FUNDAMENTALS
M A R KOF
E T MARKETING
AE1018-FC1018-EC1018
Unit 1: FUNDAMENTALS OF
CO MPETENCE
STRATEGIC MARKETING
Bibliography:
Vallet, T. (coord.); Vallet, T.; Vallet, A.; Vallet, I.; Casanova, E.; del Corte, V.; Estrada, M.;
Fandos, J.C.; Gallart, V.; Monte, P. (2015): Fundamentos de Marketing. [Link]ó Sapientia nº
98, Publicaciones de la Universitat Jaume I. Chapter 1.
ENTERPRISE
Fundamentals of Marketing FUM 1
CONTENTS
Unit 1: FUNDAMENTALS OF STRATEGIC
MARKETING
1.1. Marketing concept
1.2. Strategic versus operating marketing
1.3. The Marketing Plan
1.3.1. Contents of the marketing plan
1.3.2. Implementation of the marketing plan
1.3.3. Control of the marketing plan
Fundamentals of Marketing FUM 2
Why do companies need to do Marketing?
They are not alone !!!
Fundamentals of Marketing FUM 3
Why do companies need to do Marketing?
COMPETITORS
Fundamentals of Marketing FUM 4
Why do companies need to do Marketing?
ENVIRONMENT
dynamic, turbulent, unstable
with many and very fast
changes
Fundamentals of Marketing FUM 5
Why do companies need to do Marketing?
CONSUMERS
smart, demanding
Fundamentals of Marketing FUM 6
Why do companies need to do Marketing?
So, as there are competitors, environment is
dynamic and consumers are smart
It is not enough to do things well, we must do
them better
Fundamentals of Marketing FUM 7
Why do companies need to do Marketing?
So, as there are competitors, environment is
dynamic and consumers are smart
It is not enough to do things well, we must do
them better
And, how do we do it?
Fundamentals of Marketing FUM 8
Why do companies need to do Marketing?
So, as there are competitors, environment is
dynamic and consumers are smart
It is not enough to do things well, we must do
them better
And, how do we do it?
MARKETING
Fundamentals of Marketing FUM 9
1.1. Marketing concept
WHAT IS
MARKETING?
Fundamentals of Marketing FUM 10
1.1. Marketing concept
EXCHANGE
SATISFACTION
MARKETS
VALUE
NEEDS
SALES
WANTS BENEFITS
CUSTOMERS
COMPANIES
Fundamentals of Marketing FUM 11
1.1. Marketing concept
EXCHANGE
SATISFACTION
MARKETS
VALUE
NEEDS
SALES
WANTS BENEFITS
CUSTOMERS
COMPANIES
Fundamentals of Marketing FUM 12
1.1. Marketing concept
EXCHANGE
SATISFACTION
VALUE
NEEDS
WANTS
Fundamentals of Marketing FUM 13
1.1. Marketing concept
Marketing is a “way” of managing or a
management "philosophy" based on the
different parties getting what they need and
want through an exchange of value for each of
them
Fundamentals of Marketing FUM 14
1.1. Marketing concept
Procedure or set of procedures to
perform an action
Marketing is a “way” of managing or a
management "philosophy" based on the
different parties getting what they need and
want through an exchange of value for each of
them
Way of thinking or seeing things
Fundamentals of Marketing FUM 15
1.1. Marketing concept
Marketing
To understand, conceive,
plan and execute the
exchange being satisfactory
to all parties
Fundamentals of Marketing FUM 16
1.1. Marketing concept
Marketing
To understand, conceive,
plan and execute the
exchange being satisfactory
to all parties
“FACILITATOR” OF EXCHANGE
Fundamentals of Marketing FUM 17
1.1. Marketing concept
“FACILITATOR” OF EXCHANGE
Fundamentals of Marketing FUM 18
1.1. Marketing concept
To facilitate the exchange… we need to study the market
Fundamentals of Marketing FUM 19
1.1. Marketing concept
To facilitate the exchange… we need to study the market
… deeper and deeper
Fundamentals of Marketing FUM 20
1.1. Marketing concept
Coca cola for everyone
Fundamentals of Marketing FUM 21
1.1. Marketing concept
Fundamentals of Marketing FUM 22
1.1. Marketing concept
Fundamentals of Marketing FUM 23
1.1. Marketing concept
Fundamentals of Marketing FUM 24
1.1. Marketing concept
Marketing is a management orientation (PHILOSOPHY DIMENSION)
which holds that the KEY to reach the organization’s goals lies in
discovering the needs and wants of its target market (ANALYSIS
DIMENSION …
Fundamentals of Marketing FUM 25
1.1. Marketing concept
Fundamentals of Marketing FUM 26
1.1. Marketing concept
Marketing is a management orientation (PHILOSOPHY DIMENSION)
which holds that the KEY to reach the organization’s goals lies in
discovering the needs and wants of its target market (ANALYSIS
DIMENSION), and in adapting its offer (ACTION DIMENSION) to these
requirements better and more efficiently than its competitors (Kotler,
1995)
Fundamentals of Marketing FUM 27
1.1. Marketing concept
Fundamentals of Marketing FUM 28
1.1. Marketing concept
Fundamentals of Marketing FUM 29
1.1. Marketing concept
Marketing is a management orientation (PHILOSOPHY DIMENSION)
which holds that the KEY to reach the organization’s goals lies in
discovering the needs and wants of its target market (ANALYSIS
DIMENSION), and in adapting its offer (ACTION DIMENSION) to these
requirements better and more efficiently than its competitors (Kotler,
1995)
DIMENSION LEVEL
MARKET
PHILOSOPHY CORPORATE
ORIENTED
BUSINESS UNIT/ STRATEGIC
ANALYSIS
PRODUCT-MARKET MARKETING
OPERATIONAL
ACTION FUNCTIONAL
MARKETING
Fundamentals of Marketing FUM 30
1.1. Marketing concept
CORPORATE
LEVEL
FUNCTIONAL
LEVEL
BUSINESS
UNIT LEVEL
[Link]
Fundamentals of Marketing FUM 31
1.1. Marketing concept
Kotler and Armstrong, 2011
Fundamentals of Marketing FUM 32
1.1. Marketing concept
Kotler and Armstrong, 2011
Fundamentals of Marketing FUM 33
1.2. Strategic versus operating marketing
Kotler and Armstrong, 2011
Dimension of ANALYSIS DIMENSION: ACTION DIMENSION:
philosophy STRATEGIC MARKETING OPERATIONAL MARKETING
PRODUCT-MARKET /
CORP. FUNCTIONAL LEVEL
BUSINESS UNIT LEVEL
Target
Resources and capabilities
External
analysis
Mission
Diagnosis Objectives Strategies 4Ps Execution Control
Internal
analysis
• Market • Relationships • According competitive • Product
• SWOT
• Competition • Commercial advantage • Price
• Target • Profitability • Environment and • Distribution
• Resources and competition • Comunication
capabilities • Invested resources
Manual chapters 2 - 6 Chapter 7 Chapter 8 Chapter 9 Chapter 1
Units 2, 3, 4 Unit 5 Unit 6 Unit 7 Unit 1
Fundamentals of Marketing FUM 34
1.2. Strategic versus operational marketing
STRATEGIC MARKETING (ANALYSIS DIMENSION):
A methodology of analysis that aims to identify consumers’
needs and estimate the potential for the company and
competition to achieve a sustainable competitive advantage over
time and to maintain it.
‒ What are the needs, wants and demands?
‒ How is the competition doing?
‒ What is the potential for the company?
‒ What can we do better than the competition to achieve a
competitive advantage?
Fundamentals of Marketing FUM 35
1.2. Strategic versus operational marketing
OPERATIONAL MARKETING (ACTION DIMENSION):
It deals with the offer designed by the company to meet the buyer’s
needs: product, price, distribution and communication. FUNCTIONAL
LEVEL.
The three main tasks of the operational marketing are:
‒ Design
‒ Organization and implementation
‒ Control
Fundamentals of Marketing FUM 36
1.2. Strategic versus operational marketing
OPERATIONAL
VARIABLES STRATEGIC MARKETING
MARKETING
Market and competitors Design, implementation and
analysis and selection of control of a marketing plan
1. Main activities
strategy that will enable where the business action
competitive advantage takes place
Direction of the Marketing Middle managers of the
2. Staff involved
Department Marketing Department
3. Organizational level of Business units
Functional
work Product-Market
4. Horizon Long term Medium and short term
5. Nature of business
Not structured Structured
decisions
6. Risk of error Great Little
7. Uncertainty High Low
Fundamentals of Marketing FUM 37
1.3. MARKETING PLAN
1.3.1. Contents of a Marketing Plan
Executive summary MARKETING PLAN: clear and
A62 manageable document that
Current status of marketing effectively supports the
implementation of marketing
SWOT decisions and the optimization
of the economic resources
Target Market
Objectives
Marketing Strategies
Marketing programs
Commercial and financial
viability of the plan
Control
Fundamentals of Marketing FUM 38
1.3. MARKETING PLAN Kotler and Keller, 2012
1.3.1. Contents of a Marketing Plan
A62
Fundamentals of Marketing FUM 39
1.3. MARKETING PLAN
1.3.1. Contents of a Marketing Plan
Where are we? SWOT
Where do we want to be? OBJECTIVES
How do we do it? STRATEGIES
How do we specify it? 4P’s
Did we succeed in it? CONTROL
Fundamentals of Marketing FUM 40
1.3. MARKETING PLAN
1.3.2 Implementation of the marketing plan
Fundamentals of Marketing FUM 41
1.3. MARKETING PLAN
1.3.2. Implementation of the marketing plan
1. Who?
2. How?
3. When?
4. Where?
A.- THE CULTURE
B.- THE STRUCTURE
C.- HUMAN RESOURCES
D.- MANAGEMENT PROCESSES
Fundamentals of Marketing FUM 42
1.3. MARKETING PLAN
1.3.3. Control of the marketing plan
©2012 Pearson Education
Fundamentals of Marketing FUM 43
1.3. MARKETING PLAN
1.3.3. Control of the marketing plan (Kotler et al, 2006)
ANNUAL PLAN
Measurement Assessment of Corrective
Stages of control Goals Setting
of results differences actions
Fundamentals of Marketing FUM 44
1.3. MARKETING PLAN
A MARKETING AUDIT is a comprehensive, systematic, independent, and
periodical examination of a company’s marketing environment,
objectives, strategies, and activities with the aim to determine problem
areas and opportunities, and recommending a plan of action to improve
the company’s marketing performance. Continually monitoring to know
if the marketing plan is the best that the company might have.
Comprehensive
STAGES OF ANALYSIS
Systematic 1. MARKETING ENVIRONMENT
2. MARKETING STRATEGY
3. MARKETING ORGANIZATION
Independent 4. INFORMATION SYSTEMS
5. MARKETING PRODUCTIVITY
Periodic 6. MARKETING FUNCTIONS
Fundamentals of Marketing FUM 45