Sales & Marketing Management for Engineers

What is Marketing??
Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

Marketing = ?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association

Simple Marketing System

Communication

(a collection of sellers)

Industry

Goods/services

Money

(a collection of Buyers)

Market

Information

Marketing = ?

Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push.

Marketing is all about managing the four Ps

product price place promotion

The 4 Ps & 4Cs

Marketing Mix Product Customer Solution Convenience Place

Price Customer Cost

Promotion Communication
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Difference Between - Sales & Marketing ?

Sales (Push)
trying to get the customer to want what the company produces

Marketing Pull)
trying to get the company to produce what the customer wants

Scope What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

Core Concepts of Marketing

Based on : Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.

Core Concepts of Marketing

Needs, wants demands

Products

Utility, Value & Satisfaction

Markets

Marketing & Marketers

Xchange, Transaction Relationships

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Core Concepts of Marketing

Need food, pharmaceuticals, energy, Shelter (a necessity ) Want Pizza, Burger, French fry's, design of a house (Shelter) ( translation of a need as per our experience ) Desire Have a Burger in a five star hotel, Mansion Demand Translation of needs, wants & desires as per our willingness and ability to buy
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In order to understand Marketing let us begin with the

Marketing Triangle

Customers

Company

Competition

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Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

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Customer
CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

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How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction

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Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY NEED
We must be in a position to UNDERSTAND their problems Or in a new situation to give them a chance to AVOID the problems

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Customer looks for Value

Value
Benefit Cost

= Benefit / Cost
= Functional Benefit + Emotional Benefit = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

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Strategic Marketing
Strategic marketing management is concerned with how we will create value for the customer
Asks two main questions
What is the organizations main activity at a

particular time? Customer Value

What are its primary goals and how will these be

achieved? how will this value be delivered

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Business Strategic-Planning Process

External environment (Opportunity & Threat analysis)

Business Mission

Goal Formulation

Internal Environment

(Strength/ Weakness analysis)

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 Business Missions-sets the direction of

Sources for Business Strategies formulation

strategies to be adopted

Monsanto -"We will deliver high-quality products that are beneficial to our customers and for the environment, through sound and innovative science, thoughtful and effective stewardship, and a commitment to safety and health in everything we do. Bayer: Science For A Better Life -world-class innovation company. Our scientific achievements aim to help improve peoples lives by addressing the great challenges of our time the growing world population, an aging society and the need to use natural resources more efficiently
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Sources for Business Strategies formulation

External Environment-Opportunities (convert

to strengths) and Threats(minimize effect) Dow Company saw the opportunity in popularization of sustainability ( part of its business model centers on solutionism-providing solutions developed Green spaces and sustainable buildings services) now one of their core strengths Threats in the fast diffusion of technology which is mitigated using patent laws
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Sources for Business Strategies formulation

Internal Environment-Strengths (capitalize on

strengths) and Weaknesses(Convert to strength)

BASF Brand name is a strength that focuses on strategic principles of adding value, innovation to make customers more successful, sustainable solutions and possessing the best workforce towards creating chemistry not making chemical

Shells weakness has been pollution issues which is converted into a strength by more involvement in innovative solutions ( Carbon Capture and Store programme) and CSR
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Sources for Business Strategies formulation

The 4 Ps-Product, Price, Promotion, Place

Product
Baxters product range enables them to cater to a wide range of customers and markets inclusive of pharmaceuticals, electronics, biotechnology, Education, Federal Government, Traditional Labs etc.

Price

Specialty Chemicals -able to charge premium price whilst others have to charge moderate to low prices

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Sources for Business Strategies formulation Cont

Place

Thai Chempest operates from Bangkok but strategically caters to a broad international market inclusive of US, ASEAN countries and Africa. Some companies might decide not to internationalize distribution and use distributors instead
Promotion Johnson & Johnson -Advertising and public relations policies and campaigns as a tool to show customers their dedication towards better product and services offering and provision
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Strategy Formulation
Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

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The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager

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CONTENTS of MARKETING PLAN

Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix
Positioning Product Promotion Price Place Distribution

Implementation, Evaluation and Control

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The Marketing Process

Business Mission Statement Objectives Situation or SWOT Analysis

Marketing Strategy
Target Market Strategy

Marketing Mix
Product
Promotion Place/Distribution Price

Implementation Evaluation, Control

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Marketing Environment dynamic and Ever Changing

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Why a product like radio declined and now once again emerging as an entertainment medium ?

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What Were the Drivers of This Change ?

Technology ?
Government policy ?

Other media substitutes ?

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Why Market Leaders Suffered ?

Apple (iPhone) vs. Samsung Monsanto vs. Syngenta Kings pharmaceuticals vs. Pfizer Bmw Sauber Vs Ferrari Dot.com boom, then bust and now resurgence Market leadership today cannot be taken for granted. New and more efficient companies are able to upstage leaders in a much shorter period.
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Factors Influencing Companys Marketing Strategy

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External Marketing Environment

External Environment is not controllable
Demographics Social Change

Ever-Changing Marketplace

Product Distribution Promotion Price

Physical / Natural

Economic Conditions

Competition

Target Market
Political & Legal Factors

Environmental Scanning

Technology

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The macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

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The Give and Get of Marketing

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Great Words on Marketing

1.

2.

3.

4.
5.

The purpose of a company is to create a customerThe only profit center is the customer. A business has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs. The aim of marketing is to make selling unnecessary. While great devices are invented in the Laboratory, great products are invented in the Marketing department. Marketing is too important to be left to the marketing department.

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Drivers of Customer Satisfaction

Many aspects of the firms value proposition contribute to customer satisfaction:
The core product or service offered Support services and systems

The technical performance of the firm

Interaction with the firm and it employees The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels

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Marketers and Markets

Marketers are focused on stimulating exchanges with customers who make up markets B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers,

purchasers, and influencers.

It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction

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Stages of Customer Interaction

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What Changed in Marketing

Old Economy
Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise, under-deliver

New Economy
Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate Under-promise, over-deliver

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Are Engineers truly marketing-savvy and customer - centric?

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Marketers Vs Engineers
Marketers want to know: How consumers will form preferences toward each product in the line. Potential for cannibalization among the products in the line. How competitors and retailers will respond to a line's launch. Engineers, meanwhile, care about: The feasibility and robustness of each product in the line. The cost synergy across the line.

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Consensus
Because of this, a marketer's definition of "optimal product line" is unlikely to resemble that of an engineer's. "Therefore," notes USC Marshall Assistant Professor Lan Luo, "in the design of an optimal or near-optimal product line, the marketing and engineering requirements often cannot be pursued separately or even sequentially. In essence Marketing and engineering needs to be married

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Case Study
http://businesscasestudies.co.uk/imi/developing-growthstrategies-to-become-a-marketleader/conclusion.html#axzz2eHrZMYgM

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Case Study Question

1. Conduct the PEST scanning of the company 2. Identify the strengths, weaknesses, opportunities and threats of IMI group 3. Identify points of consensus of market between marketing and engineering in the strategies adopted 4. What changes in the new economy did IMI identify in formulating and adopting their strategies and how did these affect their marketing 5. Discuss the 4 ps of marketing and how these were converted into strategies

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Myth 1 The larger the range of products, the more customer-centric I am.

Mythbuster The range of products has emerged from being competition-centric.

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Myth 2 Better technology and innovative products ensures the product sells itself

Mythbuster Technology alone does not deliver, helps people do.

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Myth 3 Launch a product and the customer will start

using instantly.

Mythbuster Customers need To be educated too

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Myth 4 The only way to get a customer is from competition.

Mythbuster Customers are not only present where competition is. You can innovate to be the first to provide a product or service

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Myth 5 Just advertise and - You will sell.

Mythbuster Advertising will only sell, Not retain customers. Marketing goes beyond selling

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Myth 6 No difference between marketing & selling

Mythbuster Selling focuses on the needs of the seller; marketing on the needs of the buyer.

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Myth 7 In the absence of relationships trust builds brands

Mythbuster Trust is not a differentiator at all it is the very minimum that the customer expects!!

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Thank You
Company websites Case study from the times100 case studies Marketing Management -Philip Kotler

Further Information:

Adapted from slides by [email protected]

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