Principles of

Marketing

Lecture-8
Summary
of
Lecture-7
Portfolio Analysis
Marketing
Process
The Boston Consulting
Group’s Growth-Share
Matrix
 20%-
Market growth rate

Stars Question marks

?2
18%- 4
16%-
14%-
3 ? 1
12%- 5
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
Product/Market
Expansion Grid
 Current New
products products

Market- Product-
Current penetration development
markets strategy strategy

New Market- (Diversification

markets development
strategy strategy)
 Marketing
Strategy
Planning Process
 Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

Competitors
Current &
Prospective
 Customers
Needs and other
Segmenting
Dimensions
S.
W.
Company O.
Mission, Objectives, T.
& Resources

Competitors
Current &
Prospective

External Market Environment

 Customers
Needs and other
Segmenting
Dimensions
Targeting &
Segmentation
S.
Company W.
Mission, Objectives,
O.
& Resources
T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

Narrowing down to focused strategy with quantitative
and qualitative screening criteria

Customers
Needs and other
Segmenting
Dimensions Targeting &
Segmentation
S.
Company W.
Mission, Objectives, O.
& Resources T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

Today’s Topics
Marketing Process
 Analyzing marketing
opportunities
 Selecting target markets
 Developing the marketing
Mix
 Managing the marketing
effort
Demographic- Marketing Technological-
Economic Intermediaries Natural
Environment Environment

Product

Suppliers Place Target Price Publics

Consumers

Promotion

Political- Social-
Legal Competitors Cultural
Environment Environment
Analyzing marketing
opportunities
Situation Analysis
The Three Cs
 •Market Potential
(size, growth rate)

Customers •Customer
Behavior (wants
and needs,
•Industry segmentation,
Structure price sensitivity)
Analysis
(entry/exit
barriers, buyers,
Company
•Economic
sellers,
Analysis (costs,
substitutes)
break-even,
•Competitor profitability)
Response
•Company Fit
Profiles
(capabilities, Competitors (strengths,
weaknesses,
current and future
resources, culture,
actions)
goals)
changing environment
– opportunities and threats
changing firm situation
– relative strengths and
weaknesses
Fit - match opportunities with
firm’s objectives and resources
(strengths)
Market Information System
 The Marketing
Information System
Marketing Marketing
managers Marketing Information System environment

Developing information Test

Analysis markets
Assessing Internal Marketing
Planning information Marketing
needs records intelligence
channels
Implemen-
tation Competitors

Control Marketing
Publics
Distributing
decision Marketing
information support research
Macro-
analysis environment
forces

Marketing decisions and communication

Selecting Target
Markets
Firm cannot satisfy
everyone
–mass marketing
Segment total market
–market segmentation
Target markets
–target marketing
–niche marketing
Developing the
Marketing Mix
 Product Price
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to
target market Obtain the product

Target
Customers

Intended
Positioning
Activities that Company activities
persuade target that make the
customers to buy product available
the product
Place
 Marketing Mix

Product Place
Product Variety
Target Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Promotion
Packaging List Price Transport
Sales Promotion
Sizes Discounts
Advertising
Services Allowances Sales Force
Warranties Payment Period Public Relations
Returns Credit Terms Direct Marketing
The 4 P’s & 4C’s of the
Marketing Mix
4 P’s 4 C’s
–Product – Customer
Solution
–Price – Customer Cost
–Place – Convenience
–Promotion – Communication
 Managing the
marketing effort
 Managing the Marketing
Efforts
Marketing Analysis of Company’s Situation

Marketing Control
Planning Marketing Measure
Implementation Results
Develop Strategic
Plans Carry Out Evaluate
The Results
Develop Plans
Take
Marketing Corrective
Plans Action
Contents of a Marketing Plan

Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing Implementation
Marketing Strategy
Decision
and
Reward
Organizational Human
Structure Resources
Action Climate and
Programs Culture

Implementation

Marketing Performance
 Marketing Control
Process

Set Measure Evaluate Take

Performance Performance Corrective
Goals
Action
Enough for
today. . .
Summary
Marketing Process
 Analyzing marketing
opportunities
 Selecting target markets
 Developing the marketing
Mix
 Managing the marketing
effort
Demographic- Marketing Technological-
Economic Intermediaries Natural
Environment Environment

Product

Suppliers Place Target Price Publics

Consumers

Promotion

Political- Social-
Legal Competitors Cultural
Environment Environment
Analyzing marketing
opportunities
changing environment
– opportunities and threats
changing firm situation
– relative strengths and
weaknesses
Fit - match opportunities with
firm’s objectives and resources
(strengths)
Market Information System
 The Marketing
Information System
Marketing Marketing
managers Marketing Information System environment

Developing information Test

Analysis markets
Assessing Internal Marketing
Planning information Marketing
needs records intelligence
channels
Implemen-
tation Competitors

Control Marketing
Publics
Distributing
decision Marketing
information support research
Macro-
analysis environment
forces

Marketing decisions and communication

Selecting Target
Markets
Firm cannot satisfy
everyone
–mass marketing
Segment total market
–market segmentation
Target markets
–target marketing
–niche marketing
Developing the
Marketing Mix
 Marketing Mix

Product Place
Product Variety
Target Market Channels
Quality Coverage
Design Assortments
Features Locations
Brand Name Price Inventory
Promotion
Packaging List Price Transport
Sales Promotion
Sizes Discounts
Advertising
Services Allowances Sales Force
Warranties Payment Period Public Relations
Returns Credit Terms Direct Marketing
 Managing the
marketing effort
Contents of a Marketing Plan

Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing Implementation
Marketing Strategy
Decision
and
Reward
Organizational Human
Structure Resources
Action Climate and
Programs Culture

Implementation

Marketing Performance
 Marketing Control
Process

Set Measure Evaluate Take

Performance Performance Corrective
Goals
Action
Next….
Marketing


Environment
Principles of
Marketing

Lecture-8