Human-AI Co-Creation of Worked Examples for Programming Classes
Marketing Management
1. 1. The Role of Marketing for Business and
Marketing Management Understanding
2. Market-Driven Management: Strategic and Operational Marketing by
Lamben J-J.
Strategic Marketing Management by Philip Kotler and Alexander Chernev
Marketing As Strategy: Understanding the CEO's Agenda for Driving
Growth and Innovation by Nirmalya Kumar
Marketing Plans: How to Prepare Them, How to Use Them by Malcolm
McDonal and Hugh Wilson
Blue Ocean Strategy: How to Create Uncontested Market Space and Make
the Competition Irrelevant by W. Chan Kim and Renée Mauborgne
On Competition by Michael E. Porter
Bottom-Up Marketing/ Marketing Warfare by Al Ries and Jack Trout
Inside the Tornado: Strategies for Developing, Leveraging, and Surviving
Hypergrowth Markets by Geoffrey Moore
Business Model Generation by Alex Osterwalder
The Long Tail by Chris Anderson
3. 1. The Concept of Marketing and Its
Development, Important Marketing Trends
2. The Marketing Role in the System of
Company Management
3. The Marketing Management Functions
(organization, planning, coordination,
control)
4. The Notion of Corporate Marketing
5. International and Domestic Practices of Designing
the Systems of Marketing Management
4. The Origin and Development of
Marketing
Stages
Origin
1900s-1950s.
Marketing is practically-oriented on the outcome sales. (At this stage the
following tools are being employed: advertising, sales stimulation)
Establishment
1960s.
The growth of market competition requires establishing what to produce
1970s.
Marketing as a major tactic function of management. Its tasks are
successful trade, customer’s behaviour and environment research which
allows to design more effective short-term plans
1980s.
Marketing is becoming the basis of strategic analyses
Active Development (hopefully, in Belarus )
Since 1990s till now.
Marketing is appreciated at both tactic and strategic levels of management.
The concept of corporate marketing appears. Business, and therefore,
marketing should be socially oriented
5. 1900-1950s.
In 1915 the company went outside the American market
After only 5 month of TV development in the US the P&G places its first TV ads
In 1941 the customer service is created
1956 – the sales volumes reached USD1 bln
1960s, 1970s
In 1961 the brand ‘Pampers’ appeared on the market
In the 70s the company faced the strategic growth crises. That resulted in the
stronger orientation on customer needs and the development of brand policy
1980s.
1983 was the record year in launching new brands (22)
This time there was the external sales expansion of 150%
By the end of the 80s the company – the leader in the most of the European
markets, and it began to win on local markets (the Iberian Peninsula,
Scandinavian countries and the Balkans)
Since 1990s.
Since June 1, 2006 three main directions has been developed by the company:
P&G Beauty & Health, P&G Household Care, Global Gillette
2006 - new innovation model – connect and develop – was started; the deep
cooperation with retailers, especially with Wal-Mart
8. The Present-Day Marketing Role
marketing is an important part of the corporation
strategy, defines its long-term competitive advantages
marketing supports the organization structure changes
and is based on democratic way of decision-making
marketing requires both the corporate culture
development and personal motivation
marketing leads to long-term customer relationships
marketing changes thinking and priorities of the whole
company team, not only of top managers
http://www.mycustomer.com/feature/marketing/2020-vision-
three-pillars-marketing-organisation-future/165103
9. HBR: Nike transformed the athletic shoe industry with technological
innovations, but today many people know the company by its flashy ads
and sports celebrities. Is Nike a technology company or a marketing
company?
I’d answer that question very differently today than I would have ten years
ago. For years, we thought of ourselves as a production-oriented
company, meaning we put all our emphasis on designing and
manufacturing the product. But now we understand that the most
important thing we do is market the product. We’ve come around to
saying that Nike is a marketing-oriented company, and the product is our
most important marketing tool. What I mean is that marketing knits the
whole organization together. The design elements and functional
characteristics of the product itself are just part of the overall marketing
process.
We used to think that everything started in the lab. Now we realize that
everything spins off the consumer. And while technology is still important,
the consumer has to lead innovation. We have to innovate for a specific
reason, and that reason comes from the market. Otherwise, we’ll end up
making museum pieces.
10. Large, international corporations tend to become complex organizations,
which makes them inflexible. But in fast-growing emerging markets, you
cannot expect the same stable conditions that we are used to in mature
markets. To succeed in an increasingly volatile market environment, we
need simple structures and processes. We are constantly adapting our
structures to become faster and more flexible.
To succeed in the highly competitive consumer-goods environment, we
need both a management team that reflects the diversity of markets in
which we operate and the innovation capabilities to address a broad
range of varying consumer needs.
As CEO, I believe that a primary task for me and the management board is
to shape Henkel’s growth strategy and clearly communicate it to all
employees. Last year, to present our growth strategy for 2016, the
management board and I visited 28 sites in 22 countries. Overall, more
than 70 town-hall meetings have taken place around the world. And of
course, a critical part of my role is to make sure Henkel has the right
team in place. So in summary, those are my key tasks as CEO: get the
strategy and the team right.
11. If you’re long term oriented, customer interests and
shareholder interests are aligned. In the short term, that’s not
always correct.
One thing that I have learned within the first couple of years
of starting the company is that in inventing and pioneering
requires a willingness to be misunderstood for long periods
of time. One of the early examples of this was the customer
reviews. One wrote to me and said, “You don’t understand
your business. You make money when you sell things. Why do
you allow these negative customer reviews?” And when I read
that letter, I thought, we don’t make money when we sell
things. We make money when we help customers make
purchase decisions.
12. Horizon planning – forget trying to plan incrementally in fast and volatile
markets. Start with a vision, then work backwards thinking about what you
want to achieve with more flexibility within a set of principles and directions
Participation platforms – campaigns are out, platforms are in. Campaigns
push short-term messages, quickly forgotten, platforms build enduring ideas
built on ongoing participation (Coke’s “Live Positively”)
Solomo consumers – the biggest shift in consumer behaviour is guided by
their smartphone, and everything it enables – to be social, and local, and
mobile
Zero moment of truth – in a search-driven, digitally enabled engagement
process – there is a clear moment when potential customers will choose to
love or hate you
Upward innovation – the best ideas come the bottom upwards, not the top
down
Multiple Strategy of Branding is more common
Subscription pricing – the biggest trend in pricing is not to sell products
around transactions but to sell a subscription, like a magazine, cloud
computing
13. Emerging markets – the commonest market growth drivers are
psychological and demographic aspects
Borderless segments – forget nationalism, think niches and motivation
New social communities – community building is not simple, it’s not
just creating a Facebook page but need to being able to unite them
under one cause
Crowd creativity – the best ideas are out there, not in your business.
So build a crowdsourcing platform and let customers build the best
new ideas
Concept innovation – brands are not about products, not about
companies, but about bigger ambitions to make life better
New business models – like Apple and Google, rethink how you create
value for customers through your partnerships with distribution and
supply
Social innovation – ultimately we are all here not just to make money,
but to make the world a slightly better place. It is all about social
corporate responsibility of business
15. The art and science of choosing target
markets and getting, keeping, and growing
customers through creating, delivering and
communicating superior customer value
(Kotler Ph., Keller K.)
16. Marketing Role in the Management
System
Management comprises the following levels:
Corporate – marketing as philosophy (company’s
values, principles, goals and objectives), the basis
for business-model construction
Business (SBU) – marketing as a strategy
(segmentation and positioning)
Functional – marketing as a function
(marketing department)
Operational – marketing as tactics (4P
implementation during a year)
20. Sistema sees MTS as a promising core asset
capable of maintaining good growth rates and
increasing shareholder value by implementing
its operating strategy.
2013 Strategy
◦ MTS aims at strengthening its position
as a leading national mobile operator
in Russia and the wider CIS, both in
subscriber numbers and revenue.
◦ The company is to increase its
revenues and improve customer loyalty
by promoting services of MTS through
the development of the tariffs «Super
0», «Super MTS».
◦ MTS gives priority to the development
of a data segment and new products in
order to effectively monetize mobile
traffic,
◦ MTS continues active implementation
of bank cards "MTS-Money», POS-
loans and other financial services
through a federal retail chain MTS.
2014 Strategy
◦ MTS invests in expansion of its 3G
networks and preparations for a major
roll-out of 4G networks.
◦ MTS prioritises the development of new
products. MTS’s pay TV will continue
expanding due to the launch of digital TV
in the Russian regions in September
2012, and in 2013, the implementation
of a hybrid TV platform which will
consolidate TV broadcasting on three
screens (TV, mobile device and
computer), and a CDN network.
◦ MTS is becoming an important player in
the Russian retail lending market due to
its joint project with MTS Bank. The main
strategic areas of the MTS Money project
are expanding mobile commerce,
enhancing mobile payment opportunities,
promoting new financial products to the
non-banking market, and stimulating the
sales of smartphones and data-
generating devices
22. more emotional slogan “You know that you
can“
brand strategy was based earlier on
technological leadership, now company
appeals in its advertising campaigns to
people who count on
The heroes of the new advertising campaign
are the ordinary people, while MTS minimizes
the involvement of celebrities in advertising
23. “You know that
you can“
be strong
carry love through the years
challenge
tell the truth in the face
become a great poet
25. Key Strategy Elements
Objectives regarding
• the particular product-
market position
• sales volume
• market share
• customer satisfaction
• profit from the product
or the product group
SBU objectives
• sales volume growth
• cash flow
• gaining and holding
competitive advantages
General corporate objectives
• profit growth
• company’s profitability
• return-on-investments
• earnings per share
Objectives
Target markets/ segments
Decision-taking
concerning depth and
width of the product
range, branding,
commodity markets
development
Commodity markets for
SBU
Decision-taking
concerning intensive
growth and related
diversification
Types of activity
Decision-taking concerning
diversification, vertical
integration, acquisitions and
divisions
Scale
Marketing strategyBusiness strategyCorporate strategy
Element
26. Top Manages Marketers
Organize and support
marketing initiatives
Defend the customers’
interests
Take control over
quality
Deal with strategic
issues
Interact with various
divisions and
departments of the
enterprise
Practice net-profit-
oriented approach
27. Marketing organization is a group of marketing
persons brought together to make decisions on marketing
areas like product, price, place, and promotion. Marketing
organization is the foundation of effective sales planning
for systematic execution of plans and policies. Marketing
organization provides a system of relationships among
various marketing functions to be performed by proper
coordination among marketing persons.
Definition of Marketing Organization
"Marketing organization can be defined as a formal or
informal group of individuals working together to reach
quantitative and qualitative marketing objectives by making
decisions on product, price, place, and promotion."
28. Let’s get organized!
Management Structure with the sharp division
between sales’ and marketing functions
General Director
Deputy
Director on
Finance
Deputy
Director on
Sales
Deputy
Director on
Marketing
Deputy
Director on
Manufacturing
and
Operational
Process
29. Management structure with the leading
marketing role
General Director
Finance
Director
Sales and
Supplies
Director
Marketing
Director
Manufacturing
and
Operational
Process
Director
Top Manager
of Sales and
Supplies
Department
Top Manager
of Marketing
Department
Vice-President on Marketing
30. Advantages (Pros) of
centralization
?
Disadvantages (Cons)
of centralization
?
Advantages (Pros) of
de-centralization
?
Disadvantages (Cons)
of de-centralization
?
31. The tendencies of corporate planning development
◦ The number of the central planning department in GE
became half as small in the early 80-s (up to 15 people)
◦ In 4 out of 73 US corporations people in charge of
corporate planning did not have separate special
headquarters (HQ)
◦ In the leading department of Heinz Co. strategic planning is
developed and designed by the President with the technical
assistance of his Secretary and, partly, line managers
◦ Such corporations as HP and J&J lack planning workers at
the level of HQ
32. “De-centralized management is a nice way of searching
for innovations and training corporate leaders”
“We possess more than 200 manufacturing firms; so we
need more than 200 great leaders”
“De-centralized approach encourages innovations, it
allows people with different skills and different ideas
take a try of various products and technologies with the
aim of satisfying the hidden needs of patients and
clients”
De-centralization also helps in international transactions
33. How is it possible to maintain the image of LVMH and take
control of the quality of hundreds of product varieties going
through the enormous network of suppliers, producers,
retailers and marketers? How to keep 76000 focused on work
and support their sense of pride for what they do?
“One of the key elements of managing such a set of
companies of such a huge scope is de-centralization. And for
such a purpose the right team of dedicated managers is
highly and badly needed”.
34. Top-management Middle management
◦ To understand and use
the concept of strategic
marketing
◦ To study and to practice
new methods of
designation and
implementation of
marketing strategies
◦ To follow the already set
tasks in terms of
marketing strategy
◦ To clarify the strategic
goals and make clear the
strategic tasks
◦ To educate and put
forward the ideas of
Strategic Marketing
Planning (SMP)
◦ To delegate powers to
SMP adherers
◦ To make use of the
system of stimulation for
the successful
implementation of
marketing strategies
35. Functional - the different marketing activities are grouped on the
basis of functions to be performed like - product planning,
market research, advertising, sales, or promotion. Each main
function is further divided to sub-functions to be performed to
achieve marketing objectives. Each sub function is managed by
separate manager under the control of marketing manager
Product oriented - common where organisation is producing or
marketing wide variety of products. For each product or group of
products a separate product manager is assigned and made
responsible for marketing decisions for that particular product or
group of products
Market oriented - common in big organisations serving large
number of customers spreading over large territories. Depot
manager, district manager, area manager, zonal manager,
divisional manager, etc., are assigned to manage each territories
Customer oriented - common in organisations engaged in
providing specialised services to different class of customer
37. Marketing approach usage towards
employees
Building-up, stimulation and coordination the
personnel for effective application of corporate and
marketing strategies
The purpose is customers’ satisfaction
through the process of interaction with the
motivated and client-oriented personnel
38. Collecting information about the staff work and
their relationship with the customers
Defining the needs of internal clients
Applying the idea of client-oriented policy
Training the personnel to manage non-
stardard situations with the clients
Interfunctional cooperation
Clever staffing formation policy
39. Staff satisfaction
The high standards of clients’ servicing inside the
company
Marketing-oriented personnel
The company’s and production image among the
personnel
40. Adaptation – loyalty is
absent
Initial loyalty – the
employee does not feel part
of the company yet
Sense of affiliation (belonging to
the company) – the employee is
an active participant, works
really hard and is able to take
personal decision in strategy
True loyalty – the
employee plays the key
role in the company
and feels its integral
part
41. The 3 main pillars of the L’Oreal EVP
are:
A thrilling experience
Employees do the talking - A big
part of the EVP is getting
employees to use their own words
and imagery to tell prospective
applicants what it’s like to work
for L’Oreal. There is an entire
website devoted to this called
‘Thrilling Careers at L’Oreal‘.
Inspiring company
School of excellence
42. Purpose
◦ Senior leadership
◦ Values
◦ External marketing
Culture
◦ Internal communications
◦ Reward & recognition
◦ Learning & development
◦ Service support
Employment
◦ Working environment
◦ Recruitment & induction
◦ Team management
◦ Performance appraisal
◦ Measurement systems
Employer
Brand
Association
sEmployer
Branding
Employer
Image
Employer
Attraction
Organization
Identity
Organization
Culture
Employer
Brand Loyalty
Employer
Productivity
44. Rank 2010 2011 2012 2013 2014
1 Edward Jones SAS Google Google Google
2 Wegmans
Food Markets
Boston
Consulting
Group
SAS SAS SAS
3 Google Wegmans
Food Markets
Boston
Consulting
Group
CHG
Healthcare
Services
Boston
Consulting
Group
4 Nugget
Market
Google Wegmans
Food Markets
Boston
Consulting
Group
Edward
Jones
5 Edward Jones NetApp NetApp Wegmans
Food
Markets
Quicken
Loans
51. Balance and conformity of the long-term and
short-term marketing goals
Analysis of the reasons for the previous success
and / failure (UPS AND DOWNS)
Balance between numerical and explanatory
information
Working-out of marketing KPI
52. Clear goals’ and tasks’ definition
Supply specification
SWOT applicability
The ways to lower risks
Uniqueness / Originality
Tactics evidence
Resources in accordance with the importance
Analytics!
53. We have developed – now we implement
– and evaluate!
Controlling KPI
Correcting
Depending on / Against external factors
alteration
Depending on / Against internal factors
alteration