Part 1

Module 1Marketing Principles

and Concepts

Agenda – Full Course•Module 1: Key principles of customer acquisition.

(Longest module)•Module 2: Marketing tactics and activities. (The 4 Ps)•Module 3: Brands and Branding•Module 4: Customer analysis. Marketing against

competitors•Module 5: Customer retention, loyalty and growth•Examination: 2.5 hours, open book•Assignment: Analyse current marketing situation

Agenda: Module 1•The evolution of marketing and customer management •Why are we here? The environment of 21st century

business.•Challenges: 10 broad principles•The marketing audit•The marketing process – 5 key goals• Introduction: definitions and principles•Why companies market•B2B and B2C (and P2P?)•The marketing strategy process

Will all come

together

Agenda: Module 1 (Ctd.)•Analysing Market opportunities (Lots of Homework)•Macro environment (PESTLIED)•Customers, suppliers, competitors, other stakeholders•Porter’s Model of Industry Competitiveness•The product life cycle – PLC•The GE Grid of industry attractiveness and strengths•Porter’s Model of Generic Strategies•Analysing buying behaviour•Segmentation, targeting and positioning (STP).

Differentiation

Fast Recovery?

Slow Recovery?

No Recovery?

Where is your business going?

Today

2012

2015

2020

2025

Sept 2008

Nouriel Rubini, the world’s “pessimistic economist”

“We've got a long way to go through the valley of the shadow of debt before emerging into daylight.”

Can a good company become a great company at any point in time, or does it inherit its history?

It is possible to identify a “strategic inflection point” when this happens. Some make the change successfully.

Most don’t manage to sustain itBut most importantly, winners share a

number of common characteristics

There seems to be a framework that can be applied to achieving

greatness – but it must be conscientiously applied

“Greatness is largely a matter of conscious choice” (Collins)

But one thing seems to stand up above all others in remarkable companies

The key implication is that there are no magic cures…

There seems to be no defining action, no grand programme, no killer innovation, no solitary lucky break, no miracle moment, no grand restructurings.In fact, many winners only identify the transformation point when they look backwards

World of business in turmoil

today!

But

Companies

Don’t Get It!

Why Businesses Decline

Their customers leave them… or they leave their customers

Leads to a scarcity of customers… and falling revenues

And why do customers leave?• Poor quality, high defect rates, deficient service• Lack of understanding of customers’ needs• Inadequate/inappropriate marketing/sales effort • Many more competitors and choices…

Richard Tedlow

“We are competing with everyone from everywhere for everything”

But the “new” stuff just doesn’t work anymore!

We thought that the good times would last forever…

…All the way to India & China

Very few businesses have not been affected by the global recession

The Economist, 11 February 2011

What can Apple learn from

?

Our Iceberg is melting!And we don’t even know it’s happening!

“ All companies fail. It’s just a question of

when”

What is the 21st Century Business Environment?

And who are the 21st Century Customers?

•Oil and energy prices•Power, water & food shortages everywhere

•Strikes, protest & riots•Political turmoil, wars death & destruction

•Inflation, recession and business failures

•Stock markets in freefall

1998 – 1.44m kids enrolled in school (1.70 m in 1995)2009 – 580 000 wrote matric

334 000 passed83 000

U.E.

Just over 5m taxpayers - 17m people on welfare

R28 000 000 000! (2014)

Spent R60bn+ on arms – but only R4bn to upgrade schools

That’s about 980 000 000

Happy Meals!

“Eskom blackouts cost South Africa R80 billion per month, (March 25, 2015.)

Power cuts implemented by Eskom costs South Africa's economy between $1.7 billion (R20

billion) and $6.8 billion (R80.1 billion) a month, Reuters has reported.”

The response?

And more government,

more laws, less freedoms … and

less money

We desperately want More

heroes!And look where they are coming from!

The trust deficit

We don’t even trust the news anymore…

Collection and use (“mining”) of data Big Brother is already watching you!

But a sense of helplessness because we don’t like it that we don’t understand what’s in “the black box”

installs a cookie on your computer…

MWeb also gives faster speeds at the beginning of the month rather than at the end

This is how most citizens & customers feel today!

Which makes this understandable…

Corporate complexity…

and stupidity!

The Russians used…

Who approved this?