MANAGEMENT MARKETING

MODULE 1

INTRODUCTION
The purpose of this introductory chapter is to present the marketing management process and outline what
marketing managers must manage if they are able to be effective. In doing so, it will also present a framework
around which the remaining chapters are organized.
Our first task is to review the organizational philosophy known as the marketing concept, because it under lies
much of the thinking presented in this module. The remainder of this chapter will focus on the process of
strategic planning and its relationship to the process of the marketing planning.

What is MARKETING MANAGEMENT?

It is the process of planning, executing, and tracking an organization’s marketing strategy. It involves creating
and implementing marketing efforts to meet the demand of target customers and drive profitability.

Key elements of marketing management include:

1. Marketing Mix (Four Ps):
o Product: What you offer to customers.
o Price: How much customers pay.
o Place: Where customers access your product.
o Promotion: How you communicate and promote your product.
2. Marketing Strategy:
o A long-term plan that includes market research, branding, distribution channels, advertising,
and pricing.
o Balances pull (attracting customers) and push (promoting to customers) strategies.
3. Marketing Plan:
o Details how the marketing strategy will be executed.
o Includes the marketing budget for activities.
4. Importance of Marketing Management:
o Enables companies to focus efforts on goals (e.g., brand awareness, revenue).
o Tracks results and optimizes campaigns to gain and retain customers.

A marketing campaign can be made up of a mix of any of these marketing activities. These are just some
examples of the marketing tactics you can use.
  Digital Marketing: The term digital marketing refers to an umbrella of activities such as content
marketing, social media marketing, SEO, and SEM. These digital marketing areas rely on data
analysis and metrics to gauge success.
 Paid Advertising: This is any advertising you pay for, such as print media or digital placement,
which can include PPC (pay per click).
 Email Marketing: A component of digital marketing, email marketing, as the name suggests
involves engaging potential customers by sending emails at scale and doing A/B testing.
 Account-based Marketing: Account-based marketing is a type of marketing strategy in which
marketing and sales departments jointly identify high-value accounts to launch personalized
marketing efforts.
 Cause Marketing: Link your good or service to an issue or social cause to resonate with your
target audience.
 Relationship Marketing: Build a relationship with your customer and enhance those existing
relationships to build and improve brand loyalty.
 Undercover Marketing: A stealth approach, where consumers aren’t aware that they’re being
marketed to.
 Word of Mouth: One of the most important marketing strategies, but a hard one. That’s
because it relies on people giving positive impressions of your good or service, which builds
sales and loyalty.
 Internet Marketing: Create a content strategy to use the internet and other digital platforms to
advertise your goods or services.
 Transactional Marketing: Use coupons, discounts and events to facilitate sales and attract your
target audience through promotions.
 Diversity Marketing: When you have a wide range of consumers, you need to diversify your
marketing in order to respect cultural and religious views.

Chapter 1. Strategic Planning and the Marketing Management Process

Marketing Concept means that an organization should seek to achieve its goals by serving its customers. For a
business organization, this means that it should focus on its efforts on determining what customers need and
want and then creating and offering products and services that satisfy these needs and wants. By doing so, the
business will achieve its goal of making profits.

What is the purpose of marketing concept?

Its purpose is to rivet the attention of organizations on serving customer needs and wants. This is called a
market orientation, and it differs dramatically from a production orientation that focuses on making products
and the trying to sell them to customers.
 What is Marketing?
It is the process of creating and delivering value-based arguments for your products or services. It encompasses
every part of a plan to turn a prospective consumer into a happy and satisfied customer.
Let’s dive deeper into what marketing entails:
1. Market Research: Understanding your target audience is crucial. Market research involves analyzing
consumer behavior, preferences, and trends. It helps you identify potential customers and tailor your marketing
efforts accordingly.
2. Product Development: Marketing starts with the product itself. You need to curate the key features of
your product and define what makes it unique in your market.
3. Pricing Strategy: Determine the price for your product. Calculate the net cost of goods and add an
additional amount to meet your desired profit margin.
4. Distribution Methods (Place): Decide where you’ll sell your goods. Whether it’s a brick-and-mortar
store or an e-commerce platform, your distribution channels impact how and where you market your product.
5. Promotion: This involves getting the word out about your products. It’s a mix of various marketing
strategies, including paid advertising, content marketing, social media marketing, and more.
Benefits of Marketing:

 Increased Awareness: Marketing helps people discover your brand and offerings.
 Brand Loyalty: Effective marketing establishes trust and loyalty among customers.
 Sales Growth: Well-executed marketing drives sales and revenue.

In summary, marketing is about creating value, understanding your audience, and strategically promoting your
products or services to achieve business goals.

What is Strategic Planning?

It is a process of using available knowledge to document and establish a business’s direction and goals. It
involves creating, implementing, and evaluating specific business strategies that are based on data and sound
reasoning. It also integrates various departments and aligns shareholders and employees on the organization’s
priorities and efforts. It considers the firm’s strengths, weaknesses, opportunities, and threats and optimizes
resource allocation and operations.
In other words, Strategic planning is a process used by organizations to identify their goals, the strategies
necessary to accomplish those goals and the internal performance management system used to monitor and
evaluate progress. It is the art of creating specific business strategies, implementing them, and evaluating the
results of executing the plan, in regard to a company’s overall long-term goals or desires. The goal of a
strategic plan is to capture an organization’s mission and core principles — to envision the fulfillment of these
ideals. Strategic planning creates achievable goals through several factors, such as time management and
resource allocation.

Strategic Planning and Marketing Management

Marketing management is the process of planning, executing, and monitoring your marketing activities. It
involves choosing the right marketing mix, such as product, price, place, and promotion, to reach your target
 audience and persuade them to buy your products or services. Marketing management also helps you measure
the effectiveness of your marketing campaigns and optimize them for better results.

Strategic planning and marketing management are both processes that help an organization achieve its goals
and objectives. Strategic planning deals with the overall direction and allocation of resources for the entire
organization or its business units, while marketing management focuses on the development and
implementation of marketing strategies and tactics for specific products or services.
The relationship between strategic planning and marketing management is that marketing strategies and
tactics are derived from and aligned with the strategic plan. Marketing management helps to implement the
strategic plan by creating value for customers and generating demand for the organization’s products or
services. Marketing management also provides feedback and information to the strategic planning process by
monitoring the market trends, customer satisfaction, and competitive activities.
Some examples of strategic planning and marketing management are:

 HubSpot is a software company that helps businesses grow through inbound marketing, sales, and
customer service. Their strategic plan is to become the leading platform for growing better, by providing value
to their customers, employees, partners, and community. Their marketing plan includes creating high-quality
content, generating leads, nurturing prospects, and delighting customers.
 TeamGantt is a project management tool that helps teams collaborate and deliver projects on time.
Their strategic plan is to make project management easy and enjoyable, by offering a simple and intuitive
interface, powerful features, and excellent customer support. Their marketing plan includes building a loyal
audience, creating educational resources, offering free trials, and showcasing customer stories.
 CoSchedule is a marketing platform that helps marketers organize and execute their projects in one
place. Their strategic plan is to empower marketers to do their best work, by providing a comprehensive
solution, a data-driven approach, and a collaborative culture. Their marketing plan includes conducting
research, segmenting their market, creating buyer personas, and setting measurable goals.
The Strategic Planning Process
 This is the development of a strategic plan.
Four (4) Components of a strategic plan:
 Mission
 Objectives
 Strategies
 Portfolio Plan

A. Organizational Mission Also known as the purpose of an organization or is the description of its
reason for existence. It is a brief, broad statement about an organization's goals and how it intends to meet
those goals. It is an expression of the organization's purpose and direction, made by its leaders.

It often addresses what the organization does, why it does it, and how it serves its stakeholders.

What is the basic questions that must be answered when an organization decides to examine and restate its
mission?
What is our business?
Who are our customers?
What do customers value?
Individual Activity 1.
Think of your own organization/any organization and create a mission statement.
At least 5 organizations.
Write in a short bond paper.
Date of submission will be on the next class meeting.

There are three (3) Key Elements a management to consider in developing a statement of
mission:
 The organization’s history – Every
organization-large or small, profit or non-profit-has a history of objectives, accomplishments, mistakes,
and policies. In formulating a mission, the critical characteristics and events of the past must be
considered.
 The organization’s distinctive competencies –
These are things that an organizational does well-so well in fact that they give it an advantage over
similar organizations.
Example: For Honeywell, its ability to design, manufacture, and distribute a superior line of
thermostat. Similarly, Procter & Gamble’s distinctive competency is its knowledge of the market for low-priced,
repetitively purchased consumer products. No matter how appealing an opportunity may be, to gain
advantage over competitors, the organization must formulate strategy based on distinctive competencies.
 The organization’s environment – It dictates
the opportunities, constraints, and threats that must be identified before a mission statement is
developed.(SWOT)
 Example: Managers in any industry that is affected by Internet Technology breakthroughs should
continually asking, How will the changes in technology affect my customers’ behavior and the means by which
we need to conduct our business.

B. Organizational Objectives These are the end points of an organization’s mission and are what it seeks
through the ongoing, long-run operations of the organization. These objectives must be specific, measurable,
action commitments by which the mission of the organization is to be achieved.
Organizational Objectives could be formulated properly they can accomplish the following:
 They can be converted into a specific action.(this involves breaking down the objectives into actionable
steps or tasks that need to be taken in order to achieve the desired outcomes.)
 They will provide direction.(provides clear direction for the organization and this direction helps ensure
that everyone in the organization is aligned and working towards the same objectives)
 They can establish long-run priorities for the organization.(this will ensure that efforts are focused on
activities that will have the greatest impact on achieving the desired outcomes,overall,establishing
organizational objectives and converting them into a specific action plan helps set the long-run
 priorities for the organization,guiding its strategic direction and ensuring that efforts are directed
towards achieving sustainable success.
 They can facilitate management control because they serve as standards against which overall
organizational performance can be evaluated.(organizational objectives and action plan derived from
them serve as a tool for management control by providing a framework for evaluating
performance,identifying areas for improvement,and guiding decision-making to drive the organization
towards success.
The objectives may flow directly from the mission or be considered subordinate necessities for carrying out
the mission.

C. Organizational Strategies When an organization has formulated its mission and developed its
objectives, it knows where it wants to go. The next managerial task is to develop a “grand design” to get there
which constitutes the organizational strategies. Strategies involve the choice of major directions the
organization will take in pursuing its objectives. The management must ensure that these strategies are
implemented effectively. As 70% of strategic plans fail because the strategies in them are not well-defined and,
thus, cannot be implemented effectively.
There are three (3) Approaches:
 Strategies based on products and markets
 Strategies based on competitive advantage
 Strategies based on value
A. Organizational Strategies Based on Products and Markets. This means to developing organizational
strategies is to focus on the directions the organization can take in order to grow.
Figure 1.4, which presents the available strategic choices, is a product-market matrix.
There are three tests for Organizational Strategies:

Market Penetration Strategies – It focuses on primarily on increasing the sale of present products to present
customers.
EXAMPLE:
 Encouraging present customers to use more of the product: Orange Juice isn’t just for breakfast
anymore.
 Encouraging present customers to purchase more of the product: multiple packages of Pringles, instant
winner sweepstakes at a fast-food restaurant.
 Directing programs at current participants: A university directs a fund-raising program at those
graduates who already give the most money.
What is a tactic used to implement a market penetration strategy?
- It includes price reductions, advertising that stresses the many benefits of the product, packaging the
product in different-sized packages, or making it available at more locations.
Market Development Strategies - This is pursuing growth though market development, an organization
would seek to find new customers for its present products.
EXAMPLE:
  Arm & Hammer continues to seek new uses for its baking soda.
 McDonald’s continually seeks expansion into overseas markets.
 As the consumption of salt declined, the book 101 Things You Can Do with Salt Besides Eat It appeared.

Product Development Strategies – The new products developed would be directly primarily to present
customers.
EXAMPLE:
 Offering a different version of an existing product: mini-Oreos, Ritz with Cheese.
 Offering a new and improved version of its product: Gillette’s latest improvement in shaving
technology
 Offering a new way to use an existing product: Vaseline’s Lip Therapy

Diversification – This strategy can lead the organization into entirely new and even unrelated business. It
involves seeking new products for customers not currently being served.
EXAMPLE:

 Sealtest dairy, and Kraft cheese, among others.

 Brown Foreman Distillers acquired Hartmann Luggage, and Sara Lee acquired Coach Leather products.

B. Organizational Strategies Based on Competitive Advantage. This is the ability to outperform competitors in
providing something that the market values. This model is developed by Michael Porter that suggests that
firms should first analyze their industry and then develop either a cost leadership strategy or a strategy based
on differentiation.
 Cost Leadership Strategy- means a firm would focus on being the low-cost company in its industry. This
could be done through efficiencies in production, product design, manufacturing, distribution,
technology, or some other means.
 Strategy based on differentiation – means a firm seeks to be unique in its industry or market segment
along particular dimensions that the customers value. These dimensions might pertain to design,
quality, service, variety of offerings, brand name, or some other factor.

C. Organizational Strategies Based on Value. This is an extension of the marketing concept philosophy that
focuses on developing and delivering superior value to customers as a way to achieve organizational
objectives. Thus, it focuses not only on customer needs, but also on the question, How can we create a value
for them and still achieve our objectives?

- this is business approaches that aim to create, measure, and maximize the value of goods or services for
customers, suppliers, and the firm itself. Value is determined by the customers’ perceived benefits of the
product or service, minus the costs they have to pay for it. Value-based strategies use various tools and
 frameworks, such as value-based pricing, value stick, and value-based management, to align the company’s
decisions and actions with the key drivers of value

D. Organizational Portfolio Plan This is the final phase of the strategic planning process. Most of the
organizations at at particular time are a portfolio of businesses, that is, product lines, divisions, and schools.
It is a strategic framework that outlines how an organization manages its portfolio of
projects, programs, and initiatives. It provides a structured approach to aligning resources, prioritizing
investments, and achieving desired outcomes.
Here are some key aspects of an effective portfolio plan:
1. Visibility into Work and Constraints: Proactively identify and remove constraints by ensuring clear
visibility into who is doing what and when. Understand interdependencies and risks to transparently prioritize
and allocate work.
2. Prioritization Around Customers’ Expectations: Given budgetary constraints, prioritize initiatives
based on customer objectives. Identify the most valuable ideas by involving stakeholders from different
functions in an investment committee.
3. Adaptive Resource Management: Allocate resources flexibly based on market shifts and changing
customer needs. Create an environment where resources can seamlessly switch between initiatives to deliver
optimum value.
4. Construct and Prioritize the Portfolio: Develop a well-thought-out portfolio prioritization
approach. Define internal and external customers, identify mutually important initiatives, and align them with
strategic goals2.
5. Monitor and Control the Portfolio: Continuously assess performance, report on progress, and assess
the portfolio’s effectiveness.
6. Implementing Portfolio Management: Understand business drivers, introduce portfolio management,
establish governance roles, measure early success, and address challenges

In summary, an organizational portfolio plan ensures that the right initiatives are delivered at the right time to
achieve expected outcomes while optimizing limited resources.

THE MARKETING MANAGEMENT PROCESS

Through marketing management process, current, reliable, and valid information is needed to make
effective marketing decisions.

See figure 1.5 below.

 MARKETING PLAN- is a strategic document that outlines an organization’s marketing goals, strategies, and tactics. It
serves as a roadmap for achieving business objectives by defining how the company will promote its products or services
to its target audience.Here are the key components typically included in a marketing plan:

 Situational Analysis

With a clear understanding of organizational objectives and mission, the marketing manager must then realize and
monitor the position of the firm and specifically the marketing department, in terms of its past, present and future
situation.Identify strengths, weaknesses, opportunities, and threats (SWOT analysis).

Six (6) major areas of concern in Situational Analysis:

1. The cooperative environment – includes all firms and individuals who have a vested interest in the firm’s
accomplishing its objectives. Example: suppliers, resellers, other department in the firm, and sub departments
and employees of the marketing department.
2. The competitive environment – includes primarily other firms in the industry that rival the organization for
both resources and sales. Example: acquiring competing firms, offering demonstrably better value to customers
and attracting them away from competitors, and in some cases, driving competitors out of the industry.
3. The economic environment – the state of macroeconomy and changes in it also bring about marketing
opportunities and constraints. Example: changes in the technology can provide significant threats and
opportunities. In the communication industry when technology was developed to a level where it was possible
to provide cable television using phone lines, such as system posed a severe threat to the cable industry.
4. The social environment – this environment includes general cultural and social traditions, norms, and
attitudes.
5. The political environment – this includes the attitudes and reactions of the general public, social and
business critics, and other organizations such as the Better Business Bureau.
6. The legal environment – this includes a host of federal, state, and local legislation directed at protecting
both business completion and consumer rights.
  Marketing objectives are specific and realistic outcomes that a company aims to achieve through its marketing
efforts within a defined period. These objectives guide the focus of marketing activities and serve as benchmarks for
evaluating performance.Set clear, measurable goals related to sales, brand awareness, customer acquisition, or other
relevant metrics.

Let’s explore some examples of effective marketing objectives and how to measure them:

1.Increase Share of Voice (SOV):

Objective: Raise SOV from 11% to 16% by the end of 2023.

Explanation: SOV measures your brand’s visibility compared to competitors. It encompasses both paid advertising and
organic channels.

How to Measure It:Increase organic search visibility in the U.S. from 6% to 8% by the end of 2023.

:Boost search ad impression share among Site Audit tool buyers in the U.S. from 47% to 65% by the end of 2023.

2.Enhance Brand Awareness:

Objective: Increase brand awareness by 20% within the next six months.

Explanation: Brand awareness reflects how well your target audience recognizes and associates with your brand.

How to Measure It: Track metrics such as social media mentions, website traffic, and brand recall surveys.

3. Drive Sales Growth:

Objective: Achieve a 15% increase in sales revenue by the end of the fiscal year.

Explanation: Sales growth directly impacts the company’s bottom line.

How to Measure It: Monitor sales data, conversion rates, and average transaction value.

4.Improve Customer Loyalty:

Objective: Increase customer retention by reducing churn rate from 10% to 5%.

Explanation: Loyal customers are more likely to make repeat purchases and refer others.

How to Measure It: Calculate churn rate (percentage of customers lost) and track customer satisfaction scores.

5.Expand Market Share:

Objective: Capture an additional 5% market share in the next quarter.

Explanation: Market share indicates your brand’s position relative to competitors.

How to Measure It: Analyze sales data, customer acquisition rates, and competitor performance.

6.Boost Website Traffic:

Objective: Increase website visits by 30% over the next six months.

Explanation: Higher website traffic can lead to more conversions.

How to Measure It: Use tools like Google Analytics to track unique visitors, page views, and referral sources.

Remember that these examples serve as inspiration, and you should tailor your marketing objectives to your
unique business needs and priorities.

 Target market selection is a crucial step in identifying the audience for a new product or service. It involves
choosing a specific group of consumers to whom you will promote your offering.Or in other words it define the
specific audience or customer segments the company aims to reach. Understand their needs, preferences, and
behaviors.

Let’s delve into the details:

1.Definition:

A target market refers to a group of customers who share common characteristics and are identified as the most likely
buyers for a company’s product or service.

Market segmentation helps divide the overall market into distinct segments based on factors such as demographics,
psychographics, lifestyle, and geographic location.

2. Importance of Target Market Selection:

 After segmenting the market and analyzing target customers, the next step is to select the most profitable market segment.

Key reasons for target market selection:

Competitive Advantage: Identifying a primary and secondary target market allows you to focus on a specific segment
where you can gain an edge over competitors.

Profitability: Choose a market with a larger and growing customer base to maximize profits and ensure sustainable
growth.

Market Share: Success depends on gaining a foothold in the chosen market and understanding competitor strategies.

Defining Your Product’s Target Market:

Demographics: Consider age, gender, income level, and other basic characteristics.

Psychographics: Explore values, interests, lifestyles, and attitudes.

Geography: Decide whether you’re targeting a local or international audience.

Imagining Your Audience: Envision the people most likely to buy your product, addressing their specific needs or
problems.

Remember, choosing the right target market is essential for creating a successful product that meets customer demand and
stands out in the marketplace.

 Marketing mix- is the set of controllable variables that must be managed to satisfy the target market and
achieve organizational objectives. The controllable variables are: product, price, promotion and place.

 Product Strategy-is a high-level plan that outlines what a business aims to achieve with its product
and how it intends to do so.
 Vision and Purpose:Define the overarching purpose of the product. What problem does it solve? What value does it
bring to customers? And establish a clear vision for the product’s future.
 Target Audience (Personas):Identify the specific groups of people (personas) who will benefit from the product.
And understand their needs, pain points, and preferences.
 Market Positioning:Determine how the product will be positioned relative to competitors. And craft a unique value
proposition that sets the product apart.
 Goals and Objectives:Set measurable goals for the product’s success. These could include revenue targets, user
adoption rates, or market share. And align objectives with overall business goals.
 Lifecycle Planning:Consider the entire product lifecycle, from development to launch, growth, maturity, and
eventual retirement. And define strategies for each stage.
 Roadmap and Prioritization:Translate the strategy into actionable steps. And prioritize features, enhancements, and
improvements on a product roadmap.
Why is Product Strategy Important?

 Clarity: A well-defined product strategy provides clarity for the entire organization. It helps teams understand their
roles and contributions toward strategic goals.
 Prioritization: With a strategy in place, teams can prioritize initiatives effectively, avoiding misallocation of
resources.
 Adaptability: Strategies allow flexibility to adjust plans based on changing circumstances.

Remember, a thoughtful product strategy guides decision-making, aligns teams, and ensures successful product
development.
 Promotion Strategy-is a plan to create or increase demand for a product. It outlines the tactics you’ll use to raise
awareness about your product and convince people to buy it. The goal of a promotion strategy is to introduce
potential customers to your product and encourage them to make a purchase. Ex.paid advertising,email
marketing,content marketing,sponsorship,social media advertising,discounts and coupons,etc.
 Pricing Strategy-is the method used by businesses to set and adjust prices for their products or services. It aims to
strike a balance between generating profit and remaining attractive to consumers.
Why is it important? Effective pricing directly impacts a company’s revenue, profits, and long-term investments. It
reflects the business’s behavior toward competitors and the value it provides to customers

Factors Considered in Pricing Strategy:

 Market Conditions: Understanding the market dynamics, demand, and supply.
 Consumer Willingness to Pay: What are customers willing to spend?
 Competition: Analyzing competitors’ pricing strategies.
 Trade Margins: Considering distribution and retail margins.
 Costs Incurred: Production, marketing, and operational costs.

Types of Pricing Strategies:

 Price Skimming: Introducing a product at a high price initially and gradually lowering it.
 Pricing for Market Penetration: Setting a low initial price to gain market share.
 Premium Pricing: Charging a higher price for perceived quality or exclusivity.
 Economy Pricing: Offering products at a low price for cost-conscious consumers.
 Bundle Pricing: Selling related products together at a discounted price.
 Value-Based Pricing: Aligning prices with the perceived value to the customer.
 Dynamic Pricing: Adjusting prices based on real-time market conditions.

Process of Developing a Pricing Strategy:

 Assess Business Goals: Understand what the business aims to achieve.
 Market Research: Evaluate competition and consumer preferences.
 Effective Pricing Strategy: Design a strategy that aligns with business goals.
 Consumer Feedback: Engage with the target audience to gather insights.

 Distribution Strategy-in marketing refers to the method used to bring products, goods, or services to customers or
end-users. It involves making strategic decisions about how to get your offerings in front of the right audience.

Types of Distribution Strategies:

 Direct Distribution: In this approach, companies sell their products directly to consumers without intermediaries.
Examples include selling through company-owned stores, e-commerce websites, or direct sales teams.
 Indirect Distribution: Indirect distribution involves using intermediaries such as wholesalers, retailers, or
distributors. These intermediaries help reach a wider audience by distributing products to various retail outlets.
 Exclusive Distribution: Exclusive distribution restricts the availability of a product to a limited number of outlets.
It’s commonly used for luxury brands or specialized products.
 Intensive Distribution: Intensive distribution aims to make a product available in as many outlets as possible. It’s
suitable for everyday items like snacks or beverages.
 Selective Distribution: Selective distribution strikes a balance between exclusive and intensive approaches. It
involves choosing specific retail channels based on the product’s nature and target audience.
Factors to Consider:
 Product Type: The type of product or service influences the distribution strategy. Routine purchases (like gum or
paper products) have different distribution needs than extensive purchases (like vehicles or houses).
 Customer Base: Consider where your ideal customers typically shop. Advances in technology also impact
distribution choices.
Benefits of a Well-Planned Distribution Strategy:
 Maximized Reach: The right strategy ensures your product reaches the intended audience effectively.
 Cost-Effectiveness: Balancing costs with distribution channels helps maintain profitability.
 Brand Consistency: Consistent distribution channels create a reliable brand experience.

SUMMARY