1. Marketing Management discussion is about understanding marketing management.

What
do you know so far about marketing management? How is the evolution of marketing
orientation starting from production oriented, product oriented, sales oriented, marketing
oriented, and holistic oriented? Please relate to the company or any other phenomenon
that you are interest in explaining.

Marketing management is the art and science of choosing target markets and getting,
keeping, growing customers through creating, delivering and communicating superior
customer values. Art here means creativity, leadership, attitude, culture, values, work
system, symbol, practices. For example, between one bank and another bank, the thing
that differ them is the art. In Indonesia, there are several banks such as BCA (Bank
Central Asia), BRI (Bank Rakyat Indonesia), Bank Mandiri and so on. Basically, all these
banks provide same or similar products, but the thing that makes them different is the art,
how they serve customer, how they keep innovate and give best service, what are the
values of the bank, etc. BCA has always been a pioneer in terms of banking and financial
technology and give excellent service to customer. We can compare the art between one
bank and the other banks and then we can realize the differences as customer of those
banks.
Company orientations:
The production concept is one of the oldest
Production Concept concepts in business. In this concept, consumers
prefer products that are widely available and
inexpensive or cheap. For example, regular sugar.
The product concept holds that consumers favor
products that offer the most quality performance.
Product Concept For instance, Tropicana Slim. Tropicana Slim is a
brand that provide sugar free, low calories sugar
products for healthier choice with best quality of
sugar.
Selling concept proposes that consumers will buy
Selling Concept products only if the company aggressively sells
these products. It is practiced with unsought
goods (goods buyers do not normally think of
buying) such as in Indonesia there is San Diego
Hills Cemetery Plots.
Marketing Concept Marketing concept emerged in the mid-1950s as a
customer-centered, sense-and-respond philosophy
Marketing concept focuses on needs or wants of target markets and delivering value.
When selling concept focuses on short-term, marketing concept focuses on long-term.
For example, in 1930 to 1940, all Ford cars were black. But now Ford also produces
small and colourful cars, not only trucks.
Best company orientation towards customer is Holistic Marketing. There are four
fundamental pillars of Holistic Marketing:
1) Relationship Marketing
Relationship marketing aims to build mutually satisfying long-term relationships with
key constituents in order to earn and retain their business. Four key constituents for
 relationship marketing are: customers, employees, marketing partners (channels,
suppliers, distributors, dealers, agencies), and members of the financial community
(stakeholders, investors, analysts). Companies must have good interaction with
customer (Customer Relationship Management) and have good relationship with
employees, marketing partners, and community (Partner Relationship Management).
The ultimate outcome of relationship marketing is a unique company asset called a
marketing network, consisting of the company and its supporting stakeholders
(customers, employees, suppliers, distributors, retailers, and others) with whom it has
built mutually profitable business relationships. For instance, Boeing and Airlines
companies.
2) Integrated Marketing
Integrated marketing occurs when the marketer devises marketing activities and
assembles marketing program to create, communicate, and deliver value for
customers such that “whole is greater than the sum of its parts”. Two key themes are :
many different marketing activities can create, communicate, deliver value and
marketers should design and implement any one marketing activity with all other
activities in mind. Every programs including communication, distribution, service,
production, pricing, etc. should be in line. For instance, Louis Vuitton and Hermes are
targeted for upper level, so the place to sell it must be in line with the product, it can
not be promoted online or through Nova or Nyata tabloid.
3) Internal Marketing
Internal marketing is the task of hiring, training, and motivating all employees who
want to serve customers well. This concept holds that customers are not only external,
but also internal (employees). It is important to train and socialize the employee
before they have interaction with customer. The responsibility of marketing is not
only belong to Marketing department, but all department have to be customer or
marketing oriented. For example, training and morning briefing for employees in
Bank Mandiri. Another example is major European airline (lengkapnye di buku ye
hehe). Internal marketing requires vertical alignment with senior management and
horizontal alignment with other departments so everyone understands, appreciates,
and supports the marketing effort.
4) Performance Marketing
Performance Marketing requires understanding the financial and nonfinancial returns
to business and society from marketing activities and programs. This concept
proposes that sales revenue is not the only thing that is important, but also brand and
consumer equity, customer satisfaction, product quality, ethics, environment, legal
and community. For instance, Ben & Jerry.
2. Marketing is not done only by the marketing department. It needs to affect every aspect
of the customer experience. To create a strong marketing organization, marketers must
think like executives in other departments and executives in other departments must think
more like marketers. How is the implementation in a real situation?

Marketing succeeds only when all departments work together to achieve customer goals:
when engineering designs the right products, finance furnishes the right amount of
funding, purchasing buys the right materials, production makes the right products in the
right time horizon, and accounting measures profitability in the right ways. Such
interdepartmental harmony can only truly coalesce, however, when senior management
clearly communicates a vision of how the company’s marketing orientation and
philosophy serve customers. The following example highlights some of the potential
challenge in integrating marketing:
The marketing vice president of a major European airline wants to increase the airline’s
traffic share. His strategy is to build up customer satisfaction by providing better food,
cleaner cabins, better-trained cabin crews, and lower fares, yet he has no authority in
these matters. The catering department chooses food that keeps food costs down; the
maintenance department uses inexpensive cleaning services; the human resources
department hires people without regard to whether they are naturally friendly; the finance
department sets the fares. Because these departments generally take a cost or production
point of view, the vice president of marketing is stymied in his efforts to create an
integrated marketing program.
Internal marketing requires vertical alignment with senior management and horizontal
alignment with other departments so everyone understands, appreciates, and supports the
marketing effort.
3. The corporate strategy establishes the framework within which the divisions and business
units prepare their strategic plans. Setting a corporate strategy means defining the
corporate mission, establishing strategic business units, assigning resources to each and
assessing growth opportunities. How is it related to the internal capacity of a corporate to
deal with the changing environment?

4. Capturing marketing insight by gathering information and scanning the environment and
conducting marketing research is very important. These activities are aimed at creating
customer value, satisfaction and loyalty. This is a mechanism for connecting with
customers. Please explain this statement by providing the example!

5. Successful marketers are those who carefully cultivate customer satisfaction and loyalty.
Managers who believe the customer is the company’s only true profit center. Customers
are at the top of priority. What is the philosophy behind?

6. Customers are value maximizers. They form an expectation of value and act on it. Buyers
will buy from the firm that they perceive to offer the highest customer delivered value,
defined as the difference between total customer benefit and total customer cost. How is
the company able to optimize the total customer benefit?

7. Customer relationship management is the process of carefully managing detailed

information about individual customers and all customer touch point to maximize loyalty.
Customer relationship management is important because a major driver of company
profitability is the aggregate value of the company’s customer base. How does a company
implement customer relationship management?

8. Consumer behavior is influenced by three factors: culture (culture, sub-culture, and social
class), social (reference group, family, and social role and status) and personal (age, stage
in the life cycle, occupation, economic circumstances, lifestyle, personality and self-
concept). The understanding of these factors can provide clues to reach and to serve
consumers more effectively. What the strategies of a company are used to optimize these
factors in understanding their consumers?

9. In deciding how much to adapt their marketing programs at the product level, firms can
pursue a strategy of straight extension, product adaptation, or product invention. At the
communication level, they may choose communication adaption or dual adaptation. At
the price level, firms may encounter price escalation dumping, gray markets, and
discounted counterfeit products. At the distribution level, firms need to take a whole
channel view of distributing products to the final users. How does a firm consider the
cultural, social, political, technological, environmental and legal limitation they face in
other countries?

10. Segmentation, targeting, positioning is very closely related one another. Identifying
market segment and target is crucial at the beginning and it is followed by crafting and
communicating a positioning strategy. Every company has to be able to identify
competitive frame of reference and to analyze the closest competitor. Then, a company
can develop points of difference by any means, such as people, image, service,
distribution or brand telling. How is the implementation in a real case?