Marketing

and summary of definition , marketing mix,

Philosophy , strategies, and plans.

Marketing Philosophy.
The purpose of marketing is to gain a balance

between creating more value for customers

against making profits for the organization.
To achieve this, many organizations have
adopted a marketing philosophy or what is
generally termed a Marketing Orientation. A
marketing orientation can be defined as
focusing the organization on identifying and
understanding the customers preference in
terms of wants and needs and delivering them
wants and needs more effectively than
2
competitors.

Continued
Prior to the adoption of a marketing

orientation, many organizations followed what

was referred to as the Production
Philosophy. This approach focused on
improving the efficiency of production and
distribution to reduce costs and deliver more
affordable products as the source of
competitive advantage.

Continued....
Another philosophy that has been followed

historically is the Selling Concept. This

approach required organizations to
aggressively focus on selling and promotion
efforts as a way to stimulate demand and
drive sales. A marketing driven approach or
marketing orientation has consistently
delivered superior results over these other
philosophies. Adopting a marketing
orientation is now widely accepted as
delivering greater levels of customer
satisfaction, profitability, and sustainability.

Continued..
Have you ever wondered why the Smartphone

company RIM (the makers of the Blackberry

Smartphone) fell out of popularity and why
Apple's iPhone success has grown? The
answer is in the difference between a salesand marketing-oriented company. The main
differences between a sales-oriented
company and a marketing-oriented
company have to do with their overall view of
the marketplace.
5

Continued
A sales-oriented company is very internally

focused and looks to sell products that the

company is successful at making. A
marketing-oriented company is externally
focused on the consumer's wants and needs.
Companies such as Southwest, Disney and
Amazon all look to solve a customer need with
an idea, product or service. A marketingoriented firm looks to create customer
value.
6

Continued
Worldwide, Toyota, with its strategy to

manufacture cars for different segments of

the population maintains a balance between
customer value and profitability. With the
marketing philosophy in mind, it has replaced
its original goal of 10% of the worlds market
share with number 1 in customer satisfaction,
as it believes its market share will follow the
satisfaction it delivers to its customers.

Competitive Strategies.
Most successful organizations develop

strategies to deal with their particular

environment that offers the company the
strongest possible competitive advantage.
In developing these strategies, questions that
are commonly addressed include :
Should we compete ?
If so, which markets should we compete in ?
How should we compete ?
8

Competitive Strategies
As all business situations are different, there

is no one strategy that is a best fit for all

companies. However there are 3 types of
competitive strategies that you could adopt
depending on your position in the market and
the particular objectives.

Overall Cost Leadership.

Organizations that follow this strategy aim to

win a large market share by achieving the

lowest cost of production and distribution to
offer lower prices than competitors. Aldi or
Lidl German supermarkets are viewed as an
organization that follows a cost leadership
strategy with their approach to offer a limited
number of quality products at low prices. Their
emphasis is on minimizing costs at all levels in
the value chain, and is proven through its
business philosophy, Top quality at incredibly
low prices.
10

Differentiation.
This strategy leads the organization to

concentrate on creating a highly differentiated

product line and marketing program in order
to become the class leader in the industry.
Woolworths supermarket business, with its
theme The fresh food people has been
particularly successful with its differentiation
strategy, by positioning the business around
the primary value of Fresh which is highly
regarded by a large proportion of supermarket
buyers.
11

Focus/Niche.
Organizations that follow this strategy are

usually small organizations or businesses that

focus efforts on serving a few market
segments effectively rather than dealing with
the whole market. A company could either use
a cost focus which aims at becoming a low
cost producer for a niche segment or a
differentiation focus which aims at
differentiated products in the niche segment.
Small Delis that focus on a smaller market
portion can be identified as organizations that
follow this strategy.
12

Continued.
In summary, it is important to pursue a clear

strategy in order to succeed.

Firms/organizations that do not pursue a clear
strategy also know as the Middle -of theroaders often find it difficult to compete and
establish a clear position and competitive
advantage in the market.

13

9 Content Marketing Strategy

Questions You Need to Answer
1. What are your content marketing

objectives (and have you written them

down yet)?
Whether or not you want to refer to your list
of objectives as a content marketing mission
statement is up to you. But the simple truth
is that most Businesses dont have a clear
idea of the direction in which their content
marketing strategy is headed or, even
worse, they simply havent thought at all
about what the purpose of their content is.
14

Continued..
2. How does your content marketing
strategy impact your companys overall
business vision?
What is the role your content is supposed to
play for furthering the organization? Set your
content marketing mission side-by-side with
the companys business vision. Map what your
contents purpose is to the specific parts of
the companys path. If these dont align or
you cant make the case, thats a problem
15

Continued.
3. Does your content help its audience
members achieve excellence at what
they do?
You should be asking yourself this question at
the start of every work day. If your content
doesnt truly impact the lives of your audience
members, why create it at all?

16

Continued.
4. Do you read all the content your
business creates?
Most senior marketers arent aware of the
wasted efforts their company may be dishing
out on a daily basis. To truly get an
understanding of whats working and what is
failing when it comes to your content
marketing, you need to engage with every
piece of content your company creates and
distributes at least until you can set a clear
benchmark for the direction your content
should be taking.

17

Continued..
5. Are you taking a definitive position on issues
in your content?
Are you actively creating value, or are you merely
describing what should be considered valuable? If
you dont take a stand on any of the issues affecting
your industry, what will separate you from your
competition? You need to create differentiating value
by actually being different. To be honest, with most
content marketing, you could simply remove the
companys logo and switch it with a competitors
logo and no one would be able to tell the difference.
18

Continued
6. Can you do a better job than the
relevant trade media that covers your
industry ?
This is a worthy conversation to have in your
organization: Could you provide more valuable
information or deliver it in a more beneficial
way than the professional trade publishers
have been able to do? Strip away all the
things you think you cant or shouldnt do, and
get your senior team to discuss the merits of
covering the industry. You may surprise
19
yourself with what you can achieve.

Continued..
7. Are you training your marketers to tell
better stories?
Do you have a formalized training program
that communicates the companys vision for
its content and its expectations of quality
to the entire marketing team? If not, how
will they know when they are succeeding, or
where they need to improve?

20

Continued..
8. Are you training your employees to tell
better stories?
Getting all employees, across all a companys
business units, to participate in creating
content marketing is usually a major
challenge. If you start to ask for their
involvement in your content without giving
them the formal training they need to feel
comfortable and proficient, you are just
setting them up for likely failure and certain
frustration.
21

Continued..
9. Have you developed a communication tool or
process for spreading your content marketing
vision throughout the organization?
We believe one of the reasons Coca-Colas Content
2020 initiative was so readily adopted by its senior
staff is because everyone fully understood and
believed in the companys content vision. How was
that possible? Coke created a Jerry McGuire-like
mission statement document for the Content 2020
program. It was highly engaging, highly shareable,
easy to understand, and was able to make an impact
on thousands in a very short period of time.
22

Continued..
Are you finding it difficult to get buy-in? Do the field

marketers, product marketers, and sales team

members all understand what you are trying to do?
Probably not, so its vital that you provide them
with tools they need to make sure everyone works
off the same script and toward the same goals.
You may not have the answers to these questions
right now, but you need to figure them out at some
point. Every week you should be reviewing these
questions with your team and tracking progress
they are that important.
23

Marketing Objectives
Marketing objectives define what you want to

accomplish through your marketing activities. There

are several important factors to consider when
establishing effective marketing objectives. When
setting objectives it is very important to ensure that
your objectives are; Smart , Measurable,
Achievable, Realistic and Time specific or ( Smart)
for short. The smart approach allows you to
effectively manage your marketing activities and
importantly be able to determine how successful
they have been and whether they have delivered
the particular benefits sought.
24

Continued..
The smart approach is explained to

illustrate how you address each area.

25

Specific.
Are your objectives stated in a way that is

precise about what you are hoping to achieve.

26

Measurable.
Can you quantify each objective, for

example, can you use a unit of measure such

as market share in percentage or Dhs to
provide a way to check your level of success.

27

Achievable..
Are your objectives reasonable in terms of

what you can actually achieve or are you

setting your sights too high.

28

Realistic..
Do you have sufficient employees and

resources to achieve the objectives you have

set, if you dont, then they are likely to be
unrealistic.

29

Time specific..
When are you hoping to achieve these

objectives, you need to define a timing plan

with target timing for each specific objective.

30

Marketing Key processes

are
1.
2.
3.
4.
5.

Opportunity identification.
New product development.
Customer attraction.
Customer retention and loyalty building.
Order fulfillment.

31

Continued
A company that handles all of these

processes would normally enjoy success. But

when a company fails at any of these
processes they can build a bad reputation and
may not survive very long.
Marketing is dealing with customers, creating
customer value, and satisfaction. Sound
marketing is key to success for companies in
today's competitive and challenging
environment.
32

The Marketing Mix.

The marketing mix is the set of marketing tools

that organizations use to pursue their marketing

objectives in the target market ( the objective
would be the creation of value for exchange )
These tools are classified into 4 broad groups
called the 4 Ps, and they are :
Product.
Place.
Price.
Promotion.
33

Product.
The products are the goods and services that

your business provides for sale to your target

market. When developing a product you
should consider quality, design, features,
packaging, customer service, and any
subsequent after- sales service.

34

Place.
Place is in regards to distribution, location and

methods of getting the product to the

customer. This includes the location of your
business, shop front, distributors, logistics and
potential use of the internet to sell products
directly to consumers.

35

Price.
Price concerns the amount of money that

customers must pay in order to purchase your

products. There are a number of
considerations in relation to price including
price setting, discounting, credit and cash
purchases as well as credit collection.

36

Promotion.
Promotion refers to the act of communicating

the benefits and value to the customers. It

then involves persuading general consumers
to become customers of your business using
methods such as advertising, direct
marketing, personal selling, and sales
promotion.

37

Types of Cost.
There are generally 3 types of cost you need

to consider when bringing a product to the

market, they are;
Fixed Costs.
Variable Costs.
Semi- fixed Costs.

38

Swot Analysis.
A SWOT analysis (alternatively SWOT

matrix) is a structured planning method used

to evaluate the strengths, weaknesses,
opportunities and threats involved in a
project or in a business venture. A SWOT
analysis can be carried out for a product,
place, industry or person. It involves
specifying the objective of the business
venture or project and identifying the internal
and external factors that are favorable and
unfavorable to achieve that objective.
39

Strengths.
characteristics of the business or project that

give it an advantage over others.

40

Weaknesses.
characteristics that place the business or

project at a disadvantage relative to others.

41

Opportunities.
elements that the project could exploit to its

advantage.

42

Threats.
Elements in the environment that could cause

trouble for the business or project.

43

Continued.
Identification of SWOTs is important because they can

inform later steps in planning to achieve the

objective.
First, the decision makers should consider whether the
objective is attainable, given the SWOTs. If the
objective is not attainable a different objective must
be selected and the process repeated.
Users of SWOT analysis need to ask and answer
questions that generate meaningful information for
each category (strengths, weaknesses, opportunities,
and threats) to make the analysis useful and find their
competitive advantage.
44

Swot in Marketing.
In many competitor analyses, marketers build

detailed profiles of each competitor in the

market, focusing especially on their relative
competitive strengths and weaknesses using
SWOT analysis. Marketing managers will
examine each competitor's cost structure,
sources of profits, resources and
competencies, competitive positioning and
product differentiation, degree of vertical
integration, historical responses to industry
developments, and other factors.
45

Continued..
Marketing management often finds it

necessary to invest in research to collect the

data required to perform accurate marketing
analysis. Accordingly, management often
conducts market research (alternately
marketing research) to obtain this information.
Marketers employ a variety of techniques to
conduct market research, but some of the
more common include:

46

Continued
Qualitative marketing research, such as focus

groups.
Quantitative marketing research, such as
statistical surveys.
Experimental techniques such as test
markets.
Observational techniques such as
ethnographic (on-site) observation.
Marketing managers may also design and
oversee various environmental scanning and
competitive intelligence processes to help

47

Continued.
The next slide shows an example of a SWOT

analysis of a market position of a small

management consultancy with specialism in
HRM.

48

Swot Analysis Of Consultancy

Business.
Strengths.

Weaknesses.

Opportunities.

Threats.

Reputation in
marketplace.

Shortage of
consultants at
operating level
rather than
partner level.

Well established
position with a
well defined
market niche.

Large
consultancies
operating at a
minor level.

Expertise at
partner level in
HRM
consultancy.

Unable to deal
with multidisciplinary
assignments
because of size
or lack of
ability.

Identified
market for
consultancy in
areas other
than HRM.

Other small
consultancies
looking to
invade the
marketplace.

49

Swot Matrix.

50

Swot Analysis Apple

2013.

51

Competitor analysis.
Competitor analysis is critical for any

marketing plan and SWOT analysis provides

the perfect way to do this. Usually a PEST
analysis is done before a SWOT analysis to
provide the details for opportunities and
threats section. Once you have the complete
SWOT diagrams of you and your competitors
you can make better decisions regarding your
marketing plan.

52

Continued.
Once you identify the weaknesses of your

competitors you can highlight them in your

landing pages, advertising campaigns and
press releases. Look for common weaknesses
in your competitors and include them in your
marketing so it would be appealing for many
people and also for people looking for
alternatives.

53

Pest Analysis.
Opportunities comes in many forms, hence

the value of doing a PEST analysis.

PEST stands for;
1.
Political.
2.
Economical.
3.
Social.
4.
Technological factors.

54

Political.
Political factors are basically to what degree the

government intervenes in the economy. Specifically,

political factors include areas such as tax policy,
labor law, environmental law, trade restrictions,
tariffs, and political stability. Political factors may
also include goods and services which the
government wants to provide or be provided (merit
goods) and those that the government does not
want to be provided (demerit goods or merit bad).
Furthermore, governments have great influence on
the health, education, and infrastructure of a
nation.
55

Economic.
Economic factors include economic growth,

interest rates, exchange rates and the

inflation rate. These factors have major
impacts on how businesses operate and make
decisions. For example, interest rates affect a
firm's cost of capital and therefore to what
extent a business grows and expands.
EXCHANGE RATES affect the costs of
exporting goods and the supply and price of
imported goods in an economy.
56

Social
Social factors include the cultural aspects

and include health consciousness, population

growth rate, age distribution, career attitudes
and emphasis on safety. Trends in social
factors affect the demand for a company's
products and how that company operates. For
example, an aging population may imply a
smaller and less-willing workforce (thus
increasing the cost of labor). Furthermore,
companies may change various management
strategies to adapt to these social trends
(such as recruiting older workers
57

Technological Factors.
Technological factors include technological

aspects such as research and development

activity, automation, technology incentives
and the rate of technological change. They
can determine barriers to entry, minimum
efficient production level and influence
outsourcing decisions. Furthermore,
technological shifts can affect costs, quality,
and lead to innovation.

58

Expanding the Analysis to PESTLE or

PESTEL adds:
Legal factors include discrimination law, consumer

law, antitrust law, employment law, and health and

safety law. These factors can affect how a company
operates, its costs, and the demand for its products.
Environmental factors include ecological and
environmental aspects such as weather, climate, and
climate change, which may especially affect industries
such as tourism, farming, and insurance. Furthermore,
growing awareness of the potential impacts of climate
change is affecting how companies operate and the
products they offer, both creating new markets and
diminishing or destroying existing ones.
59

Continued..
A controversial example of this is Disneys

trade marking of SEAL TEAM 6. They saw the

opportunity and quickly moved to make some
profits. They later retracted the application
bowing down to social pressure.
Itll be a bit hard to clearly identify
opportunities and threats of your competitors,
but listing down the known ones wont hurt.
This will enable you to identify potential
opportunities and seize them if they matches
your strengths.
60

Branding.
Branding is a strategy that is used by

marketers. Pickton and Broderick (2001)

describe branding as Strategy to differentiate
products and companies, and to build
economic value for both the consumer and
the brand owner.

61

Continued.
A brand is an identity that includes all sorts of

components; depending on the brand e.g.

Body Shop International encapsulates ethics,
environmentalism and political beliefs.
A brand is an image where the consumer
perceives a brand as representing a particular
reality e.g. Stella Artois Reassuring Expensive.
A brand is a relationship where the consumer
reflects upon him or herself through the
experience of consuming a product or service.
62

Continued..
Brand occupies space in the perception of

the consumer, and is what results from the

totality of what the consumer takes into
consideration before making a purchase
decision (Pickton and Broderick 2001).
So branding is a strategy, and brand is what

has meaning to the consumer.

63

Continued.
There are some other terms used in branding.

Brand Equity is the addition of the brands

attributes including reputation, symbols,
associations and names. Then the financial
expression of the elements of brand equity is
called Brand Value.

64

Continued.
There are a number of interpretations of the

term brand (De Chernatony 2003). They are

summarized as follows:

65

Continued.
A brand is simply a logo e.g. McDonalds Golden Arches.
A brand is a legal instrument, existing in a similar way

to a patent or copyright.
A brand is a company e.g. Coca-Cola.
A brand is shorthand not as straightforward. Here a
brand that is perceived as having benefits in the mind
of the consumer is recognized and acts as a shortcut to
circumvent large chunks of information. So when
searching for a product or service in less familiar
surroundings you will conduct an information search. A
recognized brand will help you reach a decision more
conveniently.
66

Continued.
A brand is a risk reducer. The brand reassures

you when in unfamiliar territory.

A brand is positioning. It is situated in relation
to other brands in the mind of the consumer
as better, worse, quicker, slower, etc.
A brand is a personality, beyond function e.g.
Apples iPod versus just any MP3 player.

67

Continued
A brand is a cluster of values e.g. Google is

reliable, ethical, invaluable, innovative and so

on.
A brand is a vision. Here managers aspire to
see a brand with a cluster of values. In this
context vision is similar to goal or mission.
A brand is added value, where the consumer
sees value in a brand over and above its
competition e.g. Audi over Volkswagen, and
Volkswagen over Skoda despite similarities.
68

Re-Branding.
Rebranding is a marketing strategy in which a new

name, term, symbol, design, or combination thereof is

created for an established brand with the intention of
developing a new, differentiated identity in the minds of
consumers , investors, and competitors. Often, this
involves radical changes to a brand's logo, name,
image, marketing strategy, and advertising themes.
Such changes typically aim to reposition the
brand/company, occasionally to distance itself from
negative connotations of the previous branding, or to
move the brand up market; they may also communicate
a new message to a new board of directors.
69

Newsjacking
By now youre probably well aware of the

term newsjacking, and you probably see it

happening all the time in your Twitter feed.
Popularized by marketer David Meerman
Scott, newsjacking is what happens when
brands piggyback off the days biggest news
stories to draw attention to their own content.

70

Newsjacking Examples
Charmin

Charmin has always served as a shining

example of how you can take a product thats
relatively forbidden to talk about and make it
inherently shareable.
At last years Oscars, the brand was ready
and waiting with a steady stream of brand
marketing potty humor that poked fun both
at the event and at its own product without
ever crossing the line into poor taste.
71

Continued.

72

Continued.
Tide

While Oreo may be the most famous

newsjacker of 2013, thanks to its well-timed
Super Bowl tweet, Tide is another brand that
made excellent use of a spur-of-the-moment
brand marketing opportunity, with the
following TwitPic:

73

Continued.

74

Oreo 2013.
with the caption "Power Out? No Problem." The

photo, as showcased on the next slide, reads "You

Can Still Dunk in the Dark." Although Oreo had no
direct correlation to the event, the brand still
managed to inspire people to munch on their
delicious product through some witty newsjacking.
They updated their status so fast that many users
were commenting on how quick they reacted! And it
seems to have paid off, too, since the image has
received over 19,800 likes, over 790
comments, and over 6,600 shares to in a short
time.
75

Continued.

76

Marketing Plan Stage 1.

Marketing plans are vital to marketing

success. They help to focus the mind of

companies and marketing teams on the
process of marketing i.e. what is going to be
achieved and how we intend to do it. There
are many approaches to marketing plans, we
have focused on the key stages of the plan. It
is contained under the popular acronym
SOSTAC.

77

Continued..
Situation analysis
Objectives
Strategy
Tactics
Action
Control

78

What Is SOSTAC.
S stands for Situation ANALYSIS - which means

where are we now?

O stands for Objectives which means where do we
want to go?
S stands for Strategy which summarizes how we are
going to get there.
T stands for Tactics which are the details of strategy.
A is for Action or implementation - putting the plan to
WORK.
C is for Control which means measurement,
monitoring, reviewing, updating and modifying.
79

Marketing Plan Stage 2.

Set marketing objectives.
Specific Be precise about what you are
going to achieve.
Measurable Quantify you objectives.
Achievable Are you attempting too much?
Realistic Do you have the resource to make
the objective happen (men, money, machines,
materials, minutes)?
Timed State when you will achieve the
objective (within a month? By February 2015?).
80

Continued.
If you dont make your objective SMART, it

will be too vague and will not be realized.

Remember that the rest of the plan hinges on
the objective. If it is not correct, the plan may
fail.

81

Marketing Plan Stage 3.

Describe your target market
Which segment? How will we target the
segment? How should we position within the
segment?
Why this segment and not a different one?
(This will focus the mind).
Define the segment in terms of demographics
and lifestyle. Show how you intend to
position your product or service within that
segment
82

Marketing Plan Stage 4.

Marketing Tactics.
Convert the strategy into the marketing mix
(also known as the 4Ps). These are your
marketing tactics.
1. Price Will you cost plus, skim, match the
competition or penetrate the market?
2. Place Will you market direct, use agents or
distributors, etc?
3. Product Sold individually, as part of a
bundle, in bulk, etc?
83

Continued.
4.

Promotion Which media will you use? e.g

sponsorship, radio advertising, sales force,
point-of-sale, etc? Think of the mix elements
as the ingredients of a cake mix. You have
eggs, milk, butter, and flour. However, if you
alter the amount of each ingredient, you will
influence the type of cake that you finish
with.

84

Marketing Plan Stage 5.

Marketing Controls.
Remember that there is no planning without
control. Control is vital.
Start-up costs.
Monthly budgets.
Sales figure.
Market share data.
Consider the cycle of control.

85

Final Stage.
Finally, write a short summary (or synopsis)

which is placed at the front of the plan. This

will help others to get acquainted with the
plan without having to spend time reading it
all. Place all supporting information into an
appendix at the back of the plan.

86