MBA Marketing Management Notes

MBA Marketing Management - Dr David Gordon

Corporate Experience

• IMS (creative agency) – Atlanta, USA
• Sage PLC – Product Manager
• Pegasus PLC – Group Product Manager
• IBM (15 years)
  • Divisional Marketing Head
  • Aerospace, Security, IT Services, Storage, Apple collaboration
  • UK, European, Global team management roles
  • Branding, Campaigns, Events, Digital, Channel, Partnerships

Own Business

• College-Head clothing Ltd
• Luxor (nightclub)

Academic Experience

• 28 years Academic Marketing practice
• Marketing Subject Lead
• Associate Department Head
• MBA Programme leader
• MSc Marketing suite Programme leader
• Strategic Marketing Management
• International Marketing, Communications
• UG/PG/DBA Thesis Tutor
• Placement Tutor

Marketing Qualifications

• Doctorate in Business Administration
• MSc Strategic Marketing
• BSc Marketing & Computing
• CIM Diploma in Marketing
• CIM Chartered Marketer

Employability

• 23 years recruiting Graduate
• Assessment centers & interviews Experience

Schedule

• Duration: 3 ½ hours
• Time UK:
  • 06:00-06:55 (What is Marketing, Marketing mix & Assessment)
  • 07:00-07:55 (Segmentation, targeting, positioning)
  • 08:00-09:00 (Consumer behaviour & insights)
  • 09:00 – 10:00 (Break 2 hours)
  • 10:00-11:20 (Marketing Management and Strategies)
  • 11:30-12:30 (Digital marketing and Market research)
• Time UAE:
  • 09:00-09:55 (What is Marketing, Marketing mix & Assessment)
  • 10:00-10:55 (Segmentation, targeting, positioning)
  • 11:00-12:00 (Consumer behaviour & insights)
  • 12:00-13:00 (Break 2 hours)
  • 13:00-13:20 (Marketing Management and Strategies)
  • 13:30-15:30 (Digital marketing and Market research)
• Session Times:
  • Morning class: 6 am to 9 am UK time, 9 am to 12 pm Bahrain Time
  • Lunch and Prayer Break: 9 am to 10 am UK time, 12 pm to 1 pm Bahrain Time
  • Afternoon class: 10 am to 12:30 pm UK time, 1 pm to 3:30 pm Bahrain Time

Course Objectives, Course Plan

• Introduction to marketing management, Elements of marketing strategy and planning
• Customer relationship management & marketing information management, Decision making process in B2C and B2B context
• Segmentation, Targeting, Positioning, Product strategy and brand management, new product development, Managing pricing decisions
• Managing marketing channels and supply chain, Integrated Marketing Communications, Metrics for measuring marketing performance
• Marketing mix (product, price, place, promotion)
• Market segmentation, target marketing
• Consumer behaviour
• Consumer insights, competitive landscapes
• Marketing strategies
• Marketing tactics
• Digital marketing
• Market research

Text & Reference Books

• Kotler & Keller, 14th ed., Marketing Management, Prentice Hall
• Marshall & Johnston, Marketing Management, McGraw Hill

Course Learning Outcomes (CLO)

1. Interpret complex marketing issues and problems using relevant theories, concepts and methods with regard to ethical conduct.
2. Apply contemporary marketing theories to the demands of business and management practice.
3. Find and generate information/data needed to inform problem solving in marketing using appropriate methodology.
4. Analyse information/data critically and synthesize new knowledge and communicate that knowledge via engaging written and oral formats.
5. Organize information and data to reveal patterns and themes, and manage teams and evidence gathering and problem-solving processes.
6. Conduct the process of inquiry, and respond to feedback, accounting for ethical, social and cultural (ESC) issues.

MBA Marketing Management Assignment

• Write a business plan for launching into a new market.
• Scenario: You work for a successful car sales company in the Bahrain region with 5 branches selling high-end car brands (BMW, Mercedes, Lotus, Porsche).
• Opportunity: Growth in European companies opening branches in Dubai and employing 500 – 1000 junior management level staff, creating a demand for entry-level company cars.
• Task: Write a business plan for expansion into potential new car segments, targeting 'entry-level company cars'.
• Target Audience: Board of Directors.
• Format: Word document.

Key Headlines for Assignment

• Executive Summary
• Table of Contents

Assignment Questions

1. Explain how Geographic, Demographic, Psychographic and Behavioral segmentation theory will influence your choice of new entry-level company car brands and segments for expansion.
2. Conduct a numerically ranked PESTLE analysis of the entry-level company car sector pressures to support your answer.
3. Identify the key internal and external buyer behaviour influences that may impact the new segment buyers of your entry-level company cars.
4. Explain how the services 3-Ps could enhance new entry-level company car segments.
5. Explain what marketing strategy the board of directors could consider for the growth market approach in the entry-level company cars opportunity.
6. Identify how you would conduct further research into the entry-level company car opportunity, describing the research objectives and methodological approach.
7. Summarise a communications plan for the new entry-level company car market, aligning to the AIDA model.

• Appendix – Any other data you feel is useful
• Individual assignment - 3500 words

Assignment - General Instructions

• Extension requests: to Azra Fatima (afatima@atmsedu.org) 5 days before submission with valid reason and evidence.
• Referencing: APA 7th edition.
• Similarity: Strictly not accepted, will be graded Zero.
• Plagiarism: Academic offence, will not be tolerated.
• Revaluation: Request within 5 days of grade release.
• Late submission: Within 1 week, 20% penalty.
• Re-evaluation: NOT applicable for failed courses (59 to 69 range).
• Rescheduling: Request within one week after the assessment date.
• Submitted assignment: Final for marking.
• Second extension: Requires supporting documentary evidence.
• Keep a copy of your work.
• Adhere to all instructions.

What is Marketing?

• Opening Challenge: Addressing the misconception that marketing is just advertising.

Definitions of Marketing

1. 'The management process which identifies, anticipates and satisfies customer requirements efficiently and profitably.' (The Chartered Institute of Marketing)
2. 'Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.' (The American Marketing Association 2017)

Transactional vs Relationship Marketing

Market Classifications (Relationships)

Marketing Process

• Marketing Research & analysis
  • Where & who we are now
  • What the consumer wants
• Marketing Objectives
  • What you want to achieve
• Marketing Tasks
  • How you are going to achieve it
• Feedback & Control

Strategic Orientations

Advantages of a Market Orientation

• Better understanding of customer needs
• Better customer relations
• A better reputation in the marketplace
• More new customers
• More repeat purchases
• Improved customer loyalty
• More motivated staff
• Competitive edge

Marketing Mix (Tactics)

Product

• Three levels of product:
  • Core product: The most basic level is the core customer value, which addresses the question: What is the buyer really buying?
  • Actual product: develop the product and service features, a design, a quality level, a brand name, and packaging based on core values
  • Augmented product: build an augmented product around the core benefit and actual product by offering additional consumer services and benefits.

Product Classification

• Consumer product
  • A product bought by final consumers for personal consumption. Examples: Life insurance, sneaker, car, course
• Industrial product
  • A product bought by individuals and organizations for further processing or for use in conducting a business. Examples: Raw materials, equipment, capital items

Consumer Products

• Consumer products are products and services bought by final consumers for personal consumption.
• Marketers usually classify these products and services further based on how consumers go about buying them.

Branding

• A brand is a name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service.
• Perhaps the most distinctive skill of professional marketers is their ability to build and manage brands.
• Brands have meaning well beyond a product’s physical attributes.
  • Increased product awareness levels
  • The ability to charge a premium price
  • Reduced susceptibility to price wars
  • Competitive edge
  • A sound basis for strong customer relationships
  • Higher likelihood of repeat purchases

Brand Development Strategies

Packaging

• Involves designing and producing the container or wrapper for a product.
  • Holding and protecting the product
  • Attracting customers
  • Communicating brand positioning

Product Lifecycle

• Underpinning the concept of the product life cycle is the belief that offerings move through a sequential, predetermined pattern of development similar to the biological path that life forms follow.
• This pathway, known as the product life cycle, consists of five distinct stages—namely, development, introduction, growth, maturity, and decline.
• Sales and profits rise and fall across the various life stages of the product.

Product Adoption

• Categories of adopters:
  • Innovators (2.5%): 'I have to be the first to try this.'
  • Early Adopters (13.5%): 'I want to show you this helpful tool I found.'
  • Early Majority (34%): 'I was skeptical, but I should have tried this earlier!'
  • Late Majority (34%): 'Why should I start using this technology?'
  • Laggards (16%): 'I guess I can give it a try, but I need help.'

Pricing

Pricing Objectives

• Financial:
  • Make Profit
  • Maximize Revenue
  • Recover Investment
  • Survive
• Marketing:
  • Build image
  • Pile it high, sell it cheap
  • Prestige
  • Positioning
  • Increase market share

Factors Affecting Pricing Decisions

• Buyers’ perceptions
  • How will customers interpret prices and respond to them?
  • Interpretation refers to what the price means or what it communicates to customers.
  • Does the price mean ‘high quality’ or ‘low quality’, or ‘great deal’, ‘fair price’ or ‘rip-off’?
  • How will customers respond to the price?
  • Customer response refers to whether the price will move customers closer to the purchase of the product
  • It also means the degree to which the price enhances their satisfaction with the purchase experience and with the product after purchase.- status?

Different Basis for Pricing

• Cost-based pricing: Cost + Profit = Price
• Mark-up pricing: Cost – Selling Price
• Demand-based pricing
• Competition-based pricing
• Marketing-oriented pricing

New Product Pricing Strategies

• Market skimming
  • Early cash recovery
  • Encourages new competitors
  • Raises ethical issues
• Market penetration
  • Encourages product trial
  • Encourages retailers to build up stocks
  • May provoke competitive retaliation
  • Delays cash recovery

Place

The Nature and Importance of Marketing Channels

• Consumer and Business Marketing Channels
  • Direct channels: company sells directly to consumers
    • Examples: GEICO and Quicken Loans.
  • Indirect channels: company uses intermediaries to bring products to final buyers.
    • Examples: toothpaste, cameras, cars.

How Channel Members Add Value

• Information
• Promotion
• Contact
• Matching
• Negotiation
• Physical distribution
• Financing
• Risk taking

Channel Technology - RFID (Radio-Frequency Identification)

1. Improved Asset Tracking and Management
   • Real-time location tracking: monitor the location of equipment and devices
   • Reduced equipment loss and theft: prevent loss or theft of expensive devices.
2. Enhanced Customer Safety and Care
   • Customer identification: accurate identification;
   • Tracking movements: track patient movements throughout the hospital,.
3. Efficient Workflow and Staff Management
   • Staff tracking and productivity: track the location and movement of factory staff.
   • Automated data entry: automate data collection.
4. Better Compliance and Food Regulatory Adherence
   • Sterilization tracking: monitor the sterilization process .
   • Temperature and environmental monitoring: ensure compliance with regulations.
5. Enhanced Security and Access Control
   • Access control to sensitive areas: control access to restricted areas .
   • Data security: Consignment information

Retailing Trends and Developments

• Growing Importance of Retail Technology
  • Retail technology provides better:
    • Forecasts
    • Inventory control (RFID)
    • Electronic ordering
    • Transfer of information, scanning, online transaction
    • Processing (digital payments)
    • Improved merchandise handling systems
    • The ability to connect with customers.
• Green Retailing Environmentally Sustainable Practices
  • Store design, construction, operations
  • Product assortment
  • Recycling made easier
  • Package and distribution

The Promotional Mix

• The promotion mix is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

Advertising

• Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
  • Broadcast
  • Print
  • Online
  • Mobile
  • Outdoor

Sales Promotion

• Sales promotion is a short-term incentive to encourage the purchase or sale of a product or service.
  • Discounts
  • Coupons
  • Displays
  • Demonstrations

Personal Selling

• Personal selling is the personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
  • Sales presentations
  • Trade shows
  • Incentive programs

Public Relations

• Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
  • Press releases
  • Sponsorships
  • Events

Direct Marketing

• Direct marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
  • Direct mail
  • Catalogs
  • Online and social media
  • Mobile marketing

Services

• Are intangible
• Have benefits
• Are time- and place-dependent
• Cannot be stored or transported
• The service provider is part of the service
• The consumer is part of the service
• Are often inconsistent (especially personal services, e.g. Hairdressing)
• Cannot be owned

People

• The face of a service business
• Skills are often what you are selling
• Key determinant of success
• Skills, attitudes and efficiency
• Relationship marketing
• In overseas markets, use expatriates or locals?

Physical Evidence

• Most services have a tangible element
• Peripheral products
• House style and livery
• Facilities
• Ambience

Process

• How service is provided
• E.G. Self-service or table service
• Customer journey
• E.G. Through webpages
• Bookings and order processing
• Customer enquiries
• Integration
• Problems of outsourcing
• Quality control standards