Good Day dear student, I am Ms.

SHARON C. MANANGUITE and I’m

going to be your subject Instructor
this semester for this subject,
Marketing Management. Together
let us explore the world of
Marketing Management.

LET’S BEGIN! REVIEW ON MARKETING

OVERVIEW

Module 1 to Module 4 is a review of the principle of

marketing and to give insight to non-ABM students.

This module tackles what marketing is all about, the

basic concept that students must know about marketing and its
benefits, and the five marketing philosophies. It also covers
discussion on planning the business enterprise, strategic
planning, and marketing plan.

The module provides an overview of marketing, its basic

concepts, importance, and its philosophies. It also covers
discussion on planning the business enterprise and the
strategic planning and marketing plan.

The sections that have to be studied are indicated under

each topic. These form the basis for tests, assignments, and
case analysis examination. To be able to do the activities
and assignments for this module, and to achieve the learning
outcomes, and ultimately to be successful in the tests and
examination, you will need an in-depth understanding of the
content of these sections in the learning guide. To master
the learning, you must accept responsibility for your studies.
Learning is not the same as memorizing. You are expected to
show that you understand and can apply information. Lectures,
tutorials, case studies, and online discussions to present
this module.

MARKETING MANAGEMENT 1
At the end of this module, students are expected to explain:
1.the meaning of marketing;
2.the basic concepts of marketing;
3.the importance of marketing;
4.how the different marketing plan philosophies vary;
5.the importance of planning in an organization;
6.how strategic planning differs from marketing plan.

TASK 1
Exercises: LET’S PLAY
Adidas Burger king Citibank
De Gap-Fill.
beers M&M right company/product
Choose the Apple from the
Nike
slogan box. Write your answer on the Bounty
BMW line provided
Lays Metrobank
before each number. Mcdonals
Jollibee Mang Inasal Coca-Cola
Levis Epson Apple
BMW Ajax

_________________ 1.Melts in your mouth, not in your hands

_________________ 2.A diamond is forever
_________________ 3.Just Do it
_________________ 4. Think Different
_________________ 5.Designed for driving pleasure
_________________ 6.Betcha Can’s eat just one
_________________ 7.The quicker picker upper
_________________ 8.I’m Lovin it
_________________ 9. Your in good hands
_________________ 10.Langhap Sarap
_________________ 11.Impossible is nothing
_________________ 12.Have it away
_________________ 13.The citi never sleeps
_________________ 14.The ultimate driving machine
_________________ 15.Stronger than dirt

ASSIGNED READINGS and/or ENRICHMENT

Introduction

No organization or company can exist without marketing.

Marketing is the lifeblood of any organization. The success of

MARKETING MANAGEMENT 2
a company lies in the efficiency of its marketing people with
the cooperation and coordination of other employees from other
departments. As emphasized by Kotler and Armstrong (2001) in
the book Principles of Marketing, “because customer value and
satisfaction are affected by the performance of other
functions, all departments must work together to deliver
superior value and satisfaction. Marketing plays an
integrative role to ensure that all departments work together
toward this goal.” Thus without the assistance of marketing
people, no organization or firm can cope with the competition
caused by the dynamism of marketing.

Marketing is present in all areas of our lives. The

moment we get up from bed, there is marketing. Marketing is
the reason why we buy the clock, which we set to alarm in the
morning to wake us up. The television program or K-drama we
choose to watch is the result of the promotion effort of the
television network competing with other television networks
for audience attention. Television networks compete by
offering a better storyline of programs, more game shows with
viewers’ participation, and improved variety shows. All of
these are geared toward enhancing the network’s viewership
rating. The food that we choose to eat is a result of
marketing. We patronize a certain brand of soap, shampoo,
toothpaste, and other oral care products because of marketing.
As we go to the office or school, the billboards that we see,
the posters, and tarpaulins along the way promoting various
services or products are forms of marketing strategy.

At board meetings or during presentations, our posture,

and our choice of apparel for the occasion are influenced by
the concept of endorsements or marketing. Thus, marketing is
part of our everyday life.

What is Marketing?

The field of marketing is broad and dynamic. It involves

not only product creation but also pricing the offering wisely
to attract the right market and promoting and distributing the
products to identified outlets or places. Marketing is
concerned with maintaining high customer satisfaction and
continuously building and keeping a good relationship with the
market.

There are different definitions of marketing as given by

various authors:

Kotler and Armstrong (2001) “Marketing is a social and

managerial process whereby

MARKETING MANAGEMENT 3
 individuals and groups obtain
what they need and want
through creating and
exchanging products and value
with others.”

“A total system of business

activities designed to plan,
price, promote, and
distribute want—satisfying
Pagoso and Dela Cruz (2000)
products, services, and ideas
to target market in order to
achieve organizational
objectives.”

“A process of continuously
and profitably satisfying the
Josiah Go and Chiqui
target customer’s needs,
Escareal-Go (2001)
wants, and expectations
superior than competition.”

The Basic Concepts of Marketing

Needs. This refers to situations
in which something is missing and has
to be satisfied.
Wants. These are the preferred
products of an individual that will
satisfy needs.
Example:
When a person is hungry he needs
food to satisfy his hunger but he
may want a burger rather than
bread.

Individual product preference is strongly influenced by

one’s personality or culture. Human needs are few, but human
wants are unlimited.

According to Abraham
Maslow’s hierarchy of needs, there
are several levels of human needs.
Starting from the bottom, which is
known as physiological needs,
including the need for food,
clothing, and shelter. This level is
followed by safety needs, which
consist of things that make one
feel secured and safe, like owning
a hose, security of tenure,
insurance, etc. Social needs refer
to one’s sense of belongingness to
a group or association, like being a
member of a choir or an officer of

MARKETING MANAGEMENT 4
a faculty club or any distinguished association or organization. The next level is self-esteem needs or
the individual’s need or strong desire to be recognized for his efforts and accomplishments. The last
level in the hierarchy of needs is the self-actualization need. It involves the continuous improvement
of one’s talent, skills, and knowledge by further studying to be shared or given back to society.

Demand. This involves one’s need or wants for products

backed up by his capacity to purchase the product.
Exchange and Transaction. Both may involve the presence
of two entities such as two persons or companies. They differ
in terms of other factors. For example, in transaction, terms
& condition, date of transaction, place of transaction, the
amount involved, and other agreed-upon conditions are present;
while these are absent in exchange because the latter involves
getting something in return.

Market. This refers to people patronizing or already

using the company’s products or availing its various services.
It also includes those who would avail of the company’s
products in the near future.

 Consumer market refers to customers

who buy products and services for
their consumption.

 The industrial market, also called

the business market, purchase
products, and services to produce
another product.

Products. Anything that a buyer buys. It is anything that

a company offers to satisfy the market’s needs or wants.
Product is not limited to tangible items. It also includes
place, person, experience, advocacy, idea, or service. A
service is an intangible product. It is defined as “any
activity or benefit that one party can offer to another that
is essentially intangible and does not result in the ownership
of anything” (Kotler 2001).

Marketing Mix. Also called the Four Ps (4Ps) in

marketing, which means PRODUCT, PRICE, PLACE, and PROMOTIONS.
 Product – this is what the producers sell and what
the market buys.
 Price – this refers to the amount of money paid by
the customer to acquire the product or avail the
services offered.
 Place – this deals with the distribution of
products, as well as the different channels involved
in making the products available to the people.

MARKETING MANAGEMENT 5
  Promotion – the means for firms to communicate or
inform the market about their products using various
mediums like advertising, sales promotions, personal
selling, and public relations.

Marketing Philosophies

The way a company produces the product is guided by the

philosophies that it values.

 Product Concept (Philosophy) – product performance is

given priority. This means that no product leaves the
assembly line if it is not of high quality. Companies
that follow the belief that markets demand quality earn
their customers’ loyalty through their quality products.
 Production Philosophy – companies that follow this
philosophy values the importance of the availability of
products at all times at a reasonable price.
 Selling Philosophy – in this philosophy firms hire
marketers or salespeople to do aggressive marketing for
the firm’s products or service. Companies following this
concept believe that the market will not choose to
purchase their products if they will not undertake any
aggressive selling and promotion efforts.
 Societal Marketing Concept – firms look first into the
welfare of society in general and deliver their offerings
in a way that satisfies their market more effectively and
efficiently than their competitors.
 Marketing Concept – firms determine first the needs and
wants of their potential market, then device ways,
products, or services to satisfy these needs and wants
more effectively and efficiently than their competitors.

Benefits of Marketing

1. It creates employment.
 Marketing provides job opportunities to many
individuals in various fields like sales,
advertising, brand management, teaching,
merchandising, research and development, and
logistics.

2. It helps develop more and better products.

 With the companies’ innovation and enhancement
of product offerings, more products are
developed, allowing the market to have more
product choices. Activities such as product
development, research, communication,

MARKETING MANAGEMENT 6
 distribution, pricing, and service are core
marketing activities. Although we normally
think of marketing as being carried out by
sellers, buyers also carry on marketing
activities. Consumers do marketing when they
search for the goods they need at prices they
can afford.

3. It provides a better profit.

 Good marketing can be translated into better
sales performance and ultimately more profit
for the producers.

4. It improves the quality of life.

 With better product offerings, marketing
provides convenience, easy living, and a better
lifestyle, comfort, and efficiency. Also, the
overriding objective of the company is not just
to satisfy the needs and wants of his costumers
but to do so profitably better than his
competitors (Go, 2001).

5. It produces more entrepreneurs.

 A need for a product or service is an
opportunity for businessmen or entrepreneurs to
put up businesses or to be part of an existing
one, like being a supplier or part of the
distribution channel.

6. It contributes to economic development.

 Through various job opportunities, more members
of society become employed. Marketing also
contributes to economic development through the
revenues the government collects from taxes
paid by business people, which are then
allocated to various projects and programs.

Planning the Business Enterprise

Business enterprise involves great planning and decision-

making, particularly when it is still in the conceptualization
stage. An individual planning to put up a business need to
consider the following: what business to enter, who will be
the target market, how to beat competitors, where to get the
capital needed for the investment, to purchase or not to
purchase any equipment, and how to better serve its market.

Importance of Business Planning

Through planning, one can:

MARKETING MANAGEMENT 7
 1. Apply for loans;
2. Determine the needed capital;
3. Evaluate actual performance against set targets;
4. Lessen the impact of business failure;
5. Lessen the risk of doing business;
6. Minimize mistakes;
7. Minimize or eliminate losing capital because everything
is well thought of;
8. Result in better preparedness for sudden development;
9. Lead to better coordination among different department in
the company; and
10. Program activities in advance.

A good plan serves as a guide for running the business

enterprise. It is a process that requires any business to
consider all factors that will affect the plans.

Strategic Planning and Marketing Plan

Every company intends to stay long in the business

industry. Thus, companies develop long-term strategies to meet
the demand and challenges of the environment in their
respective industry. Companies do their best to outperform
competitors by offering better products or improving on their
services and doing better than before. To be able to
accomplish this, every company must develop a game plan to
attain long-term survival.

What is Strategic Planning?

Marketing Guru, Philip Kotler (2003), defined strategic

planning as a process of developing and maintaining a
strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.
Strategic planning starts from the moment the top
management at the corporate level forms the company’s mission
statement. A mission statement stipulates what the firm values
and its reason for existence. This is cascaded down to all the
employees and will serve as their guide in the performance of
their tasks.
A company or firm’s mission statement is converted into a
quantifiable set of objectives for the different management
levels to achieve. Then designing the firm’s business
portfolio, the collection of business and products that make
up the company follows.
A good business portfolio includes the current business
collection and is the basis for deciding which among the

MARKETING MANAGEMENT 8
products offered by the company will be phased out or will
receive assistance in terms of investment.
With this, all departments within the company, such as
marketing, production, research and development, human
resource, and operations should work together to achieve the
set objectives of the company.

Strategic Planning vs. Marketing Plan

Through strategic planning, the company decides what it
wants to do with each business unit.

Strategic Planning
involves deciding on market strategies that will help a company achieve its overall strategic
objectives.

Marketing Plan
includes the executive summary, current marketing situation, environmental analysis, marketing
objectives, marketing strategies, action programs, budget, and controls.

Parts of a Marketing Plan

1. Executive Summary
 Presents the highlights of the plan. It is an
overview of the proposed plan.
2. Current Marketing Situation
 Provides data on the present product, its
market, and how products are distributed and
promoted.
3. Environmental Analysis
 Discusses the various external factors that
affect the marketability of the product. This
defines the products’ strengths and weaknesses,
as well as the various threats and
opportunities facing the product.

4. Marketing Objectives
 Consists of marketing goals in the area of
sales, target market, positioning, market
share, and profit.
5. Marketing Strategies
 Consists of the company’s game plan, indicating
how objectives will be achieved.
6. Action Programs
 Indicates the steps that the company would
undertake to ensure that marketing strategies
would be achieved. It includes identifying the
persons involved, the timeframe, and the
budget.
7. Budget

MARKETING MANAGEMENT 9
  This is an important component that puts into
details the cost of implementing the marketing
plan.
8. Controls
 Indicates how progress will be monitored and
reviewed by the management.


Before moving on, Please

take a rest and some snacks.

Process of Strategic Planning

1. Drafting the Company’s Mission

Each company is formed for a purpose. Whether
the company is a manufacturing firm, a bank, an
academic institution, hotel, or hospital, its
operation is guided by its company’s mission—the
company’s statement of purpose. It describes the
company’s reason for being or what the company wants
to achieve.

The clear mission statement of a firm serves as

a guide to all its employees. A mission is a
reminder of the kind of business the company has,
the customers the company is serving, and what the
company business should be.

A good mission statement should have the following

characteristics: (Kotler et al., 2009)

It is based on It fits the

It is market- It is
distinctive market
oriented. motivating.
competence. environment.

2. Setting the Company’s Objectives

After drafting the company’s statement of
purpose or its mission statement, the next step is
the setting of objectives. This consists of detailed

MARKETING MANAGEMENT 10
 supporting statements or objectives intended for the
different management levels to achieve.

Different management levels, as their effort or

way of supporting the objectives that were already
set, must develop marketing strategies.

Examples of a company’s objectives are:

a. To build a profitable customer
relationship
b. To increase the company’s sales
c. To increase the company’s product
awareness.

3. Designing the Company’s Business Portfolio

Products and businesses are equivalent to the
portfolio. Assisted by the company’s mission
statement and set objectives, the company must
evaluate its business portfolio.

There are two (2) ways in which a firm may assess its
business portfolio.

1st: Analysis of the current portfolio of the company.

The company assesses its products and decides which

among the businesses must be given more investments,
lesser investments, or no additional investment at all.
The first step in the portfolio analysis is the
identification of the various businesses that make up the
company. These businesses are better classified as a
strategic business unit or SBU. The SBU is a single
business or collection of businesses that have a distinct
mission, a responsible manager, and its competitors and
that is relatively independent of other business units.”
(Hutt and Speh, 2013)

4 strategies for SBUs:

SBUs can pursue any of the following strategies:
a. Build its share. More investment is needed by
companies to achieve this.
b. Hold its share. Companies may invest just
enough to maintain or hold their share at the
current level.
c. Harvest. Milking the company’s short-term cash
flow regardless of the long-term effect.

MARKETING MANAGEMENT 11
 d. Divest. The company may sell the SBU or phase
out the product and use the resources
elsewhere.

2nd: Development of the company’s growth strategy.

There is a need for companies to appraise their SBUs

to determine which among the SBUs will be given support
and up to what extent. A company can evaluate its current
products or portfolio with the growth-share matrix or
also known as the
Boston Consulting Group
(BCG) Matrix.

Growth-Share Matrix or the Boston

Consulting Group (BCG) Matrix.

In this matrix, the

company categorizes all of
its strategic business
units according to the
growth-share matrix. On
the vertical axis is the
market growth rate that
provides the measure of
the market’s
attractiveness; whereas,
the horizontal axis
indicates the market share of the SBU which measures the
strength of the SBU in the market. The characteristics of the
BCG matrix are as follows:

a. Stars. Are high-growth/high-share business or

product that needs heavy investment to finance its
rapid growth.

b. Cash Cows. Are low-growth/high-share business or

products. Unlike stars, businesses, and products
in this category need less investment to maintain
its market share. SBUs in this classification
produces a lot of cash which supports the other
units.

c. Question Marks. These are SBUs with a low market

share in the high-growth market. In terms of
investment, SBUs in this category require more
budget or cash to hold its market share;
companies’ decision-makers should evaluate which
Question Marks they should support to be a star,

MARKETING MANAGEMENT 12
 and which products or businesses to let go or to
phase out.

d. Dogs. Have low-share and low growth status. The

cash generated may just be enough for themselves
but does not promise to have a big source of
profit.

Growth Strategies
A useful way to identify growth opportunities is the
use of product/market expansion grid—a portfolio-planning
tool for identifying company growth opportunities through
market penetration, market development, product development,
or diversification (Armstrong and Kotler, 2003).

a. Market penetration strategy for company growth is

achieved by increasing or adding sales of current
products to the existing or current market.
b. Market development is a strategy for company growth
where the new market is identified or developed for
existing or current company products.
c. Product development refers to the strategy used by
companies to offer new or improved products to the
existing or current market segment.
d. Diversification is a growth strategy where companies
acquire businesses outside their existing or current
products and markets.

4. Coordinating Activities to Different Functional Areas

The main focus here is to coordinate the
marketing resources and activities to different
departments within the company to achieve the
set objectives and strategies of the firm.

TASK 2. Concept Application

1. Think of two (2) convenience stores in your community

where you normally purchase your needs or you frequently
visit. Describe how you were satisfied and not satisfied
with the two stores.
2. Between the two convenience stores that you thought of,
which is better?
3. What particular needs or wants of the customers were
satisfied by the two stores?
4. In which particular areas must the two convenience stores
be improved?

MARKETING MANAGEMENT 13
 Write your answers here.

Good Job for your excellent work. Clearly you were able to
understand, synthesize and apply the theories and concepts. It
manifest your readiness to progress to the next step of learning. But
continue working hard; education is a lifetime commitment.

For those who have not got a perfect score, you need to exert extra
effort and commitment to improve. Your inability to understand and
apply concepts may be remedies by further reading and research.
But still, congratulations for finishing the learning tasks, Just don’t
forget to be extra hardworking and goal-oriented to get back stronger
and better.

MARKETING MANAGEMENT 14
 SUMMARY
Marketing is too important to be ignored. Products that take
considerable effort and time to produce may not be bought.
This is what happens to products that are not wanted, or in
the wrong place, or nobody knows they exist, and some other
reasons. Marketing refers to exchange activities conducted by
individuals or organizations to satisfy human wants with the
view of accomplishing individual or organizational objectives.

The marketing concept calls for identifying the needs of

customers before actual production is deemed superior to the
product concept which emphasizes production, and the selling
concept which emphasizes selling.

To implement the marketing concept, the formulation of a

marketing strategy is required. Marketing occurs when at least
two parties desire to satisfy their need, and they have the
means to communicate with each other, and each has something
to exchange.

In an attempt to achieve its marketing objectives, the firm

has reckoned with certain factors, namely: marketing mix
variables and marketing environment variables.

SUGGESTED READINGS

 An overview of Marketing by Roberto Medina. Pages1-19

 Marketing Management 512 ( Business administration,
Management, and commercial sciences)
 Digital Marketing for dummies by Ryan Deiss
 Rework-Jason fried and David H. Hanson

REFERENCES

 Medina, Roberto Principles of Marketing, 2008 Revised

Edition.Rex Bookstore, Inc.
 Balasan, Ma. Nancy T. Marketing Basics A modular Approach 2014
Edition.Rex Bookstore, Inc.
 Philip Kotler, Marketing Management International Edition

MARKETING MANAGEMENT 15