MC9030

Marketing and Financial

Management Mr. K. Kajenthiran
BBAHons (Mkt.) (UOJ), MSc in (Mgt.) (USJ)
Lecturer in Marketing,
Faculty of Management Studies and Commerce,
University of Jaffna.
Course Objectives:
The aim of the course is to provide an opportunity to the students
to enhance knowledge about marketing theories, principles,
strategies and concepts with their application.
• Introduction to Marketing
• Marketing Environment
• Marketing Philosophies and Concepts
• Marketing Mixes
• Market Segmentation, Targeting, and
Positing
• Organizational Buying Behaviour
• New Product Development

1-3
Key Textbook
Kotler, P. and Armstrong, G. (2018)
Principles of Marketing. Pearson. (17th
Edition)
 Additional Readings
• Tanner, J., & Raymond, M.A. (2019). Principles of marketing v.4.0. Flat world knowledge.

• KOTLER, P. and ARMSTRONG, G. (2016) Principles of Marketing. London: Prentice Hall. (16th Edition)

• BRASSINGTON, F. and PETTITT, S. (2012) Essentials of Marketing. 3rd Ed. Harlow: Pearson.

• GROUCUTT, J. and HOPKINS, C. (2015) Marketing (Business Briefings). London: Palgrave Macmillan.

• JOBBER, D. and CHADWICK, F. (2012) Principles and Practice of Marketing. 7th Ed. Maidenhead:
McGraw-Hill.

• MCDONALD, M. and WILSON, H. (2011) Marketing Plans: How to Prepare Them, How to Use Them. 7th
Ed. Chichester: John Riley and Sons.
Session 01

Introduction to
Marketing
 Intended Learning Outcome

After end this lesson you could able to

• Define the term marketing and its components
• Explain the core marketing concepts
• Describe the role of marketing managers in an organization
• Explain the importance of marketing

1-7
Who is the Father of
Marketing ???
Prof. Philip Kotler
Test your Knowledge

Is Marketing merely Advertising

and Selling?
 What is Marketing ?(cont.)

Selling & Advertising – tip of the iceberg

Many of the important task- hidden
to people
Such tasks are called ‘home work’
Selling & Advertising
What Marketing is?(cont.)

Marketing: More than Advertising and selling?

Selecting target markets
Understanding the needs and wants
Designing the value
Designing the product
Pricing the product
Selling,
Marketing Includes
Advertising,
Making products available in stores,
Arranging displays,
Maintaining inventories,
and much more.
Not just selling or advertising
 Many people think of marketing as only selling and advertising.

Today, marketing must be understood not on the old sense of a sale –

“ telling and selling”, but in the new sense of “satisfying Customer
needs (Sense & Response)”.

“selling and advertisement are only part of a larger marketing mix” –

a set of marketing tools that work together to engage customers,
satisfy customer needs, and build customer relationships.
- Peter Drucker -
What is Marketing…
The simplest definition is
Engaging customers and managing profitable
customer relationships

The two fold goal of marketing is to attract new

customers by promising superior value and to
keep and grow current customers by
delivering value and satisfaction
 What is Marketing….

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 (2004)

 What is Marketing….
The art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating
superior value.
- Kotler and Keller (2014) -
18
What is VALUE
Make the people happy
• Self sufficient economy

• Batter system
• Exchange

• Introduction of Money
• selling was born

• intermediary and middlemen was born

• Industrial revolution

• Digital Era
Core Marketing Concepts
1. Customer needs, wants
and Demand Needs are the states of felt deprivation of some basic
satisfaction. They include physical ( need for food, clothing,
warmth) and safety needs, social
needs for belonging
and affection, individual needs for knowledge and
self expression needs.
Marketers did not create these needs; they are a basic
part of the human makeup. i.e. Food, cloth, shelter

Wants are the form that a human need takes as shaped by

culture and individual personality. i.e. Food but wants rice,
yams, grains

Demands human wants are backed by buying power.

i.e. ability and willingness to buy
 Consumers’ needs and wants are fulfilled
2. Market offerings through market offerings.

Any thing that can be offered to a market for attention, • Experiences

acquisition, use or consumption and that might satisfy a need
or want. • Events
• Properties
Persons • Organizations
• Information
• Ideas
• Places

Goods
Services
 Marketing Myopia
Many sellers make the mistake of paying more attention to the specific products they
offer than to the benefits and experiences produced by these products.

companies are too focused on producing goods or services and don’t spend enough time
understanding what customers want or need

The customer will have the same needs but will want the new products

Smart marketers look beyond the attributes of the products and

services they sell.
 3. Customer value and
satisfaction
Customer value and satisfaction are key
building block for developing and
managing customer relationships.

Core positioning:
• Safety
Other benefits:
• Good performance
• Design
• Environmentally
friendly
 4. Exchange and relationship

Obtaining a desired object from someone (product /service) by offering

something in return.
• 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 accept or reject the offer
• Each party believes it is appropriate or desirable to deal with the
other party (win win situation )
 • A market is the set of actual and potential buyers of a
product or service.
5. Markets
• Marketing means managing markets to bring about profitable customer
relationship
Markets

Marketplaces Marketspaces
• Resource market – They provide the manufacturers with the raw materials,
labor, and money.

• Manufacturer market – Obtains resources from the resource market,

turns them into goods and service, and then sell finished product to
intermediaries/ end consumers

• Intermediary market – They bridge the gap between the manufacturer and the customer, they
reduces the number of transaction between the manufacturer and the customer.

• Consumer market – consumers sell their labour and receive money with which they pay for goods
and services.

• Government Market – Collects tax revenues to buy goods from resource, manufacturer, and
intermediary market and uses these goods and service to provide public services.
ROLE OF MARKETING MANAGER

MARKET RESEARCH
• Marketing managers need to have a good knowledge of the
customer.
• This means building up an accurate picture using the resources
that are available.
• It is important to take personal opinion out of as many decisions
as possible
DEVELOPMENT OF MARKETING STRATEGY AND PLAN

Marketing planning should be at the core to any business, and It

should provide direction.

• Through strategic planning, the company decides what it wants to

do with each business unit.
• Marketing planning involves choosing marketing strategies that will
help the company attain its overall strategic objectives.
• A detailed marketing plan is needed for each business, product, or
brand.
SOSTAC
A consultant called Paul Smith first developed a process known as SOSTAC®
which is a useful model used to structure a marketing plan.

Situation Analysis – where are we now?

Objectives – what do you want to achieve?
Strategy – how are you going to get there?
Tactics - what are the details of the strategy?
Actions – who is going to do what, and by when?
Controls – how are you going to measure success?
 MANAGEMENT OF THE MARKETING MIX

The marketing mix includes all tangible elements that allow you to
market your product. This includes
• facilities,
• your employees,
• the product itself,
• the cost strategy,
• the process of selling, and
• how you promote and advertise.
 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Customer relationship management is the process of communicating with customers

throughout the various stages of the purchasing process, and this includes people
who have already bought from you.

In the broadest sense, customer relationship management is the overall process of

building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction.

It deals with all aspects of acquiring, engaging, and growing

customers.
to hold on to an existing customer than it is to find new ones
MANAGING AGENCIES
• It is unlikely that a small business will have the
skills in-house to develop all elements of the
marketing mix.
• Agency management involves the development of
detailed project briefs, signing off creative work
and ensuring the work is delivered on time.
• Depending on the volume of work which is
outsourced, you may feel it is worth developing
some guidelines to ensure a consistent style
across different media.
 It is the process of collecting and analysing data on success.
This can take the form of
MEASURING • website hits,

SUCCESS • sales figures,

• market share data,
• customer satisfaction or many other metrics and
it's important to record and track these as a core part of the marketing process.
 Importance of Marketing

– for General Public

• Marketing helps to achieve, maintain and

raise the standards of living
• Marketing is means through which production
and purchasing power are converted into
consumption.
• Better marketing → Mass production
• Mass production → Low cost
• Low cost → More buying power → Higher
standard of living
Cont…
• Marketing Increases
employment opportunities
• Marketing involves
various functions / sub-
functions (Buying,
Selling, Transport,
Warehousing, Financing,
Risk management etc)
• These functions create
need for different
specializations
• About 30-40% population
depends directly or
indirectly on marketing
 Cont…

• Marketing increases national

income
• More purchasing power →
increase in national income
• Helps maintain economic
stability & development
• By maintaining demand
supply balance
Link between producer &
consumer
Removes imbalance of supply &
demand by transferring surpluses
Helps create utilities of time,
place & possession
IMPORTANCE OF MARKETING

– Business Firms
Marketing
Marketing helps decision Helps
Generates making change
Revenue, by process (what,
generating when & how management
sales & much to &
thereby profits produce, store innovations
or transport)
Thank you