BASIC

11
Teguh Budiarto

MANAGEMENT

FKKPM-FEB, UNIVERSITAS GADJAH MADA

JOGJAKARTA -INDONESIA
2022
 BASIC MANAGEMENT
1 Introduction
2 Manager & Management JG Ch.1, 2
3 Planning Plan JG Ch.7, 8
4 Structure & Control Organization JG Ch.10, 11
5 Leading, Motivating & Communicating JG Ch.13, 14
6 Conflict & Change Management JG Ch.16
7 Human Resource Management JG Ch.12
8 Basic Business FHF Ch.1
9 Managing Business FHF Ch.17
10 Basic Operations FHF Ch. 8
11 Basic Marketing FHF Ch.11, 12, 13
12 Financial Operations FHF Ch.14, 15, 16
13 Business Ethics & Sustainability FHF Ch.2
14 Global & Digital Business FHF Ch.3

• Jones, G.R. & George, J.M., 2020, Contemporary Management, McGraw Hill, New York, 11thed. (JG)
• Ferrell, O.C., Geoffrey Hirt & Linda Ferrell, 2020, Business Foundations: a changing World, McGraw Hill Irwin, 12thed. (FHF)
 MANAGEment Ways
Defining
Goals
1 Planning

2 Organizing
Coordinating
Choosing Setting Communicating
Strategy Structure Motivating
Leading

Setting 3
Information
Evaluating
Performance
Controll
Mechanism Controlling
System
1 Marketing
Basic
What’s
Marketing?
MARKETING is:
Activities of creating, offering and
delivering value to market designed to
speed-up exchange and transactions for
marketing relationship and networking
better than others in order to achieve
marketing goals
Ferrell et al., 2016 (modified)
What’s
Marketing?
Marketing Consumer
Goals satisfied ’s Goals

exchange
create value

Marketer Market
offer relation • Needs/wants
• Capability ship
• Competency • Purchase power
• Competitive • Intense to buy

deliver networ
king
What’s
Marketing?

1. Marketing is a social activities

2. Marketing satisfying needs
3. Marketing creates exchange
 What’s
Marketing?
1 Marketing is a social activities
1. Marketing applied in social life
2. Marketing has create quality of
life culture
3. Marketing builds a social
relationship
 What’s
Marketing?

2 Marketing satisfying needs

1. Marketing satisfy consumers’ needs to
meet company’s needs
2. Marketing filling unfulfilled needs
3. Marketing creates values
 What’s
Marketing?

3 Marketing creates exchange

1. Marketing transfers of things of
value between parties
2. Marketing push for fair business
3. Marketing is targeted for certain
market
Exchange
conditions
1. There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other.
 Marketing Exchange
marketing needs and
objectives wants

Marketer Market
payment

Marketer is individual or organizational Market is set of individual or

which fullfills consumers’ needs and wants by organizational, who have
1.creating, 1. needs and wants,
2.offering, and 2. purchasing power,
3.exchanging 3. and willing to buy
value of products to obtain marketing value of products for certain period of
objectives under certain environment. time and place.
Holistic Marketing
• Relationship Marketing
• Integrated Marketing
• Internal Marketing
• Performance Marketing
Holistic Marketing
Marketing Strategies
• Capturing Marketing Insight
• Connecting With Customers
• Building Strong Brands
• Creating Value
• Delivering Value
• Communicating Value
• Conducting Marketing Responsibility
 3 of Marketing Players
2
• Consumer market, Business market
• Product, Value offering, Brands

1
• Marketing activities
• Supply chain
• Exchange and transactions
• Relationship and networks
• Local market, Global market
• Marketplace, Marketspace, Metamarket
Marketer Market • Target Market
• Needs, wants, demands
• Value and satisfaction

• Market Competition

3
• Leading
Other • Challenging
• Following
Marketers • Niching
• others’ marketing environment
1.Marketer
Marketer is an individuals or
organizations, who:
1. Create, exchange and delivery
value,
2. Maintain relationship
3. Build network
with market for certain period of
time and place.
2.Market
Market is a set of individuals and
organizations, who have:
1. Needs and wants,
2. Purchasing power,
3. Intense to buy
goods or services for certain
period of time and place.
Actual and Potential MARKET
ve
De u r
y c
m pl
an p
d S u
cu l e
rv b
e l la
t ro
on
C
Potential market
Potential market

Potential market
Potential market
Actual
Potential market market Potential market

Potential market
Potential market

PRODUCER CONSUMER
Market
Market Measurement
Potential Market
is the set of consumers with sufficient level of interest in
Potential a market offer.
Market Available Market
is the set of consumers who have interests, income,
access, and qualification for the marketer qualification.
Qualified Market
is the set of consumers who have interests, income,
and access to a particular offer.
Target Market
is the part of the qualified market the company
decides of marketer targeted.
Available Penetrated Market
Market Qualified is the set of consumers who are buying the company’s product.
Market Target
Market Penetrated
Market
 Marketing Demand Function
Market Demand in the Specified Period

Marketing Sensitivity of Demand

Market
Potential Q2

Market
Forecast QF

Market
Q1
Minimum

Industry Marketing Expenditure

Market Demand
or Market Demand Function is the total volume that would be bought by a
defined customer group in a defined geographical area in a defined time
period in a defined marketing environment under a defined marketing
program.

Market Potential
is the limit approached by market demand as industry marketing expenditure
approach infinity for a given marketing environment.

Sales Potential
Sales potential is the share of the market potential that the firm can
reasonably expect to get over the longer term.
Market Segmentation
Dividing total market into groups of people
(market segments) with similar product needs
or behavior relatively regarding to prepare for
market targeting decision.

Market Segment
Is a collection of individuals, groups, or organizations
sharing one or more characteristics, thus having
relatively similar needs and desires for products
Bases for
Market Segmentation
• Demographic
• Geographic
• Psychographic
• Behavior
Target Market Approaches
Total Approach
A market segmentation strategy whereby a company tries to
appeal to all consumers and assumes that they all have similar
needs
Concentration Approach
A market segmentation strategy whereby a company develops
one marketing strategy approach for a single market segment
Multisegment Approach
A market segmentation strategy whereby a company aims its
efforts at two or more segments, developing a marketing
strategy for each
Target Market Approaches
3.Competitor
Competitive Position
1. Dominant
2. Strong
3. Favorable
4. Tenable
5. Weak
6. Nonviable
Competitor Position
as to be
1. Leader & Challenger,
2. Follower
3. Nicher
Market Leader Position:
Obyective:
Maintain Market-leader Position

Strategy:
1.Expanding Total Market
2.Expanding Market Share
3.Defending Current Market Share
Market Leader Position:
Defensive Strategy:
Flank

Preemp
tive
Position
Contract
Counter ion
offensive
ATTACKER DEFENDER

Mobile
Market Challenger Position:
Obyective:
To be Market-leader Position

Strategy:
1.Choosing Opponents
2.Define General Offensive Strategies
3.Determine Specific Attack Strategies
Market Challenger Position:
Offensive Strategy:
Bypass

Flank
Attack

Frontal
Encircle
ment

ATTACKER DEFENDER
Guerrilla
Market Follower Position:
Obyective:
Follow Market-leader

Strategy:
1.Counterfeiter or Fraudster
2.Cloner or Emulator
3.Imitator
4.Adaptor
Market Nicher Position:
A niche is a more narrowly defined small market
(limited number of buyers) whose needs are not
being well-served by existing sellers. It is a
small segment that has distinctive needs.
Smaller firms normally avoid competing with
larger firms by targeting small markets in which
large firms have a little or no interest.
Market Nicher Position:
Strategy:
1.End-user Specialist
2.Vertical Level Specialist
3.Specific Customer Specialist
4.Geographic Specialist
5.Product or Product Line Specialist
6.Event Specialist
2 Mix
Marketing
Marketing Activities
is Marketing Mix
1. Creating Product
2. Offering
Value to Market
3. Delivering
Marketing Mix Mega Marketing
1. Product 1. Product Maxi Marketing
2. Price 2. Price 1. Product
3. Promotion & 3. Promotion & 2. Price
4. Place 4. Place 3. Promotion & Service Marketing Mix
5. Political Power 4. Place 1. Product
6. Public Relation 5. Database 2. Price
(Jerome McCarty, 1960)
6. Dialog 3. Promotion &
(Phillip Kotler, 1986) 4. Place
Marketing Mix (Stan Rapp, 1983) 5. People
1. Product Marketing Mix 6. Process
2. Branding 7. Physical Evidence
1. Product
3. Price 2. Price (Booms & Bitner,
4. Promotion & 3. Promotion & 1981)
5. Place 4. Place
6. Packaging 5. People
(Neil Borden, 1985)
(Vaughan Judd, 1987)
Product, is anything
• creation of producers’ competencies
• to meet the consumers’ needs & wants
competency

>
Consumer
Producer have
have Buying
Resources Power
>
needs & wants
Product • Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
Service Marketing Mix
Product Mix
Product assortment
Product Life Cycle
Managing Product Life Cycle
Managing Product Life Cycle

Sierra Newell,
Price
is a measure of product’s value expressed in
monetary terms which is agreed between
buyer and seller in an exchange

Price Objectives • Profitability

• Sales
• Positioning
• Survival
• Competitive
Pricing base strategy
1 Demand Pricing

2
Competitor Pricing

3 Cost Pricing
Promotion

any form of a producer’s communication to

inform, persuade, or remind people about its
products
Promotional goals
Brand
1. Informative Awareness

2. Persuasive Buying
Decision

3. Remind Repeat
Purchases
Promotional Mix Controllable

Advertising
1
Promotion
Marketer
Personal
Selling 2
Uncontrollable
Marketer
Publicity
WOM
Sales
Promotion 3
Placing
or distribution is how to deliver values in convennience ways
to the customers

Its mean: How the customers have an access to get product

what they need in convennience
Distributional Mix
Intensive
Distribution 1
Distribution
Marketer
Selective
Distribution 2
Exclusive
Distribution 3
What’s Marketed
Product
Is aValue
for customer
Marketing Mix
4As Consumer value
1. Acceptability
2. Affordability
3. Accessibility
4. Awareness
Value
Marketing Mix Product’s
Value 1
Product’s
Offering 2
Product’s
Delivery 3
Value creation and delivery
1. Choosing the value
(segment the market, define target market, develop
“offering”).

2. Providing the value

(product features, prices, and distribution channels).

3. Communicating the value

(sales force, advertising, and promotional tools).
3V s marketing approaches
1. Valued segment for target customers
2. Value proposition competitively
diferentiate products
3. Value network deliver value proposition
Nirmalya Kumar (2004)
Marketing Value :
1. Value exploring & defining process
2. Value creating & developing process
3. Value delivering process

Frederick Webster
1.Value Exploration
• Customer’s cognitive space
(reflects existing and latent needs and includes
participation, stability, freedom, and change).
• Company’s competence space
(broad versus focused scope of business and depth
physical versus knowledge-based capabilities).
• The collaborator resource space
(horizontal and vertical partnerships).
2.Value Creation
1. Marketer’s need to:
2. Identify new customer benefits from the customer’s
view.
3. Utilize core competencies.
4. Select and manage business partners from its
collaborative networks.
5. Business realignment may be necessary to
maximize core competencies.
• (Re)defining the business concept—big idea.
• (Re)shaping the business scope—lines of business.
•(Re)position the company’s brand identity.
3.Value Delivery
• Proficient at customer relationship management.
Who the customers are, and respond to different
customer opportunities.
• Internal resource management.
Integrate major business processes within a single
family of software modules.
• Business partnership management.
Allow the company to handle complex relationships with
its trading partners.
Often requires an investment in infrastructure and capabilities
The Value Chain
1. Primary activities:
a) Inbound logistics (material procurement).
b) Operations (turn into final product).
c) Outbound logistics (shipping and warehousing).
d) Marketing (marketing and sales).
e) Servicing (service after the sale).

2. Support activities:
a) Procurement.
b) Technology development.
c) Human resource management.
d) Firm infrastructure.
The Value Chain
is a set of activities that an organization
carries out to create value for its
customers.

The purpose of value-chain analysis is to

increase production efficiency so that a
company can deliver maximum value for
the least possible cost.
 The Value Chain
THE BASIC VALUE CHAIN
s p o rt a ctivities Firm Infrastructures

Human Resource Man.

Technological Develpment
P rim ary a ctivitie Sup

Procurement

O u tbo u n d Lo g istics
In b o u n d Lo g istics

M a rketin g& Sa les

O p e ratio ns

Downstream Upstream S e rvices

activities activities
4 Behavior
Market
Markets Types
• Consumer markets
are buyer who make purchase for their own use, not for
resale.
• Business markets
or are buyer who make purchase not for their own use,
but for resale again (Resaler markets) or to produce
other products for sale (Industrial markets).
Markets place types
• Marketplace is a location where people regularly gather
for the purchase and sale of products.

• Marketspace is an online space that facilitates bi-

directional commerce. Sellers and buyer can list their
goods and their needs. 

• Meta market is a market that trades in the medium of

exchange of a lower-level market, such
as money, derivatives, or credit. 
Consumer Market
Behavior
Consumer Buying Behavior
is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and
society. 11-33
 Consumer behavior is the study of how
1.individuals,
MARKET BEHAVIOR

2.groups, and
3.organizations:
•select,
•buy (or repurchase),
•use, and
•dispose of (or switch to)
goods, services, ideas, or experiences
to satisfy
their needs and wants.
Stimulus - Respons Behavior model
Stimulus Respons
 Black box Consumer Buying Behavior model
ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
RESPONSE
Marketing Environmental
Buyer Characteristics Decision Process
Stimuli Stimuli

Economic Attitudes
Problem recognition Product choice
Product Technological Motivation
Information search Brand choice
Price Political Perceptions
Alternative evaluation Dealer choice
Place Cultural Personality
Purchase decision Purchase timing
Promotion Demographic Lifestyle
Post-purchase behaviour Purchase
amount
Natural Knowledge
Consumer behavior
is influenced by three factors:
1.cultural (culture, subculture, and social class);
2.social (reference groups, family, and social roles and
statuses); and
3.personal (age, stage in the life cycle, occupation,
economic circumstances, lifestyle, personality, and self-
concept).
Buying Decision Process Stages
Consumer roles
In buying decision process:
1.Initiators—requests the product.
2.Influencers—influence the buying decision.
3.Users—will use the product.
4.Deciders—makes the decision of what to
purchase..
5.Buyers—have the formal authority to purchase.
Different communications touchpoints at each stage
Customer purchase decision
Types of Consumer buying behavior
degree of buyer involvement
high low
differences between brands
significant
Complex Variety-seeking
buying buying
behavior behavior

Dissonance- Habitual
reducing buying buying
behavior behavior
few

Assael
Types of Consumer buying behavior
• consumption High Moderat Lower
level

Extensive problem solving

Respons routine behavior

Limited problem solving

• decision making
Lower Moderat High • buying effort
Business Market
Behavior
Organizational Buying Behavior
is the decision-making process by which formal
organizations establish the need for purchased products
and services, then identify, evaluate, and choose among
alternative brands and suppliers.

The Business Market consists of all the organizations that

acquire goods and services used in the production of
other products or services that are sold, rented, or
supplied to others.
Buyphases
8 the Business Buying Process:
1.problem recognition,
2.general need description,
3.product specification,
4.supplier search,
5.proposal solicitation,
6.supplier selection,
7.order-routine specification, and
8.performance review.
Characteristics of Business markets:
•Fewer, larger buyers.
•Close supplier-customer relationship.
•Professional purchasing.
•Several buying influences.
•Multiple sales call.
•Derived demand.
•Inelastic demand.
•Fluctuation demand.
•Geographically concentrated buyers.
•Direct purchasing
3 types of Business Buying Situations:
1. Straight rebuy is when the purchasing department
reorders on a routine basis and chooses from suppliers
on an “approved lists.”

2. Modified rebuy is when the buyer wants to modify

product specifications, prices, delivery requirements, or
other items.

3. New task is when the purchaser buys a product or

service for the first time.
Business roles
in Business Buying Decision Process:
1.Initiators—requests the product.
2.Users—will use the product.
3.Influencers—influence the buying decision.
4.Deciders—makes the decision of what to purchase.
5.Approvers—authorize the proposal.
6.Buyers—have the formal authority to purchase.
7.Gatekeepers—have the power to prevent seller
information from reaching members of the buying center.
Marketing Management
Market
Behavior
Product
Price

Promo
MARKETER tion MARKET

Place

Competitive
Advantages Competitor
See you….