HUM 3109 Marketing Management

HUM 3109: Industrial Management
Marketing Management
by
Md. Saiful Islam

Lecturer
MPE, AUST
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Page 1
What is Marketing??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above

+
much more!
Page 2
Marketing
Marketing is the activity, set of institutions
and processes for creating , communicating,
delivering and exchanging offerings that have
value for customers, clients, partners and
society.
Page 3
Case Study: cleaning up

Luton
Problem
Chewing gum litter
Expensive and difficult to clean.
Unhygienic. Unsightly
Solution
Gum Targets used by council
Result
Est. 75,000 pieces of gum collected first
year. 33% reduction in gum litter at sites
Cleaning cost reduced by 50%
Saving of 15k per annum
Positive press coverage for Luton
Page 4
To explain marketing definition, we

examine the following important terms :
Needs, wants, and demands

Products and services
Value, satisfaction and quality
Exchange, transactions and relationships
Markets
Page 5
Needs and Wants

Needs:
The most basic concept underlying marketing is that of
human needs.
Human needs are states of felt deprivation.
Human have many complex needs:
Physical needs for food, clothing, warmth, and safety
Social needs or belonging and affection
Individual needs for knowledge and self expression
Wants:
Want are the form taken by human needs as they are
shaped by culture and individual personality.
People have almost unlimited wants but limited
resources.
They want to choose products that provide the most
value and satisfaction for their money.
Page 6
Demands
Demands:
When backed by buying power, wants become
demands.
Consumers view products as bundles of benefits and
choose products that give them the best bundle for
their money.
Demand states:
Negative demand (i.e. medicine)

Nonexistent demand (i.e. teleportation)
Latent demand (i.e. 4G network)
Declining demand (i.e. symbian OS)
Irregular demand (i.e. tea)
Full demand (i.e. LED monitor for PC)
Overfull demand (i.e. train ticket)
Unwholesome
demand
(i.e. cigerrate)
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Page 7
Products and Services

Product:
Anything that can be offered to a market to satisfy a
need or want.
The concept of product is not limited to physical objectanything capable of satisfying a need can be called a
product.
Services:
In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not result in
the ownership of anything.
Page 8
Values, Satisfaction, and Quality

Values:
Customer value is the difference between the values the
customer gains from owning and using a product and
the costs of obtaining the products.
Customers often do not judge product value and costs
accurately or objectively. They act on perceived value.
Satisfaction:
Customer satisfaction depends on a products perceived
performance in delivering value relative to a buyers
expectation.
If the products performance falls short of the customers
expectations, the buyer is dissatisfied.
Quality:
Customer satisfaction is closely linked to quality.
Quality has a direct impact on product performance.
Quality can be defined as freedom from defects.
TQM programs designed to constantly improve the quality
of products, services, and marketing processes.
Page 9
Exchange, Transactions and

Relationships
Exchange:
The act of obtaining a desired object from someone by
offering something in return
Transaction:
A trade between two parties that involves at least two
things of value, agreed upon conditions a time of
agreement, and a place of agreement.
Relationship marketing:
The process of creating, maintaining, and enhancing
strong, value laden relationships with customers and
other stakeholders
10
Page 10
Aim of Marketing
The aim of Marketing is to have:

the right product or service
at the right price
at the right place
at the right time
Page 11
Simple Marketing System

Communication
Industry
(collection
of sellers)
Market
(collection
of Buyers)
Information
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Page 12
Scope What do we market
Goods
Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and concepts
13
Page
13
Key Consumer Markets
Consumer Market
Personal consumption
Superior products and packaging
Availability, Communication and Service
Business Market
In order to make or resell
Professional buyer
Sales force, Price, Reputation and Quality
Page 14
Key Consumer Markets
Global Market
International
Adaptation of product and price
Culture, Language and Politics
Nonprofit and Governmental Market

Buyer with limited buying power
Tender and Auction
Page 15
Marketplaces
Physical (i.e. cloth store)
Marketspaces
Digital (i.e. eBay)
Metamarkets
Cluster of complementary products
(i.e. Savar EPZ)
Page 16
Core Concepts of Marketing
Based on:
Needs, Wants, Desires / demand
Target markets, Positioning and Segmentation
Offering & Brands
Value & Satisfaction
Marketing Channels
Supply Chain
Competition
Marketing Environment
17
Page
17
Core Concepts of Marketing
Need food ( is a must )
Want Pizza, Burger, French fry's ( translation

of a need as per our experience)
Demand Burger ( translation of a want as

per our willingness and ability to buy )
Desire Have a Burger in a five star hotel
18
Page
18
Marketing Mix
Marketing is all about creating a pull, sales is

all about push.
Marketing
is all about managing the four Ps
product
price
place
promotion
19
Page
19
The 4 Ps & 4Cs
Marketing
Mix
Convenience
Place
Product
Customer
Solution
Price
Customer
Cost
Promotion
Communication
20
Page
20
Product
The first "P" of the marketing mix deals

with the product.
The positioning, packaging, etc.
Page 21
The Marketing Mix
PRODUCT - what is it that you are going to

sell.
Product Mix - range of PRODUCTS or
SERVICES offered for sale
Product Features- color, packaging, quality,
brand name
Product Support - maintenance, after-sales
Service, pre-sale like advice and Quotations
Page 22
Price
The second "P" of the marketing mix is price

There are several options to consider
regarding price:
1.
price matching
2.
price making
3.
introductory penetration pricing
4.
a competitive upgrade price strategy
Page 23
The Marketing Mix

Pricing - not just how much you charge for a
product but how the price fits your target market
and the image you wish to develop.
Pricing Methods you choose depends on:
competition in the market and your

marketing strategies
demand for your product
controlled pricing
your costs
perceived value
Page 24
Place
The 3rd "P" of the marketing mix deals with

product placement - the width of distribution
Page 25
The Marketing Mix
Distribution - how your products or services

reach your customers
Distribution Methods
Customers come to you
You take the product/service direct to the
customer
You use an agent merchant franchise etc.
to reach your customer
Page 26
The Marketing Mix
LOCATION - the place of the business

"locate your business where the market is"
Factors in Selecting an area:
Customer accessibility
Adequacy of transport/communication
facilities
Supply of skilled labor
Population Trends
Page 27
Promotion
Our promotions are designed to create

demand.
PR, Online Marketing, Advertising,
Direct Marketing and Event Marketing
Page 28
The Marketing Mix
Different Methods of promoting your

product or service
Public Relations - establishing a

favorable image
Publicity - feeding media of information

that is Of public interest (free
advertisement)
Sales Promotions
Merchandising - point-of-sale display

Page 29
The Marketing Mix
Advertising - purpose is to inform people

how best they can satisfy their needs and
wants and how they can benefit by buying
your goods and services
Page 30
The Marketing Mix
What advertising can do - Principle of

AIDA
A - Attention
I - Interest
D- Desire
A - Action
Page 31
The analysis, planning, implementation and

control of programs designed to create, build
and maintain beneficial exchanges with
target buyers for the purpose of achieving
organizational objectives.
Page 32
Involves:
Demand Management : The organization has a
desired level of demand for its products. At any
point in time, There may be no demand, adequate
demand, irregular demand, or too much demand,
and marketing management must find ways to
deal with these different demand states
Building Profitable Customer Relationships :
Beyond designing strategies to attract new
customers and create transactions with them,
companies now are striving to retain current
customers and build lasting customer
relationships.
Page 33
Marketing management
philosophies
The role that marketing plays within a
company varies according to the overall
strategy and philosophy of each firm
There are five alternative concepts under
which organizations conduct their marketing
activities:
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concepts
Page 34
Production Concept
The philosophy that consumers will favour

products that are available and highly
affordable and that management should
therefore focus on improving production and
distribution efficiency
Page 35
Product Concept
The philosophy that consumers will favour

products that offer the most quality,
performance, and innovative features
Page 36
Selling Concept
The idea that consumers will not buy

enough of the organizations products
unless the organization undertakes a
large scale selling and promotion effort
Page 37
Marketing Concept
The marketing management philosophy

that holds that achieving organizational
goals depends on determining the needs
and wants of target markets and delivering
the desired satisfactions more effectively
and efficiently than competitors do
Page 38
Societal Marketing Concept
The idea that the organization should

determine the needs, wants, and interests
of target markets and deliver the desired
satisfactions more effectively and
efficiently than competitors in a way that
maintains or improves the consumers
and societys well being
Page 39
The selling and Marketing Concepts

Contrasted
Starting
Starting
Focus
Focus
point
point
Means
Means
Ends
Ends
Factory Existing
products
Selling
and
promoting
Profits through
sales volume
The selling concept
Market Customer Integrated

needs marketing
Profits through
customer
satisfaction
The marketing concept
Page 40

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HUM 3109: Industrial Management

Md. Saiful Islam

Free Powerpoint Templates

All of the above

Free Powerpoint Templates

Case Study: cleaning up

Free Powerpoint Templates

To explain marketing definition, we

Needs, wants, and demands

Free Powerpoint Templates

Needs and Wants

Negative demand (i.e. medicine)

Products and Services

Values, Satisfaction, and Quality

Free Powerpoint Templates

Exchange, Transactions and

The aim of Marketing is to have:

Free Powerpoint Templates

Simple Marketing System

Scope What do we market

Free Powerpoint Templates

Key Consumer Markets

Key Consumer Markets

Nonprofit and Governmental Market

Free Powerpoint Templates

Free Powerpoint Templates

Core Concepts of Marketing

Needs, Wants, Desires / demand

Target markets, Positioning and Segmentation

Offering & Brands

Value & Satisfaction

Free Powerpoint Templates

Core Concepts of Marketing

Need food ( is a must )

Want Pizza, Burger, French fry's ( translation

Demand Burger ( translation of a want as

Desire Have a Burger in a five star hotel

Free Powerpoint Templates

Marketing is all about creating a pull, sales is

is all about managing the four Ps

Free Powerpoint Templates

The 4 Ps & 4Cs

Free Powerpoint Templates

The first "P" of the marketing mix deals

Free Powerpoint Templates

The Marketing Mix

PRODUCT - what is it that you are going to

Free Powerpoint Templates

The second "P" of the marketing mix is price

a competitive upgrade price strategy

Free Powerpoint Templates

The Marketing Mix

competition in the market and your

demand for your product

The 3rd "P" of the marketing mix deals with

Free Powerpoint Templates

The Marketing Mix

Distribution - how your products or services

Free Powerpoint Templates

The Marketing Mix

LOCATION - the place of the business

Free Powerpoint Templates

Our promotions are designed to create

Free Powerpoint Templates