ENGINEERING, MANAGEMENT AND

SOCIETY II
CIE:422

MARKETING
LECTURE SIX
What is marketing?

Marketing is the process of developing, promoting,

and distributing products to satisfy customers’ needs
and wants.
The marketing planning process
Situation Analysis

S W O T
What is SWOT Analysis?

Acronym for Strengths,

Strengths Weaknesses, Opportunities,
and Threats.

Planning tool used to

understand Strengths,
Weaknesses, Opportunities, &
Threats involved in a project /

Oppurtunity
SWOT Weakness
business.

Analysis Used as framework for

organizing and using data and
information gained from
situation analysis of internal
and external environment.

Technique that enables a group /

individual to move from everyday
Threats problems / traditional strategies
to a fresh perspective.
What is SWOT Analysis cont’?
STRENGTHS

Characteristics of the business or a team

that give it an advantage over others in
the industry.
Positive tangible and intangible
attributes, internal to an organization.

Beneficial aspects of the organization

or the capabilities of an organization,
which includes human competencies,
process capabilities, financial
resources, products and services,
customer goodwill and brand loyalty.

Examples - Abundant financial resources,

Well-known brand name, Economies of
scale, Lower costs [raw materials or
processes], Superior management talent,
Better marketing skills, Good distribution
skills, Committed employees.
What is SWOT Analysis cont’?
OPPORTUNITIES
Chances to make greater profits in the
environment - External attractive factors
that represent the reason for an
organization to exist & develop.
Arise when an organization can take
benefit of conditions in its
environment to plan and execute
strategies that enable it to become
more profitable.
Organization should be careful and
recognize the opportunities and grasp
them whenever they arise. Opportunities
may arise from market, competition,
industry/government and technology.
Examples - Rapid market growth, Rival
firms are complacent, Changing customer
needs/tastes, New uses for product
discovered, Economic boom, Government
deregulation, Sales decline for a substitute
product .
What is SWOT Analysis cont’?

WEAKNESSES

Characteristics that place the firm at a

disadvantage relative to others.

Detract the organization from its

ability to attain the core goal and
influence its growth.
Weaknesses are the factors which do
not meet the standards we feel they
should meet. However, weaknesses
are controllable. They must be
minimized and eliminated.

Examples - Limited financial resources,

Weak spending on R & D, Very narrow
product line, Limited distribution, Higher
costs, Out-of-date products / technology,
Weak market image, Poor marketing skills,
Limited management skills, Under-trained
employees.
What is SWOT Analysis?
THREATS

External elements in the environment that

could cause trouble for the business -
External factors, beyond an organization’s
control, which could place the
!
organization’s mission or operation at risk.
Arise when conditions in external
environment jeopardize the reliability
and profitability of the organization’s
business.
Compound the vulnerability when they
relate to the weaknesses. Threats are
uncontrollable. When a threat comes, the
stability and survival can be at stake.
Examples - Entry of foreign competitors,
Introduction of new substitute products,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.
Aim of SWOT Analysis?

To help decision makers

share and compare ideas.

To bring a clearer
common purpose and
understanding of factors

S W for success.
To organize the
important factors linked
to success and failure in
the business world.
To analyze issues that
have led to failure in the
past.

O T To provide linearity to
the decision making
process allowing
complex ideas to be
presented systematically.
Who needs SWOT Analysis?

• When the team has not met its

targets
2 • Customer service can be better
• Launching a new business unit to
pursue a new business
• New team leader is appointed

Business Unit

Management Company
• When supervisor has issues with
work output • When revenue, cost & expense
• Assigned to a new job targets are not being achieved
1 • New financial year – fresh targets 3 • Market share is declining
• Job holder seeks to improve • Industry conditions are unfavorable
performance on the job • Launching a new business venture

Mr. Sherpinsky's Honors Marketing Class. 2015 All rights reserved.

Who needs SWOT Analysis?
SWOT Analysis is also
required for / during...
Effectiveness in Market
Product Launch

Decision Making

Personal Development Planning

Competitor Evaluation

Product Evaluation
Strategic Planning

Brainstorming Meetings

Goods & Services Evaluation

How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

How to conduct SWOT Analysis?
How to conduct SWOT Analysis?

1. Analyse Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans

External Environment & Document
How to conduct SWOT Analysis?
2. Perform SWOT Analysis & Document
Carry your findings forward - Make sure that the
SWOT analysis is used in subsequent planning. Revisit
your findings at suitable time intervals.

Evaluate listed ideas against

Objectives - With the lists compiled,
sort and group facts and ideas in relation
to the objectives.
List Strengths,
Weaknesses,
Create a workshop environment Opportunities, & threats
- Encourage an atmosphere
conducive to the free flow of
information.
Select contributors - Allocate research & information gathering
Expert opinion may be tasks - Background preparation can be carried
required for SWOT out in two stages – Exploratory and Detailed.
Information on Strengths & Weaknesses should
focus on the internal factors & information on
Opportunities & Threats should focus on the
external factors.
Establish the objectives - Purpose of
conducting a SWOT may be wide / narrow,
general / specific.
 The Marketing Mix

 The marketing mix consists of four basic marketing

strategies known as the 4 P’s.

 Product

 Promotion

 Place

 Price
The 4 P’s of Marketing explained
Product Promotion Place Price
1. Is there a 1. Making 1. Distribution is 1. How much are
demand for the customers aware getting the right customers willing
product or of a product product to the to pay?
service? 2. Advertising right place at 2. Is the price
2. How to make 3. Coupons the right time in competitive with
the product 4. Rebates the right amount other products?
appeal to 5. Sales and in the right 3. Can the
consumer 6. Free give aways condition company make
3. Packaging— 7. Publicity 2. Storage a profit?
includes the 3. Warehousing
design, color, 4. Transporting
size, and brand
names
 Company Name

 Creating a winning company name takes some thought but is

one of the most important things during the process of
starting a company.

5 rules for choosing a company name.
 A winning company name has
to be memorable – but easy to
spell.
 A winning company name
needs a visual element.
 A winning company name
should have a positive
connotation.
 A winning company name may
include information about what
your company does.
 A winning company name has
to be fairly short.
Logos
 The word logo means: a name, symbol
or trademark designed for easy
recognition.
 A logo is a graphical representation of
the company. It consists of symbols,
illustrations and / or graphic print
design.
 The logo should attract attention. It
produces a first impression of your
product.
 How many logos are you familiar with
on this slide?
Principles of effective Logo Design.
Target Market

 A specific group of consumers at which a company aims its

products and services is called a target market.
 Your target customers are those who are most likely to
buy from you.
How to identify your target market
 Ask some of these questions when identifying your target market:

 Are your target customers male/female or both?

 How old are they?

 Where do they live? Is geography a limiting factor for any reason?

 What do they do for a living?

 How much money do they make? This is most significant if you're selling
relatively expensive or luxury items.

 What other aspects of their lives matter? If you're launching a roof-tiling

service, your target customers probably own their homes.

 What are they willing to pay for your product?

Advertising

 Why do companies advertise?

 To promote their products and
services.
 Forms of advertisements
 Newspapers
 Magazines
 TV
 Radio,
 bill boards
 Flyers,
 web.
 Creating Advertisements

 Catchy slogans are great forms of advertisement.

 Your logos can also be used as advertisement.

 Advertisements need to catch the interest of the target

market and create a desire for consumers to buy your
product!
Production and Services Management
Product/Service Management
 A marketing function that involves obtaining,
developing, maintaining, and improving a product or
service mix in response to market opportunities
Factors affecting Product/Service Management
1. Customer Needs and Wants
2. Company Goals and Strategies
3. Cost and Available Resources
4. Competition
5. Product Itself
6. Government Regulation
7. Stages in Life Cycle
8. Business and Economic Trends
What are Benefits to Product/Service
Management?-
 Offer products consumers want and company’s profits
increase

 When developing the right products, a company can

gain new customers

 When products are well managed there is less of a

chance for failure
Main Phases of Product/Service MGMT
 Developing New Products

 Monitoring Existing Products- Sales, Profit, Market Share

 Eliminate Weak Products

Product Life Cycle
 Product Life Cycle represents the stages that a product
goes through during its life.

 Stages of Life Cycle:

1. Introduction

2. Growth

3. Maturity

4. Decline
Product Life Cycle
1. Introduction-Focus will be on production & promotion

2. Growth-Focus is on making customers happy

3. Maturity-Competition is strong Similar models in stores

and sales dropped

4. Decline-Virtually no competition because no one

wants product
Product Life Cycle cont’
Decline - Only three options left with
the company
1. Repositioning or Rebranding of the product to extend
product life cycle

2. Maintain the product as it is and reduce costs to get

maximum profits till the product can produce profits

3. Take the product off the market.

Extending a Product’s Lifecycle
 Make modifications to the product- new car model

 Change the packaging

 Reduce the price

 Export to a new market

 Introduce new varieties-lime-flavored Coke

 Increase the advertising



THANK YOU