Marketing Strategy, Mix, and Plan & The Return on Marketing
11/6/2020
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KAUFT King King Abdul-Aziz university university
FACULTY OF TOURISMFACULTY OF TOURISM
EVENT SALES AND MARKETING
EM 603 Marketing Strategy, Mix, and Plan & The
Return on Marketing
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Learning Objectives By completion of this presentation You should be able to:
Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan
Discuss the importance of measuring and managing return on marketing investment
Recommended Textbook:
Kotler, P. (2002) Marketing management, Millennium Edition, Pearson Custom Publishing, USA.
Kotler, P. and Armstrong, G. (2012) Principles of Marketing,, 14th ED., Pearson Prentice Hall, Boston.
Sian, L.T., Subramonian , H., Tung , L., San, W.H., Hui , K.H.K. and Kulampalil , T.T. (2009) Fundamentals of Hospitality and Tourism Management, Open University Malaysia (OUM).
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
2
Brainstorming Group work ActivityBrainstorming Group work Activity
What is meant by: Marketing Strategy, Marketing Mix, Marketing Plan and Return on Marketing
……….. ……….. ………..
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
IntroductionIntroduction Outstanding marketing organizations employ strongly customer-driven marketing strategies and programs that create customer value and relationships.
These marketing strategies and programs, however, are guided by broader company-wide strategic plans, which must also be customer focused.
The strategic plan defines the company’s overall mission and objectives. Marketing’s role is shown in Figure 1, which summarizes the major activities involved in managing:
A customer-driven marketing strategy and
The marketing mix.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
3
IntroductionIntroduction
Figure 1: Managing Marketing Strategies and the Marketing Mix
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
IntroductionIntroduction Consumers are in the center.
The goal is to create value for customers and build profitable customer relationships.
Next comes marketing strategy—the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships.
The company decides:
Which customers it will serve (segmentation and targeting) and
How (differentiation and positioning).
It identifies the total market and then divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying the customers in these segments.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
4
IntroductionIntroduction
Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—product, price, place, and promotion (the four Ps).
To find the best marketing strategy and mix, the company engages in marketing analysis, planning, implementation, and control.
Through these activities, the company watches and adapts to the actors and forces in the marketing environment.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
As emphasized throughout the handouts in part 1, to succeed in today’s competitive marketplace, companies must be customer centered.
They must win customers from competitors and then keep and grow them by delivering greater value.
But before it can satisfy customers, a company must first understand customer needs and wants.
Thus, sound marketing requires careful customer analysis.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
5
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Companies know that they cannot profitably serve all consumers in a given market— at least not all consumers in the same way. There are too many different kinds of consumers with too many different kinds of needs.
Most companies are in a position to serve some segments better than others. Thus, each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments.
Figure 2 shows the four major steps in designing a customer-driven marketing strategy. This process involves:
Market segmentation,
Market targeting,
Differentiation, and
Positioning.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Figure 2: Designing a Customer-Driven Marketing Strategy
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
6
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Segmentation:
The market consists of many types of customers, products, and needs.
The marketer must determine which segments offer the best opportunities.
Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioral factors.
The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is called market segmentation.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Segmentation:
Every market has segments, but not all ways of segmenting a market are equally useful.
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
The company identifies different ways to segment the market and develops profiles of the resulting market segments.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
7
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Segmentation—Segmenting Consumer Markets:
There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view market structure. The major variables that might be used in segmenting consumer markets involve:
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Geographic Segmentation: such as nations, states, regions, counties, cities, or even neighborhoods. Demographic Segmentation: such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Psychographic Segmentation: Dividing a market into different segments based on social class, lifestyle, or personality characteristics. Behavioral Segmentation: Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Targeting:
After a company has defined its market segments, it can enter one or many of these segments. Market targeting involves:
Evaluating each market segment’s attractiveness
Selecting one or more segments to enter.
A company should target segments in which it can profitably generate the greatest customer value and sustain it over time.
A company with limited resources might decide to serve only one or a few special segments or market niches.
Such nichers specialize in serving customer segments that major competitors overlook or ignore.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
8
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Targeting: Alternatively, a company might choose to serve several related segments—perhaps those with different kinds of customers but with the same basic wants. Most companies enter a new market by serving a single segment, and, if this proves successful, they add more segments. For example, Nike started with innovative running shoes for serious runners. Large companies eventually seek full market coverage. Nike now makes and sells a broad range of sports products for just about anyone and everyone, with the goal of “helping athletes at every level of ability reach their potential.” It has different products designed to meet the special needs of each segment it serves.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Targeting—Evaluating Market Segments:
In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.
The company must first collect and analyze data on current segment sales, growth rates, and the expected profitability for various segments. It will be interested in segments that have the right size and growth characteristics.
The company also needs to examine major structural factors that affect long-run segment attractiveness. For example, a segment is less attractive if it already contains many strong and aggressive competitors.
Even if a segment has the right size and growth and is structurally attractive, the company must consider its own objectives and resources.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
9
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Targeting—Selecting Target Market Segments:
After evaluating different segments, the company must decide which and how many segments it will target. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
Market targeting can be carried out at several different levels. Figure 3 shows that companies can target very broadly (undifferentiated marketing), very narrowly (micromarketing), or somewhere in between (differentiated or concentrated marketing).
Figure 3: Market Targeting Strategies
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Targeting—Selecting Target Market Segments:
Undifferentiated Marketing:
Using an undifferentiated marketing (or mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.
Such a strategy focuses on what is common in the needs of consumers rather than on what is different.
The company designs a product and a marketing program that will appeal to the largest number of buyers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
10
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Targeting—Selecting Target Market Segments:
Differentiated Marketing:
Using a differentiated marketing (or segmented marketing) strategy, a firm decides to target several market segments and designs separate offers for each. Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.
But differentiated marketing also increases the costs of doing business. A firm usually finds it more expensive to develop and produce, say, 10 units of 10 different products than 100 units of a single product.
Developing separate marketing plans for the separate segments requires extra marketing research, forecasting, sales analysis, promotion planning, and channel management. And trying to reach different market segments with different advertising campaigns increases promotion costs. Thus, the company must weigh increased sales against increased costs when deciding on a differentiated marketing strategy.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Targeting—Selecting Target Market Segments: Concentrated Marketing: Using a concentrated marketing (or niche marketing) strategy, instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments or niches. Through concentrated marketing, the firm achieves a strong market position because of its greater knowledge of consumer needs in the niches it serves and the special reputation it acquires. It can market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments. It can also market more efficiently, targeting its products or services, channels, and communications programs toward only consumers that it can serve best and most profitably.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
11
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Targeting—Selecting Target Market Segments:
Micromarketing:
Differentiated and concentrated marketers tailor their offers and marketing programs to meet the needs of various market segments and niches.
At the same time, however, they do not customize their offers to each individual customer.
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
Rather than seeing a customer in every individual, micro-marketers see the individual in every customer.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Targeting—Selecting Target Market Segments:
Micromarketing:
Micromarketing includes local marketing and individual marketing.
Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.
Individual Marketing—tailoring products and marketing programs to the needs and preferences of individual customers. Individual marketing has also been labeled one-to-one marketing, mass customization, and markets-of-one marketing.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
12
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Differentiation and Positioning:
After a company has decided which market segments to enter, it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments.
A product’s position is the place it occupies relative to competitors’ products in consumers’ minds.
A product’s position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.
Products are made in factories, but brands happen in the minds of consumers.
A product’s position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Differentiation and Positioning:
Marketers want to develop unique market positions for their products.
If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it.
Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
13
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Differentiation and Positioning:
At McDonald’s you’ll be saying “i’m lovin’ it,” whereas at Burger King you can “Have it your way.” Such deceptively simple statements form the backbone of a product’s marketing strategy.
ⓞ For example, Burger King designs its entire worldwide integrated marketing campaign—from television and print commercials to its Web sites—around the “Have it your way” positioning.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
ⓞ Positioning: Burger King builds its entire worldwide marketing campaign around its “Have it your way” positioning.
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Differentiation and Positioning:
In positioning its product(s), the company first identifies possible customer value differences that provide competitive advantages on which to build the position.
Competitive advantage defined as an advantage over competitors gained by offering consumers greater value than competitors do.
Building profitable customer relationships and gaining competitive advantage requires delivering more value and satisfaction to target customers than competitors do.
Customers will see competitive advantages as customer advantages, giving the company an edge over its competitors.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy
Market Differentiation and Positioning:
The company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.
But if the company promises greater value, it must then deliver that greater value.
Thus, effective positioning begins with differentiation—actually differentiating the company’s market offering so that it gives consumers more value.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
CustomerCustomer--Driven Marketing StrategyDriven Marketing Strategy Market Differentiation and Positioning:
Once the company has chosen a desired position, it must take strong steps to deliver and communicate that position to target consumers.
The company’s entire marketing program should support the chosen positioning strategy.
Consumers position products with or without the help of marketers. But marketers do not want to leave their products’ positions to chance. They must plan positions that will give their products the greatest advantage in selected target markets, and they must design marketing mixes to create these planned positions.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix
After determining its overall marketing strategy, the company is ready to begin planning the details of the marketing mix, one of the major concepts in modern marketing.
The marketing mix is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.
The marketing mix consists of everything the firm can do to influence the demand for its product.
The many possibilities can be collected into four groups of variables—the four Ps. Figure 4 shows the marketing tools under each P.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix Figure 4: The Four Ps of the Marketing Mix
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix Product:
Product means the goods-and-services combination the company offers to the target market.
For a hotel, the goods are the different types of rooms and F&B outlets offered and the service is the customer service and additional facilities provided by the agency.
The product is the main thing for a company because without products there is nothing to market or sell.
When a customer decides to buy a product they will look for certain characteristics.
They will want to know how many different packages available, which one provides a more interesting savings and what is included in the package.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix
Price: Price is the amount of money customers must pay to obtain the product. Setting a price for a product is very important. Companies will need to set a price that customers can afford and willing to pay and at the same time will help the company to achieve a desirable level of profits. The price of a product is the addition of cost and mark up. When a customer asks about the price of a product, they are also interested in knowing if there are any discounts or special promotions. Customers will evaluate if the value of the product is worth the amount that they are paying.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix Place: Place includes company activities that make the product available to target consumers. The place can be the location where customers can obtain the product or the distribution channels. Companies will need to find ways to bring the products to customers or to make the product easily accessible to customers. For instance, customers nowadays can make room reservations online and this facility makes it convenient for customers because they save the time of going into travel agencies or the hotel to book it. Companies can have advertisements or signboards showing where the hotel is so that people are aware of the location.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix Place:
Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company’s supply chain.
This supply chain (now entitled as demand chain) consists of upstream and downstream partners.
Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
Marketers, however, have traditionally focused on the downstream side of the supply chain—on the marketing channels (or distribution channels) that look toward the customer.
Downstream marketing channel partners, such as wholesalers and retailers, form a vital connection between the firm and its customers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
18
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix
Promotion: Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Companies need to plan promotional activities properly in order to create awareness of potential customers. The types of activities (promotion Mix) includes advertising, personal selling, public relations, merchandising, designing posters and sales promotion. All these activities will help target potential customers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix An effective marketing program blends each marketing mix element into an integrated marketing program designed to achieve the company’s marketing objectives by delivering value to consumers.
The marketing mix constitutes the company’s tactical tool kit for establishing strong positioning in target markets.
Figure 4 suggests, many marketing activities that might appear to be left out of the marketing mix are subsumed under one of the four Ps.
The issue is not whether there should be four, six, seven or ten Ps so much as what framework is most helpful in designing integrated marketing programs.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix
There is another concern, however, that is valid. It holds that the four Ps concept takes the seller’s view of the market, not the buyer’s view.
From the buyer’s viewpoint, in this age of customer value and relationships, the four Ps might be better described as the four Cs:
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
4Ps 4Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
Developing an Integrated Marketing MixDeveloping an Integrated Marketing Mix
Thus, whereas marketers see themselves as selling products, customers see themselves as buying value or solutions to their problems.
And customers are interested in more than just the price; they are interested in the total costs of obtaining, using, and disposing of a product.
Customers want the product and service to be as conveniently available as possible.
Finally, they want two-way communication. Marketers would do well to think through the four Cs first and then build the four Ps on that platform.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Managing the Marketing EffortManaging the Marketing Effort In addition to being good at the marketing in marketing management, companies also need to pay attention to the management. Managing the marketing process requires the four marketing management functions shown in Figure 5— analysis, planning, implementation, and control. Marketing analysis provides information and evaluations needed for all the other marketing activities. The company then, develops company-wide strategic plans and then translates them into marketing and other plans for each division, product, and brand. Through implementation, the company turns the plans into actions. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Managing the Marketing EffortManaging the Marketing Effort Figure 5: Managing Marketing: Analysis, Planning, Implementation, and Control
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Managing the Marketing EffortManaging the Marketing Effort Marketing Analysis:
Managing the marketing function begins with a complete analysis of the company’s situation.
The marketer should conduct a SWOT analysis (pronounced “swat” analysis), by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T) (see Figure 6).
Strengths include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives.
Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance.
Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage.
And threats are unfavorable external factors or trends that may present challenges to performance.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Managing the Marketing EffortManaging the Marketing Effort Figure 6: SWOT Analysis
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Managing the Marketing EffortManaging the Marketing Effort
Marketing Analysis:
The company should analyze its markets and marketing environment to find attractive opportunities and identify environmental threats.
It should analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue.
The goal is to:
Match the company’s strengths to attractive opportunities in the environment, while
Eliminating or overcoming the weaknesses and minimizing the threats.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Managing the Marketing EffortManaging the Marketing Effort Marketing Planning:
Through strategic planning, the company decides what it wants to do with each business unit.
Marketing planning involves choosing marketing strategies that will help the company attain its overall strategic objectives.
A detailed marketing plan is needed for each business, product, or brand. What does a marketing plan look like? Our discussion focuses on product or brand marketing plans.
The plan begins with an executive summary that quickly reviews major assessments, goals, and recommendations.
The main section of the plan presents a detailed SWOT analysis of the current marketing situation as well as potential threats and opportunities.
The plan next states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Managing the Marketing EffortManaging the Marketing Effort Marketing Planning:
A marketing strategy consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels.
It outlines how the company intends to create value for target customers in order to capture value in return.
In this section, the planner explains how each strategy responds to the threats, opportunities, and critical issues spelled out earlier in the plan.
Additional sections of the marketing plan lay out an action program for implementing the marketing strategy along with the details of supporting marketing budget.
The last section outlines the controls that will be used to monitor progress, measure return on marketing investment, and take corrective action.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Managing the Marketing EffortManaging the Marketing Effort
Marketing Implementation:
Planning good strategies is only a start toward successful marketing. A brilliant marketing strategy counts for little if the company fails to implement it properly.
Marketing implementation is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives.
Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when, and how.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
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Managing the Marketing EffortManaging the Marketing Effort Marketing Implementation:
Many managers think that “doing things right” (implementation) is as important as, or even more important than, “doing the right things” (strategy).
The fact is that both are critical to success, and companies can gain competitive advantages through effective implementation.
One firm can have essentially the same strategy as another, yet win in the marketplace through faster or better execution.
Still, implementation is difficult—it is often easier to think up good marketing strategies than it is to carry them out.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Managing the Marketing EffortManaging the Marketing Effort Marketing Control:
Because many surprises occur during the implementation of marketing plans, marketers must practice constant marketing control—evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained.
Marketing control involves four steps—management first:
Sets specific marketing goals, then
Measures its performance in the marketplace and
Evaluates the causes of any differences between expected and actual performance, finally
Takes corrective action to close the gaps between goals and performance. This may require changing the action programs or even changing the goals.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
25
Managing the Marketing EffortManaging the Marketing Effort Marketing Control:
Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary.
Its purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan.
It also involves determining the profitability of different products, territories, markets, and channels.
Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities.
Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing
Marketing managers must ensure that their marketing dollars are being well spent.
In the past, many marketers spent freely on big, expensive marketing programs, often without thinking carefully about the financial returns on their spending.
They believed that marketing produces intangible creative outcomes, which do not lend themselves readily to measures of productivity or return.
But in today’s more constrained economy, all that is changing.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
26
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing
According to a recent study, marketers see return on marketing investment as the second biggest issue after the economy.
“Increasingly, it is important for marketers to be able to justify their expenses,” says one marketer.
For every brand and marketing program, says another, marketers need to ask themselves, “Do I have the right combination of strategy and tactics that will generate the most return in terms of share, revenue and/or profit objectives from my investment?”
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing
Return on marketing investment (or marketing ROI):
In response, marketers are developing better measures of marketing ROI.
Return on marketing investment (or marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.
It measures the profits generated by investments in marketing activities.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
27
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing Return on marketing investment (or marketing ROI):
Marketing ROI can be difficult to measure. In measuring financial ROI, both the R and the I are uniformly measured in dollars.
But there is no consistent definition of marketing ROI. “It’s tough to measure, more so than for other business expenses,”
One analyst says. “You can imagine buying a piece of equipment . . . and then measuring the productivity gains that result from the purchase,” he says. “
But in marketing, benefits like advertising impact aren’t easily put into dollar returns.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing
Return on marketing investment (or marketing ROI):
A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share.
Many companies are assembling such measures into marketing dashboards— meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
28
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing
Return on marketing investment (or marketing ROI):
Beyond standard performance measures, marketers are using customer-centered measures of marketing impact, such as customer acquisition, customer retention, customer lifetime value, and customer equity.
These measures capture not only current marketing performance but also future performance resulting from stronger customer relationships.
Figure 7 views marketing expenditures as investments that produce returns in the form of more profitable customer relationships.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing Figure 7: Return on Marketing Investment
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
29
Measuring and Managing Return on MarketingMeasuring and Managing Return on Marketing Marketing investments result in improved customer value and satisfaction, which in turn increases customer attraction and retention. This increases individual customer lifetime values and the firm’s overall customer equity. Increased customer equity, in relation to the cost of the marketing investments, determines return on marketing investment. Regardless of how it’s defined or measured, the marketing ROI concept is here to stay. “In good times and bad, whether or not marketers are ready for it, they’re going to be asked to justify their spending with financial data,” says one marketer. Adds another, marketers “have got to know how to count.”
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Individual Assignment # Individual Assignment # 33
Title: Marketing Strategy, Mix, and Plan & The Return on Marketing
Points to be covered:
1. Define positioning and explain how it is accomplished. Describe the positioning for any 3 different brands of your choice.
2. Define each of the four Ps. What insights might a firm gain by considering the four Cs rather than the four Ps?
3. What is marketing ROI? Why is it difficult to measure?
4. Name and describe the four major sets of variables that might be used in segmenting consumer markets. Which segmenting variables does Starbucks use?
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
11/6/2020
30
Individual Assignment # Individual Assignment # 33
Instruction for the assignment:
Type of attached file: word document file attached through course messages on the BlackBoard.
Name of word file: Assignment 2
Deadline: Saturday, 14/11/2020
Grades assigned: 10 Marks.
You should have a cover page for your assignment involving the following information: Course Name and its Code; Assignment Title; Student Full Name; Student ID No.; Submitted to whom, Date of Submission.
A list of References used should be added by the end of Assignment.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
THANK YOU
Thank you for being with me today and please feel free to ask any questions.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Marketing Strategy, Mix, and Plan & The Return on Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
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