Marketing Management

Dr.Tanvir Abir
Text book by Kotler Keller

Chapter Questions
Why is marketing important?
What is the scope of marketing?
What are some Core /fundamental marketing concepts?
How has marketing management changed?
What are the tasks necessary for successful marketing management?

Why is marketing important?

Marketing is important because it allows you to share your products and services with a niche
audience strategically. It helps you tell, show, and PROVE to people how terrific your business is and how you
can help them. Marketing is a tool used to create and maintain demand, relevance, reputation, competition and
more. Without it, your business is likely to close down due to lack of sales. So why is marketing important? Check
out these 9 reasons why Marketing really need.

1. Marketing Is an Effective Way of Engaging Customers

It’s important for your business to engage its customers. Marketing is a tool to keep the conversation going.
Engaging customers is different from pushing your offers. Engaging involves furnishing your customers with
relevant information about your products and your business as well. It’s all about creating fresh content. Social
media is one of the best platforms where you can engage your customers.

2. Marketing Helps to Build and Maintain the Company’s Reputation

The growth and life span of your business is positively correlated to your business’s reputation. Hence, it’s fair
to say your reputation determines your brand equity. Your business’s reputation is built when it effectively meets
the expectations of its customers. Marketers use effective communication, branding, PR and CSR strategies to
ensure that a business’s reputation is maintained.

3. Marketing Helps to Build a Relationship between a Business and Its Customers

Businesses need to build a relationship of trust and understanding with their customers. How does marketing
establish this relationship? Marketing research segments should be based on demographics, psychographics,
and consumer behavior. The trust and understanding between the business and its customers make your
commercial activities more fruitful.
4. Marketing Is a Communication Channel Used to Inform Customers
Marketing informs your customers about the products or services you’re offering them. Through marketing, the
customers get to know about the value of the products, their usage and additional info that might be helpful to the
customers. Inform your customers of discounts and other competitive tricks you intend to use. Through
communication, marketing helps your business become a market leader.

5. Marketing Helps to Boosts Sales

Marketing utilizes different ways to promote your products or services. Once a product has been advertised, it’s
already on the radar and this increases your chances of selling it. When customers are happy about your products
or services, they become your brand ambassadors without your knowledge. They will spread the word and your
sales will start to increase.

6. Marketing Aids in Providing Insights about Your Business

Every marketer understands the need for targeting the right audience. However, you must have the right content
to share with such an audience. Your marketing strategies can help you establish what business messaging will
convince the target audience.

7. Marketing Helps Your Business to Maintain Relevance

Every marketer understands the need for disrupting a potential consumer’s opinion about other products. But
don’t make a mistake of taking this chance for granted. Every relationship needs to be maintained. Marketing
helps your business to maintain a good relationship with customers by making you remain relevant.

8. Marketing Creates Revenue Options

During the startup phase, your options are sparse since you’re mostly cash-strapped. This limits your options. As
your marketing strategies generate more customers and revenue opportunities, you’ll begin having options.

9. Marketing Helps the Management Team to Make Informed Decisions

Every business is confronted with problems such as to what, when, for whom and how much to produce. A
complex and tedious process determine your business’s survival. Why should you rely on marketing mechanisms?
These mechanisms serve as a reliable link between your business and society. They cultivate people’s mind,
educate the public and convince them to buy.
The Scope of Marketing page: 27
To be a marketer, you need to understand what marketing is, how it works, who does it, and what is marketed.

What is Marketing
Marketing is an organizational function and a set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that benefit the organization and its
stakeholders.
Marketing is the activity, set of institutions, and processes for creating, communicating, and delivering offerings
that have value for customers, clients, partners, and society.
Marketing is a process by which company create value for customer and build strong customer relationship to
capture value from customer in return.
Marketing is a process of sensing and responding.
Responding means long time relationship.
Marketing as the managing profitable customer relationship
Marketing is the creating value from the customer.
According to Kotler and Armstrong…………
Marketing is the management process for identifying anticipating and satisfying customer requirements
Profitably.

What is Marketing Management?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value.

Marketing management as the analysis planning implementation and control of program designed to create, build
and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

What is Marketed ?
Marketers market 10 main types of entities: goods, services, events, experiences, persons, places, properties,
organizations, information, and ideas. Let’s take a quick look at these categories.

Goods
Goods are the most visible type of economic activity. We can see many examples of products around us. All of
these physical, tangible products are called goods.
The economy of countries like China and Vietnam is heavily dependent on the production and sale of goods.
Services
As economies advance, a growing proportion of their activities focuses on the production of services. Products
and services are platforms for delivering some idea or benefit. Services include the work of airlines, hotels, car
rental firms, barbers and beauticians, maintenance and repair people, and accountants, bankers, lawyers,
engineers, doctors, software programmers, and management consultants. Many market offerings mix goods and
services, such as a fast-food meal.

Events
An event can also provide value to the customer. Marketers promote time-based events, such as major trade
shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the
World Cup are promoted aggressively to both companies and fans.

Experience
Experiences are life moments that people enjoy. The entire entertainment industry is based on the concept of
experience. Alternatively, some of the products and services can be converted into experiences. We can achieve
this by customizing or personalizing the products or services. Traveling by train from a city to another is a service.
However, traveling by train like ‘Palace on Wheels is an experience.

Persons
Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals all get help
from celebrity marketers. Some people have done a masterful job of marketing themselves—David Beckham,
Oprah Winfrey, and the Rolling Stones. Management consultant Tom Peters, a master at self-branding, has
advised each person to become a “brand.”

Places
Cities, states, regions, and whole nations compete to attract tourists, residents, factories, and company
headquarters. Place marketers include economic development specialists, real estate agents, commercial banks,
local business associations, and advertising and public relations agencies, reputation, the Authority took out a
full-page Business Week ad to defend its ability to host serious business meetings.

Properties
Properties are intangible rights of ownership to either real property (real estate) or financial property (stocks and
bonds). They are bought and sold, and these exchanges require marketing. Real estate agents work for property
owners or sellers, or they buy and sell residential or commercial real estate. Investment companies and banks
market securities to both institutional and individual investors.

Organizations
Organizations work to build a strong, favorable, and unique image in the minds of their target publics. When we
talk about organizations, we can categorize them as commercial or not-for-profit firms. We can use marketing for
both these opposite types of firms. Museums, performing arts organizations, corporations, and nonprofits all use
marketing to boost their public images and compete for audiences and funds.
Information
The production, packaging, and distribution of information are major industries. Information is essentially what
books, schools, and universities produce, market, and distribute at a price to parents, students, and communities.
Google, as a mega-corporation, started as an information provider. Similarly, a lot of publishing firms deliver
value to customers through information.

Ideas
Every market offering includes a basic idea. Charles Revson of Revlon once observed: “In the factory we make
cosmetics; in the drugstore we sell hope.” Products and services are platforms for delivering some idea or benefit.
Social marketers are busy promoting such ideas as “Friends Don’t Let Friends Drive Drunk” and “A Mind Is a
Terrible Thing to Waste.

WHO MARKETS
MARKETING AND PROSPECTS A marketer is someone who seeks 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.
Demand States
Marketers are skilled at stimulating demand for their products, but that’s a limited view of what they do. They
also seek to influence the level, timing, and composition of demand to meet the organization’s objectives. Eight
demand states are possible:

1. Negative demand
Consumers dislike the product. Which is created in general. The product might be beneficial but the customer
does not want it.
For Example: Dental work where people do not want problems with their teeth and use preventive measure to
avoid the same.

2. Nonexistent demand
Consumers may be unaware of or uninterested in the product.
For example: College students may not be interested in a foreign language course.

3. Latent demand
Consumers may share a strong need that cannot be satisfied by an existing product.
For example: I want to eat bacon that is really good for me. I want a computer with a battery that lasts a long
time.

4. Declining demand
Consumers begin to buy the product less frequently or not at all.
For example: Packaged drinking water. People have begun to prefer tap water as it is more environment
friendly.

5. Irregular demand
Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
For example: Seasonal Products like umbrellas, air conditioners or resorts.

6. Full demand
Consumers are adequately buying all products put into the marketplace.
For example: Medicine always have full demand.

7. Overfull demand
More consumers would like to buy the product than can be satisfied.
For example: Food wheat, rice etc.

8. Unwholesome demand
Consumers may be attracted to products that have undesirable social consequences.
For example: Cigarette is the most common example of unwholesome demand as it is harmful to the society
but the customers are attracted towards these.
Markets
Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods.
Economists describe a market as a collection of buyers and sellers who transact over a particular product or
product class (such as the housing market or the grain market).

Figure 1.1 Structure of Flows in a Modern Exchange Economy

Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them
into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor
and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from
resource, manufacturer, and intermediary markets and uses these goods and services to provide public services.
 Figure 1.2 A Simple Marketing System

Sellers send goods and services and communications such as ads and direct mail to the market; in return they receive money
and information such as customer attitudes and sales data. The inner loop shows an exchange of money for goods and
services; the outer loop shows an exchange of information.

KEY CUSTOMER MARKETS consider the following key customer markets: Consumer Markets,
Business Markets, Global Markets, Nonprofit and Governmental Market

Consumer Markets

Companies selling mass consumer goods and services such as juices, cosmetics, athletic shoes, and air travel
spend a great deal of time establishing a strong brand image by developing a superior product and packaging,
ensuring its availability, and backing it with engaging communications and reliable service.

Business Markets

Companies selling business goods and services often face well-informed professional buyers skilled at evaluating
competitive offerings. Business buyers buy goods to make or resell a product to others at a profit. Business
marketers must demonstrate how their products will help achieve higher revenue or lower costs. Advertising can
play a role, but the sales force, the price, and the company’s reputation may play a greater one.

Global Markets

Companies in the global marketplace must decide which countries to enter; how to enter each (as an exporter,
licenser, joint venture partner, contract manufacturer, or solo manufacturer); how to adapt product and service
features to each country; how to price products in different countries; and how to design communications for
different cultures. They face different requirements for buying and disposing of property; cultural, language, legal
and political differences; and currency fluctuations. Yet, the payoff can be huge.
Nonprofit and Governmental Markets
Companies selling to nonprofit organizations with limited purchasing power such as churches, universities,
charitable organizations, and government agencies need to price carefully. Lower selling prices affect the features
and quality the seller can build into the offering. Much government purchasing calls for bids, and buyers often
focus on practical solutions and favor the lowest bid in the absence of extenuating factors.

What are some Core/fundamental marketing concepts? Page: 31

Needs, wants, and demands
Target markets, positioning, and Segmentation
Offerings and brands
Marketing channels
Paid, Owned and Earned Media
Impression and Engagement
Value and satisfaction
Supply chain
Competition
Marketing environment

01. Needs, wants, and demands

Needs:
States of deprivation
Physical –Food, Clothing, Shelter, Safety, Water
Social-Belonging and affection
Individual-Knowledge and self-expression
Types of Needs
Stated needs: we want a car
Real needs: we want a car for going to work with low costs
Unstated needs: we want good after-sale service from the dealer
Delight needs: we want the dealer to include some gifts with car
Secret needs: we want a car for the status symbol
Want:
Want is a product desired by a customer that is not required for us to survive.
So, want is the complete opposite of need, which is essential for our survival.

Demands:
If a customer is willing and able to buy a need or a want, it means that they have a demand for that need or a want.

Target markets, positioning, and Segmentation

Businesses may not be in a position to satisfy all of their customers, every time. It may prove difficult to meet the
exact requirements of each individual customer. Not everyone likes the same cereal, restaurant, college, or movie.
People do not have identical preferences, so rarely does one product completely satisfy everyone. Many
companies may usually adopt a strategy that is known as target marketing. Therefore, marketers start by dividing
the market into segments. After identifying market segments, the marketer decides which present the greatest
opportunities— which are its target markets. For each, the firm develops a market offering that it positions in the
minds of the target buyers as delivering some central benefit. Volvo develops its cars for buyers to whom safety
is a major concern, positioning its vehicles as the safest a customer can buy.
The three stages of target marketing, including; (i) market segmentation (ii) market targeting and (iii) market
positioning

Market Segmentation
Market segmentation is the actual process of identifying segments of the market and the process of dividing a
board customer base into sub-groups of consumers consisting of existing and prospective customers. Market
segmentation consists of sectioning the target market into smaller groups that share similar characteristics, such
as age, income, personality traits, behavior, interests, needs or location. These segments can be used to optimize
products, marketing, advertising and sales efforts.

Types of market segmentation

Geographic Demographic Psychographic Behavioral

Region Age Social class Purchase Occasion

Country size Gender Lifestyle User Status
City size Family size Personality Usage rate
Population Family life cycle Loyalty status
Density Income Attitude toward product
Climate Occupation
Education
Religion
Race
Nationality
Target markets
A target market is a group of customers that the business has decided to sell their products (or service) or to aim
its marketing efforts.
For example, what is the target market of BMW?
In other words, which group of customers do BMW marketers target?

Market positioning
Positioning refers to the place that a brand occupies in the minds of the Customers and how it is
distinguished from the products of the competitors. Brand Positioning clarifies how the brand is unique.
How it is similar to competing brands and why consumer should Purchase it. There are many similar
products in almost any marketplace, an effective positioning strategy must develop and communicate a ‘unique
selling proposition’ – a distinct benefit or point of difference – for the product or service. In fact, most of the new
products introduced by marketers (including new forms of existing products such as new flavours, sizes, etc.)

Offerings and Brands

The company offering a set of benefits that satisfy customer needs, which can be a combination of products,
services information and experiences. A brand is an offering from a known source. A brand name such as
McDonald’s carries many associations in people’s minds that make up its image: hamburgers, cleanliness,
convenience, courteous service, and golden arches. All companies strive to build a brand image with as many
strong, favorable, and unique brand associations as possible.

Marketing channels
To reach a target market, the marketer uses three kinds of marketing channels:
1- Communication channels deliver and receive messages from target buyers.
2- Distribution channels help display, sell, or deliver the physical product or service(s) to the buyer or user.
3- Service channels to carry out transactions with potential buyers

Paid, Owned and Earned Media

Paid media include TV, magazine and display ads, paid search, and sponsorships, all of which allow marketers
to show their ad or brand for a fee.
Owned media are communication channels marketers actually own, like a company or brand brochure, Web
site, blog, Facebook page, or Twitter account.
Earned media are streams in which consumers, the press, or other outsiders voluntarily communicate something
about the brand via word of mouth, buzz, or viral marketing methods.
Impressions and Engagement
Marketers now think of three “screens” or means to reach consumers: TV, Internet, and mobile. Surprisingly, the
rise of digital options did not initially depress the amount of TV viewing, in part because, as one Nielsen study
found, three of five consumers use two screens at once.
Impressions are when an advertisement or any other form of digital media renders on a user's screen. Impressions
are not action-based and are merely defined by a user potentially seeing the advertisement. Making CPM (Cost
per thousand) campaigns ideal for businesses intent on spreading brand awareness.
Engagement reflects a much more active response than a mere impression and is more likely to create value for
the firm. Some online measures of engagements are Facebook “likes,” Twitter tweets, comments on a blog or
Web site, and sharing of video or other content. Engagement can extend to personal experiences that augment or
transform a firm’s products and services.

Value and satisfaction

The buyer chooses the offerings he or she perceives to deliver the most value the sum of the tangible and intangible
benefits and costs. Value, a central marketing concept, is primarily a combination of quality, service, and price,
called the customer value triad. Value perceptions increase with quality and service but decrease with price

Supply Chain
The supply chain is a longer channel stretching from raw materials to components to finished products carried
to final buyers. When a company acquires competitors or expands upstream or downstream, its aim is to
capture a higher percentage of supply chain value.

Competition
Competition includes all the actual and potential rival offerings and substitutes a buyer might consider. An
automobile manufacturer can buy steel from U.S. Steel in the United States, from a foreign firm in Japan or Korea,
or from a mini mill such as Nucor at a cost savings, or it can buy aluminum for certain parts from Alcoa to reduce
the car’s weight, or engineered plastics from Saudi Basic Industries Corporation (SABIC) instead of steel. Clearly,
U.S. Steel would be thinking too narrowly about its competition if it thought only of other integrated steel
companies. In the long run, U.S. Steel is more likely to be hurt by substitute products than by other steel
companies.

Marketing Environment
The marketing environment consists of the task environment and the broad environment. The task environment
includes the actors engaged in producing, distributing, and promoting the offering. These are the company,
suppliers, distributors, dealers, and target customers. The broad environment consists of six components:
demographic environment, economic environment, social-cultural environment, natural environment,
technological environment, and political-legal environment
How has marketing management changed? page: 35
Major Societal Forces
The marketplace is dramatically different from even 10 years ago, with new marketing behaviors, opportunities,
and challenges emerging. We focus on three transformative forces: technology, globalization, and social
responsibility.

Technology
The digital revolution has created an Information Age that promises to lead to more accurate levels of production,
more targeted communications, and more relevant pricing.
The pace of change and the scale of technological achievement can be staggering. The number of mobile phones
in India recently exceeded 500 million, Facebook’s monthly users passed 1 billion, and more than half of African
urban residents were able to access the Internet monthly.

Globalization
Technological advances in transportation, shipping, and communication have made it easier for companies to
market in, and consumers to buy from, almost any country in the world. International travel has continued to grow
as more people work and play in other countries.
The world has become a smaller place. New transportation, shipping, and communication technologies have made
it easier for us to know the rest of the world, to travel, to buy and sell anywhere. Many countries have deregulated
industries to create greater competition and growth opportunities. . By 2025, annual consumption in emerging
markets will total $30 trillion and contribute more than 70 percent. Demographic trends favor developing markets
such as India, Pakistan, and Egypt, with populations whose median age is below 25. In terms of growth of the
middle class, defined as earning more than $3,000 per year, the Philippines, China, and Peru are the three fastest-
growing countries.

Social Responsibility
Poverty, pollution, water shortages, climate change, wars, and wealth concentration demand our attention. The
private sector is taking some responsibility for improving living conditions, and firms all over the world have
elevated the role of corporate social responsibility. Because marketing’s effects extend to society as a whole,
marketers must consider the ethical, environmental, legal, and social context of their activities. “Marketing
Insight: Getting to Marketing describes how companies need to change to do that. The organization’s task is thus
to determine the needs, wants, and interests of target markets and satisfy them more effectively and efficiently
than competitors while preserving or enhancing consumers’ and society’s long term well-being.
 Extra part
Deregulation
Many Countries have deregulated industries to create greater competition and growth opportunities
Privatization
Many countries have converted public companies to private ownership and management to increase their
efficiency.
Heightened competition
Intense competition among domestic and foreign brands raises marketing costs and shrinks profit margins.
Industry convergence
Industry boundaries are blurring as companies recognize new opportunities at the intersection of two or more
industries. The computing and consumer electronics industries are converging, for example, as Apple, Sony, and
Samsung release a stream of entertainment devices from MP3 players to plasma TVs and camcorders. Digital
technology fuels this massive convergence.
Retail transformation
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.
Disintermediation
The amazing success of early dot-coms such as AOL, Amazon.com, Yahoo!, eBay, and others created
disintermediation in the delivery of products and services by intervening in the traditional flow of goods through
distribution channels.
Consumer buying power
The Internet, consumers have substantially increased their buying power. From the home, office, or mobile phone,
they can compare product prices and features and order goods online from anywhere in the world 24 hours a day,
7 days a week, bypassing limited local offerings and realizing significant price savings.
Consumer information.
Consumers can collect information in as much breadth and depth as they want about practically anything. They
can access dictionaries, medical information, movie ratings, consumer reports, newspapers, and other information
sources in many languages from anywhere in the world.
Consumer participation
Consumers have found an amplified voice to influence peer and public opinion. In recognition, companies are
inviting them to participate in designing and even marketing offerings to heighten their sense of connection and
ownership.
Consumer resistance
Many customers today feel there are fewer real product differences, so they show less brand loyalty and become
more price- and quality-sensitive in their search for value, and less tolerant about undesired marketing.
Company Orientations Toward the Marketplace Page: 42
Given these new marketing realities, what philosophy should guide a company’s marketing efforts? Increasingly,
marketers operate consistent with the holistic marketing concept. Let’s first review the evolution of earlier
marketing ideas.

01. The production concept:

It holds that consumers prefer products that are widely available and inexpensive. Managers of production-
oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. This
orientation makes sense in developing countries such as China, where the largest PC manufacturer.

02. The product concept:

The Product concept proposes that consumers favor products offering the most quality, performance, or
innovative features. A new or improved product will not necessarily be successful unless it’s priced, distributed,
advertised, and sold properly.

03. The selling concept:

The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s
products.
1. When company has additional productivity.
2. It focus on existing products
3. It starts from factory
4. Profit thought sales value
5. Short run profit
6. It views marketing as hunting
7. Its philosophy is make and sell

04. The marketing concept:

The marketing concept holds that the key to achieving organizational goals is being more effective than
competitors in creating, delivering, and communicating superior customer value to your target markets.
1. Appropriate situation inform customer group
2. It focus on customer needs
3. It start from market
4. Long run profit
5. Profit through customer satisfaction
6. It views marketing as gardening
7. Its philosophy is sense and response
05. The Holistic Marketing Concept
The holistic marketing concept is based on the development, design, and implementation of marketing
programs, processes, and activities that recognize their breadth and interdependencies.
Holistic marketing recognizes that everything matters in marketing and that a broad, integrated perspective is
often necessary.
Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and
socially responsible marketing.
01. Relationship Marketing
Relationships with people and organizations that directly or indirectly affect the success of the firm’s
marketing activities. Relationship marketing aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business. Marketers must create prosperity among all these
constituents and balance the returns to all key stakeholders. To develop strong relationships with them requires
understanding their capabilities and resources, needs, goals, and desires.

4 Four key constituents for relationship marketing are

Customers
Employees
Marketing Partners
Financial Community

02. Integrated Marketing

Integrated marketing occurs when the marketer devises marketing activities and assembles marketing
programs to create, communicate, and deliver value for consumers such that “the whole is greater than the
sum of its parts.” All company communications also must be integrated. A marketer might selectively employ
television, radio, and print advertising, public relations and events, and PR and Web site communications so each
contributes on its own as well as improving the effectiveness of the others. Each must also deliver a consistent
brand message at every contact.

03. Internal Marketing

Internal marketing is the task of hiring, training, and motivating able employees who want to serve
customers well. It ensures that everyone in the organization embraces appropriate marketing principles,
especially senior management. Smart marketers recognize that marketing activities within the company can be as
important—or even more important— than those directed outside the company. It makes no sense to promise
excellent service before the company’s staff is ready to provide it.

04. Performance Marketing

Performance Marketing requires understanding the financial and nonfinancial returns and society from
marketing activities and programs. Top marketers are increasingly going beyond sales revenue to examine the
marketing scorecard and interpret what is happening to market share, customer loss rate, customer satisfaction,
product quality, and other measures. They are also considering the legal, ethical, social, and environmental effects
of marketing activities and programs.
Financial Accountability
Social Responsibility Marketing
What are the tasks necessary for successful marketing management? Page: 49

The three major market forces, two key market outcomes, and four fundamental pillars of holistic marketing that
help to capture the new marketing realities. With these concepts in place, we can identify a specific set of tasks
that make up successful marketing management and marketing leadership. The basic tasks of marketing are as
follows:

01. Developing Marketing Strategies and Plans

Identify its potential long-run opportunities, given its market experience.
Develop concrete marketing plans that specify the marketing strategy and tactics going forward.
Determining the strategies consist of identifying the marketing objectives or goals of the organization, their
determination, and modification as well as determination of specific resources to achieve objectives or goals set.
They are concerned with product, price, channel, promotion, competitors etc.
Marketing plans involve mangers by which the marketing goals can be achieved. They involve deciding policy,
strategy, tactics, procedures, rules and regulations and marketing programs, budgets and schedules to achieve the
long-term as well as short-term goals.
02. Capturing Marketing Insights
Closely monitor its marketing environment so it can continually assess market potential and forecast
demand.
To transform strategy into programs, marketing managers must make basic decisions about their expenditures,
activities, and budget.

03. Connecting with Customers

Create best value for its chosen target markets and develop strong, profitable, long-term relationships
with customers.
Marketing needs to connect with customer. Building customer relationship is a very effective way to increase
satisfaction and sustain in market.

04. Building Strong Brands

Pay close attention to competitors anticipating their moves and knowing how to react quickly and
decisively.
Marketing needs to build strong brand. It is also a major task of marketing. Strong brand helps in promotion,
value creating, image development, product positioning, brand loyalty and expansion of product lines.

05 Creating Value
To gain a competitive advantage, Atlas may provide leasing, delivery, repair, and training as part of its
product offering. Market offering of a product means that goods which have the ability to satisfy the needs and
wants of a number of customers.
At the heart of the marketing program is the product the firm’s tangible offering to the market, which includes
the product quality, design, features, and packaging.

06. Delivering Value

Determine how to properly deliver to the target market the value embodied in its products and services.
Marketing needs to deliver value to the target customers. Value is the ratio between what the customers pay and
what they receive. Marketing must determine how to properly deliver the value embodied by the products and
services to the target market. Customers’ product choice is guided by value. So, marketing should add maximum
value to the customers

07. Communicating Value

Adequately communicate to the target market the value embodied by its products and services.
An integrated marketing communication program that maximizes the individual and collective
contribution of all communication activities.
Marketing needs to communicate value to target markets. It has to develop an integrated marketing
communication program For this, marketing has to set up mass communication programs consisting of
advertising, personal selling, sales promotion, public relations and publicity
08. Conducting marketing responsibly for long-term success
Initiate new-product development, testing, and launching as part of its long-term view.
The strategy should take into account changing global opportunities and challenges
Marketing must take a long-term view of its products and brands and how its profits should be grown. Based on
its positioning, it must initiate new-product development, testing and launching.

The Marketing Mix Page: 47

Marketing activities into marketing-mix tools of four broad kinds, which he called the four Ps of marketing:
product, price, place, and promotion.
Product:
A product is anything that can be offered to a market for attention, acquisition, use or consumption.
It includes Product variety, Quality, Design, Features, Brand name, Packaging, Sizes, Services, Warranties,
Returns
Price:
Price is the amount of money charged for a product or service. Broadly, price is the total amount that being
exchange by the customer to obtain a benefit of the product or service owning.
It includes List price, Discounts, Allowances, Payment period, Credit terms
Place:
The various the company undertakes to make the product accessible and available to target costumer.
Many activity held by the company to make their product is easily to obtain and available for the targeted
customer.
It includes Channels Coverage, Assortments, Locations, Inventory,Transport
Promotion:
Promotion includes all the activities the company undertakes to communicate and promote its products to the
target market.
It includes Sales promotion, Advertising, Sales force, Public relations, Direct marketing
Modern Marketing Management Four Ps Page: 47
People
Processes
Programs
Performance

People:
People reflects, in part, internal marketing and the fact that employees are critical to marketing success.
Marketing will only be as good as the people inside the organization. It also reflects the fact that marketers must
view consumers as people to understand their lives more broadly, and not just as they shop for and consume
products and services.

Processes:
Processes reflects all the creativity, discipline, and structure brought to marketing management. Another
important set of processes guides the firm in imaginatively generating insights and breakthrough products,
services, and marketing activities.

Programs:
Programs reflects all the firm’s consumer- directed activities. Regardless of whether they are online or offline,
traditional or nontraditional, these activities must be integrated such that their whole is greater than the sum of
their parts and they accomplish multiple objectives for the firm.

Performance:
Performance is about to capture the range of possible outcome measures that have financial and nonfinancial
implications beyond the company itself.
Understanding the 4 As of Marketing Page : 48
The authors make the case that consumer knowledge is a much more reliable route to success. Their customer-
centric marketing management framework emphasizes what they believe are the most important consumer
values—acceptability, affordability, accessibility, and awareness—which they dub the four As.

Acceptability
Acceptability is the extent to which a firm’s total product offering exceeds customer expectations. The authors
assert that Acceptability is the dominant component in the framework and that design, in turn, is at the root of
acceptability. Functional aspects of design can be boosted by, for instance, enhancing the core benefit or
increasing reliability of the product; psychological acceptability can be improved with changes to brand image,
packing and design, and positioning

Affordability
Affordability is the extent to which customers in the target market are able and willing to pay the product’s price.
It has two dimensions: economic (ability to pay) and psychological (willingness to pay). Acceptability combined
with affordability determines the product’s value proposition. When Peachtree Software lowered the price of its
accounting software from $5000 to $199 and started charging for customer support, sales demand increased
enormously.

Accessibility
Accessibility, the extent to which customers are able to readily acquire the product, has two dimensions:
availability and convenience. Successful companies develop innovative ways to deliver both, as online shoe
retailer Zappos does with excellent customer service and return policies and its tracking of up-to-the-minute
information about warehouse stock, brands, and styles.

Awareness
Awareness is the extent to which customers are informed regarding the product’s characteristics, persuaded to try
it, and reminded to repurchase. It has two dimensions: brand awareness and product knowledge. For instance,
properly done advertising can be incredibly powerful, but word-of-mouth marketing and co-marketing can more
effectively reach potential customers.
Note that we can easily relate the 4 As to the traditional 4 Ps. Marketers set the product (which mainly influences
acceptability), the price (which mainly influences affordability), the place (which mainly influences accessibility),
and promotion (which mainly influences awareness).