Marketing management

By
Dr. Raafat Youssef Shehata
 Magic formula

 Concept
 Application

 Evaluation
 Table of contents

 Introduction about marketing

 Components of marketing plan

 STP

 Product mix

 Pricing

 Distribution

 Promotional mix

 Budgeting
 Marketing

Marketing is defined to be the process

responsible for anticipation, identification ,
and satisfaction of customer needs through
a profit
Marketing is not
………………………
Offline marketing Online marketing

360 campaign
 Creativity

Common sense
 What is the relation between these 3 terms

Love mark Brand Product

 Marketing manager

 He is the bridge between the company and the

customers
 His functions are (APIC)
Analysis
Planning
Implementation
Control
 Brand management / bad
example
 Coca-Cola Battered by a nationwide series of taste-test challenges
from the
sweeter-tasting Pepsi-Cola, Coca-Cola decided in 1985 to replace its old
formula with a sweeter variation, dubbed New Coke. Coca-Cola spent
$4 million on market research.
 Blind taste tests showed that Coke drinkers preferred the new,
sweeter formula, but the launch of New Coke provoked a national
uproar.
 Market researchers had measured the taste but failed to measure the
emotional attachment consumers had to Coca-Cola. There were
angry letters, formal protests, and even lawsuit threats to force the
retention of “The Real Thing.”
 Ten weeks later, the company withdrew New Coke and reintroduced
its century-old formula as “Classic Coke,” a move that ironically might
have given the old formula even stronger status in the marketplace.
Marketing Management
Philosophies
Production
ProductionConcept
Concept

Product
ProductConcept
Concept
Selling
Selling Concept
Concept
Marketing
MarketingConcept
Concept

Societal
Societal Marketing
MarketingConcept
Concept
Examples marketing orientation
Sanofi-Aventis/ Afara
Faragalla and faragello
 Socio-cultural environment

During the 1994 soccer world cup both McDonald’s and

Coca-Cola made a mistake of reprinting the Saudi Arabian
flag (which includes sacred words from the Koran ) on
disposable packaging used in promotions
 Cultural
environment
-In 1970 P&G introduced Pampers diapers in
Japan
-Although successful in USA this product did
not sell well in Japan because P&G
neglected some important cultural
differences between American and
Japanese parents
-The Japanese mom changes her baby’s
diaper about 14 times a day twice as often
as her American counterpart
-Pampers were too expensive for a
Japanese mother to use so many
 Humor in Translations ---

Named in honor of GM’s famed fiasco in trying to market

the Chevrolet Nova in Central and South America

In Spanish, No Va, or Nova, simply means No Go -- or

this car won’t go!
Changing the slogan from Ana
Ahbo to Ana Bahebo
 The 4 P’s & 4 C’s of the
Marketing Mix

 4 P’s  4 C’s
 Product  Customer Solution
 Price  Customer Cost
 Place  Convenience
 Promotion  Communication
Planning and budgeting
 The contents and structure
of the marketing plan
 The executive summary
 Situational analysis and target market
 Marketing objectives
 Marketing strategies
 Marketing tactics
 Marketing mix
 STP
 Schedules and budgets
 Implementation
 Control
 Situational analysis

 SWOT analysis
 PESTEL analysis

 Market analysis
 SWOT analysis

Strengths (internal)
Weaknesses (internal)

Opportunities (external)

Threats (external)
 PESTEL analysis
 Political factors
 Economic factors
 Socio-cultural factors
 Technological factors
 Ecological
 Legal
 Market analysis

 Market size
 Growth rate

 Market trends
 Objectives

Objective should be SMART

S Specific

M Measurable

A Achievable

R Realistic

T Time related
 Strategies

Competitive strategies (Porter )

Growth strategies (Ansoff)

 Product/Market Expansion
Grid
Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

2. Market
New 4. Diversification
Development
Markets
 Market Penetration

 making more sales to current customers without

changing its products.
 How? Add new stores in current market areas,
improvements in advertising, prices, etc.
 Market Development

 identify and develop new markets for its current

products.
 How? Review new demographic (senior
consumers) or geographic (Asian, European &
Australian) markets.
 Product Development

 offering modified or new products to current

markets.
 How? Increasing food offerings, extend to
Frappuccino drinks.
 Diversification

 start up or buy businesses outside current

products and markets.
 How? Currently testing two new restaurant
concepts – Cafe Starbucks and Circadia, or
branded casual clothing.
 Porter’s Generic Strategies

Michael Porter has proposed three generic

strategies that provide a good starting point for
strategic thinking:
• Overall cost leadership (WalMart)
• Differentiation (Sainsbury)
• Focus.
 The marketing budget

 How much the company intend to spend

Methods:
1. Task method

2. Percentage of sales

3. Competitive parity

4. All you can afford

5. Same as Last Time (S.A.L.T.)

 S.T.P

Market segmentation
Market Targeting
Market Positioning
Segmentation Variables
Dove Targets Women
Le Carnival and Tespas
Aker Saa versus Cortigino
 Segmentation by Age

Levi Strauss has been

successful in developing the
idea that it is a “brand for life”
by introducing products such
as Dockers to meet the needs
of consumers as they age
 Lifestyle segmentation

The Jeep Cherokee is aimed at

lifestyle segment that favors an
outdoor ,adventure-some ,fun-
seeking style of life
 Positioning

How the customers are perceiving the

product versus other products in the
market
 Domino’s positioning

 A goodhot pizza, delivered to your door within

30 minutes of ordering, at a moderate price
 Positioning criteria

1. Benefits
2. Specific product features e.g. speed
3. User category
4. Against another products
5. Occasion
6. Hybrid basis
To children age range from 5-16 years and to adults’
age range from 24-40 we present Safeguard soap
which will provide a 24hrs. Germ protection as it is
the number one antiseptic soap having the highest
quality. The only antibacterial soap approved by the
FDA.
Positioning by occasion

Nestle Kamananna
Personnel Differentiation:
Singapore Airlines
 Perceptual Map for Pain
Relievers

Perceptual
maps show
marketers how
closely
products are
conceptually
positioned by
consumers to
“ideal points,”
to their own
products, and
to
competitors’
products.
 Perceptual Mapping
Brands of Soap
High Moisturizing

Zest
Tone 6
3 Safeguard
2
Dove
4
Coast
Lux 5
7
Non-deodorant High Deodorant

1
Dial

Lava
8 Lifebuoy

Low Moisturizing
 Perception Towards
Different Brands…1
Cairo & Alex
For me

Value for Premium

Money

Th e hig h e r th e so c ia l c lass t he mo r e sk e we d

to wa rd s t h e in te rn a tion a l bra n d s an d J a m m ix e s

th a t is o n ly p r od u c ed a n d so ld b y th e m.

Not for me

55
 Perception Towards
Different Brands…2
Delta
For me

Premium
VFM
Ou r ta rg e t g rou p a re awa re o f d iff e re n t bra n d s

an d th ey h a ve tried d iff e re n t bra n d s as we ll.

Sin ce th e re was f e w b ra n d s in th e ma rk e t in th e

pa st, a s ou r ta rg e t g ro u p u se d t o c o n sum e the

VFM a n d Vitr ac u nt il f ew o f t h em swit c he d to

Rash id i Mizan

Not for me

56
 Perception Towards
Different Brands…3
Upper Egypt
For me

VFM Premium

Ou r ta rg e t g rou p a re awa re o f d iff e re n t bra n d s

an d th ey h a ve tried d iff e re n t bra n d s as we ll.

Sin ce th e re was f e w b ra n d s in th e ma rk e t in th e

pa st, a s ou r ta rg e t g ro u p u se d t o c o n sum e the

VFM a n d Vitr ac u nt il f ew o f t h em swit c he d to

Rash id i E l Mizan

Not for me

57
 Repositioning

Reasons:
1-The current position may become very competitive

2-Change in customer needs

 Repositioning

Marlboro cigarettes was positioned as a women’s

cigarette when it was first introduced –
complete with a red-tipped filter to hide lipstick
stain
The brand really took off, however, when
Marlboro adjusted its image as a male product
complete with the “macho” Marlboro cowboy
Repositioning/ Zest
Brand ladder
Products and services
 What is a Product?
 A PRODUCT is anything that can be offered to a market
for attention, acquisition, use, or consumption and that
might satisfy a want or need.
 Includes:
 Physical Objects
 Services
 Events
 Persons
 Places
 Organizations
 Ideas
 Combinations of the above
 Product Classifications:
Consumer
Convenience Products
 Buy frequently & immediately
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers
Specialty Products
 Special purchase efforts
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e Lamborghini, Rolex
Shopping Products
 Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, cars, appliances
Unsought Products
 New innovations
 Products consumers don’t
want to think about
 Require much advertising &
personal selling
i.e Life insurance, blood donation
 Product portfolio
(product assortment or
product mix)

 A company product portfolio is all the product

lines and items that the company offers for sale
 Portfolio aspects:
-Width “breadth”
-Length
-Depth
P&G’s Product Width and
Depth
 Product Life Cycle

Sales and
Profits ($) Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)

Sales and Profits Over the Product’s Life From Inception to

Demise
 Branding

A brand is a name , a term , a symbol or any other

unique element of a product that identifies the
product from its competitors
Brand versus commodity
Characteristics
Characteristics of
of aa Good
Good Brand
Brand Name
Name

• Short and simple

A • Suggestive of product benefits
A Good
Good • Legally available
Brand
Brand Name
Name • Timeless rather than timely
Is...
Is... • No negative imagery
• Easy to spell, read, and pronounce
• Adaptable for international markets
• Adaptable to packaging/labeling
needs
• Adaptable to any advertising
medium
 Dove brand persona

The brand is considered as a feminine , honest, sincere and real

brand and also rated as young brand with unique qualities,
energy, freshness and high spirits
 Brand Persona

 A young lady; early 20s

 She is an elite lady with elegant
 A middle age man; late 30s early 40s.
appearance.
 He is a successful business many who
 She usually wears dresses that
can reach his clients easily.
shows her beauty
 He adds new sector to his business in a
 She is wealthy and has a lots of
successful way
possess
 He is very sociable and people loves him
 Her name is very popular and all
people knows her

75
 Brands as Celebrities-Vitrac

Although
People see
she is old
her a symbol
but very
of
elegant
indulgence

All p e o p le lo ve She is well-

h e r a lth o u g h

sh e d isa p pe a re d
known and

lo ng a g o very

beautiful

76
 Brands as Celebrities-Rashidi
El Mizan
He can reach
All p e o p le se e

h im in mo vies all SECs as

a n d TV se rie s;
Rashidi El
ve ry po p u la r.

Mizan

Products

Old ac to r b u t He is p ro du c in g

well kn o wn a nd Mo vies t ha t re a c he s

fits a ll ro le s lo wer S EC a s Rashid i

Ha la wa Bar

77
 Brand Essence

Brand Essence is the heart and soul of

a brand – a brand's fundamental nature or
quality. Usually stated in two to three words,
a brand's essence is the one constant across
product categories and throughout the world
Brand essence examples
 Axe

Masculine attractiveness
 Nestle

Love and nutrition

 Kodak

Family preservation
 Four Brand Strategies
Product Category
Existing New

Brand Extension
Existing Line Extension
Barbie Electronics
Dannon Yogurt Flavors
Brand Name

Honda

Multibrands New Brands

New Seiko Lasalle & Pulsar S.C Jhonson:
Arial & Tide Pledge –Glade –Raid
 Family branding
Using the power of the brand name to assist all
products in a range

Example:
Heinz Mustard , Ketchup ,Hot sauce ……..
 Generic Brand

A no-name product with no identification other than a description

of contents.

Examples: Cola – Aspirin – Paper towels – Green beans

Adopter Categories
 Product characteristics that influence
diffusion
1-Relative advantage: The degree to which potential consumers
perceive a new product is superior to existing substitutes
2-Compatibility: The degree to which potential consumers feel a
new product is consistent with their present needs, values and
practices
3-Complexity: The degree to which a new product is difficult to
understand or use
4-Trialability: The degree to which a new product is capable of
being tried on a limited basis
5-Observability: The ease with which a product’s benefits or
attributes can be observed, imagined or described to potential
consumers
 Packaging

5 key functions:
1. Protection

2. Distribution

3. User convenience

4. Promotion

5. compliance
Packaging is attraction
Packaging is safety

Tylenol
 MacDonald's

Packaging is promotion
Service
Nature and Characteristic
of a Service
Pricing
Gillette Commands a Price Premium
 Types of Cost Factors that
Affect Pricing Decisions
Fixed Costs Variable Costs
(Overhead)
Costs that don’t Costs that do vary
vary with sales or directly with the
production levels level of production
Executive Salaries, Rent Raw materials

Total
TotalCosts
Costs
Sum
Sumof
of the
theFixed
Fixedand
andVariable
VariableCosts
Costsfor
forAny
AnyGiven
Given
Level
Levelof
ofProduction
Production
4 Cs on price setting

Cost
Company
Customer
Competitor
 Price Elasticity of Demand
A. Inelastic Demand -
Demand Hardly Changes With
a Small Change in Price.
Price

P2
P1

Q 2 Q1
Quantity Demanded per Period
B. Elastic Demand -
Demand Changes Greatly With
Price

P’ a Small Change in Price.

2

P’1

Q2 Q1
Quantity Demanded per
 Price Elasticity of Demand

Change in quantity demanded %

Change in price %
-When elasticity is greater than 1 ----- Elastic

-When elasticity is less than 1 ----- Inelastic

Pricing methods
Pricing methods

1. Skimming
2. Penetration
3. Cost plus
4. Captive
5. Loss leader
6. Competitive
7. Psychological
8. EDLP
EDLP
Captive pricing
Odd-even pricing
Price bundling
Place or distribution
Number of Channel Levels
 Carrefour in Egypt…Maddi

Americana changed the place of its refrigerators in Carrefour

El Maddi from the entrance to the exist because some of the
frozen vegetables were spoiled because of the long time of
shopping
ZARA Places Retail Stores in
High-End, High Traffic Areas
 Intermediaries

1. Retailers :sell directly to consumers

2. Wholesalers: sell to retailers
3. Distributor and dealers: sell to customers
through profit
4. Agents : they do not purchase the products but
they earn commission
5. Franchisees e.g. KFC
 Vending
machines
Conventional Distribution Channel
Vs. a Vertical Marketing System
 Number of Marketing
Intermediaries

Intensive
Intensive Selective
Selective
Distribution
Distribution Distribution
Distribution

Exclusive
Exclusive
Distribution
Distribution
Promotion
 Marketing Communication Mix
or Promotion Mix

Product’s
Design

Stores that Sell Product’s

the Product Price

Product’s
Package
 Communication strategies

1. Push strategy

2. Pull strategy

3. Strategy mix
Communications models

DRIP model:
D Differentiate
R Remind
I Inform
P Persuade
AIDA

Attention

Interest

Desire

Action
 Public relations

The planned and sustained effort to establish and

maintain goodwill and mutual understanding
between an organization and its publics
 Public relation activities
1. Press release & video news release
2. Press conferences
3. Sponsorship
4. Exhibitions
5. Corporate social responsibility
6. Corporate literature
7. Corporate hospitality
8. Videos
9. Special events “celebrity store openings”
10. Website
 Exhibitions

-Here customers come to see the supplier

-Visitors are usually from the same industry
-Are hold in large halls with large stands
-Its cost is rising
 Exhibitions

Purposes
1. Public relations

2. Promotion and selling

3. Networking

4. Testing the response

 Sponsorship

It is an agreement between a company and an

event organizer where the company gives
money in exchange for rights to associate the
company name with the event
 Sales Promotion

It is one of the promotional tools used to add

value for a product or service on the short run
 Major Consumer Sales Promotion
Tools

Cash
Cash or
or Other
Other Award
Award Offered
Offered for
for
Patronage
Patronage Rewards
Rewards Regular
Regular Use
Use of
of aa Product
Product
Displays
Displays or
or Demonstrations
Demonstrations at
at the
the
Point-of-Purchase
Point-of-Purchase Point
Point of
of Purchase
Purchase
Consumers
Consumers Submit
Submit an
an Entry
Entry to
to be
be
Contest
Contest Judged
Judged
Consumers
Consumers Submit
Submit Their
Their Names
Names for
for aa
Sweepstakes
Sweepstakes Drawing
Drawing (by
(by chance)
chance)
Consumers
Consumers Receive
Receive Something
Something Each
Each
Games
Games Time
Time They
They Buy
Buy Which
Which May
May Help
Help Them
Them
Win
Win aa Prize
Prize
Sampling is an Effective
Way to Create Trial-Use
Within Appropriate
Target Markets
Sales promotion alternatives
 Major Trade Sales Promotion
Tools
Trade-Promotion Trade-Promotion
Objectives Tools
Persuade
PersuadeRetailers
Retailersor
or
Wholesalers Discounts
Discounts
Wholesalersto
toCarry
CarryaaBrand
Brand
Give
GiveaaBrand
BrandShelf
ShelfSpace
Space Allowances
Allowances
Promote
PromoteaaBrand
Brandin
in
Advertising
Advertising Free
Free Goods
Goods
Push
PushaaBrand
Brandto
toConsumers
Consumers Push
Push Money
Money
Specialty
SpecialtyAd
AdItems
Items
 Major Business Sales Promotion
Tools
Business-Promotion Business-Promotion
Objectives Tools

Generate
GenerateBusiness
BusinessLeads
Leads Conventions
Conventions
Stimulate
StimulatePurchases
Purchases Trade
TradeShows
Shows
Reward
RewardCustomers
Customers Sales
SalesContests
Contests

Motivate
MotivateSalespeople
Salespeople
Developing the Sales Promotion
Program
Decide
Decideon
on the
theSize
Sizeof
of the
theIncentive
Incentive

Set
Set Conditions
Conditionsfor
for Participation
Participation

Determine
Determine How
Howto
toPromote
Promote and
and
Distribute
Distributethe
thePromotion
Promotion Program
Program

Determine
Determinethe
theLength
Length of
of the
theProgram
Program

Evaluate
Evaluate the
theProgram
Program
 Personal Selling

It is personal paid promotional tool in which there

is a face to face contact between a company
representative and a customer
Major Steps in Effective Selling
Advertising
Content
In Coca-Cola’s new “Taste the Feeling” campaign, they
incorporates red into the beach towels, outfits, and nail polish used
in their print ad to complement their red logo. The effect is
friendly, eye-catching, and emphasizes the action of the models
drinking their refreshing soft drink. The end result is that you
want to buy a bottle of Coke
Teaser ads
Principle of
Closure
Figure –ground
principle
Advertising Execution Techniques
 Rational advertising

 Factual
 Demonstration
 Comparison
 Slice of life
 Emotional advertising

 Testimonial or •Joy
endorsement •Love
•Pleasure
 Animation
•Pride
 Music •Safety
 Fear •Security
•Self-esteem
 Humor •Combinations
 Sex
 lifestyle
Factual
Comparative Advertising
Comparison.
Haagen Dazs ice cream
 Animation and Sexual

Haagen Dazs premium ice cream entered the UK

market using pleasure as central to the message

appeal.
Fear
Volvo ad
Factual
Rolex ad
Animation
Partnership for a Drug-Free
America
This as uses a rather extreme level of
fear appeal.
Next Step
This is also a bit of a comparison ad
though for most consumers of this
product
Lifestyles Condoms
This ad uses humor to approach a sensitive
topic. It seems appropriate and well-done in
this context
Addressing Smoking Attitudes
This Norwegian ad addresses young people’s
smoking attitudes by arousing strong
negative feelings. The ad reads (left panel)
“Smokers are more sociable than others.”
(Right panel): “While it lasts.”
Ashworth appeals
Lifestyle
Coca-Cola ad
 Evaluating Advertising

1-Pre-testing :
-Focus group

2-Post-testing :
-Recognition test
-Recall test
Media Selection
Mohamed Emad Graiss Khaled Mona Kadry Tamer Shawky Tamer El Sherif Omar
El Rakib Elmounayri Naggar

Raafat Youssef
Moderator
Raafat Shehata

01227765708