THE IMPORTANCE OF MARKETING MANAGEMENT

The Importance of Marketing Management

Reflection and Discussion Week 1

Dina Berhanu

Marketing Management, University of the Cumberlands

Dr. Veronica Ramsundar

January 7, 2022
THE IMPORTANCE OF MARKETING MANAGEMENT

The Importance of Marketing Management

The most crucial concept in Marketing is understanding why it is an essential part of

any business. “Marketing is defined as an exchange between a firm and its customers”

(Iacobucci, 2022, p.2). Companies must understand customer needs in order to provide it to

them and meet customers’ satisfaction and needs to enable Marketers to succeed.

The Marketing Framework consists of 3 categories: the 5 C’s, STP, and 4Ps. The 5C’s

consist of customer, company, context, collaborator’s and competitors. “The customer and

company are the central players in the marketing exchange” (Iacobucci, 2022, p.6). On the

other hand, the context deals with macro-environmental factors, and the collaborators and

competitors are businesses and individuals that marketers work with. STP is known as

segmentation, targeting, and position. This means classifying your customers into groups

with similar needs, which will enable marketers to target. The relationship between the

product or service and the customer is positioned through the 4Ps: product, price, place, and

promotion (Iacobucci,2022). Firstly, the marketer creates a product that customers need and

then sets the price. The product is then promoted through advertising so customers

understand the product’s benefits and, lastly a place that is accessible to customers on where

the product will be sold (Iacobucci,2022).

The three phases of the purchase process are classified as pre-purchase, purchase, and

post-purchase (Iacobucci,2022). The purchase phase begins when the customer needs to buy

a product or service, then the purchase phase is when the customer narrows down some

specifications for that purchase. An example of that will be purchasing a specific breed of cat.

Specific characteristics of a product or service allow the customers to make decisions. Once

the purchase has been made, the last phase is the post-purchase, which is the deciding factor

for customer satisfaction. While purchasing may mean buying a product or a service, there

are different purchases.

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“Types of purchases in B2C and B2B is a matter of customer involvement”

(Iacobucci, 2022, p.15). When customers care about an item, they spend more time

researching the brand, value, and price of the product or service. Price is a deciding factor for

products or services that the customer has low involvement in. On the other hand, loyalty

programs can occur irrespective of the customer’s involvement for customers with low

involvement, which can include price discounts and events for high involvement

(Iacobucci,2022).

The distribution of products and services depends on the level of involvement. Those

with low involvement products need to be widely accessible. “High involvement products will

be sought out by more customer activity effort” (Iacobucci, 2022, p.16). B2B and B2C

companies can sell their products through different channels. “A distribution channel is a path by

which all goods and services must travel to arrive at the intended consumer” (Fernando,2021).

Some distribution channels include wholesalers, direct consumers, retailers, etc. Choosing a

distribution channel highly depends on the product that is being sold.

The science of consumer behavior includes sensation and perception, learning, memory,

emotions, motivation, attitudes, and decision making (Iacobucci,2022). Color is one of the

decision factors for marketers to communicate information. “Learning is the process by which

associations get past the sensory and perception stages into short-term memory and then, with

repetition and elaboration, into long-term memory” (Iacobucci, 2022, p.16). Marketers need to

create a connection with their brand and its characteristics which will allow the consumer to

recognize the brand and it in mind when purchasing a product.

Maslow’s hierarchy of needs consists of self -actualization, self esteem and respect,

friendship, love, and belonging. Safety and security, and lastly food, water, sleep, and sex

(Iacobucci,2022). “One way that marketers use this hierarchy is by identifying their product

with a certain level of needs (Iacobucci, 2022, p.16).

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Consumer behavior is also affected by global and culture differences. When

companies launch a new product into the global market, consumers will react differently in

different countries to the same product.

In closing, there are several factors in order to have a successful marketing strategy, A

lot of research needs to be conducted in order to understand the 5C’s, STP and 4C’s.

Consumer behavior is an additional factor in trying to understand what it is that the mass

audience wants.

Question 1

Before reading this chapter, Marketing from my understanding is a way companies

create needs that consumers want. A lot of research needs to be conducted in order to market

a product effectively. Yes, I was able to convince my brother that marketing enhances a

mutually beneficial exchange between a customer and a company and the reason for that is

because both the customer and the company have needs and wants. It is the role of the

company to convince the consumer of their needs translated into a product.

Question 2

The global pandemic has affected millions around the world whether it’s education,

work, or business. The restaurant industry has suffered a great loss as they depend on people

coming to their establishment to spend money. With covid restrictions and lock down,

restaurants were forced to close down. The changes I would make would be to move the

restaurant online and focus on a food delivery system that will adhere to covid restrictions

while providing services to consumers and lastly having a restaurant that is still operational.
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References

Iacobucci, D. (2002). Marketing Management. Cengage Learning (6th ed).

Fernando, J. (2021, August 19). Distribution Channel. Website.

https://www.investopedia.com/terms/d/distribution-channel.asp