Discussion Answer : Lesson 1 Understanding Marketing Management

1. How has Marketing Management changed in 21st Century and why? Explain.
Answer :
 Network information technology
The digital revolution has created an Information Age. The Industrial Age was
characterized by mass production and mass consumption, stores stuffed with
inventory, ads everywhere, and rampant discounting.
 Globalization
Technological advances in transportation, shipping, and communication have made it
easier for companies to market in other countries, and easier for consumers to buy
products and services from marketers in other countries.
 Deregulation
Many countries have deregulated industries to create greater competition and growth
opportunities. In the United States, laws restricting financial services, and electric
utilities have all been loosened in the spirit of greater competition.
 Privatization
Many countries have converted public companies to private ownership
and management to increase their efficiency, such as British Airways and British
Telecom in the United Kingdom.
 Heightened competition
Brand manufacturers are facing intense competition from domestic and foreign
brands, resulting in rising promotion costs and shrinking profit margins. They are
being further buffeted by powerful retailers that command limited shelf space and are
putting out their own store brands in competition with national brands.
 Industry convergence
Industry boundaries are blurring at an incredible rate as companies are recognizing
that new opportunities lie at the intersection of two or more industries. The computing
and consumer electronics industries are converging as the giants of the computer
world such as Dell, Gateway, and Hewlett-Packard release a stream of entertainment
 devices-from MP3 players to plasma TVs and camcorders. The shift to digital
technology is fueling this massive convergence.
 Consumer resistance
A 2004 Yankelovich study found record levels of marketing resistance from
consumers. 21 A majority of those surveyed reported negative opinions about
marketing and advertising, stating that they avoid products that they feel overmarket.
The increased popularity of digital video recorders such as TiVo make it easier for
consumers to skip or "zap" TV commercials, in part reflecting their desire for
marketing avoidance.
 Retail transformation
Small retailers are succumbing to the growing power of giant retailers and "category
killers." Store-based retailers face competition from catalog houses; direct-mail firms;
newspaper, magazine, and TV direct-to-customer ads; home shopping TV; and e-
commerce on the Internet. In response, entrepreneurial retailers are building
entertainment into their stores with coffee bars, lectures, demonstrations, and
performances, marketing an "experience" rather than a product assortment.

Behind the reason happened :

 A substantial increase in buying power
Buyers are only a click away from comparing competitor prices and product attributes on
the Internet. They can even name their price for a hotel room, airline ticket, or mortgage.
Business buyers can run a relJerse auction in which sellers compete to capture their
business. They can readily join with others to aggregate their purchases and achieve
deeper volume discounts.
 A greater variety ofavailable goods and services
Amazon.com quickly became the world's largest bookstore but has since branched into
retail sales of music and movies, clothing and accessories, consumer electronics, health
and beauty aids, and home and garden products. Buyers can order goods online from
anywhere in the world, bypassing limited local offerings and realizing great savings by
ordering in countries with lower prices.
 A great amount ofinformation about practically anything
People can read almost any newspaper in any language from anywhere in the world.
They can access online encyclopedias, dictionaries, medical information, movie ratings,
consumer reports, and countless other information sources.
 Greater ease in interacting and placing and receiving orders
Today's buyers can place orders from home, office, or mobile phone 24 hours a day, 7
days a week, and quickly receive goods at their home or office.
 An ability to compare notes on products and services
Social networking sites bring together buyers with a common interest. At CarSpace.com
auto enthusiasts talk about chrome rims, the latest BMW model, and where to find a great
mechanic in their local area.

2. How strategic planning is carried out at different levels of the organization?

Answer :
Market oriented strategic planning is the managerial process of developing & maintaining
a viable fit between an organization objectives/ skills/ resources and its changing market
opportunities. Aim:  Shape/ Reshape companies business & products so that they yield
targeted profits and growths.

Strategic Planning has Action Areas :

 Managing companies business as an investment portfolio.
 Assessing each business activity by considering market’s growth rate & companies
position & fit in that market.
 Developing a strategy (game plan) to achieve long run objectives.

Strategic Planning takes into account that large organizations consist of four
organizational levels :
 Corporate level
Corporate HQ creates strategic plan to guide the whole enterprise to a profitable future
  Divisional level
Each division creates a divisional plan covering the allocation of funds to each business
unit within division
 Business unit level
Each business unit develop a business unit strategic plan to carry that business to a
profitable future.
 Product level.
Each product level develops a marketing plan to achieve its objective. In its product
marketing.

Marketing plan has strategic to develop in company :

 Strategic Marketing Plan develops / outlines.
- Broad marketing objective.
- Strategy based on analysis of current market situation and opportunities.
 Tactical Marketing Plan outlines specific marketing plan. It may include :
- Advertising
- Merchandising
- Pricing
- Distribution Channels  (4 P’s of Marketing)
- Product Variants

References :
Kotler, P., & Keller, K. L. (2009). Marketing management 13th edition. Upper Saddle River, N.J:
Pearson Prentice Hall.