UNIVERSITY OF GUYANA MARKETING 2204 MODULE 3WEEK 3

UNIVERSITY OF GUYANA MARKETING 2204 …. . MODULE 3…WEEK 3 ERIC M. PHILLIPS (MBA, CTP, BSc. Eng. ; WHITE HOUSE FELLOW) FEBRUARY 2014

MARKETING MANAGEMENT SUMMARY

EXCELLENCE John. W. Gardner, the Great American Leader once stated “We must learn to honor excellence in every socially accepted human activity, however humble the activity, and to scorn shoddiness, however exalted the activity. An excellent plumber is infinitely more admirable than an incompetent philosopher. The society that scorns excellence in plumbing because plumbing is a humble activity and tolerates shoddiness in philosophy because it is an exalted activity will have neither good plumbing nor good philosophy. Neither its pipes nor its theories will hold water. "

MARKETING & YOU Marketing is an exciting subject. A Way of Life. We humans are walking, talking Marketers.

ROLES , RIGHTS & RESPONSIBILITIES OF THE STUDENT The student learns Marketing through self-inquiry, self-analysis and self-participation. The Principles of Marketing taught at most first year university courses are introduced through the student’s mental prism by the fundamental idea……each student is a unique product, with God given talents, skills, attributes and life paths. So instead of teaching in a manner that asks the student to remember ideas or facts, the approach taken in this text book, has the following characteristics: l Learning through personalization for internalization. l Learning by doing. l Thinking more abstractly than linearly. l Exploring natural learning “hooks”. l The Vision Map l The use of “life lessons” l Exercises to nurture and promote “creativity”, and l Team building through leadership training.

THE PHILLIPS VISION MAP

LEARNING TOOLS Here Lies Berry Bill Caught Napping On A Friday Night ABSTRACT VERSUS LINEAR THINKING 1+ 1 = 2; 1 + 1 = 11 1 + 1 = ?

ABSTRACT AND LINEAR THINKING 1 = 11 2 = 22 3 = 33 4 = 44 5 = 55 6 = 66 7 = 77 8 = 88 9 = 99 What is 11 equal to?

LINEAR THINKING?

ABSTRACT THINKING?

ABSTRACT THINKING?

ABSTRACT THINKING

ABSTRACT THINKING l NO SMOKING ALLOWED l NO, SMOKING ALLOWED l IMPOSSIBLE l I’M POSSIBLE l UG…. . DEAD OR ALIVE IN 50 YEARS

NELSON MANDELA l Courage is not the absence of fear — it's inspiring others to move beyond it. l Lead from the front — but don't leave your base behind. l Lead from the back — and let others believe they are in front. l Know your enemy — and learn about his favorite sport. l Keep your friends close — and your rivals even closer l Appearances matter — and remember to smile l Nothing is black or white l Quitting is leading too

MARKETING IDIOMS PERCEPTION IS REALITY? OR IS REALITY PERCEPTION?

PERCEPTION IS REALITY? All the world's a stage And all the men and women merely players. They have their exits and their entrances; And one man in his time plays many parts, His acts being seven ages. At first the infant, Mewling and puking in the nurse's arms Last scene of all That ends this strange eventful history Is second childishness and mere oblivion Sans teeth, sans eyes, sans taste, sans everything.

THE GARDEN OF EDEN?

PERCEPTION VERSUS REALITY

THE CUSTOMER IS ALWAYS RIGHT?

ADVERTISING……THE SEVEN DEADLY SINS l LUST- Excessive sexual desire l GLUTTONY- over consumption of anything l GREED- Excess acquisition of wealth l SLOTH- Sadness l WRATH- uncontrolled feelings of hatred anger l PRIDE- excessive love of self l ENVY- Resentful

MESSAGING………ADVERTISING Who are you? What problems do you solve? Where is your target market? When would your audience benefit? Why do they pick your solution?

IDIOM: THE CUSTOMER IS ALWAYS RIGHT? Creating Perception is a process, not a destination. It's a continuing process. The Perception of a business - what it is, what it does, what it offers - is something that requires periodic updating … as the times and the expectations of its customers and the public change.

THE CUSTOMER IS ALWAYS RIGHT

SUBLIMINAL MARKETING?

WHAT COLOUR ARE YOU? Color can influence our emotions, our actions and how we respond to various people, things and ideas. Much has been studied and written about color and its impact on our daily lives. Many people believe that colors are powers, and that colored stones are especially powerful. Here are some of the meanings of colors and the energies contained in their corresponding stones.

WHICH COLOUR ARE YOU?

WHICH COLOUR ARE YOU?

WHICH COLOUR ARE YOU?

WHICH COLOR ARE YOU?

WOMEN DRESS FOR OTHER WOMEN?

COGNITIVE DISSONANCE FOX AND THE GRAPES RELIGIOUS DOOMSDAY GROUP SMOKING AND LUNG CANCER YOUNG WOMEN IN LOVE FROZEN HEAT POEM……IMMORTALITY

COGNITIVE DISSONANCE ?

COGNITIVE DISSONANCE?

COGNITIVE DISSONANCE

CANCER IS SUCH A SWEET SORROW

PERCEPTION VRS REALITY

BOOK SENSE, COMMON SENSE & NONSENSE?

TODAY’S MARKETING REALITY

PHILIP KOTLER

GOING INTERNATIONAL? AUTOMOBILE AND INDUSTRIAL EQUIPMENT NEAL & MASSY TRANSPORTATION GROUP LTD NEAL & MASSY AUTOMOTIVE LTD CITY MOTORS (1986) LTD TOBAGO SERVICES LTD BEST AUTO LTD AUTOMOTIVE COMPONENTS LTD MASTER SERV LTD TRACMAC ENGINEERING LTD PRES-T-CON LTD NEAL & MASSEY ENERGY AND INDUSTRIAL GASES NEAL & MASSY ENERGY LTD NEAL & MASSY ENERGY SERVICES LTD NEAL & MASSY ENERGY RESOURCES LTD NEAL & MASSY Wood Group LTD (Holding 50%) NM INSERTECH (CARIBBEAN) LTD NM INDUSTRIAL GAS HOLDINGS LTD NEAL & MASSY GAS PRODUCTS LTD INDUSTRIAL GASES LTD TRINTOGAS CARBONICS LTD CARIBBEAN INDUSTRIAL GASES UNLIMITED NMAP SERVICES UNLIMITED (Holding 50%) NM PETROCHEMICALS SERVICES LTD NM SUPPLY CHAIN INTEGRATORS (Holding 51%) FOOD GROUP(FOOD/LOGISTICS/DISTRIBUTION) HI-LO FOOD STORES DIVISION MARKETING & DISTRIBUTION DIVISION HUGGINS SHIPPING & CUSTOMS BROKERAGE LIMITED MELVILLE SHIPPING LTD CMA CGM TRINIDAD LTD (Holding 40%) FINANCIAL, PROPERTY & OTHERWISE GENERAL FINANCE CORPORATION LTD NM REMITTANCE SERVICES LTD MAGNA REWARDS (TRINIDAD & TOBAGO) LTD NEALACO PROPERTIES LIMITED NEALCO REAL ESTATE LTD. INFORMATION TECHNOLOGY, COMMUNICATIONS, OTHER SERVICES NEAL & MASSY ITC GROUP LTD ILLUMINAT (TRINIDAD & TOBAGO) LTD NEALCO DATALINK LTD THREE SIXTY COMMUNICATIONS LTD (Holding 75%) PEREIRA & COMPANY LTD G 4 S HOLDINGS (TRINIDAD) LTD (Holding 24. 5%)

YOU ARE WHAT YOU THINK? Watch your thoughts; they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny. Frank Outlaw

GLOBAL WARFARE

MODULE 3…. . WEEK 3 WHAT IS A MARKET?

DIFFERENT MARKETS?

MARKETS?

WHAT IS A MARKET?

Main actors and forces in a modern marketing system Competitors Marketing intermediaries Suppliers Company (marketer) 48 End user market

THE MARKETING PROCESS

CARICOM…………. CSME

CARICOM OR CARI-GONE?

BRAZIL

MAJOR COMMERCIAL CROPS OF BRAZIL Coffee WORLD’S LARGEST PRODUCER Citrus fruit WORLD’S LARGEST PRODUCER Soybeans SECOND LARGEST PRODUCER

UNASUR………MARKET?

MERCURSOR Separated by history and culture in the past, Guyana has made a conscious decision to pursue its continental destiny and signing this Agreement today marks another step in this direction. ”

THE EU…. 27 COUNTRIES, 24 LANGUAGES With a combined population of over 500 million inhabitants ]or 7. 3% of the world population, the EU, in 2012, generated a nominal gross domestic product (GDP) of 16. 584 trillion US dollars, representing approximately 20% of the global GDP when measured in terms of purchasing power parity (PPP).

THE WORLD’S LARGEST MARKETS

CHINA…. 1. 334 B AND COUNTING

PRODUCERS AND BUYERS OF OIL

GUYANA’S MARKET?

MALE POWER OR FEMALE POWER?

GUYANA THE FREE? DOM Guyana's emigration rate is among the highest in the world - more than 55% of its citizens reside abroad - and it is one of the largest recipients of remittances relative to GDP among Latin American and Caribbean counties. Although remittances are a vital source of income for most citizens, the pervasive emigration of skilled workers deprives Guyana of professionals in healthcare and other key sectors. More than 80% of Guyanese nationals with tertiary level educations have emigrated. Brain drain and the concentration of limited medical resources in Georgetown hamper Guyana's ability to meet the health needs of its predominantly rural population. Guyana has one of the highest HIV prevalence rates in the region and continues to rely on international support for its HIV treatment and prevention programs.

A DIFFERENT CONCEPTUAL VIEW OF A MARKET

MASLOW’S HIERARCHY

IS TIME THE PRODUCT ? …. MASLOW’S HIERARCHY

THE CUSTOMER IS ALWAYS RIGHT?

MARKETING VERSUS SELLING? FRIEDRICH NIETZSCHE “A pair of powerful spectacles has sometimes sufficed to cure a person in love”. QUESTION What is the difference between MARKETING and SELLING?

THE PET ROCK CRAZE (1975) GARY DAHL………. DOGS, CATS, PETS…. . TOO EXPENSIVE

WHAT IS THE MARKETING MIX?

OVERARCHING DEFINITION PHILIP KOTLER and GARY ARMSTRONG……………. . PRINCIPLES OF MARKETING (14 TH EDITION) MARKETING IS “CREATING AND CAPTURING CUSTOMER VALUE” “MANAGING PROFITABLE CUSTOMER RELATIONSHIPS”

THE MARKETING PROCESS

MARKETING MANAGEMENT? Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Marketing Management is the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges with target markets for the purpose of achieving organizational goals.

CHOOSING A VALUE PROPOSITION l l EVERY COMPANY MUST CHOOSE HOW IT WILL SERVE ITS TARGET MARKET. HOW IT WILL DIFFERENTIATE AND POSITION ITSELF IN THE MARKETPLAC HOW TO BRAND ITSELF HOW TO CREATE A “VALUE PROPOSIION IN THE MIND OF CONSUMERS. 1. BRAND MESSAGES……………… HERTZ …………. . WE ARE NUMBER ONE 2. PEPSI ……………EMBRACE YOUR PAST. . BUT LIVE FOR NOW 3. COKE……………. ADDS LIFE 4. LEXUS……………THE RELENTLESS PURSUIT OF PERRFECTION 5. Mc. DONALDS I AM LOVING IT l

MARKETING MANAGEMENT PHILOSOPHIES

THERE ARE 5 MARKETING MANAGEMENT PHILOSOPHIES Under which organizations conduct their marketing activities. 1. Production 2. Product 3. Selling 4. Marketing, and 5. Societal marketing

PROGRESSION ?

FIFTH CONCEPT: THE SOCIETAL MARKETING CONCEPT The Societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver superior value to customers in a way that maintain or improves the consumer's and the society's well being. The Societal marketing concepts asks if the firm senses, serves, and satisfies individual wants AND is always doing what's best for consumers and society in the long run

We are going global Foreign environment (uncontrollable) 1 Economic Political/legal forces Domestic environment (uncontrollable) 2 7 Competitive (controllable) structure Competitive Forces Political/ legal Cultural forces Price Product 7 Promotion Channels of distribution 6 Geography and Infrastructure 3 Level of Technology Economic climate 5 4 Structure of distribution Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollables country market C

GLOBAL WARFARE

WE DID OUR MARKET SEGMENTATION, TARGETING AND POSITIONING…AND WE HAVE A GLOBAL CUSTOMER BASE Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Targeting 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Positioning 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept

WATER FACTS l A dairy cow must drink four gallons of water to produce one gallon of milk l 122 gallons of water are needed to produce one loaf of bread l It takes 50 glasses of water to grow enough oranges to make one glass of orange juice l It takes around 1, 800 gallons of water to grow enough cotton to produce just one pair of regular ol' blue jeans.

UPS……. UNITED PARCEL SERVICE ECONOMIC PROSPERITY…………………. . PROFITABLE GROWTH THROUGH A CUSTOMER FOCUS SOCIAL RESPONSIBILITY………………. . COMMUNITY ENGAGEMENT AND INDIVIDUAL WELL BEING ENVIRONMENTAL STEWARDSHIP…………. OPERATIONG EFFICIENTLY AND PROTECTING THE ENVIRONMENT AVON………………CANCER/PINK

THE MICRO ENVIRONMENT DEFINED AS FORCES CLOSE TO THE COMPANY THAT AFFECT ITS ABILITY TO SERVE ITS CUSTOMERS 1. THE COMPANY’S OTHER DEPARTMENTS 2. SUPPLIERS (BAKEWELL…FLOUR) 3. MARKETING CHANNEL FIRMS (INTERMEDIARIES) 4. COMPETITORS (ENEMIES) PUBLICS (HAS ACTUAL OR POTENTIAL INTEREST) (BANKS, MEDIA, GOVERNMENT, CITIZENS, NGOs, ENVIRONMENTAL GROUPS, NDCs, RDCs, BOARD OF DIRECTORS, EMPLOYEES) 5.

THE MARKETING ENVIRONMENT

WHAT TYPE OF PRODUCT AM I? MY FACEBOOK PAGE • • • NAME OUTRAGEOUS EMAIL ADDRESSES INTERESTING PICTURES TYPE AND NUMBER OF FRIENDS STATEMENTS AND COMMENTS MADE ATTITUDES

THE REAL SUPERMAN…. . I AM THE PERFECT PRODUCT

BE WELL PREPARED

TIME MANAGEMENT?

LIFE LESSON ? GOD, GRANT ME THE SERENITY TO ACCEPT THE PEOPLE I CANNOT CHANGE; THE COURAGE TO CHANGE THE ONE I CAN; AND THE WISDOM TO KNOW THAT PERSON IS ME.

KEY SUCCESS FACTORS ABSTRACT THINKING CLASS ATTENDANCE MATURITY TEAMWORK

INTERNATIONAL BUSINESS?

A GLOBAL FOOD SHORTAGE?

SCARCE RESOURCES, CREATED NEEDS

FOOD IS THE UNDERLYING GLOBAL WAR?

FOOD AS A GLOBAL COMPARATIVE ADVANTAGE

LIMITS TO GROWTH

FOOD IS TODAY’S BIGGEST PRODUCT

WE ARE AMAZINGLY BLESSED

GIVE ME 3 HAMBURGERS AND A DIET COKE

COGNITIVE DISSONANCE=GREAT MARKETING

MORE PROTEIN…. . LESS FAT

BOOK SENSE, COMMON SENSE & NONSENSE?

SUPPLY AND DEMAND….

PERCEPTION IS NOT REALITY

GLOBAL FOOD AND BEVERAGE MONOPOLIES

THE NEW COLONIZERS

WHY ARE THE CHINESE AND VENEZUELANS HERE?