Marketing Management and Decisions

KUSOM MBA
Fall 2020

MKT 501: Marketing Management and Decisions

© Sujan R Shrestha, MBA 2020

 Using our text…

The “Bible” of Marketing;

a “Must Have” if you’re into
marketing…
But…
Very “High Density” - a lot of readings
For best results: Read it…
Suggested Approach:
Focused… read the base text / skim
the rest…
Read other elements as you connect
to concepts which need clarification/
expansion.
 MKT – 501: Marketing Management and Decisions
KUSOM MBA
Fall 2020
You are with:
$

Lecture 01:
Defining Marketing for the New Realities
Developing Marketing Plan and Strategies

© Sujan R Shrestha, MBA 2020

 Structure of Flows
in a Modern Exchange Economy
A Simple Marketing System
 Company Orientation toward
the Marketplace

PRODUCTION

PRODUCT

SELLING

MARKETING

SOCIETAL MARKETING
 The Value of Marketing

Financial success often depends on marketing ability

Successful marketing builds demand for products and

services, which, in turn, creates jobs

Marketing builds strong brands and a loyal customer

base, intangible assets that contribute heavily to the

value of a firm
 The Scope of Marketing

Marketing is about identifying and meeting human and

social needs

AMA’s formal definition: 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 at large

 Marketing Management

The art and science of choosing target markets and

getting, keeping, and growing customers through

creating, delivering, and communicating superior

customer value.
 What is Marketed?

Goods Properties
Services Organizations
Events Information
Experiences Ideas
Persons
Places
 Who Markets?

A marketer is someone who seeks a response—attention,

a purchase, a vote, a donation—from another party,

called the prospect
 Core Marketing Concepts

Needs: the basic human requirements such as for air,

food, water, clothing, and shelter

Wants: specific objects that might satisfy the need

Demands: wants for specific products backed by an

ability to pay
 Core Marketing Concepts

Segmentation

Target markets

Positioning
 Core Marketing Concepts

Offerings: a combination of products, services,

information, and experiences

Value proposition: a set of benefits that satisfy those

needs

Brands: an offering from a known source

 Core Marketing Concepts

Marketing channels

COMMUNICATION

DISTRIBUTION

SERVICE
 Core Marketing Concepts

Paid media: TV, magazine and display ads, paid search, and

sponsorships
Owned media: a company or brand brochure, web site, blog,

facebook page, or twitter account

Earned media: word of mouth, buzz, or viral marketing

Impressions: occur when consumers view a communication

Engagement: the extent of a customer’s attention and active

involvement with a communication

 Core Marketing Concepts

Value: a combination of quality, service, and price (qsp:

the customer value triad)

Satisfaction: a person’s judgment of a product’s

perceived performance in relationship to expectations

 Core Marketing Concepts

Supply chain: a channel stretching from raw materials to

components to finished products carried to final buyers

 Core Marketing Concepts

Competition: all the actual and potential rival offerings

and substitutes a buyer might consider

 Core Marketing Concepts

Marketing environment
– Task environment
– Broad environment
Marketing Mix Components (4 Ps)
MODERN MARKETING MANAGEMENT

3 MORE Ps

PEOPLE

PROCESSES

PHYSICAL EVIDENCES
MODERN MARKETING MANAGEMENT

4 MORE Ps

PEOPLE

PROCESSES

PROGRAMS

PERFORMANCE
Holistic Marketing Dimensions
 MARKETING MANAGEMENT TASKS

Capturing marketing insights

Connecting with customers

Building strong brands

Creating value

Delivering value

Communicating value

Creating successful long-term growth

Developing market strategies and plans

Marketing plan
 Marketing plan

The central instrument for directing and coordinating the

marketing effort

Strategic

Tactical
Strategic Planning, Implementation, and
Control Processes
 Corporate and division strategic planning

1. Defining the corporate mission

2. Establishing strategic business units

3. Assigning resources to each strategic business unit

4. Assessing growth opportunities

 Defining the corporate mission

1. What is our business?

2. Who is the customer?

3. What is of value to the customer?

4. What will our business be?

5. What should our business be?

 Good Mission statements

 Focus on a limited number of goals

 Stress the company’s major policies and values

 Define the major competitive spheres within which the

company will operate

 Take a long-term view

 Are as short, memorable, and meaningful as possible

 Establishing Strategic Business Units

A single business or collection of related businesses

Has its own set of competitors

Has a leader responsible for strategic planning and

profitability
 Assigning Resources to Each SBU

Management must decide how to allocate corporate

resources to each SBU

Portfolio-planning models

Shareholder/market value analysis

Assigning Resources to Each SBU
 The Business Unit
Strategic-planning Process
 P5F Model

Originally developed by Harvard Business School's Michael E. Porter in 1979, the five forces model looks at
five specific factors that determine whether or not a business can be profitable in relation to other
businesses in the industry. Using Porter's Five Forces in conjunction with a SWOT analysis will help you
understand where your company or business fits in the industry landscape.
 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats
SWOT Analysis
 Internal environment

Strengths

Weaknesses
 External environment

Marketing opportunity: an area of buyer need and interest

that a company has a high probability of profitably satisfying.

Environmental threat: challenge posed by an unfavorable

trend or development that, in the absence of defensive

marketing action, would lead to lower sales or profit

 Market Opportunity Analysis (MOA)

Can we articulate the benefits convincingly to a defined

target market(s)?
Can we locate the target market(s) and reach them with
cost-effective media and trade channels?
Does our company possess or have access to the critical
capabilities and resources we need to deliver the
customer benefits?
Can we deliver the benefits better than any actual or
potential competitors?
Will the financial rate of return meet or exceed our
required threshold for investment?
 TOWS Analysis

The acronym TOWS is a variant of SWOT and was developed by the American international business
professor Heinz Weirich in 1980s.
The TOWS Matrix is aimed at developing strategic options from an external-internal analysis and is a
practical tool, particularly in the fields of business administration and marketing.
 Goal formulation (MBO)

 strategic management model that aims to improve the performance of an organization by

clearly defining objectives that are agreed to by both management and employee

 Unit’s objectives must be arranged hierarchically

 Objectives should be quantitative

 Goals should be realistic

 Objectives must be consistent

 Strategic formulation:
Porter’s Generic Strategies

COST LEADERSHIP

DIFFERENTIATION

FOCUS

Michael Porter described the theory in his 1985 book ‘Competitive Advantage: Creating and Sustaining
Superior Performance’. The basis was formed by three strategies, namely cost
leadership, differentiation and focus. He divided the latter into cost focus and differentiation focus.
 Feedback and control

Peter Drucker: it is more important to

“do the right thing”—to be effective (Leadership), than

“to do things right”—to be efficient (Management)
The most successful companies, however, excel at both

Peter Drucker (1909-2005) was one of the most widely-known and influential thinkers on

management, whose work continues to be used by managers worldwide.
 Marketing Plan Contents

 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Marketing tactics
 Financial projections
 Implementation controls
 Evaluating a Marketing Plan

 Is the plan simple/succinct?

 Is the plan complete?
 Is the plan specific?
 Is the plan realistic?
 Other marketing plan contents

Marketing research

Specifications for internal and external relationships

Action plans and schedules