Marketing Management

Course Code: M302

Submitted to:
Professor Shakil Huda

Submitted by:
Al-Imran Bin Khodadad ZR-46 18-A

Institute of Business Administration University of Dhaka Date: 19.02.2012

Market orientation:
Market orientation is a business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers through optimum product mix. Unlike past marketing strategies that concentrated on establishing selling points for existing products, market orientation works in reverse, attempting to tailor products to meet the demands of customers. To achieve superior performance a business must develop and sustain competitive advantage. A business is market-oriented when its culture is systematically and entirely committed to the continuous creation of superior customer value. Three major components of market orientation are Customer Focus Competitor Intelligence Cross-functional coordination

Market Intelligence:
Market Intelligence is a branch of market research, involving collation and analysis of available and relevant information and data on specific markets. Market intelligence typically involves collation of data from various sources such as company accounts, official statistics, data from trade bodies, interviews with business contacts, and research on consumer attitudes. Market intelligence tends to offer a broader view of markets including business and sector. Market intelligence is build from information acquisition, assessment and shared diagnosis and coordinate action of two parts: 1. Competitive insight 2. Market insight

1. Competitive Insight:
Competitive insight is the idea that gives us an edge over our competitor by acquiring knowledge about them. Its an important key factor in order to build strong market intelligence. Superior value requires that the seller identify and understand the principal competitors short term strengths and weakness and long term capabilities and strategies. Competitors strategic investment, changes and key executive profiles helps in knowing the competitive market. Two types of intelligence can lead to having competitive insightCompetitor Intelligence: Competitor Intelligence is about everything there is to know about the competitors of the market. Information about other companies in the same market can help gain the advantage. Certain points are necessary to do so: Investments: Key investments of competitors. Organization Changes: Changes in organizational structure Corporate Strategy: Corporate strategies applied by competitors Acquisition: Recent acquisitions of assets Key executive profiles: Information about the top level employees

Product Intelligence: Creating superior customer value requires more than just focusing on customer. The key questions are which competitors and what technologies and whether target customers perceive them as alternate satisfiers Information about the current existing products on the market besides ones own can help to decide a competitive price and quality for the product. The key factors here are Pricing: Pricing strategy of competing products Product Introductions: Basic information about products Product Promotion: Levels of advertising done by competing products Specification Comparisons: Direct comparisons with own product Cost Structure: How much the competing product cost to make

2. Market Insight: Market insight deals with the entire market as a whole and its customers. So the
two parts of market insight areMarket Understanding: Information regarding the entire market helps understand the current market and may help in predicting future market behavior. The important parts are as follows Market size: The total customer base Market Forecasts: Prediction of market behavior Technology trends: Current patterns regarding technological advancements Segmentation: Proper segmentation of markets

Customer insight: Information regarding customers is extremely important for a market driven strategy. After all, it is the customers who decide which product to buy. Factors of note are Brand preferences: What brands the customers prefer Loyalty rates: How loyal the customers are to a particular brand Purchase Dynamics: Purchasing power and behavior of the customers Brand Awareness: How aware the customers are of the available brands Brand Consideration: Do the customers consider migrating to new brands Key product concerns: Concerns of the customers about the products they buy

Classifying capabilities
External Emphasis: Outside-in processes that affect the organization from the outside
environment.

Internal Emphasis: Inside-out processes that work throughout the organization and affect
the outside environment. The spanning processes that work throughout the organization can be divided into three categories-

Market-oriented processes:
Market sensing: Understanding the market and its movements Customer linking: Linking the customers with the organization Channel bonding: Combining various market channels Technology monitoring: Keeping up with the latest available technology

Customer-oriented processes:
Customer order fulfillment: Fulfilling the orders of the customers Pricing: Pricing the products appropriately Purchasing: Regarding the purchasing power of the customers Customer service delivery: Having a proper customer service New product/service development: Investing in developing new products/services Strategy development: Devising a concrete strategy to attract customers

Finance-oriented processes:
Financial management: Managing the current finances of the organization Cost control: Controlling/reducing costs of products/services Technology development: Developing new technology that can help the organization Environment health: How the organization affects the environment Human Resource management: Managing human resources effectively

8 Ps Cs & Vs of Marketing
There are 8 Ps, Cs and Vs related to marketing. The Ps are organization related. The Cs are customer related and the Vs stand for the value proposition that can be used as a strategic parameter related to the combination of both the terms. The following table shows the relationship between these three-

The 8 Ps Organization related

Product: what we offer to satisfy customers wants and needs. Price: appropriate pricing to achieve organization goal Place: where we sell, distribution channels Promotion: communicating the specific benefits of our product to our customers People: the people associated with the marketing process Process: process in making and marketing the product Package: outer packaging of the product Physical Evidence: Physical appearance of the product

The 8 Cs Customer related

Customer: who we sell it to. Target market. Cost: how much it would cost for the customer Convenience: ease of access for the customer Communication: making the customer aware Care: Customers need to know the human nature of the organization Coordination: customers need to see the coordination among the processes Convergence: customers should see the package and know about the product at a glance Confirmation: customers having the product confirms the purchase

The 8 Vs Strategic Parameter

Validity: how valid the product is to the customer in order to their wants and needs Volume: based on our target for cost and profit Velocity: how quickly the customer can get the product Viral: spreading word of mouth

Verity: real affection needs to be communicated to the consumers Virtual: real time processing

Variable: easy to access the product from the package Venue: goes beyond convenience

There are however experts who believe that the number of Ps for marketing has gone beyond 8 and stands at 10. The additional two Ps, combined with the P of People make up the triple bottom line. The triple bottom line measures the success of an organization. The additional Ps for the 10 Ps and the corresponding Cs and Vs are as follows-

The 10 Ps Organization related

Planet: the external environment of the organization Profit: how much profit the organization wants to achieve

The 10 Cs Customer related

Civilization: customers want to be a part of a functioning civilization Consumer Protection: consumers want to be protected from fraud from any greedy organization

The 10 Vs Strategic Parameter

Vision: the vision for a healthy environment may depend on the country and its people Value: added benefit to the shareholders