Chapter 1

Subject: Marketing Management

Learning Outcomes
 Understand the importance in business
practice of being marketing oriented.

 Describe a range of common strategies for

use with each of the various marketing mix
tools: product, pricing, promotion, and
distribution.

 Recommend and justify an appropriate mix

of such strategies to form a cohesive overall
strategy for a given marketing task or
situation.
Defining Marketing
for the 21st Century
What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
(American Marketing Association Formal Definition)
What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
(American Marketing Association Formal Definition)
What is Marketing Management?

Marketing management is 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 • Places and properties

• Services • Organizations
• Events and experiences • Information
• Persons • Ideas
 Demand States
• Negative Demand • Irregular Demand
• Consumers dislike the • Consumers purchases vary on a
product e.g. Dental work seasonal, monthly, weekly, daily
or hourly e.g. Museums on week days,
• Nonexistent Demand Travelling Peak Off Peak time

• Consumers may be unaware • Unwholesome Demand

of the product e.g. Foreign Language
course
• Latent Demand
• Consumers may share a
strong need that can’t be
satisfied with existing product
e.g. Harm less cigarettes, Fuel Efficient cars
• Declining Demand
• Consumers begins to buy the
product less frequently e.g., Govt.
Schools , keypad phones
• Consumers attracted to products
that have undesirable social
consequences e.g. Cigarettes, Alcohol,
Drugs
• Full Demand
• Consumers are adequately
buying all products.
• Overfull Demand
• More consumers would like to
buy than can be satisfied.
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
 Core Marketing Concepts
• Needs, wants, and • Marketing channels
demands • Communication Channels e.g.
• 1. Stated needs (The customer wants an inexpensive car.) Newspapers, Magazines Radio., Television, Mail,
Telephone, Billboards, Posters, Fliers, CDs, Audio
• 2. Real needs (The customer wants a car whose operating
cost, not initial price, is low.) Tapes & Internet
• 3. Unstated needs (The customer expects good service
from the dealer.)
• Distribution Channels e.g. Distributors,
Wholesalers, Retailers, & Agents
• 4. Delight needs (The customer would like the dealer to

•
include an onboard GPS navigation
system.)
• Service Channels e.g. warehouses,
transportation companies, banks, and insurance
• 5. Secret needs (The customer wants friends to see him or companies
her as a savvy consumer.)

• Target markets, positioning, • Competition

segmentation
• Offerings and brands
• Marketing environment
• Value Proposition • Task Environment e.g. Company,
Suppliers, Distributors, Dealers & Target
• Value and satisfaction Customers

• Broad Environment e.g. Demographic,

PESTL

• Marketing planning
The New Marketing Realities
Major Societal Forces
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Consumer resistance
• Retail transformation
• Disintermediation
New Consumer Capabilities

• A substantial increase in buying power

• A greater variety of available goods and
services.
• A great amount of information about
practically anything.
• Greater ease in interacting and placing and
receiving orders.
• An ability to compare notes on products and
services.
• An amplified voice to influence public opinion.
 New Company Capabilities
• Marketers can use the Internet as a powerful information and sales channel
• Marketers can collect fuller and richer information about markets,
customers, prospects, and competitors
• Marketers can facilitate and speed external communication among
customers
• Marketers can send ads, coupons, samples, and information to customers
who have requested them or given the company permission to send them
• Marketers can reach consumers on the move with mobile marketing
• Companies can make and sell individually differentiated goods
(customization)
• Companies can improve purchasing, recruiting, training, and internal and
external communications
• Companies can facilitate and speed up internal communication among
their employees by using the Internet as a private intranet
• Companies can improve their cost efficiency by skillful use of the
Internet
Company Orientations Toward The
Market Place
• The Production Concept
• Consumers will prefer products that are widely available &
affordable.

• The Product Concept

• Consumer favor products that offer the most quality,
performance, or innovative features

• The Selling Concept

• Higher levels of sales efforts and promotional efforts would
be required.

• The Marketing Concept

• Analyzing the customers’ needs first and then deliver the
desired value.
Marketing Mix and the Customer
Four Ps
• Product Four Cs
• Product Variety/Quality/ Design/
Features/Brand Name/ Packaging/
Sizes/Services/Warranties/Returns • Customer solution
• Price • Customer cost
• List Price/Discounts/Allowances/

•
Payment Period/Credit Terms
Convenience
• Place
• Channels/Coverage/Assortments/ • Communication
Locations/Inventory/Transport

• Promotion
• Sales Promotion/Advertising/Sales
Force/Public relations/ Direct
Marketing
The Holistic Marketing Concept
• Relationship Marketing
• Relationship marketing is a strategy designed to foster
customer loyalty, interaction and long-term engagement.
• Integrated Marketing Communication
• Integrated marketing communication (IMC) is a process
for planning, executing and monitoring the brand
messages that create customer relationship.
• Internal Marketing
• Internal marketing is the task of hiring, training, and
motivating able employees who want to serve customers
well.
The Holistic Marketing Concept…
• Performance Marketing
• Financial Accountability Corporate Social Initiatives

• Social Responsibility • Corporate social

Marketing marketing
• Cause marketing
• Corporate philanthropy
• Corporate community
involvement
• Socially responsible
business practices