MARKETING
MANAGEMENT
CHAPTER 1:
DEFINING MARKETING
AND THE MARKETING
PROCESS
Definitions of Marketing
‘Marketing is the management process that
identifies, anticipates and satisfies
customer requirements profitably’
The Chartered Institute of Marketing
‘THE RIGHT PRODUCT, IN THE
RIGHT PLACE, AT THE RIGHT
TIME, AND AT THE RIGHT
PRICE’
ADCOCK ET AL
‘Marketing is the human
activity directed at
satisfying human needs and
wants through an exchange
process’
Kotler 1980
‘MARKETING IS A SOCIAL AND
MANAGERIAL PROCESS BY WHICH
INDIVIDUALS AND GROUPS OBTAIN
WHAT THEY WANT AND NEED
THROUGH CREATING, OFFERING AND
EXCHANGING PRODUCTS OF VALUE
WITH OTHERS’
KOTLER 1991
Implications of marketing
Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these 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?
The marketing concept
choosing and targeting appropriate
customers
positioning your offering
interacting with those customers
controlling the marketing effort
continuity of performance
Successful marketing requires:
Profitable
Offensive (rather than defensive)
Integrated
Strategic (is future orientated)
Effective (gets results)
Hugh Davidson 1972
Marketing Management Process
Analysis/Audit - where are we now?
Objectives - where do we want to be?
Strategies - which way is best?
Tactics - how do we get there?
(Implementation - Getting there!)
Control - Ensuring arrival
THE MARKETING PROCESS
Understanding the organization’s mission
Setting marketing objectives
Gathering, analyzing, and interpreting information
Develop marketing strategy
Implementation
Design performance measures
Evaluation
Why is marketing planning necessary?
Systematic futuristic thinking by management
better co-ordination of a company’s efforts
development of performance standards for
control
sharpening of objectives and policies
better prepare for sudden developments
What is marketed?
Marketing people are involved in marketing 10
types of entities;
GOODS SERVICES
INFORMATION
EVENTS
IDEAS 10 Types of entities
Being marketed EXPERIENCES
ORGANIZATIONS
PERSONS
PROPERTIES PLACES
How Business and Marketing are Changing?
Interlinking societal process that have created new
behaviors, new opportunities and new challenges;
1) Changing technology
2) Globalization
3) Deregulation
4) Privatization
5) Customer Empowerment
6) Customization
7) Heightened competition
8) Industry Convergence’
9) Retail Transformation
10) Disintermediation
Marketing Environment
Marketers need to be sensitive towards its
marketing environment.
Marketing activities are affected by
internal and external factors.
Internal factors are factors which are
controllable by the company or firm.
External factors are factors which are
beyond the company’s control.
THE
MARKETING
ENVIRONMENT
Four Traditional Marketing
Principles
Product – what is marketed
Place – Distribution
Price – Pricing strategy
Promotion – Advertising, sales promotion,
public relation, personal selling
Can you provide examples?
Chapter 2
Company & Marketing Strategy
What is a Marketing Plan?
Definition:
A marketing plan is a business document written
for the purpose of describing the current market
position of a business and its marketing strategy
for the period covered by the marketing plan.
Marketing plans usually have a life of from one
to five years.
Purpose of a Marketing Plan
The purpose of creating a marketing plan is to
clearly show what steps will be undertaken to
achieve the business' marketing objectives.
While some small business owners include their
marketing plan as part of their overall business
plan
What's in a Marketing Plan?
A marketing plan include:
Description of the product or service, including
special features
Marketing budget, including the advertising and
promotional plan
Description of the business location, including
advantages and disadvantages for marketing
Pricing strategy
Market segmentation (specializing in specific
niche markets or, if mass marketing, how
marketing strategy might differ between
different segments, such as age groups).
Marketing Strategy &
Marketing Mix
The marketing mix deals with the way in which a
business uses price, product, distribution and promotion
to market and sell its product.
The marketing mix is often referred to as the “Four P’s” -
since the most important elements of marketing are
concerned with:
Product - the product (or service) that the customer
obtains.
Price - how much the customer pays for the product.
Place – how the product is distributed to the customer.
Promotion - how the customer is found and persuaded
to buy the product.
It is known as a “mix” because each ingredient
affects the other and the mix must overall be
suitable to the target customer.
The marketing mix is the way in which the
marketing strategy is put into action - in other
words, the actions arising from the marketing
plan.
What is a product?
Product definition:
A product is a good, service, or
idea consisting of a bundle of
tangible and intangible attributes
that satisfies consumers and is
received in exchange for money
or some other unit of value.
Product Planning
refers to the systematic decision making related to
all aspects of the development and management of
a firms products including branding and packaging.
Each product includes
a bundle of attributes
capable of exchange
and use.
Place/ Distribution
Distribution is activities that
make products available to
customers when and where they
need them.
A channel of distribution or
marketing channel is a group of
individuals and organizations that
directs the flow of products from
producers and customers.
Role of Marketing Channels
Links producers to buyers.
Performs sales, advertising and promotion.
Influences the firm's pricing strategy.
Affecting product strategy through branding,
policies, willingness to stock and customizes
profits, install, maintain, offer credit, etc.
Channel Structures
(Consumer Products)
DIRECT RETAILER WHOLESALER AGENT/BROKER
PRODUCER PRODUCER PRODUCER PRODUCER
AGENTS OR BROKERS
WHOLESALERS WHOLESALERS
RETAILERS RETAILERS RETAILERS
CONSUMERS CONSUMERS CONSUMERS CONSUMERS
Channel Structures
(Industrial Products)
DIRECT INDUSTRIAL WHOLESALER AGENT/BROKER
PRODUCER PRODUCER PRODUCER PRODUCER
Agents / Brokers Agents/ Brokers
Industrial Industrial
Distributor Distributor
Industrial User/
Industrial User Industrial User Industrial User
Government
Pricing
Values given to a product of exchange
New Product Pricing Strategies
Market penetration
Market skimming
•Setting a low price for a new product
•Setting a high price for a new in order to attract a large number
product to maximize revenues of buyers.
From the target market. •Results in a larger market share.
•Result in fewer,
more profitable sales.
3 Main Pricing Approaches
Cost-based pricing
Cost-plus pricing
Break-even pricing
Value-based Pricing (Buyer
Based)
Competition-based pricing
Psychological pricing
•Adjusting prices for psychological
effect
•Price used as a quality indicator.
Discount & allowance
Reducing prices to reward
Promotional pricing
customer responses such
•Temporarily reducing prices
as paying early or
to increase short-run sales.
promoting the product
Price – adjustment strategies
Segmented
Adjusting prices to allow
Geographical pricing for differences in
Adjusting prices to account for customers,
the geographic location of customers. product or locations.
•Customer
•Product form
•Location
International pricing
•time
•Adjusting prices for international markets.
•Price depends on costs, consumers, eco, conditions & other factors.
Promotion
Definition:
To communicate with individuals, groups or
organizations to directly
or indirectly facilitate exchanges by
informing and persuading one or more
audiences to accept an organization's
products
Promotional
Strategy/ Mix
A plan for the optimal use of the
elements of promotion
PUBLIC RELATIONS
ADVERTISING
SALES PROMOTION PERSONAL SELLING
How are they related to each other?
How to make the customer
buy the product?
PRODUCT CUSTOMER
How are they related to each other?
How to make the customer
buy the product?
PRODUCT + PRICE + PROMOTION + PLACE = CUSTOMER
The marketing strategies
In each of the marketing mix elements, different
strategies is required.
Marketing strategies include;
1) Standardization strategies
2) Differentiation strategies
Standardization Strategy
Strategies for all the marketing mix elements
are equally the same, despite the location they
are in
Normally being used for luxury products of
highly distinctive quality and preference and
highly accepted with its original production or
minimal modification
Example; Boeing airplanes, BMW,
Barbie Dolls, LV bags
Customization Strategies
Requires marketing mix to be adjusted
according to location or market they are
serving
What happen if no
modification done?