DMA 501:MARKETING MANAGEMENT

DR MARY KINOTI
SCHOOL OF BUSINESS
UNIVERSITY OF NAIROBI
CONTACT- 0733810 412
mkinoti@yahoo.co.uk
m.kinoti@uonbi.ac.ke
TOPIC ONE

INTRODUCTION
 WHAT IS MARKETING?

• Marketing is a business function within the

organization which deals with the customers.

• The heart of modern marketing is customer

value and satisfaction
 IMPORTANCE OF MARKETING IN AN ORGANIZATION

} Sound marketing is critical to the success of any

organization large or small, for profit or not for
profit , domestic or global

} Financial success of every organization depends

on marketing dept ability.

} Finance, operations/productions, accounting and

other business functions will not really do much
or matter if there is no sufficient demand for
products and services so that the company can
make a profit.
 DEFINITIONS OF MARKETING
MANAGEMENT

• Marketing management is the art and science

of choosing target and growing customers
through creating, delivering and
communication of superior customer value (
Kotler and Keller 2006).
 DEFINITIONS OF MARKETING
MANAGEMENT

• Marketing is an organization function and a set

of processes for creating, communicating and
delivering value to customers and managing
customer relationships in a way that benefits the
organization and its stakeholders
(American marketing Association).
 DEFINITIONS OF MARKETING
MANAGEMENT
• To emphasis the importance of marketing as
business function many companies today have
created a chief marketing officer ( CMO)
position to put marketing on a more equal
footing with other c-level executives such as the
chief executive( CEO) and chief financial officer
 DEFINITIONS OF MARKETING
MANAGEMENT
• Kotler and Keller ( 2006) also defines marketing
as the societal process by which individuals and
groups obtain what they need and want
through creating, offering, and freely
exchanging products and services of value with
others.
 DEFINITIONS OF MARKETING
MANAGEMENT
• Marketing comprises a system of business
activities, designed to plan, price, promote
and distribute-want satisfying products and
services to present and potential consumers

• Marketing involves satisfaction of human

needs and want through exchange process.
 Key points of marketing from the
various definitions
• Marketing process requires two set of players
the producer and the consumer

• Marketing only occurs through exchange

process.

• Marketing focuses on satisfaction of needs

and wants of consumers.
 Key points of marketing from the
various definitions
• Marketing activities include
conception/development of ideas, goods and
services , pricing, promotion and distribution of
products

• Marketing management involves analysis,

planning, implementation and control of all
activities aimed at customer satisfaction.
 CORE CONCEPTS OF MARKETING
• Needs,
• wants,
• demands,
• products,
• good,
• service,
• customer,
• consumer,
 CORE CONCEPTS OF MARKETING
• customer value,
• customer, satisfaction,
• exchange
• relationship marketing,
• market,
• target market,
• marketing mix,
• marketing channels,
• supply chain and competition.
MARKETING MANAGEMENT TASK OR
THE ROLES OF A MARKETING
MANAGER.
} Developing marketing plan and strategies

} Scanning/ analyzing marketing environment

} Conducting marketing research to assess buyer’s

wants and behaviors.

} To understand consumer markets as well as

organization markets
 MARKETING MANAGEMENT TASK OR
THE ROLES OF A MARKETING
MANAGER.
• Analyzing competitors
• Analyzing the market with a view of identifying
market segments and selecting target markets.
• Building / creating strong brands issues to
consider; Product quality, Product design,
Product features (size, colour, weight e.t.c),
packaging, labelling, and product support
services.
 MARKETING MANAGEMENT TASK OR
THE ROLES OF A MARKETING
MANAGER.
} Price the products- the price should be
commensurate with the offer/product
perceived value.

} Distributed /place/deliver the product to the

target market through various channels of
distribution.
} Promote / communicate the product to the
target market through advertising, sales
promotion events, personal selling, public
relations, trade shows and exhibitions e..t.c
 MARKETING MANAGEMENT TASK OR
THE ROLES OF A MARKETING
MANAGER.
} Create or ensure long-term growth in company
profits and sales through product positioning, new
product development and taking advantage of
changing global opportunities

} Organize marketing resources , implement and

control marketing plan

} Undertake marketing evaluations to understand

the efficiency and effectiveness of marketing
activities in order to take corrective action where
necessary.
 SHIFTS IN MARKETING MANAGEMENT
IN THE 21ST CENTURY

• Marketers are fundamentally rethinking their

philosophies, concepts and tools.

• Smart companies have made major shifts in

marketing management in the 21st century they
includes;
• From marketing department personnel doing
the marketing to everyone within the
company doing the marketing.
• From making everything to buying more
goods and services from outside. Out sourcing
activities that others can do more cheaply
and better, but retain core activities.
• From using many suppliers to working with
fewer suppliers in a partnership

• From relying on old market positions to

uncovering new ones.
} From emphasizing on tangible assets to emphasis
on intangible assets such as brands, customer
base, employees,
} Distributors and suppliers relations

} From building brand through advertising to

building performance and integrated marketing
communication.

} From attracting customers through stores and

sales people to making products available online.

} From selling to everyone to trying to be the best

in servicing well defined target markets

} From transactions marketing to relationship

marketing
} From a focus on gaining market share to a focus
on building customer share. Companies build
customer share by offering a larger variety of
goods to existing customers.

} From being local to being global ( both global and

local)

} From focusing on the financial scorecard to

focusing on marketing scorecard focus on
interpreting what is happening to market share,
customer loss rate, customer satisfaction,
product quality e.t.c

} From focusing on share holders to focusing on

stake holders.
 MARKETING MANAGEMENT
PHILOSOPHIES
• Marketing management philosophy refers to a
system of principles and management
attitudes that guide marketing efforts or the
way organizational carry out their marketing
activities.

• There are five alternative philosophies under

which organizations conduct their marketing
activities: the production, product, selling,
marketing, and societal marketing concept.
 Production concept
• Production concept assumes that consumers
will favor those products that are widely
available and highly affordable.
• Managers of production- oriented organization
concentrate their marketing strategies
 Production concept

• on achieving high production efficiency through

mass production
• wide distribution coverage. Or mass
distribution
• Low prices
• Mass marketing
• Mass promotion
 Production concept
Production concept can be practical in the
following situations:
• Where the demand for a product exceeds
supply
• Where the products cost is high and can be
brought down through mass production.
• The target market consists of low income
earners
• When the product is a basic necessity
• In case of price sensitive market.
 The product concept
} The product concept holds that consumers will favor
those products that offer the highest quality,
performance and features.

} Managers in these product-oriented organizations

focus their marketing strategy on;
- making quality products and improving
them over time.
- selective or exclusive distribution
-high prices
-high end of the market or target marketing
 The product concept

• Product concept can sometimes leads to “

marketing myopia” which means an excess
concentration on the product rather than the
need of the customer.
• This philosophy apply in the following
situations
• When the target market comprise high
income earners
• Customers are not price sensitive
• The goods are unique or conspicuous.
 The selling concept

• The selling concept holds that consumers, if left

alone, will ordinarily not buy enough of the
organization’s products.
• The manager of selling –oriented organization
focus mainly on aggressive selling and
promotion as the major marketing strategy.
 The selling concept
This concept/philosophy is based on the
assumption that :
• Consumers typically show buying resistance and
need to be persuaded into buying more.
• Customers who are persuaded into buying the
product will like it and if they don’t they won’t
tell others or complain to consumer
organizations.
 The selling concept
} they will possibly forget their disappointment and
buy it again.

} However, these are poor assumptions, as most

studies shows that dissatisfied customers do not
buy again and on average they tell about ten to
twenty others about their dissatisfaction.

} Selling concept is practiced most aggressively in

insurance industry , “matatu” industry and
political marketing.
}
 The marketing concept

• Marketing concept hold that the key to achieving

organizational goals consists of determining the
needs and wants of target markets and delivering
the desired satisfaction, more effectively and
efficiently than competitors do.

• While selling and marketing concepts are

sometimes confused, the selling takes an inside in
perspective. It starts with the factory, focuses on
the company’s existing products, and calls for heavy
 The marketing concept
• The marketing concept in contrast takes an
outside in perspective which starts with a well
defined markets, focuses on customers needs,
coordinates all the marketing activities based on
customer value and satisfaction

• Marketing concept rest on five pillars; market

focus, customer focus, integrated/coordinated
marketing, profitability and competition.
 Factors that drives companies to
rapidly adopt the marketing concept

• Sales decline
• Slow sales growth rates
• Changes in consumer buying patterns
• Increase in competition
• Rise in marketing costs
 The societal marketing concept
Factors that have contributed to adoption of
societal marketing concept.
• environmental deterioration,
• resource shortages,
• explosive population growth,
• world hunger,
• poverty and neglected social services.
 The societal marketing concept
• The societal marketing concept holds that
organizations task is to determine the needs,
wants and interests of the target markets and to
deliver the desired satisfaction more effectively
and efficiently than competitors in a way that
preserves or enhances the consumers and
society’s well-being.
 The societal marketing concept
The societal marketing concept calls upon
marketers to balance three considerations in
setting marketing policies and strategies,
namely,
• company profits,
• consumer want satisfaction and
• public interest/ societal welfare .
 Societal marketing actions
• Planting trees
• Preserving the environment
• Recycling of waste
• Use of renewable energy such sun, wind etc
• Informing consumers of dangers of over
consuming some products
• Promoting sports
• Sponsorship of various activities with a view of
giving back to the society
 Importance of marketing to the
society

} Marketing provides employments to many people

in Kenya and in the world. These people earn their
living by performing marketing activities such as:
wholesaling, retailing, advertising, selling,
consumer and marketing research, product
development and design, branding, packaging,
distribution of products and others.

} Marketing also enables us to consume products

and services that we would otherwise not consume
e.g. products from other countries across the
 Importance of marketing to the
society
} Marketing also give business opportunities to
other organizations such as media houses
(Newspapers, radio, and televisions stations)
through advertisements.
} These advertisements also provide entertainment
to the public and also provide products awareness
and information to the consumers.

} Finally marketing creates form, information, place,

time and possessions utility.
 Marketing challenges today
} Dramatic changes have occurred in the
marketing environment and are continuing
occurring posing several challenges to
organizations today.
} These challenges are worthy noting and dealing
with them if organizations have to remain
competitive and relevant in the ever-changing
marketing environment. Here are some of the
challenges.
} Customers are growing more sophisticated and
price sensitive
 Marketing challenges today
• Customers are short of time and want more
convenience.
• Customers see growing product similarities
among different organizations/ suppliers.
• Customers are less manufacturer brand
sensitive and are accepting the resellers brands
and generic products/ brands.
 Marketing challenges today
• Customers have high service expectations
• Customers have decreasing supplier loyalty
• Growing retail power and shrinking shelf space.
• Rising selling and promotion costs.
• Shrinking profit margins.
• Competitions from generics and store brands.
• Increased niche markets
 Marketing challenges today
• Growth of nonprofit marketing

• Rapid globalization

• The call for more ethics and social responsibility

 Marketing challenges today
} The new marketing landscape-which has taught business
organizations several humbling lessons such as;
-Domestic companies have learned that they cannot
ignore global markets and competitors.

-Successful organizations in mature industries have

also
learned that they cannot overlook emerging
markets,
technologies, and management approaches.

-Companies also learned that they couldn't remain

inwardly
focused, ignoring needs of customers and their
environment.