CHAPTER 1.

INTRODUCTION AND
BASIC CONCEPTS

INTRODUCTION TO MARKETING AND COMMUNICATIONS IN THE FIRM

CHAPTER 1. INTRODUCTION AND BASIC CONCEPTS

After this chapter you should be able to:

1. Define marketing and outline the steps in the marketing process.

2. Explain the importance of understanding customers and the
marketplace and identify the core marketplace concepts.
3. Identify the key elements of a customer-driven marketing strategy and
discuss the marketing management orientations that guide marketing
strategy.
4. Discuss CRM and identify strategies for creating value for customer and
capturing value form customers in return.
5. Describe sustainable marketing and the major trends and forces that
are changing the marketing landscape.
6. Explain the marketing strategies for improving service differentiation,
quality and productivity.
7. Understand the meaning and importance of customer relationship and
CRM.
8. Understand the different parts in a Marketing Plan.
 CHAPTER 1. INTRODUCTION AND BASIC CONCEPTS

Contents

1. Marketing defined
2. The marketing process
1. Understanding the marketplace and customer needs
2. Design a customer-driven marketing strategy
3. Construct and integrated marketing program that delivers superior
value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer
equity
3. Marketing services
4. Managing service quality
5. Preparing and integrated marketing plan

“You already know a lot

Activity 1 about marketing – it is all
around you” Kotler

What is Marketing?
Is it important for
economic activities?
Why?
 Marketing defined

Marketing has to do with dealing with customers, because they are an

essential component of the marketing system.
Creating customer value and satisfaction.
Marketing is more than advertising, selling and websites.
It must not be understood only in the old sense of making a sale
(“telling and selling”) but in the new sense of satisfying customer
needs.
Selling starts once the product is produced and marketing starts long
before an organization has a product.
Marketing is the way to assess needs, measure their extent and
intensity and determine, whether a profitable opportunity exists; and
continuous throughout the product’s life trying to find new customers
and keep current customer by improving products appeal and
performance, learning form product sales results and managing repeat
performance.
If the marketer understands consumer needs, develops products and
services that provide superior customer value, and prices, distribution
and promotes them effectively, these products will sell easily.
 Marketing defined

Marketing is managing profitable customer relationship – the twofold

goal of marketing is to attract new customers by promising superior
value and to keep a grow currents customers by delivering satisfaction.
The aim of marketing is to make selling unnecessary. Peter Drucker.
The aim of marketing is to know and understands the customer so well
that the product or service fits and sells itself.
Is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchange
products and value with others.

Marketing is the process by which

companies create value for customers and
build strong customer relationships in order
to capture value from customers return.

Marketing defined

Source: Kotler, P and Keller, K.L (2007). Marketing

Management. New Jersey: Prentice Hall
 Marketing defined

Social definition:
“Marketing is a societal process by which individuals and
groups obtain what they need and want through
creating, offering, and freely exchanging products and
services of value with others”

Managerial definition:
"the art of selling products,"

Marketing defined
What is marketed?
Goods
Ideas Services

Information Experiences

Organizations Events

Properties Persons
Places
 • A managerial process deployed by an organisation
What is marketing?
(individual or group)

• To fulfil the needs and wants of the organisation:

maximize profits, change needs and wants of other
What is its objective? individuals or groups; although the objective of
commercial marketers is usually to achieve sales
targets or market share objectives.

• A social process whereby other individuals or groups

obtain needs and wants by creating and exchanging
How is this achieved?
products and value – this limits how the deploying
organisations behaves.

The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct an Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5

the customer- integrated profitable from

marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity
 The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct and Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5
the customer- integrated profitable from
marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity

CLASS ACTIVITY 1

Consider the Zara, Nh Hotels or Decathlon

Determine the main forms of marketing that are used to reach
target audiences.
 CLASS ACTIVITY 2
UNDERSTANDING THE CRITICAL ROLL OF MARKETING
IN ORGANIZATIONS AND SOCIETY

Forces and trends in the global marketing environment

Specify, at least, four critical rolls that determine, nowadays,

the importance of MARKETING in business write them
down...

What is happening?
Promotional
explosion

Advertising Customer

The brand

Inconsitent
Competence marketing

Retailing &
Similar Distribution
Communication
products Channels
 Step 1. Understanding the marketplace and customer needs

1. Needs, wants and demands

2. Marketing offerings (products, services and experiences).

3. Value, satisfaction and quality.

4. Exchanges and relationships.

5. Markets and the marketing system.

Step 1. Understanding the marketplace and customer needs

1. Needs, wants and demands

NEEDS: states of felt deprivation. Include physical needs (food,

clothing, warmth and safety), social needs (belonging and affection),
individual needs (knowledge and self expression).
WANTS: the form that human needs take as shaped by culture and
individual personality – people have narrow, basic needs but almost
unlimited wants.
DEMANDS: human wants that are backed up by buying power .

Given their wants and resources, people demand products with

the benefits that add the most value and satisfaction.
Step 1. Understanding the marketplace and customer needs

MASLOW’s PYRAMIDS

TO whom?

USA:
[Link]
[Link]

ESPAÑA:
[Link]
 Step 1. Understanding the marketplace and customer needs

2. Marketing offerings (products, services and experiences).

Companies address needs by putting forth a value

proposition, a set of benefits that they promise to consumers
to satisfy their needs. The value proposition is fulfilled
through a market offering.
Market offering: some combination of products, services,
information or experiences offered by a market to satisfy a
need or want.
Marketers must look beyond the attributes of the products
and services they sell. They create brand meaning and brand
experiences for consumers.
“What consumer really want is offers that dazzle their senses,
touch their hearts and stimulate their mind’s. They want
offers that deliver an experience”.

Step 1. Understanding the marketplace and customer needs

Step 1. Understanding the marketplace and customer needs

Step 1. Understanding the marketplace and customer needs

 Step 1. Understanding the marketplace and customer needs

Step 1. Understanding the marketplace and customer needs

3. Value, satisfaction and quality.

How do consumers choose among many marketing

offerings?
Customers form expectations about the value and
satisfaction.
Satisfied customers become loyal.
Marketers must be careful to set the right level of
expectations.
The guiding concept is CUSTOMER VALUE: the consumer’s
assessment of the product’s overall capacity to satisfy his or
her needs – COST-VALUE RELATION –
Step 1. Understanding the marketplace and customer needs

“ Smart companies aim to delight customers by promising

only what they can deliver, then delivering more than they
promise”

Step 1. Understanding the marketplace and customer needs

 Step 1. Understanding the marketplace and customer needs

4. Exchanges and relationships.

Marketing occur when people decide to satisfy needs and wants through
exchange relationships.
Exchange: is the act of obtaining a desired object from someone by offering
something in return. For exchange to take place, several conditions must be
satisfied:
Two parties, at least, must participate with something of value to offer the other.
Each party must want to deal and must be free to make decisions.
Must be able to communicate and exchange.
Marketing consists of actions taken to build and maintain desirable exchange
relationships with target audiences involving a product, service, idea or other
object. Transaction marketing is part of the larger idea of relationship
marketing.
Relationship marketing: the process of creating, maintaining and enhancing
strong, value-laden relationships with customers and other stakeholders.

Step 1. Understanding the marketplace and customer needs

 Step 1. Understanding the marketplace and customer needs

5. Markets and the marketing system.

A market is the set of actual and potential buyers of a marketing offering. These
buyers share a particular need or want that can be satisfied through exchanges and
relationships.
The size of a market depends on the number of people who exhibit the need, have
resources to engage, and are willing to offer these resources in exchange for what
they want.
Marketing means managing markets to bring about profitable customer
relationships through creating value and satisfying needs and wants.

COMPANY
(marketer)
MARKETING
SUPPLIERS FINAL USERS
INTERMEDIARIES
COMPETITORS

MAYOR ENVIRONMENTAL FORCES

The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct and Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5

the customer- integrated profitable from

marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity
 Step 2. Designing a customer-driven marketing strategy

Once we fully understands consumers and the marketplace,

marketing management we can design a customer-driven
marketing strategy.
Marketing management: the art and science of choosing
target markets and building profitable relationships with
them.
To design a winning marketing strategy, the marketing
manager must answer two important questions:
What customers will we serve (target market)?
How can we serve these customers best (value
proposition)?

Step 2. Designing a customer-driven marketing strategy

Selecting customers to serve

Divide the market into segments of customers (market
segmentation) and selecting which segments it will go after
(target marketing).
Organizations also have a desired level of demands: no
demand, adequate demand, irregular demand, too much
demand.
Demarketing: marketing to reduce temporarily or
permanently demand – the aim is not to destroy but to
reduce or shift.
Decide which customers they want to target, and the level,
timing and nature of their demand: Marketing management
is customer management and demand management.
 Step 2. Designing a customer-driven marketing strategy

Choosing a value proposition

How it will differentiate and position itself in the market
place.
Why would I buy your brand rather than a competitor`s?
value propositions – competitive advantage.

VALUE PROPOSITION: A business or marketing statement

that summarizes why a consumer should buy a product or
use a service. This statement should convince a potential
consumer that one particular product or service will add
more value or better solve a problem than other similar
offerings.

Step 2. Designing a customer-driven marketing strategy

Red bull gives you wings
 VIEW THE
FOLLOWING
VIDEOS

• [Link]
• [Link]
• [Link]
re=related

ACTIVITY 1. LA RIOJA MARKETPLACE:

CUSTOMER NEEDS & WANTS

• Based on the different Market

Segments previously identified:
– Identify which needs, wants & demands is La
Rioja trying to satisfy as a tourism
destination.
– Identify La Rioja’s Value Propositions and
Market Offering.
 The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct and Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5
the customer- integrated profitable from
marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity

Step 3. Integrated marketing programme

Marketing management orientations

Marketing management wants to design strategies that will
build profitable relationships with target consumers.

But ..

… What philosophy should guide these marketing

strategies?
… What weight should be given to the interest of
customers, the organisation and society?
 Step 3. Integrated marketing programme
There are six alternative concepts under which organisations
design and carry out their marketing strategies:

Productio
n concept

Sustainabl
Product
e Mk
concept
concept

Social Mk Selling
concept concept

Marketing
concept

Step 3. Integrated marketing programme

The philosophy that consumers will favour products that are

Production available and highly affordable, and that management
concept should therefore focus on improving production and
distribution efficiency.

The idea that consumers will favour products that offer the
most quality, performance and features, and that the Product
organisation should therefore devote its energy to making concept
continuous product improvements.

The idea that consumers will not buy enough of the

Selling concept organisation’s products unless the organisation
undertakes a large-scale selling and promotion effort.
 Step 3. Integrated marketing programme

The marketing management philosophy which holds that achieving

Marketing organisation goals depends on determining the needs and wants of
concept target markets and delivering the desired satisfactions more
effectively and efficiently that competitors do.

A principle of enlightened marketing which holds that an

organisation should make good marketing decisions by Societal mk
considering consumer’s wants, the companies requirements, concept
consumer’s long-run interests and society’s long-run interests.
Society
(human welfare)

Consumers Company
(want satisfaction) (profits)

Step 3. Integrated marketing programme

THE SELLING AND MARKETING CONCEPTS CONTRASTED

Starting point Focus Means Ends

SELLING Selling and Profits through

Factory Existing
CONCEPT promotins sales volume
products

Profits through
MARKETING Customer needs Integrated
Market customer
CONCEPT marketing
satisfaction
 Step 3. Integrated marketing programme

A principle of marketing that holds that an organisation should

Sustainable mk meet the nedds or its present consumers without
concept compromising the ability of future generations to fulfill their
own needs.

“Acting in an environmentally responible

manner is good business”

Step 3. Integrated marketing programme

Advantages and disadvantages of each perspective and

examples.
 The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct and Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5
the customer- integrated profitable from
marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity

Step 4. Building profitable customer relationships

Demand:
New customers
Repeat customers
The cost of attracting new customers is rising – it costs 5
times as much to attract a new customer as it does to keep
a current customer satisfied.
Shift towards retaining profitable customers and building
lasting relationships with them:
The customer liftetime value fo a supermarjet custmers
might exceed 1.000.000 €.
 Step 4. Building profitable customer relationships
One of the most
importante
concepts in modern
marketing

Customer Relationship Management (CRM): the overall

process of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction. It deals with the process of acquiring, keeping
and growing customers.
The key to building lasting customer relationship is to create
superior customer value and satisfaction.
Customer perceived value: the customer’s evalutacion of the
difference between all the benefits and all the costs of a
market offering relative to those os competing offers.
Customers often do not judge product values and costs
accurately or objectively.

Step 4. Building profitable customer relationships

Customer satisfaction: the extend to which a product’s

perceived performance marches a buyer’s expectations.
Smart companies aim to delight customers by promising only
what they can deliver, then delivering more than they promise.
Most studies show that higher levels of customer satisfaction
lead to greater customer loyalty.
CRM enables companies to provide excellent real-time
customer service through the effective use of individualized
information
 Step 4. Building profitable customer relationships
Pioneer in the application of CRM
technique: Harrah’s Entertainment
Inc. (Las Vegas)
1997 – Launch a pioneering loyalty
program that pulled all customer
data into centralized wharehouse
and provided sophisticated analysis
to better understand the value of
the investments the casino makes
in the customers.

Fine-tune its total Rewards sustem to active near-real-time

analusis: as customers interact with slot machinces, check
into casinos, or buy meals the receive reward offers based
on the predictive analysis.
Hundreds of customers segments identified among 26
million slot players.
Almost double its share of customer’s gaming budgets in
just eight years.

Step 4. Building profitable customer relationships

Companies build customer relationships at many levels,

depending on the nature of the target market:
Nestle does not phone or call on all of its Buitoni pasta
customers to get to know them personally. Instead the
company creates relationships through brand-building
advertising, sales promotions and its seniors of Buitoni Clubs
for customers, form Italy to Japan, who are keen on making
authentic Italian meals.
In selling Buitoni through their distribution channel, Nestle
customer teams work closely with Carrefour, Metro, Tesco
and other large retailers.
In between these extreme situations there are other
appropriate levels.
 The marketing process

Capture value
from customers
Create value for customers and build customer relationships in return

Understand Design a Construct and Build Capture value

Step 1

Step 2

Step 3

Step 4

Step 5
the customer- integrated profitable from
marketplace driven marketing relationships customers to
and customer marketing programme and create create profits
needs and strategy that delivers customer and customer
wants superior value delight equity

Capturing value from customers

Outcomes of creating customer value:
Customer loyalty and retention: the value of the entire stream of
purchases that a customer would make over a lifetime of patronage
– Customer lifetime value.
The benefits come from continued patronage of loyal
customers, reduces marketing costs, decreased price sensitivity
of loyal customers and partnership activities of loyal
customers….. The can also purchase a broader variety of items.

Growing share of customers: the share of the

customer’s purchasing that a company gets in
its product categories.
Amazon
Building customer equity: the total combined from
books to
customer lifetime values of all the company’s
customers – may be a better measure of the
form’s performance than current sales or
market share.
 Capturing value from customers
In the 1970s and 1980s, GM Cadillac had some of the most loyal customers in the
industry.
To an entire generation of car buyers, the name “Cadillac” defined American
luxury and was celebrated in numerous popular songs.
Cadillac’s share of the luxury car market topped 50% in 1976.
Based on market share and sales, the brand’s future looked good. However,
measures of customer equity would have painted a bleak picture.
Cadillac customers averaged age 60 and average customer lifetime value was
falling. Many Cadillac buyers were on their last car!. This, although Cadillac’s
market share was good, its customer equity was not.
BMW’s youthful and vigorous image didn’t win BMW the early market share war.
However, it did win BMW younger customers with higher customer lifetime
values. As a result, in the years that followed, BMWs market share and profits
grew while Cadillac’s fortunes declined. Thus, the market share is not the answer.
We should care not just about current sales but also about future sales.
Customer lifetime value and customer equity are critical Recognising this, GM is
now taking eh Cadillac brand to a younger generation of customers with new high-
performance models and its successful Break Through advertising campaign. Sales
are up 37% over the past four years but there are far more foreign luxury cars
form Europe and Japan, than there ever were.

Capturing value from customers

Benefits from loyalty
 Capturing value from customers

FROM TRANSACTION TO RELATIONSHIP MARKETING

PARADIGM CHANGE

TRANSACTION MARKETING
I have a product
To whom can I sell ir?

RELATIONSHIP MARKERTING
I have a client
How and what can I sell him/her ?

Capturing value from customers

Defining Relationship Marketing

Relationship marketing refers to a long-term and mutually beneficial
arrangement wherein both the buyer and seller focus on value
enhancement with the goal of providing a more satisfying exchange.
This approach attempts to transcend the simple purchase-exchange
process with customer to make more meaningful and richer contact by
providing a more holistic, personalized purchase, and use the
consumption experience to create stronger ties.
Predetermined actions to develop Relationship Marketing:
Have a brand that suggest certain values that make consumers select
the majority of our products and services.
To offer confidence so that our customers recommend us to their family
and friends.
To capture value from our customers establishing a good relationship
with him.
To know our client his necessities and expectations and to offer specific
solutions.
TEMA 1. Capturing value from customers
INTRODUCCIÓN AL MARKETING TURÍSTICO
Relationship Marketing, ¿why?
Copy & Paste
Product parity: all products are similiar, quality is assumed to
be the same. Tecnhnology is available for everyone.
Service parity: it is very easy to copy a service. While it is
indispensable.
Market saturation:
Supply saturation
Media saturation
Message saturation
Trends saturation
Reduction
Preices and margins
Advertising eficiency.- the importance of experiences

TEMA 1. Capturing value from customers

INTRODUCCIÓN AL MARKETING TURÍSTICO

Is it satistaction the same

thing as loyalty?
TEMA 1. Capturing value from customers
INTRODUCCIÓN AL MARKETING TURÍSTICO

What loyalty is not:

Expect them to buy because you are using gifts and
incentives.
Obtain benefits in the short run.
Expect a comercial returns in each comercial action.
Expect all aour clients to have the same necesities.
Imagine what our clients what without asking.

“Is takes time to make a loyal client and very little to loose
him”

Capturing value from customers

Building the right relationships with the right customers:
Erratic – consitents Classify customers
according to their
Big spenders – small spenders potential profitability and
mange its relationships
with them accordingly

Butterflies True friends

Potential profitability

Good fit between company’s Good fit between company’s offerings

High

offerings and customer`s needds; and customer`s needds; highest profit

high profot potential potential
Strangers Barnacles
Little fit between company’s Limited fit between company’s
Low

offerings and customer’s needs; offering and customer’s needs; low

lowest profit potential profit potential.
Short-term customers Long-term customers
Projected loyalty
“20% of our clients make 80% of our sales”
 Marketing services
Service: any activity or benefit that one party can offer to another which is essentially intangible
and does not result in the ownership of anything.
“there is rarely such a thing as a pure service or a pure good”
Five categories of offering can be distinguished:
Pure tangible good
Tangible good accompanied by one or more services
Hybrid offer: equal part of goods and services.
Service with accompanying minor goods.
Pure service.

TANGIBLE SALT SOFT DETERG CAR COEME FAST-

DOMINT DRINKS ENT TICS FOOD
OUTLET
S

FAST- AD AIRLNE FINANCI CONSUL TEA INTANGIBL

FOOD AGENVY AL TING CHI E
OUTLET SERVICE NG DOMINAN
S T

Marketing services
INTANGIBILITY:
services cannot
Yield Management They can go empty-handed
be seen, tasted, but they will not leave
felt, heard or empty-headed. Robert Lewis
smelt before
purchase.
VARIABILITY:
PERSISHABILITY:
quality of
services cannot
services depends
be stored for
SERVICES on who provides
later sale or use
them and when,
.
where and how.
.

INSEPERABILITY:
services cannot Consistency is the objetive:
The client is part of be separated -Invest in good hiring & training
the product and he procedures.
must be trained.
from their
-Standardize the service-
providers performance process
-Monitor customer satisfaction
 Managing service quality

Studies suggest that customer assessments of service

quality are the result of a comparison of what thy expect
with what they experience.
To improve quality service marketers must identify:
a) What target customer’s expectations are.
b) The key determinants of service quality – criteria customers
use to judge both the quality of their experience and the
outcome of a service encounter
c) How customers rate the firm’s service in relation to these
criteria against that the expected.

Managing service quality

KEY DETERMINANTES OF PERCEIVED SERVICE QUALITY

WORD-OF- PAST
BUYER’S NEEDS ADVERTISING
MOUTH EXPERIENCE

DIMENSIONS
OF QUALITY
Access
Credibility EXPECTED
SERVICE
Knowledge
Reliability PERCEIVED
SERVICE
Security QUALITY
Competence
Communication PERCEIVED
Courtesy SERVICE
Responsiveness
Tangibles
 Managing service quality

Quality gaps that cause unsuccessful service delivery:

1. Between consumer expectations an management
perception.
2. Between Management perception and service quality
specification.
3. Between service quality specification and service delivery.
4. Between service delivery and external communications.
5. Between perceived service and expected service.

Managing service quality

Berry, Parasuman and Zeithmal, pionerrs in conducting academic service

research, offer ten lessons that they maintain are essential for improving
service quality across service industries:
Listening
Reliability
Basic service: keep promises, use common sense, listen to customer, keep
customers, and be determined to deliver value to customers.
Service design
Recovery – problem solution systems
Surprising customers
Fair play to customer and employees
Teamwork
Employee research
Servant leadership: quality service comes from inspired leadership throughout
the organisation; from excellent service-system; from the effective use of
information and technology; and from a slow-to-change invisible, all-powerfull,
internal force called corporate culture.

Berry, Parasuman and Zeithmal (2003). The Lessons for improving service
quality. MSI Reports Working Papers Series, nº 03.
 Managing service quality

Think strawberries. Kevin Fields (Mr) [Link]. Lecturer:

Hospitality & Tourism Management Birmingham College of
Food, Tourism & Creative Studies

[Link]

Which elements you identify in the Case Study that are

basic por Managing Service Quality.

Successful Marketing Management

The set of tasks necessary for successful marketing management

includes:
Developing marketing strategies and plans

Connecting with customers

Building strong brands

Shaping the market offerings

Delivering and communicating value

Capturing marketing insights and performance

Creating successful long-term growth.

 Preparing and integrated marketing plan

One of the most important steps a business or community can

take to improve the effectiveness and efficiency of their
marketing efforts is to develop a written marketing plan.
This plan will guide their marketing decisions and assist them
in allocating marketing resources such as money and
personnel time.
Outlines which customers the company will serve and how it
will create value for these customers.

Preparing and integrated marketing plan

The marketing plan is the central instrument for directing

and coordinating the marketing effort.
The marketing plan operates at two levels
STRATEGIC: lays out the target markets and the value
proposition that will be offered, based on an analysis of the
best market opportunities.
TACTIC: specifies the marketing tactics, including product
features, promotion, merchandising, pricing, sales channels,
and service.
 Preparing and integrated marketing plan

The plan should include:

1. Marketing analysis:
(1) the overall business objectives--what you want to accomplish
(2) an assessment of the market environment--what factors may affect
your marketing efforts
(3) a business/ organization profile--what resources are available
(4) market identification (segmentation)--the specific groups or clientele
most interested in your product
(5) the marketing objectives for each segment
(6) the marketing strategies (or mixes) for different markets you target--
the best combination of the 4 Ps (product, price, place, promotion)
for each segment or 6 P’s
(7) an implementation plan--how to "make it work;"
(8) the marketing budget-how much you have to spend
(9) Feed-back and control

Preparing and integrated marketing plan

1. Marketing analysis:
1. Business objectives
2. Analyze MACRO and MICRO ENVIRONMENT
3. Main characteristics of the organization and its
products / services.
4. SWOT analysis
1. Strengths: attributes of the person or company that
are helpful to achieving the objective.
2. Weaknesses: attributes of the person or company
that are harmful to achieving the objective.
3. Opportunities: external conditions that are helpful
to achieving the objective.
4. Threats: external conditions which could do damage
to the business's performance.
 Preparing and integrated marketing plan

Preparing and integrated marketing plan

2. Strategic marketing: design the different options taking into account

the SWOT analysis and the consequences for the company: competitive
advantages; target market. The main objectives must be defined
(Mission, objectives and goals). Main strategies:
1. Cost leadership
2. Differentiation: give the product or service specific characteristics
that are considered unique by the consumers.
3. Segmentation: the process of dividing a market into distinct groups
of buyers who have different needs, characteristics , or behaviour
who might require separate products of marketing programs.
4. Positioning: Arranging for a product to occupy a clear, distinctive,
and desirable place relative to competing products in the minds of
target markets.
5. Targeting: involves evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
 Preparing and integrated marketing plan

After deciding the overall marketing strategy, the company

must begin planning the details for the Marketing Mix.
Marketing mix: set of controllable, tactical marketing tools
that the form blends to produce the response it wants in
the target market – everything the form can to influence
the demands for its product:
Product: goods-and-services combination the company offers
to the target market.
Price: the amount of money customers must pay to obtain
the product.
Place: includes company activities that make the product
available to target customers.
Promotion: activities that communicate the merits of the
product to persuade target customers to buy it.

Preparing and integrated marketing plan

Three additional Ps in marketing strategies for service firms:

People: most services are provided by people. Importance
of training, motivation competence, a caring attitude,
responsiveness, initiative, problem-solving ability and
goodwill.
“Successful service companies focus their attention on
both their customers and their employees”.
Physical environment in which the service product is
presented and delivered.
Process: service companies can schoose among different
sercices processes to deliver their service:.
 Preparing and integrated marketing plan

Specific tools that fall within promotion:

ADVERTISING SALES PUBLIC PERSONAL DIRECT MARKETING
PROMOTION RELATIONS SELLING
Print and broadcast Contests, games, Press kits Sales presentations Catalogs
ads lotteries Speeches Sales meetings Mailings
Packaging-outer Premiums and gifts Seminars Incentive programs Telemarketing
Packaging inserts Sampling Annual Reports Samples E-commerce
Motion pictures Fairs and trade Charitable donations Fairs and trade TV shopping
Brocheres and shows Sponsorships shows
booklets Exhibits Publications
Posters and leaflets Demonstrations Community relations
Directories Couponing Lobbying
Reprints of ads Rebates Identity media
Billboards Low-interest Company magazine
Display signs financing Events
Point of-purchase Entertainment
displays Trade-in allowances
Audiovisual Trading samples
materials Tie-ins
Symbols and logos

Preparing and integrated marketing plan

3. Operational marketing - Implementation

PRODUCT PRICE
CLIENT COST
SERVICE

MARKETING MIX

PROMOTION DISTRIBUTION
CONVENIENCE
BIDERECTIONAL
COMMUNICATION
 Preparing and integrated marketing plan

Source: Kotler, P and Keller, K.L (2007). Marketing

Management. New Jersey: Prentice Hall

Preparing and integrated marketing plan

4. Budget

Quantification of the objectives

5. Feedback and control

Track results and monitor new developments in the
environment. The environment will change and the company
must revise its strategies or objectives.
“It is more important to do the right thing (being effective)
than to do thing right” (Peter Drucker)
 Preparing and integrated marketing plan

FEED-BACK

MARKETING STRATEGIC IMPLEMEN-

CONTROL
ANALYSIS MARKETING TATION

TARGET IMPLEMTATACION
SERVICES /
MARKET MARKETS / - PRODUCT SALES
SEGMENTATION
- PRICE
- PROMOTION MARKET
SHARE
- DISTRIBUTION
COMPETENCE POSITIONING /
DIFFERENTIATION - SALES FORCE MARKET
SALES

ENVIRONMENT