Marketing Management

POLICARPIO R. MALONDA
School of Graduate Studies and Research
MANAGEMENT
DEFINITIONS:

• F.W. Taylor - “Art of knowing what you want to do and then

seeing that it is done the best and cheapest way”.

• Henry Fayol – “To Manage is to forecast, to plan, to organize,

to command, to co-ordinate and to control”.

• Peter F.Drucker –”Management is work and as such it has its

own skills, its own tools and its own techniques”.

• “Management is the art of getting things done through and with

people”.
Art

 Practical know how

 Technical skills
 Concrete results
 Creativity
 Personalized nature

Science

 Empirically Derived
 Critically tested
 General principles
 Cause and effect relationship
 Universal applicability

MANAGEMENT AS A SCIENCE PROVIDES PRINCIPLES AND AS

AN ART HELPS IN TACKLING SITUATIONS.
FUNCTIONS OF MANAGEMENT
• PLANNING:
Plans give the org its objectives and set up the best procedures for reaching
them.

• ORGANISING:
It is the process of arranging and allocating work, authority and resources
among organization’s members so they can achieve the org’s goals.

• LEADING:
It involves directing, influencing, and motivating employees to perform essential
tasks.

• CONTROLLING:
There are three main elements of controlling:
1. establishing standard of performance
2. measuring current performance
3. Comparing these performance to the established standards
4. taking corrective action
 What is Marketing?
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?

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Marketing

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association

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Marketing

Marketing is a social process by which

individuals and groups obtain what they
need and want through creating,
offering, and freely exchanging products
and services of value to others.

Kotler (2000)

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Marketing Management

Marketing management is the process of

planning and executing the conception,
pricing, promotion, and distribution of
ideas, goods, services to create
exchanges that satisfy customer and
organizational goals.
Kotler (2000)

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Marketing

Marketing is a social process involving

the activities necessary to enable
individuals and organizations to obtain
what they need and want through
exchanges with others and to develop
ongoing exchange relationships

Boyd,Walker,and Larréché (1998) 9

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Marketing Management
Marketing management is the process of
analyzing, planning, implementing,
coordinating, and controlling programs
involving the conception, pricing, promotion,
and distribution of products, services, and
ideas designed to create and maintain
beneficial exchanges with target markets for
the purpose of achieving organizational
objectives.

Boyd,Walker,and Larréché (1998) 10

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Marketing
Marketing is providing–on a timely
basis–products (or services) designed to
meet the needs and wants of target
markets, and arranging for pricing,
distribution, promotion, and post sale
service.
Buell (1984)

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Marketing Management
Marketing management is the setting of
marketing goals–considering company resources
and market opportunities–and the planning and
execution of activities required to meet the goals.
When carried out effectively and honorably,
marketing management results in creating and
satisfying customers in a manner acceptable to
society and leads to profitable growth for the
firm.
Buell (1984)

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Business Goal: We’re All
Trying to Do the Same Thing

The only difference is how we do it!

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 Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information 16
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 Marketing
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
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Difference
Difference Between
Between -- Sales
Sales &
&
Marketing
Marketing

Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what
the customer wants

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Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

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 Core Concepts of
Marketing

Based on :
 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction

 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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 Core Concepts of Marketing

Needs, wants Utility, Value &

Products
demands Satisfaction

Marketing & exchange, Transaction

Markets
Marketers Relationships

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Core Concepts of Marketing

 Need – food ( is a must )

 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

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Marketing Triangle

Customers

Company Competition

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Who is a Customer ??

CUSTOMER IS . . . . .

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption
that satisfies a want or a need

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Customer

CUSTOMER has needs, wants, demands and

desires
Understanding these needs is starting point of the
entire marketing
These needs, wants …… arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship

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 How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction

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Customers - Problem
Solution

As a priority , we must bring to our customers

“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems

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 Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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 Analysis Of Competition
Who are your competitors?
What are their strengths and weaknesses?
What have been their strategies?
How are they likely to respond to your
Marketing plan?

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Strategic Marketing

Strategic marketing management is concerned with

how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered

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Strategic Planning

Strategic Planning is the managerial process of

creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

 Also called Strategic Management Process



 All organizations have this



 Can be Formal or Informal



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The Strategic-Planning, Implementation,
and Control Process

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 Business Strategic-Planning
Process
External environment
(Opportunity &
Threat analysis)

Business Mission Goal Formulation

Internal Environment

(Strength/ Weakness analysis)

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Strategy Formulation
Environmental Analysis

Competitor Internal Analysis

Customer
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses

Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

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Firm Strategies
The Marketing Plan

A written document that acts as a guidebook of

marketing activities for the marketing manager

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CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control

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The Marketing Process

Business
Mission
Stateme
nt

Objectiv
es

Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation,
Control 38
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Factors
Influencing
Company’s
Marketing
Strategy

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 External
External Marketing
Marketing Environment
Environment
External Environment
Social
Social Ever-Changing
is not controllable Change
Change Marketplace
Demographics
Demographics

Economic
Economic
Product
Product Physical / Natural Conditions
Distribution Conditions
Distribution
Promotion
Promotion
Price
Price
Competition
Competition Target Market
Political
Political&&
Legal
LegalFactors
Factors
Technology
Technology
Environmental
Scanning

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The macro-environment

is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities

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P
P rr oo dd uu cc tt

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 Product is . . . . .

Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need

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Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

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Product Items, Lines, and Mixes

A
A specific
specific version
version of
of aa product
product
that
that can
can be
be designated
designated as as aa
Product
Product Item
Item distinct
distinct offering
offering among
among anan
organization’s
organization’s products.
products.

A
A group
group of
of closely-related
closely-related
Product
Product Line
Line product
product items.
items.

All
All products
products that
that an
an
Product
Product Mix
Mix organization
organization sells.
sells.

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Product Mix

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a

product line

Consistency – how closely related the product lines are in

end use

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 Width of the product mix
Depth of the product lines

Blades and Writing

razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus

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What is a Service?
Defining the Essence

An act or performance offered by one party to another

(performances are intangible, but may involve use of
physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired

change in customers themselves, or their physical
possessions, or intangible assets

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Some Industries - Service
Sector

Banking, stock broking Health care

Lodging Education
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
architecture, consulting)
Transportation (freight and
passenger)

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Classification of Services
Pure Intangible
Banking
Service

Good Transportation

Major Service with

Minor Product
Business Hotels
Product = Service

Computers

Major Product with

Minor Services
Materials / Components

Pure Tangible Product

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Major Characteristic of Services

 Intangibility – Services are intangibility cannot be seen, tasted,

felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability or Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no transfer
of title

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The Marketing Mix

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity [technology ]
People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.

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The “8Ps” of Integrated Service
Management vs. the Traditional
“4Ps”
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays

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The Give and Get of Marketing

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Great Words on Marketing

1. “The purpose of a company is ‘to create a customer…The only

profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing
department.”

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Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

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Marketers and Markets
Marketers are focused on stimulating
exchanges with customers who make up
markets – B2C or B2B.
The market is comprised of people who play
a series of roles: decision makers,
consumers, purchasers, and
influencers.
It is absolutely essential that marketers
have a detailed understanding of
consumers, their needs and wants.
Much happens before and after the sale to
affect customer satisfaction

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Stages of Customer Interaction

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What Changed in Marketing…

Old Economy New Economy

•• Organize
Organize by
by product
product units
units • Organize by customer segments
•• Focus
Focus on
on profitable
profitable transactions
transactions • Focus on customer lifetime value
•• Look
Look primarily
primarily at
at financial
financial • Look also at marketing scorecard
scorecard
scorecard
•• Focus
Focus on
on shareholders
shareholders • Focus on stakeholders
•• Marketing
Marketing does
does the
the marketing
marketing • Everyone does the marketing
•• Build
Build brands
brands through
through advertising
advertising • Build brands through performance
•• Focus
Focus on
on customer
customer acquisition
acquisition • Focus on customer retention
•• No
No customer
customer satisfaction
satisfaction • Measure customer satisfaction and
measurement
measurement retention rate
•• Over-promise,
Over-promise, under-deliver
under-deliver • Under-promise, over-deliver

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Marketing Management
Philosophies

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Production Concept
Holds that customers will favor,
products that are available and
highly affordable and that
management should therefore
focus on improving production and
distribution efficiency.

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Product Concept
Holds that consumers will favor
products that offer the most
quality, performance and
innovative features. Thus, an
organization should devote
energy to making continuous
product improvement.
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Selling Concept
Holds that consumers will not buy
enough of the organization’s
product unless it undertakes a
large-scale selling and
promotion effort.

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Marketing Concept
Holds that achieving
organizational goods depends
on determining the needs and
wants of target markets and
delivering the desired
satisfaction more effectively and
efficiently than competitors do.
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