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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
………………………
Marketing management total 2017
Offline marketing Online marketing
360 campaign
Common sense
Creativity
What is the relation between these 3 terms
ProductBrandLove mark
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.
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Societal Marketing ConceptSocietal Marketing Concept
Marketing Management
Philosophies
Examples marketing orientation
Sanofi-Aventis/ Afara
Faragalla and faragello
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
Socio-cultural environment
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
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!
Humor in Translations ---
Changing the slogan from Ana
Ahbo to Ana Bahebo
The 4 P’s & 4 C’s of the
Marketing Mix
 4 P’s
 Product
 Price
 Place
 Promotion
 4 C’s
 Customer Solution
 Customer Cost
 Convenience
 Communication
Marketing management total 2017
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)
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Product/Market Expansion
Grid
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 good hot 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
Marketing management total 2017
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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
Non-deodorant High Deodorant
Low Moisturizing
6
4
7
2
5
1
8
3
Tone
Coast
Lux
Lifebuoy
Dial
Safeguard
Zest
Lava
Dove
Perception Towards
Different Brands…1
55
For me
Not for me
Value for
Money
Premium
Cairo & Alex
The higher the social class the more skewed
towards the international brands and Jam mixes
that is only produced and sold by them.
Perception Towards
Different Brands…2
56
For me
Not for me
VFM
Premium
Delta
Our target group are aware of different brands
and they have tried different brands as well.
Since there was few brands in the market in the
past, as our target group used to consume the
VFM and Vitrac until few of them switched to
Rashidi Mizan
Perception Towards
Different Brands…3
57
For me
Not for me
VFM Premium
Upper Egypt
Our target group are aware of different brands
and they have tried different brands as well.
Since there was few brands in the market in the
past, as our target group used to consume the
VFM and Vitrac until few of them switched to
Rashidi El Mizan
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
Marketing management total 2017
Brand ladder
Marketing management total 2017
Marketing management total 2017
Products and services
What is a Product?
 A PRODUCTPRODUCT 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
Unsought ProductsUnsought Products
 New innovations
 Products consumers don’t
want to think about
 Require much advertising &
personal selling
i.e Life insurance, blood donation
Product Classifications:
Consumer
Specialty ProductsSpecialty Products
 Special purchase efforts
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e Lamborghini, Rolex
Shopping ProductsShopping Products
 Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, cars, appliances
Convenience ProductsConvenience Products
 Buy frequently & immediately
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers
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
Time
Product
Develop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/
Investments ($)
Sales and
Profits ($)
Sales and Profits Over the Product’s Life From Inception to
Demise
Product Life Cycle
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 of a Good Brand NameCharacteristics of a Good Brand Name
• Short and simple
• Suggestive of product benefits
• Legally available
• Timeless rather than timely
• No negative imagery
• Easy to spell, read, and pronounce
• Adaptable for international markets
• Adaptable to packaging/labeling
needs
• Adaptable to any advertising
medium
A Good
Brand Name
Is...
A Good
Brand Name
Is...
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
75
A young lady; early 20s
She is an elite lady with elegant
appearance.
She usually wears dresses that
shows her beauty
She is wealthy and has a lots of
possess
Her name is very popular and all
people knows her
A middle age man; late 30s early 40s.
He is a successful business many who
can reach his clients easily.
He adds new sector to his business in a
successful way
He is very sociable and people loves him
Brands as Celebrities-Vitrac
76
Although
she is old
but very
elegant
All people love
her although
she disappeared
long ago
She is well-
known and
very
beautiful
People see
her a symbol
of
indulgence
Brands as Celebrities-Rashidi
El Mizan
77
He can reach
all SECs as
Rashidi El
Mizan
Products
Old actor but
well known and
fits all roles
All people see
him in movies
and TV series;
very popular.
He is producing
Movies that reaches
lower SEC as Rashidi
Halawa Bar
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
Line Extension
Dannon Yogurt Flavors
Multibrands
Seiko Lasalle & Pulsar
Arial & Tide
Brand Extension
Barbie Electronics
Honda
New Brands
S.C Jhonson:
Pledge –Glade –Raid
BrandName
Existing New
Product Category
Existing
New
Four Brand Strategies
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
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
Product characteristics that influence
diffusion
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
Total Costs
Sum of the Fixed and Variable Costs for Any Given
Level of Production
Total Costs
Sum of the Fixed and Variable Costs for Any Given
Level of Production
Variable Costs
Costs that do vary
directly with the
level of production
Raw materials
Fixed Costs
(Overhead)
Costs that don’t
vary with sales or
production levels
Executive Salaries, Rent
4 Cs on price setting
Cost
Company
Customer
Competitor
Price Elasticity of DemandPrice
Quantity Demanded per Period
A. Inelastic Demand -
Demand Hardly Changes With
a Small Change in Price.
P2
P1
Q1Q2
Price
Quantity Demanded per
P’2
P’1
Q1Q2
B. Elastic Demand -
Demand Changes Greatly With
a Small Change in Price.
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
Marketing management total 2017
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
Intensive
Distribution
Intensive
Distribution
Selective
Distribution
Selective
Distribution
Exclusive
Distribution
Exclusive
Distribution
Number of Marketing
Intermediaries
Promotion
Marketing Communication Mix
or Promotion Mix
Product’s
Design
Product’s
Price
Product’s
Package
Stores that Sell
the Product
Marketing management total 2017
Communication strategies
1. Push strategy
2. Pull strategy
3. Strategy mix
Communications models
DRIP model:
D Differentiate
R Remind
I Inform
P Persuade
Marketing management total 2017
Marketing management total 2017
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
Patronage RewardsPatronage Rewards
Point-of-PurchasePoint-of-Purchase
ContestContest
SweepstakesSweepstakes
GamesGames
Cash or Other Award Offered for
Regular Use of a Product
Cash or Other Award Offered for
Regular Use of a Product
Displays or Demonstrations at the
Point of Purchase
Displays or Demonstrations at the
Point of Purchase
Consumers Submit an Entry to be
Judged
Consumers Submit an Entry to be
Judged
Consumers Submit Their Names for a
Drawing (by chance)
Consumers Submit Their Names for a
Drawing (by chance)
Consumers Receive Something Each
Time They Buy Which May Help Them
Win a Prize
Consumers Receive Something Each
Time They Buy Which May Help Them
Win a Prize
Major Consumer Sales Promotion
Tools
Sampling is an EffectiveSampling is an Effective
Way to Create Trial-UseWay to Create Trial-Use
Within AppropriateWithin Appropriate
Target MarketsTarget Markets
Sales promotion alternativesSales promotion alternatives
Trade-Promotion
Objectives
Persuade Retailers or
Wholesalers to Carry a Brand
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in
Advertising
Promote a Brand in
Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Major Trade Sales Promotion
Tools
Trade-Promotion
Tools
DiscountsDiscounts
AllowancesAllowances
Free GoodsFree Goods
Push MoneyPush Money
Specialty Ad ItemsSpecialty Ad Items
Business-Promotion
Objectives
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
Business-Promotion
Tools
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Major Business Sales Promotion
Tools
Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote and
Distribute the Promotion Program
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
Developing the Sales Promotion
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
Marketing management total 2017
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
Marketing management total 2017
Teaser ads
Marketing management total 2017
Principle of
Closure
Figure –ground
principle
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Advertising Execution Techniques
Rational advertising
 Factual
 Demonstration
 Comparison
 Slice of life
Emotional advertising
 Testimonial or
endorsement
 Animation
 Music
 Fear
 Humor
 Sex
 lifestyle
•Joy
•Love
•Pleasure
•Pride
•Safety
•Security
•Self-esteem
•Combinations
Marketing management total 2017
Factual
Marketing management total 2017
Comparative Advertising
Marketing management total 2017
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.
Marketing management total 2017
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
El Rakib
Emad Graiss Khaled
Elmounayri
Mona Kadry Tamer Shawky Tamer El
Naggar
Sherif Omar
Raafat Youssef
Moderator
Raafat ShehataRaafat Shehata
0122776570801227765708

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Marketing management total 2017

Notas do Editor

  1. Examples of those? Apple’s Newton Electric cars (book); trash compactors; composting toilets Examples of those that have succeeded? nutrasweet; disposable diapers (book); cordless phones