NAME : Kyawt Kyawt Hlaing
BATCH: BM 19C
MODULE NAME: Principle of Marketing
LECTURER NAME: Daw New Ni Aung
Marketing management is the science and art of selecting target markets and obtaining, maintaining, and developing customers through generating, delivering, and offering customer value. The main role of marketing is to attract, maintain and build profitable customer relationships by delivering satisfaction. Marketing management department do product and market research, arrange and packaging. They communicate brand value to the marketplace, and monitor current customer relationships. Marketing management is the process of arrangement and performing the design of pricing, distribution and promotion. The marketing department has responsibility for growing revenue, increasing market share and contributing to company growth and profitability. Marketing department responsible to frame marketing strategy in line with company’s objectives. They set strategy to increase share in market area, to enter a new sector, or to open a new channel of distribution, to reach in addition geographical market. The marketing department reaches agreement on strategy with the board or senior management team before planning campaigns in detail.
Follwing are seven key functions in marketing management.
1. Information Management
3. Product and Service Management
Marketing information management is the compalition of information and analyzing it to determine what our consumers want. Before we start collecting informations, we have to know exactly who are our consumers. Then we start collecting and analyzing our information to find out what they want and needs. we should obtaing habits, and culture of consumers in our specific demographic for trendy information. We can also use the internet and social media websites to obsere what customers are talking about and searching for. That will speak out loud about what they want to see. We can provide surveys through websites or mails to decide consumers satisfactions. For example, If a fried ckicken franchise from U.S.A think about to open new branches in Iraq, they will seek information and analyze the habits of consumers at there to meet their needs.
Distribution in marketing is where we create our products obtainable. We can distribute our products to the places that we want them to be. If we want to sell online, we can control businesses by the use of Internet. If we want sell to other countries, we will need to modify our business marketing methods to make deals with distributors. We usually have to do investigate to decide the best places to create our products available and how our customers want to make a purchase. For example, if a bag company want to sell their products to malls and online, They will target places such as Ocean super center, City Mart, Facebook, One Kyat and may be they will create their own website for customer to make direct deal and purchase.
Product and service management in marketing assign with mordenizing, alternating, and providing our product to consumers wants. We can do this by developing our product appearances, generating difference style or colour, and sometime completely modifying a part of the product’s utility. These will useful to meet with our customer’s wants and needs. For example, the colour, design, and font style of Pepsi cans and bottles have developed and changed over time to meet the terms with customers needs and wants.
The pricing of a product in marketing, we have to set price for our products so that we will make a profit. It depends on our competitions. May be there were a lot of other companies and brand that offering the same product as us, we will require to focus to offer customers with the lowest possible price at the same time as still making a well enough revenue. Actually there were seperate ways we can do about that. we can offer firm benefits and extra adventages that other compitators can’t. We have to be innovative and smart as well. We also have to what we want to do in this plan. We can set pricing at a premium, pricing for market penetration and so on. According to the products and marketing and strategy, we can set the possible price.
Promotional maketing is managing about influencing consumers when we decide which form of communication plan to use for defining the best way to reach our consumers. We use promotions to take attentive of our products or brands to consumers through a variety of marketing techniques (advertising, direct marketing, personal selling, sale promotion, public relation). Promotion will not effective if the public doesnot know about it. For example, One of pizza restaurant make ad materials to offering a promotion by way of a free juice or coffee (product) on the purchase of two slices of pizza (products). Customers are always worried to get the most for their money
Selling is core function of marketing. It is an sagnificant part in understanding the final aim of earning profits. Selling is improved by advertising, fame, personal selling and sales promotion. Actual effectiveness in selling establish the amount of company’s profits and profitability.Sales management responsible to control all condition of the sales department or team’s actions to make sure to meet with company’s goal and objectives. A sales management also responsible to generate effective strategy to plan for growth, reach business’s goal, managing and making a effective sales team, and solve their problems. For example, salespersons at a store help a lady to choose a dress for a party. They support her to get the right fashion, size and color as her needs and wants. That assistance encourages her to make a purchase.
There are two parts of finance in marketing management. The first one is dealing with financing the marketing department. With marketing, an efficient marketing plan can provide revenue for a business. so, we will absolutely spend for marketing. The second part of finance marketing deals with providing customers alternative and easier ways to obtain their goods. This can be done through offering loyal customers loans, leasing options, or credit terms. This helps to develop trust between and good business relationships. For example, A woman wants to buy a computer for her college-bound son. However, she cannot afford to pay the entire sum at once. A company offers her a loan that she is required to pay back within the next 2 years.
The customer is always right ? Honestly, i guess they are not. Sometimes they abuse and get things very wrong. Regardless of that idea, they are usually key to our business growth and success and we are in charge of their awareness to our services, products and business. Customer’s perception is their reality. So, there is no controversy and the customer is king, but there has three kings in the consumer goods industry (shoppers, retail customers, consumers). Therefore, ‘the customer is king’ oftenly mean ‘the consumer is king’. We spended (may be wasted) lots of money on attempting to be a magnet for new customers. Actually keeping our customers to be happy is more easier than to attract new ones. So, we should maintain our existing customers happy. We can make it by giving them a awesome customer experience and they will respond positively such as referrals, recommendations review and words of mouth for us. Nowaday,speaking of word of mouth is too loud in our society. When we did not take care of our customers and the word of mouth twist into bad side. If some people sharing a bad customer experience of our service or products though social media such as facebook or instagram with their firends. That will highlight our bad service to millions of people and our reputation of our business will inflict immediately. We can see many example of that similar cases on social medias. We should understand the different types of customers and focus on our targeted and regonized customers. One of marketing guru said that ‘Brand win or lose are depend on how well they make customer to say wow !’. If we did specific customer segmentation and understand our customer, we can be familiar with how to make them to say wow. I have never seen any business that does not have a customer in some form and figure such as internal customers (purchase and work for our business) and regular customer (purchases from us). None the less, they are core for us and we need them for success of our business. All of our customers are our kings.
The consumer is the one who make the purchase to get products or services from the market for own use (end-user). A consumer experince number of steps before purchasing a product or service, called consumer decision process. They do not always go in the definite order and that alter on the types of goods or services, the purchasing stage of them and also their budget status. The following steps are the consumer buying decision process.
1. Need Recognition
2. Search and Gathering Information
3. Evaluation of Alternatives
4. Purchase Decision
5. Postpurchase Evaluation and Review
The first stage of the consumer decision making process is consumers recognizing what they needs. Need is a main factor that conducts to purchase products and services. Customers got the sense like something is missing to get back to feel normal. If we can decide our targeted consumers’s needs or wants, it would be a perfect time to promote to them. However, an individual who purchases a bottle of water or juice from convenience store describes his/her urgent need as thirst. Though in such cases stages such as gathering information and evaluation of alternatives are missing in general. These two steps will important when an individual making purchase decision of luxury or facilitate products/services such as cars, computers, mobile phones and etc.
In second stage, consumers will try to search and gather as much information as they can, after recognizing their need for a products or service. They may make an adventages and disadventages list to help make their decision. Consumers generally don’t want to regret making a purchase decision .Therefore, they believe to take extra time for taking risk is worth and deserve.
An individual can get information about that through by various sources such as
1. Personal Sources (they can chat about their need with their family, friends, workmates and other social contacts)
2. Commercial sources (Sale persons, promotinal advertisements, mannequin display and etc.)
3. Public sources (magazines, newspapers, radio and etc.)
4. Experiential sources (their own experience, previous after purchasing experience of product or service)
Consumers may be gathered informations from public via recommendations and through previous experiences.
The third stage of their decision process is to calculate the variety of alternatives that existing in the market. Consumers after gathering related information tries to select the best choice obtainabl as per their needs and wallets. Consumers determine about what will satisfy their need and they will start to find out the best deal. That will be depended on quality, price or other factors that are important to them. Consumers may seek reviews and evaluate the prices, making the best choice the one that can make them to happy. They start question themselve to determine that is really need or right product for them and do they need different product. Then depend on their answer and decision, they usually go back to stage 2. The stage 3 (evaluting of alternatives) to stage 2 (gathering information) change over transition may happen several times before stage 4 (purchase decision) has been reached.
At the fourth stage of consumer decision making process, Consumers have assessed gathering information and decide to buy what and where to make a purchase based on feeling and experiences. After passing all above of steps, consumers conclude and purchase the products or services from the market.
For the final stage, post purchase evaluation refers to a consumer’s consideration whether their purchased product or services were fulfill and satisfy to their needs or not. That review stage is the one of the most important key stage for our business and also to consumers too. If consumers find that products was effective or efficient as we promised and their own anticipations, they will likely turn out to be a brand ambassador. They can influence other possible consumers in their stage 2 of purchase decision making process, amplification the posibility of our product being purchased again and costumer loyalty.
For example ; Steve want to buy new phone because his old one was giving him a problem (it is need recognition). Last night he saw apple launched new iphones into market. Then Steve go to a nearby apple store to buy a new iphone for himself. The store assistants show him all available lastest models of iphone with samples and explain the features about them (it is getting information). Steve had experience with that brand already and interest to get best performance new iphone with longest batterylife (it is evaluate of alternatives). Finally, he selected gold color iphone XS max for himself (it is purchase decision). Steve really like his new iphone and tell his family and friends about his satisfy. They all are going to buy iphone XS max (it is postpurchase evaluation and review).
In this case Steve is the consumer and iphone is the product that he want to buy for his own use.
STP (segmenting, targeting, positioning) strategy is the essential process of a successful strategic marketing. It is important to slice the market in correct way, pick the right segments and position the services or products with benefits by inventive and effective messaging.
The market segmentation is an alternative marketing strategies among all the industries to provide to their target market group. It is a process of dividing the market of possible consumers and customers into subgroups and segments on characteristics and needs (age, gender, attitude, interest, values, etc.). Market segmentation helps to group similar consumers to target an exact audience in a cost-effective method. Professional marketers segment market to create custom marketing mix for each segment and supply them as a result. Following are the some common ways to segment the market.
1. Demographic segmentation (Based on gender, age, career, education level, income, family size and etc.)
2. Geographic segmentation (Based on country and regions, population, urban or rural categorization, type of weather and etc.)
3. Psychographic segmentation (Based on personality, value, manner, attitude, habit and etc.)
4. Lifestyle segmentation (Based on recreational activities, entertainment styles, vacations and etc.)
5. Beliefs segmentation (Based on religious, civilizing outlook, patriotism, cultural values and etc.)
6. Behavior segmentation (Based on nature of purchase, brand affection, advantages needed, usage level, reaction to marketing efforts and etc.)
Targeting is basicially proceeding one or more segments that have attended becoming to the market segmentation process. There can be variety of factors for choice of segments. Some business treat the whole market as a segment as their approaches will not be distinguished concordant to segment masterpiece (example, CocaCola). Others will choose carefully one or more segments that they can best provide to customers. The following facts are in a segment consideration set.
1. Market & segment sizes – The small market will provide small segments that can work in the company’s admire if the selected segment is profitable. However, if the segment is small, the volume of sales produced will be small too.
2. Differences – The segments need to be obvious and understandable difference between each other. They need to be mixed in terms of arrangement.
3. Profitability – The anticipated profits creation and revenue must go beyond the marketing cost.
4. Accessibility – Every targeted segment require to have enough accessibility to the company’s product or service and marketing communication
5. Benefits – Key aspect of segmentation is to fit products and services that attention the mixed needs of each segment. Different segments will require to offer different advantages.
The positioning apply to attracting a definite place in the target consumer’s mindset. This is the final stage of STP process, positioning of products or services positively and manipulating the advantages that consumers ask for is the key of this step. The trendy channel of choice for the target market, the costs of marketing plan and the figure that company wants to create in the mindset of the consumers. Positioning also try to find alter competitors’ offering. In that situation, points of difference and points of parity are operated to assist in efficient positioning as recommanded by marketing experts
Be a marketing manager, I will perform a specific marketing plan through step by step for company to get more market share.
For the first step, we have to define the market that the company is interested in. It is a very important consideration. For example, when CocaCola discuss about market segmentation, they would be doubtful to analyze on the whole beverage market. As an alternative, they target on submarkets. The possible market definition of CoaCola may be diet cola in America. It is more accurate and specific market definition that segmented, not the whole beverage market as it is far too common and has too many miscellaneous market segments.
After defining the market, the next stage to perform is to segment the market by using a modifacation of different segmentations in order to create groups of consumer. We can allocate the consumers in the defined market to related groups that based on market needs.
After developing the market segment, we should consider and measure a set of principles to make sure that they are reasonable and useful. This needs our segments to be evaluated aligned with an analysis of some issues and factors for checking viability.
After determining the viable market segments, segment profiles are well developed and aspect explanations of consumers in the segments such as expressing their behaviors, characteristics, needs and so on. We will gather existing market information and consumer research and then added to the segment profile’s description (size of segment, develop rate, brand loyalty, price sensitivity and etc.). We can use that merged information to evaluate each market segment on overall attractiveness.
After getting detailed information of the segments, we can determine which ones are the most suitable to select as our target markets. There were varied factors to discuss when we choose and select a target market such as company strategy, competitors of the segment, our ability to success and etc.
After selecting correct target market, we will need to recognize to position our products or services in our target market. There were competitive offerings in the market already, we needs to find out how we can get market share as much as can from existing established competitors. Commonly, that mission can completed by being grasped consumers as being dissimilar, exclusive, better quality, or providing greater value.
After developing positioning plan, we should move to applying step. That was the growth of the marketing mix that can support the positioning in the market. We need suitable products that require to be developed at a suitable price with suitable distribution channels, and an effective promotional programs.
After a phase of time, we have to review the performance of our products and process in order to reconsider view of the market and to look for new opportunities.
Samsung Electronics has verified that they are one of the best technology companies in the industry and lead the way for the future in electronics. Their popular new product in the market today is incredible QLED TV that had a large influence on the market. Samsung lead the market and controlling over 85% of the market share.