Marketing Management
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1 Marketing Management Theocharis Katranis Fall Semester
2 Today s Lecture 1. We will analyze the important trends in marketing practices. 2. We will identify the keys to effective internal marketing. 3. We will discuss how a company can build a creative marketing organisation. 4. We will analyze the tools that are available to help companies monitor and improve their marketing activities. 5. We will explain what the marketing metrics are, what is the need, what are useful marketing metrics, what are the key marketing metrics, what metrics do companies use and what is a marketing dashboard. 2
3 Trends in Marketing Practises Due to the changes in the business environment, companies are : 1. Re-engineering: appointing teams to manage customer-value-building processes and break down walls between departments. 2. Outsourcing: buying more goods and services from outside domestic or foreign vendors 3. Benchmarking: studying best practice companies to improve performance 4. Supplier partnering: partnering with fewer but better value-adding suppliers Marketing Management Theocharis Katranis, MBA, Fall Semester
4 Trends in Marketing Practises Due to the changes in the business environment, companies are : 5. Customer partnering: working more closely with customers to add value to their operations 6. Merging: acquiring or merging with firms in the same or complimentary industries to gain economies of scale and scope 7. Globalisation: increasing efforts to think global 8. Flattering: reducing the number of organisational levels to get closer to the customer Marketing Management Theocharis Katranis, MBA, Fall Semester
5 Trends in Marketing Practises Due to the changes in the business environment, companies are : 9. Focusing: determining the most profitable business and customers and focusing on them 10. Accelerating: designing the organisation and setting up processes to respond more quickly to changes in the environment 11. Empowering: encouraging and empowering personnel to produce more ideas and take more initiative Marketing Management Theocharis Katranis, MBA, Fall Semester
6 Internal Marketing Definition: It emphasises the importance in buyers markets for a company to adopt a holistic attitude towards the concepts and goals of marketing and engage in choosing, providing and communicating customerperceived value. Marketing Management Theocharis Katranis, MBA, Fall Semester
7 Organising the Marketing Department Marketing Management Theocharis Katranis, MBA, Fall Semester
8 Organising the Marketing Department Relations with other departments Under the marketing concept, all departments need to think customer and work together to satisfy customer needs and expectations. Marketing Management Theocharis Katranis, MBA, Fall Semester
9 Building a creative Marketing Organisation True Market-driven companies focus on: 1. Developing a company-wide passion for customers 2. Organising around customer segments instead of products 3. Understanding customers through qualitative and quantitative research Marketing Management Theocharis Katranis, MBA, Fall Semester
10 Building Creativity 1. Taking the creative approach i.e (a) Do things faster than before (b) Do it better. 2. Build a creative culture within the organisation 3. Implement Marketing It is the process that turns marketing plans into action assignments and ensures they accomplish the plan s stated objectives. 4. Leadership 10
11 Socially Responsible Marketing 1. Ethical i.e. Theft of trade secrets 2. Legal i.e. Not bribing 3. Social Responsibility company supply information to their customers for its operations 4. Sustainability i.e. Not to harm future generations 11
12 Social Marketing Definition: It is the systematic application of marketing alongside other concepts and techniques, to achieve specific goals, for a SOCIAL good, often by non-profit or government organisations. i.e. Say no to Drugs, Exercise More and Eat Better. 12
13 Evaluation and Control 13
14 The Future of Marketing 1. The Marketing manager s key tasks 14
15 The Future of Marketing 2. A holistic approach to marketing management 3. The nature of marketing 4. Relationship activity Marketing, Customer, Customer-perceived value 5. Market Research Companies will need to pay more attention to market research 15
16 The Future of Marketing 6. New Product Development - Companies will have to concentrate to find New Innovative products 7. Marketing Communications activity New Technological Advances will be used 16
17 Managing Marketing Metrics Definition: It is the set of measures that helps firms to quantify, compare and interpret their marketing performance. 17
18 Managing Marketing Metrics Reasons for the need of Marketing Metrics 1. Companies want to measure the return on marketing need to treat marketing expenditure as an investment instead of just a short-term expense. 2. Conventional methods (i.e. Balance Sheet, Income statements, gross margins) of productivity and return are often historical and say little about the future long-term performance of a company. 3. Availability of ICT and Internet infrastructure (i.e. The use of different planning, management and relationship software). 18
19 Managing Marketing Metrics 19
20 Managing Marketing Metrics Sample of a Balance Sheet 20
21 Managing Marketing Metrics Sample of an Income Statement 21
22 Measuring Marketing Performance & Productivity The Three dimensions of Marketing Metrics 1. Counting-based (or activity) metrics 2. Accounting-based (or operational) metrics 3. Outcome metrics 22
23 Measuring Marketing Performance & Productivity 1. Counting-based (or activity) metrics Counting-based metrics include, for example, number of customers, number of orders, sales, number of complaints. Any Internal and External factor that can be counted may serve as a counting-based metric 23
24 Measuring Marketing Performance & Productivity 2. Accounting-based (or operational) metrics 2.1 Return On Investment (ROI) ROI % = Net Income before tax X 100 Investment ROI % = 200,000 X 100 = 13.3% 1,500,000 24
25 Measuring Marketing Performance & Productivity 2. Accounting-based (or operational) metrics 2.2 Return On Assets (ROA) ROA % = Net Income before tax X 100 Total Assets 25
26 Measuring Marketing Performance & Productivity 2. Accounting-based (or operational) metrics Net Present Value (NPV) Having 1000 in your hand today is better than having 1000 in five years from now. NPV helps companies to accept projects that the expected cash flows from these projects add value to the company. 26
27 Measuring Marketing Performance & Productivity 3. Outcome Metrics Marketers collect and conduct multivariate analyses of many info from a variety of sources outside the company, such as retailer scanned data, company shipping data, pricing, media and promotion spending data. 27
28 Include performance to customers, customer satisfaction rate The Balanced Scorecard Approach Include ROI, Cash Flow Analyses Include illness rates, internal promotions %, employee turnover Include Opportunity success rates, number of activities and defect rates 28
29 The Balanced Scorecard Approach The 4 processes for strategic management 1 29
30 Marketing Dashboards Definition: Dashboards are on screen easy to read summaries of key marketing metrics. A marketing dashboard is a personalised view of all relevant marketing information to a specific job and role. 30
31 Marketing Dashboards 31
32 Summary Lecture We analyzed the important trends in marketing practices. 2. We identified the keys to effective internal marketing. 3. We discussed how a company can build a creative marketing organisation. 4. We analyzed the tools that are available to help companies monitor and improve their marketing activities. 5. We explained what the marketing metrics are, what is the need, what are useful marketing metrics, what are the key marketing metrics, what metrics do companies use and what is a marketing dashboard. 32
33 Chapters 21 and 22 END of Lecture 11 Thank you for your attention 33
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