Bangladesh Institute of Management

(BIM)

Assignment on
Summarization of Understanding of the course-
Marketing Management

Course Name: Marketing Management Student Name: Md. Tanbir Rahman

Student ID: 20MM012

Course Instructor: Dr. Uttam Kumar Datta Department: Marketing Management

Sr. Management Date: 02/06/2021
Counsellor

Table of Contents
1. What is Marketing Management..............................................................................................................2
1.1. Demand for products................................................................................................................................2
1.2. What is the Core Marketing Concepts?...................................................................................................2
2. Adapting Marketing to the New Economy..............................................................................................5
2.1. Business Practices Are Changing............................................................................................................5
3. The Marketing Information System and Demand Forecasting................................................................6
3.1. Marketing Information System................................................................................................................6
3.2. The Marketing Research Process (Six Steps)..........................................................................................6
3.3. Forecasting and demand Measurement....................................................................................................6
3.3.1. Estimating Current Demand...............................................................................................................6
3.3.2. Estimating Future Demand.................................................................................................................6
4. Marketing Process (03 Phases)................................................................................................................7
4.1. Steps of Managing the Marketing Process (04 Steps).............................................................................7
4.2. Contents of the Marketing Plan (08 Contents).........................................................................................7
4.3. Business Strategic Planning (08 Steps)....................................................................................................7

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1. What is Marketing Management
Marketing management is the art and science of choosing target markets and building profitable
relationships with them. This involves getting, keeping and growing customers through creating,
delivering and communicating superior customer value.

1.1. Demand for products

 Negative demand: A market is in a state of negative demand if a major part of the
market dislikes the product and may even pay a price to avoid it- vaccinations, dental
work, vasectomies, and life insurance offers.

 No demand: Target consumers may be unaware of or uninterested in the product.

Farmers may not be interested in a new farming method, and college students may not be
interested in foreign- language courses.

 Latent dement: Many consumers may share a strong need that cannot be satisfied by any
existing product. There is a strong latent demand for harmless cigarettes, more fuel-
efficient cars.

 Declining demand: Every organization, sooner or later, faces declining demand for one
or more of its products. Churches have seen membership decline; private colleges have
seen applications fall.

 Irregular demand: Many organizations face demand that varies on a seasonal, daily, or
even hourly basis, causing problems of idle or overworked capacity. Museums are under
visited on weekdays and overcrowded on weekends.

 Full demand: Organizations face full demand when they are pleased with their volume
of business.

 Overfull demand: Some organizations face a demand level that is higher than they can
or want to handle.

 Unwholesome demand: unwholesome products will attract organized efforts to

discourage their consumption. Unsealing campaigns have been conducted against
cigarettes, alcohol, hard drugs, and handguns.

1.2. What is the Core Marketing Concepts?

 Target Markets and Segmentation: A marketer can rarely satisfy everyone in a market.
Not everyone likes the same soft drinks, hotel room, restaurant, automobile college etc.
Therefore, marketers start with market segmentation.
 Marketers and Prospects: A marketer is someone seeking a response (attention, a
purchase, a vote, a donation) from another party, called the prospect. If two parties are
seeking to sell something to each other, we call them both marketers.

 Needs, Wants, and Demands: The marketer must try to understand the target market’s
needs, wants, and demands. Needs describe basic human requirements. People need food,
air, water, clothing, and shelter to survive. These needs become wants when they are
directed to specific objects that might satisfy the need. Demands are wants for specific
products backed by an ability to pay.

 Product or offering: People satisfy their needs and wants with products. A product is
any offering that can satisfy a need or want.

 Value and Satisfaction: The product or offering will be successful if it delivers value
and satisfaction to the target buyer. The benefits include functional benefits and
emotional benefits. The costs include monetary costs, time costs, energy costs, and
psychic costs. Thus value is given by:

Value Benefits  Functional benefits  emotional benefits


Costs monetary costs time costs energy costs psychic
cost

 Exchange and Transactions: Exchange is only one of four ways in which a person can
obtain a product, the person can self-produce the product or service, as when a person
hunts, fishes, or gathers fruit.

 Relationships and Networks: Transaction marketing is part of a larger idea called

relationship marketing. Relationship marketing has the aim of building long-term
mutually satisfying relations with day parties-customers, suppliers, distributors- in order
to earn and retain their long-term preference and business.

 Marketing Channels: To reach a target market, the marketer uses four (04) kinds of
marketing channels.

 Communication channels: newspapers, magazines, radio, television, mail,

telephone, billboards, posters, audiotapes, and the Internet.

 Dialogue channels: such as ads.

 Distribution channels: warehouses, transportation vehicles, and various trade

channels such as distributors, wholesalers, and retailers.
 Selling channels: distributors, retailers, banks and insurance companies.
  Supply Chain: Whereas marketing channels connect the marketer to the target buyers,
the supply chain describes a longer channel stretching from raw materials to components
to final products that are carried to final buyers.

 Competition: Competition includes all the actual and potential rival offerings and
substitutes that a buyer might consider. Suppose an automobile company is planning to
buy steel for its cars. There are four levels of competition, based on degree of product
substitutability.

 Brand competition
 Industry competition
 Form competition
 Generic competition

Marketing Environment: The marketing environment consists of the task environment and the
broad environment.

 The task environment

 The broad environment

Marketing Mix: Marketers use numerous tools to elicit desired responses from their target markets.
These tools constitute a marketing mix. Market.

Product variety, Quality, Design,

Features, Brand name, Packaging,
Product Sizes, Services, Warranties,
Returns

List Price, Discounts,

Price Allowances, Payment, Period,
Credit Terms
Marketing Mix
Sales Promotion, Advertising,
Promotion Sales Force, Public Relations,
Direct Marketing

Channels, Coverage, Assortments,

Place Locations, Inventory, Transport
2. Adapting Marketing to the New Economy
Today’s economy is made up of old and new elements and is essentially a hybrid. The
emphasized new elements such as the following:
 Companies are increasingly subcontracting activities to outsourcing firms.
 Companies are increasingly benchmarking their performance against best of class
companies anywhere in the world
 Companies are deepening their partnering arrangements with key suppliers and
distributors.
 Companies are emphasizing interdepartmental teamwork to manage key process rather
than relying on traditional departmental systems.
 Companies are recognizing that much of their market value comes from intangible assets
particularly their brands, particularly their brands, customer base, employees’ distributor
and supplier relations, and intellectual capital
 Companies are inventing new advantages rather than relying on their existing advantages
 Companies are increasingly organizing their activities around customers’ groups not just
around products.

2.1. Business Practices Are Changing

Old Economy New Economy
Organize by products units Organize by customer segments

Focus on profitable transactions Focus on customer lifetime value

Look primarily at financial scorecard Look also at marketing scorecard

Focus on shareholders Focus on stockholders

Marketing does the marketing Everyone does the marketing
Build brands through advertising Build brands through performance

Focus on customer acquisition Focus on customer retention

No customer satisfaction measurement Measure customer satisfaction and retention
rate
Over promise under deliver Under promise, over deliver

How Marketing Practices Are Changing E- Business

E- Business and E-commerce take place over four major internet domains: B2C (Business to
Consumer), B2B (Business to business), C2C (Consumers) and C2B (Consumers to Business).
3. The Marketing Information System and Demand Forecasting
A marketing information system consists of people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision
makers.

3.1. Marketing Information System

3.1.1. Internal records system
Marketing managers rely on internal reports on orders, sales, prices, costs, inventory levels,
receivables, payables, and so on. By analyzing this information, they can sport important
opportunities and problems.
 The order-to payment cycle
 Sales information systems
 Databases, data warehouses, and data-mining.

3.1.2. The marketing intelligence system

The marketing intelligence system set of procedures and sources used by managers to obtain
everyday information about developments in the marketing environment.

3.2. The Marketing Research Process (Six Steps)

Step 1: Define the problem, the decision alternatives, and the research objectives
Step 2: Develop the Research Plan
Step 3: Collect the information
Step 4: Analyze the information
Step 5: Present the Findings
Step 6: Make the Decision
3.3. Forecasting and demand Measurement
Market Demand: Market demand for a product is the total volume that would be bought by a
defined customer group in a defined geographical area in a defined time period in a defined
marketing environment under a defined marketing program. Market demand is not a fixed
number, but rather a function of the stated conditions.
3.3.1. Estimating Current Demand
 Total market potential
 Area market potential, and
 Total industry sales and market shares
3.3.2. Estimating Future Demand
4. Marketing Process (03 Phases)
First phase:
 Segment the market
 Select the appropriate market target
 Develop the offerings value positioning
Second phase:
 Specific product features
 Prices
 Distribution
Third phase:
 Communication the value
 Utilizing the sales force, sales promotion, advertising and other promotional tools to
inform and promote the product
4.1.Steps of Managing the Marketing Process (04 Steps)
 Analyzing Market Opportunities
 Developing Marketing Strategies
 Planning Marketing Programs
 Managing the marketing Effort
4.2.Contents of the Marketing Plan (08 Contents)
 Executive Summary and Table of contents:
 Current Marketing Situation
 Opportunity and Issue analysis
 Objectives
 Marketing Strategy
 Action Programs
 Financial Projections
 Implementation & Control
4.3.Business Strategic Planning (08 Steps)
 Business Mission
 SWOT Analysis (External Environment)
 SWOT Analysis (External Environment)
 Goal Formulation
 Strategic Formulation
 Program Formulation
 Implementation
 Feedback and Control