Marketing Management

Introduction

 Marketing is one of several functional areas in a business

that must be guided by a core company philosophy while

focusing on the exchanges that take place in external

markets in hopes of maximizing performance.

 The specific role of marketing is to provide assistance in

identifying, satisfying, and retaining customers.

 Marketing

Marketing is a crucial function in all businesses

and organizations, and is becoming increasingly
crucial to success in our modern global
economy.
 Adapting Marketing to the new economy
for sustainability

 Digitization and connectivity

 Dis-intermediation and re-
intermediation
 Customization and customerization
E- business
E- commerce
E- purchasing
E- marketing
Adapting Marketing to the new economy

• Build brand through performance, not just

advertising
• Customer rentention rather than customer
acquisition
• From none to in-depth customer satisfaction
measurement
• from over-promise, under-deliver to under-
promise, over-deliver
 Marketing is often a critical part of a firm's success, but its
importance must be kept in perspective.
 For many large manufacturers such as Proctor & Gamble,
Microsoft, Toyota, and Sanyo, marketing represents a major
expenditure, as these businesses depend on the effectiveness of
their marketing effort.
 Conversely, for regulated industries (such as utilities, social
services, medical care, or small businesses providing a one-of-a-
kind product) marketing may be little more than a few informative
brochures.
 Major drivers of the
economy
- Substantial increase in buying power

- A Greater variety of goods and services

- Well informed customers (website)

- A greater ease in interacting and placing and receiving

orders

(sales channel)

- An ability to compare notes on products and services

online
 Major drivers of the economy

 Two-way communication with customers and prospects

 Well informed companies (markets, customers,
prospects and competitors)
 Mass customization
 Improved accuracy and service quality
Marketing is responsible for satisfying customer needs

 Anytime one tries to persuade somebody to do

something- to buy his product, to donate for some
charitable purpose, to vote for some candidate or to
accept a social date.
 Successful Marketing Management includes

 Capturing marketing insights

 Connecting with customers
 Building strong brands
 Shaping the market offerings
 Delivering and communicating value
 Creating long-term growth
 Developing marketing strategies and plans.
Marketing budget

 Companies have increased their marketing budget's

dramatically.
 For example, it is estimated that companies spend over
15 billion dollars annually on marketing .
 This is an increase of over 2.5 times more than they were
spending in 1992.
 Examples of companies that are known for creative,
leading-edge marketing are Disney, Pepsi, Apple and
Procter & Gamble.
Definition of Marketing

A
MS
F
R

Exchange process
Definition of Marketing

 Anticipation of Demand requires a firm to do

consumer research in anticipation of market’s
potential and consumers’ desires.

 Management of Demand includes:

Stimulation: motivates consumers to want
firm’s offerings
Facilitation: makes it easy to buy offerings
Regulation: involves balancing inventory to
Definition of Marketing

 Satisfaction of Demand involves product availability,

product performance, perceptions of safety, and

after-sale services.

 An Exchange Process includes the agreement for

payment: cash/credit/promise to pay or support for

a firm, institution, idea, or place.

 What is a Market?

 The set of actual and

potential buyers of a product.

 These people share a need or

want that can be satisfied
through exchange
relationships.
For an exchange to occur…..

 There are at least two parties.

 Each party has something that might be of value to the other party.
 Each party is capable of communication and delivery.
 Each party is free to reject the exchange offer.
 Each party believes it is appropriate or desirable to deal with the
other party
Key Customer Markets

 Consumer markets
 Business markets
 International Markets/Global
markets
 Nonprofit/Government markets
 Marketing Defined

Marketing is the activity, set of

instructions, and processes.

OLD view of NEW view of

marketing: marketing:
Making a sale Satisfying
—“telling and customer needs
selling”
 Definition

Marketing is the social process by which

individuals and groups obtain what they
need and want through creating and
exchanging products and value with others .

- P. Kotler
 What is Marketing?

 Identifying a need
 Matching resources against that need
 Building relationships to deliver services
 Delivering services based on need in a cost
effective way
 What Is Marketing

Marketing is managing profitable customer

relationships.

Goals:

1. Attract new customers by

promising superior value.

2. Keep and grow current

customers by delivering satisfaction.
Why is Marketing Important?

Shifting Business Paradigms

Buyers’
markets
Sellers’
markets
 Implications of marketing

 Who are our existing / potential customers?

 What are their current / future needs?
 How can we satisfy those needs?
 Can we offer a product/ service that the customer would
value?
 Can we communicate with our customers?
 Can we deliver a competitive product of service?
 Why should customers buy from us?
A simple marketing
system
 The 4 Ps & 4Cs

Convenience
Marketing
Mix

Product Place

Customer
Solution Price Promotion

Customer Cost
Communication
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 Marketing as a Source of Competitive
Advantage
The specific role of marketing is to provide assistance in
identifying, satisfying, and retaining customers. Noted Harvard
Professor of Business Levitt states that the purpose of all
business is to "find and keep customers. "
This loyal behavior is exhibited by people who drive only Fords,
brush their teeth only with Colgate and buy only Dell
computers.
Creating this blind commitment - without consideration
of alternatives - to a particular brand, store, person, or
idea is the dream of all businesses. It is unlikely to occur,
however, without the support of an effective marketing
Customer vs. Consumer
Selling Vs. Marketing
 Emphasis on the product
 Sales are the primary
motive
 First production
 Internal
 Company’s need is the
motive
 Cost determines price
 Customer is last link
 Independent
 Seller determines product
 Emphasis on customer
wants
 Satisfaction of customers is
primary
 Later production
 External
 Buyer’s need is the motive
 Consumer determine price
 Customer as the purpose of
business
 Integration
 Buyer determines product
 Starting
point Focus Means Ends

Profits
Selling Factory Existing Selling
Through
philosophy products Promoting
Sales volume

Profits
Marketing Market Customer Integrated Through
philosophy needs Marketing Customer
Satisfaction