESIGNS, THE CAN AFFECT THE OUTCOME OF MARKETING PLANNING, IT IS
KEY FACTORS IMPORTANT TO EVALUATE PERFORMANCE. MOST IMPORTANTLY,
REPORTS SHOULD BE GENERATED FROM AN ANALYSIS OF
THAT AFFECT THE VALUE OF SUCH A SYSTEM ARE:
CUSTOMER RETENTION OR LOSS AS WELL AS ESTABLISHED
(1) DATA RELIABILITY CUSTOMER PREFERENCES AND REACTIONS.
(2) DATA USEFULNESS THIS ANALYSIS CAN BE MEASURED AGAINST PERFORMANCE IN
(3) REPORTING SYSTEM TIMELINESS SALES VOLUME, GROSS SALES DOLLARS OR MARKET SHARE. IT
(4) DATA RELEVANCE IS ONLY THROUGH THIS TYPE OF EVALUATION THAT FLEXIBILITY
AND ADJUSTMENT CAN BE INCORPORATED INTO MARKETING 30
(5) SYSTEM COST
PLANNING.
ALLIANCE ENTREPRENEURSHIP MANAGEMENT – UNIT 4
KEY CONSIDERATIONS FOR ENTREPRENEURS IN MARKETING PLAN
MARKETING PLANS ARE PART OF A VENTURE’S OVERALL STRATEGIC EFFORT. TO BE EFFECTIVE, THESE
PLANS MUST BE BASED ON THE VENTURE’S SPECIFIC GOALS.
A FIVE-STEP PROGRAM DESIGNED TO HELP ENTREPRENEURS FOLLOW A STRUCTURED APPROACH TO
DEVELOPING A MARKET PLAN.
STEP 1: APPRAISE STRENGTHS AND WEAKNESSES, EMPHASIZING FACTORS THAT WILL CONTRIBUTE TO
THE COMPANY’S COMPETITIVE EDGE. CONSIDER PRODUCT DESIGN, RELIABILITY, DURABILITY,
PRICE/QUALITY RATIOS, PRODUCTION CAPACITIES AND LIMITATIONS, RESOURCES AND NEED FOR
SPECIALIZED EXPERTISE.
STEP 2: DEVELOP MARKETING OBJECTIVES ALONG WITH THE SHORT- AND INTERMEDIATE-RANGE
SALES GOALS NECESSARY TO MEET THOSE OBJECTIVES. NEXT, DEVELOP SPECIFIC SALES PLANS FOR THE
CURRENT FISCAL PERIOD. THESE GOALS SHOULD BE CLEARLY STATED, MEASURABLE AND WITHIN THE
COMPANY’S CAPABILITIES. TO BE REALISTIC, THESE GOALS SHOULD REQUIRE ONLY REASONABLE
EFFORTS AND AFFORDABLE EXPENDITURES.
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STEP 4: DEVELOP MARKETING STRATEGIES. STRATEGIES ARE NEEDED TO ACHIEVE THE COMPANY’S
INTERMEDIATE AND LONG-RANGE SALES GOALS AND LONG-TERM MARKETING OBJECTIVES. THESE
STRATEGIES SHOULD INCLUDE ADVERTISING, SALES PROMOTION CAMPAIGNS, TRADE SHOWS, DIRECT MAIL
AND TELEMARKETING. STRATEGIES ALSO MAY BE NECESSARY FOR INCREASING THE SIZE OF THE SALES FORCE
OR MARKETING NEW PRODUCTS. CONTINGENCY PLANS WILL BE NEEDED IN THE EVENT OF TECHNOLOGICAL
CHANGES, GEOGRAPHIC MARKET SHIFTS OR INFLATION.
STEP 5: DETERMINE A PRICING STRUCTURE. A COMPANY’S PRICING STRUCTURE DICTATES WHICH CUSTOMERS
WILL BE ATTRACTED, AS WELL AS THE TYPE OR QUALITY OF PRODUCTS/SERVICES THAT WILL BE PROVIDED. MANY
BUSINESS OWNERS BELIEVE THE MARKET DICTATES A COMPETITIVE PRICING STRUCTURE. BUT THIS IS NOT ALWAYS THE
CASE – MANY COMPANIES WITH A HIGH PRICE STRUCTURE ARE VERY SUCCESSFUL. REGARDLESS OF THE STRATEGIES,
CUSTOMERS MUST BELIEVE THAT THE PRODUCT’S PRICE IS APPROPRIATE. THE PRICE OF A PRODUCT OR SERVICE,
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THEREFORE, SHOULD NOT BE SET UNTIL MARKETING STRATEGIES HAVE BEEN DEVELOPED.
ALLIANCE
MARKETING RESEARCH QUESTIONS
SALES
1. DO YOU KNOW ALL YOU NEED TO KNOW ABOUT YOUR COMPETITORS’ SALES PERFORMANCE BY TYPE OF
PRODUCT AND TERRITORY?
2. DO YOU KNOW WHICH ACCOUNTS ARE PROFITABLE AND HOW TO RECOGNIZE A POTENTIALLY PROFITABLE ONE?
3. IS YOUR SALES POWER DEPLOYED WHERE IT CAN DO THE MOST GOOD, MAXIMIZING YOUR INVESTMENT IN
SELLING COSTS?
DISTRIBUTION
1. IF YOU ARE CONSIDERING INTRODUCING A NEW PRODUCT OR LINE OF PRODUCTS, DO YOU KNOW ALL YOU
SHOULD ABOUT DISTRIBUTORS’ AND DEALERS’ ATTITUDES TOWARDS IT?
2. ARE YOUR DISTRIBUTORS’ AND DEALERS’ SALESPEOPLE SAYING THE RIGHT THINGS ABOUT YOUR PRODUCTS OR
SERVICES?
3. 3 HAS YOUR DISTRIBUTION PATTERN CHANGED ALONG WITH THE GEOGRAPHIC SHIFTS OF YOUR MARKETS?
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2. DO YOU HAVE AS MUCH INFORMATION AS YOU NEED ON BRAND OR MANUFACTURER LOYALTY AND REPEAT
PURCHASING IN YOUR PRODUCT CATEGORY?
3. CAN YOU NOW PLOT, FROM PERIOD TO PERIOD, YOUR MARKET SHARE OF SALES BY PRODUCTS?
ADVERTISING
1. IS YOUR ADVERTISING REACHING THE RIGHT PEOPLE?
2. DO YOU KNOW HOW EFFECTIVE YOUR ADVERTISING IS IN COMPARISON TO THAT OF YOUR COMPETITORS?
3. IS YOUR BUDGET ALLOCATED APPROPRIATELY FOR GREATER PROFIT – ACCORDING TO PRODUCTS, TERRITORIES
AND MARKET POTENTIALS?
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2. DO YOU HAVE A RELIABLE METHOD FOR TESTING THE EFFECT ON SALES OF NEW OR CHANGED PACKAGING?
3. DO YOU KNOW WHETHER ADDING HIGHER OR LOWER QUALITY LEVELS WOULD MAKE NEW PROFITABLE
MARKETS FOR YOUR PRODUCTS?
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CHOOSE
ASSESS THE ASSESS CHOOSE
BUSINESS IMPLEMENT
MARKET COMPETITION ENTRY OPTION
MODEL
SHORT / LONG
TERM GOAL
DOES PRODUCT
SIZE
FRAGMENTED / IS LOCAL OR SERVICE NEED
CONCENTRATED PARTNER TO BE LOCALISE?
GROWTH
NEEDED?
PEOPLE WITH THE
HOW RESOURCES NEED
DEMAND DRIVE RIGHT SKILLS?
DIFFERENTIATED? ACQUISITION/
MERGER IS BUSINESS
GEOGRAPHY
COST MODEL FLEXIBLE
ADVANTAGES JOINT VENTURE TO HANDLE
REGULATIONS
CHANGE?
STRENGTH OF
RELATIONSHIP 37
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