Presentation

What is Marketing?
● It's a management process responsible for identifying, anticipating and satisfying
customer requirements profitably.
● The process of planning and undertaking the conception, pricing, promotion and
distribution of goods and services to create and maintain relationships that will satisfy
individual and organizational objectives.
Related Management Functions
● Market research ● Advertising ● Packaging
● Product design ● Distribution
● Pricing ● Customer service
Relationship with other business functions
● Human resources
○ Right quantity and quality of staff to meet the marketing objectives.
○ Sales forecasts need to be aligned by the marketing department.
○ Decline of sales: staff members may become redundant.
● Finance and accounts
○ Budget constrained.
○ Close communication with finance is essential.
○ The product design determines the cost of raw materials and direct costs
associated with production.
○ Highly competitive and expensive practice that will not always yield the desired
results.
● Operations Management
○ Two-way channel.
○ Marketing research focuses on R&D.
○ Marketing will design campaigns.
○ Sales forecasts are used to ensure sufficient product capacity.
The Market
● A place where buyers and sellers come together
○ Amazon
○ Local market
○ Walmart
○ Stock market
● A location
○ Mexican market
○ Asian market
○ Global market
○ Satélite market
● A type of product
○ Difference by product type
○ It varies depending on its own definition
○ Clothing market vs luxury clothing market
○ Non-alcoholic drinks vs energy drinks
Market analysis
● Once you choose your market you have to analize:
○ Does it have many potential customers?
○ Is the competition weak?
○ Analytical tools like
■ Product Life Cycle
■ BCG matrix
■ STEEPLE Analysis
■ SWOT Analysis
■ Ansoff Matrix
The Product Life Cycle
● Research and Development (R&D)
● Introduction
● Growth
● Maturity
● Decline
The Boston Consulting Group Matrix
(BCG Matrix)
● Growth Share Matrix
● Each four quadrants represent
market share and growth.
● Low Growth, High Share.
Companies should milk these
“cash cows” for cash to reinvest.
● High Growth, High Share. Companies should
significantly invest in these “stars” as they have high
future potential.
● High Growth, Low Share. Companies should invest in or
discard these “question marks,” depending on their
chances of becoming stars.
● Low Share, Low Growth. Companies should liquidate,
divest, or reposition these “pets.”
Market: Size, Growth and Share
● Market size: total level of sales of all producers within a market.
○ Measured by revenue or by volume of sales.
○ It is used to assess if a market is worthy to enter.
○ It is used to calculate each company’s market share.
○ Growth or decline of the market can be identified.
● Market growth: the percentage change in the total size of a market (volume or value) over
a period of time.
○ How fast the total demand for a product is expanding or contracting within a year.
○ Fast growing markets can have more competitors.
○ Factors:
■ Economic growth
■ Changes in consumer incomes
■ Development of new markets
■ Changes in consumer tastes
■ Technological change
■ Market saturation

● Market share: percentage of sales in the total market sold by one business controlled by a
particular product.
○ An increase is the most effective way to measure the relative success of one
business’s marketing strategy against that of its competitors.
○ The Market was to be well defined and a specific time period must be chosen.
○ The product with the highest market share is called the ‘brand leader’.
Aspects to consider
● Market share may vary depending if it's measured in volume or value terms.
● The manufacturer could use the measure that reflects best on its own position.
● A firm’s market share can fall even though its sales are rising.
● If the total market sales are increasing at a faster rate than one firm’s sales, the market
share will fall.
Practice
1) Imagine that a restaurant in a small town has nightly sales of $200. If total restaurant
sales in the town are $1,000, calculate its market share.
firm' s sales
Market Share %= (100)
total market sales
200
Market Share %= (100)
1000
Market Share %=20 %
2) If the same town as above has 52 restaurant guests on one evening, and one restaurant
hosts 14 guests, what is the market share?
firm' s sales
Market Share %= (100)
total market sales
14
Market Share %= (100)
52
Market Share %=26.9 %
3) In a local market, there are three vendors selling fruit and vegetables. One day, they sell
$3,000 of food between them. The largest vendor has sales of $2,000. What is his market
share?
firm' s sales
Market Share %= (100)
total market sales
2000
Market Share %= (100)
3000
Market Share %=66.7 %
Market Leadership Benefits
● Ease of access to channels of distribution: retailers prefer to stock and promote brand
leaders. Smaller retailers may only stock the leading brand of each product line.
 ● Brand leader products can be sold with lower discount rates than smaller competing
brands.
● Brand recognition: Using the leadership in advertising and other promotional material.
Consumers usually prefer the most popular brands. People use successful brand names to
refer to an entire product category: Kleenex, Diurex, Tampax, Pan Bimbo, etx.
● Economies of scale: Higher sales can allow brand leaders to bulk buy resources or stock,
invest in large pieces of capital equipment and large advertising costs.
● Price leadership: The price they set is likely to be seen as the “right” price for the product
category.
Marketing Mix
● There are some small differences between the marketing of goods and services:
● Goods are tangible, therefore the packaging is important.
○ Price
○ Place
○ Product
○ Promotion
● Services are intangible so the quality of the experience
must match the price.
Services Marketing Mix
● A service is an intangible action that consumers buy, as opposed to a physical good, such
as a stay at a hotel or legal services.
○ Intangible services: No physical dimension
○ Consumed immediately: They can’t be repaired or replaced
● Marketing Mix
○ Price ○ Physical ○ Promotion
○ Product Evidence ○ Process
○ People ○ Place
Market Orientation vs Product Orientation
● Market Orientation: an outward-looking approach basing product decisions on consumer
demand, as established by market research.
● Product Orientation: an inward-looking approach that focuses on making products that
can be made – or have been made for a long time – and then trying to sell them.
● Asset-led marketing: an approach to marketing that bases strategy on the firm's existing
strengths and assets instead of purely on what the customer wants.
Market Orientation
● Market oriented or market led.
● Requires market research and market analysis.
● Customer centric.
● New products are more likely to be accepted.
● Competitors can adapt too to market needs therefore it is complicated to develop a USP.
● If research is wrong, products can be rejected.
● If consumer needs are met, products are likely to survive longer and make higher profits
than those that are being sold following a product-led approach.
● Examples: Amazon, Coke, Instagram, Netflix, etc.
Product Orientation
● R&D ir prioritized over market research.
● Inward facing: focused on efficiently producing high-quality goods.
● Invent and develop products in the belief that they will find consumers to purchase them.
● They trust their engineers and designers for the success of the products.
● Innovative products are quickly patented, gaining a USP.
● No guarantee of the final product's success.
● The days of traditional product-oriented businesses are disappearing except for
pharmaceutical and electronic industries.
● Examples: Dyson, Toyota, Gillette, Apple, Pharmaceuticals, etc.

Asset-led marketing
● Based on Market Research but does not aim to satisfy all customers.
● Does not aim to adapt to all trends, adapt to what suits you.
● It is based on the core competencies of the company.
○ People
○ Assets
○ Brand image
● Examples: Levis and BMW
Social marketing
● Considers not only the demands of consumers but also the effects on all members of the
public (‘society’) involved in some way when firms meet these demands.
● Mainly focuses on these areas:
○ Protecting the environment.
○ Promoting public health.
○ Reducing antisocial behavior.
○ Raising awareness of an individual issue.
○ Public vaccinations.
○ Smoking, alcohol and drug misuse.
● Short-term consumer wants ≠ long-term consumer and society
welfare.
● Social marketing considers long-term welfare.
Considerations
● Businesses should still aim to identify consumer needs and wants while enhancing
welfare.
● Socially responsible companies are often preferred by customers.
● Good Social Marketing strategies can generate USP → charge higher prices.
Comercial vs Social
*Social marketing is a profitable business too.
Non-profit-making organizations
● A very big amount of charities fail to monitor and measure their marketing activities.
● Charities have very clear fund-raising objectives.
● Money has to be raised cost efficiently.
● Market Research.
● The best ways to communicate effectively with donors: newsletters, Tv spots, etc.
● Need to assess effectiveness of the campaigns.
● Important to maintain high ethical standards.
● Feedback on marketing campaign's success.
● Free publicity.
Marketing objectives
● An objective is a goal that is set for part or the whole of the business. Objectives can be
corporate, divisional or departmental.
○ Specific
○ Measurable
○ Attainable
○ Realistic/ Relevant
○ Time focused
● Tip: When evaluating the importance of marketing objectives, it is useful to consider
their flexibility. Long-term objectives may set goals that take a number of years to
achieve. During that time things can change.
Examples

Marketing evolves
● Changing customer
preferences
● Innovation
● Cultural Differences
● Fair Work Conditions
● Ethical treatment of
suppliers
● Green Products