MARKET

ORIENTATION,
MARKET
MANAGEMENT, AND
THE MARKETING
PLANNING PROCESS
 CUSTOMER
SATISFACTION
AND QUALITY
• Customer Satisfaction is an abstract
concept and the actual manifestation of
the state of satisfaction will vary from
person to person and product/services to
product/services.

• The state of satisfaction depends on a

number of both psychological and physical
variables which correlate with satisfaction
behaviors such as return and recommend
rate.
• The level of satisfaction can also vary
depending on other factors of the
customer, such as other products against
which the customer can compare the
organization’s products.

• Customer satisfaction measurement must

be undertaken with an understanding of
the gap between customer expectations
and attribute performance perceptions.
• In order to deliver customer satisfaction,
an organization has to offer quality in its
goods and services.

• Because customer satisfaction is a

subjective, non-quantitative state,
measurement won’t be exact and will
require sampling and statistical analysis.
SATISFACTION
This refer to a number of different facts
of the relationship with a customer.

• Satisfaction with the quality of a particular

product or service.
• Satisfaction with an ongoing business
relationship
• Satisfaction with the price-performance ratio
of a product or service
• Satisfaction because a product/services met
or exceeded that customer’s expectations.
 SATISFACTION

POSITIVE
INCREASED
CUSTOMER
CUSTOMER
WORD OF
LOYALTY
MOUTH

MORE REPEAT MORE NEW

PURCHASE CUSTOMER
 VALUE
• Is considered to represent the
relative quality of an offering
taking into account the price of
the product.
 QUALITY
• Represent all the dimensions of the
product offering that result in benefits
to the customer
• Is often thought to mean defect-free
products
• Number or quantity that records a
directly observable value or
performance
• *NOTE:
A truly quality-oriented view of
customer satisfaction is one that
subscribes to providing a level of benefits
that exceeds rather than just matches
expectations.
DIMENSIONS OF
QUALITY
 PERFORMANCE

The basic operating characteristics of a product,

such as the prompt delivery of an excess
package or the clarity of a television picture.
 FEATURES
The special supplemental characteristics that
heighten the use experience, such as free
drinks on an airplane trip optional seat-
cover materials in an automobile.
 RELIABILITY
The probability of product failure within a
given time frame.
 CONFORMANCE
The degree to which the goods or services
meets established standards, including
the timeliness of the airplane arrival or
how close a shirt comes to its stated size
 DURABILITY

The amount of use a product can take

before it must be replaces
 SERVICE ABILITY
The speed and ease of repair, and the
courtesy and competence of service
personnel.
 AESTHETICS
How a product looks, feels, sounds, tastes
or smell.
PERCEIVED QUALITY

The quality that is inferred from a seller’s

reputation.
MARKETING
PLANNING
Strategic Issues:
– Business environment
– Marketers themselves
– Competitors
– The corporate mission statement
– Organizational capabilities

* The resulting marketing plan should be

communicated to appropriate staffs through
an oral briefing to ensure it is fully
understood.
 QUALITY,
SATISFACTION
AND
PERFORMANCE
• High Quality = Superior Business
Performance

• High quality creates and maintains a

high degree of customer satisfaction.

• Quality allows a firm to increase its

relative sales position in the market,
which is positively related to return on
investment.
VIRTUOUS CYCLE
A self-enforcing cycle that an lead to a
sustained high level of performance.
 CUSTOMER
SATISFACTION

SUPERIOR FEWER
PRODUCTS CUSTOMER
OR SERVICES DEFECTIONS

DEDICATED HIGH PROFITS AND

WORKFORCE GROWTH

EMPLOYEE INVESTMENT
SATISFACTION TO

INVESTMENT
IN
 POINT OF REFLECTION
1. After thorough understanding of
the vicious cycle what can you
recommend now as future
marketing professionals?
 MARKET
ORIENTATION
 THINK PAIR SHARE

WHY IS MARKET ORIENTATION

CONSIDERED THE FOCAL POINT OF
COMPANY’S OPERATION?
 Is a business perspective that makes
the customer the focal point of
company’s total operations. Involves the
use of superior organizational skills in
understanding and satisfying
customers.
This refers to an organizational perspective
that encourages:

1. The systematic gathering of market

intelligence
2. Dissemination of the intelligence across
all organizational units
3. A coordinated, organization wide
responsiveness to the intelligence
 PRODUCCT
DEVELOPMENT

SALES
DISSEMINATE
CUSTOMERS INTELLIGENCE BRAND
TO ALL MANAGEMENT
FUNCTIONS
PURCHASING
GATHER
MARKET MANUFACTURING
INTELLIGENCE
R&D

COORDINATE CUSTOMER
COMPETITORS ORGANIZATION- SERVICE
WIDE RESPONSE
LOGISTICS

FINANCE
 THE
MARKETING
PLANNING
PROCESS
 PLANNING
• A systematic way for an organization to
attempt to control its future.

• A statement of :
– What the organization hopes to achieve
– How to achieve it
– When it will be achieved.

• The HEART of the decision making

1. Encourages systematic thinking about
the future
2. Leads to improved coordination
3. Establishes performance standards for
measuring trends
4. Provides a logical basis for
decision making
5. Improves the ability to cope with
change
6. Enhances the ability to identify
market opportunities
MARKETING
PLANNING
• A systematic process for developing and
coordinating the marketing decision
• Provides focus on information
gathering, the format for
information dissemination, and
the structure for developing and
coordinating the firm’s strategic
and tactical responses
• Focuses on providing the long-
term direction of the
organization regarding the
markets and needs that will be
served
 STEPS IN
PLANNING
 CONDUCTING A
SITUATION ANALYSIS
The decision makers must understand the
current situations and trends affecting the
future of the organization
 ESTABLISHING
OBJECTIVES
It identifies the level of performance the
organization hopes to achieve at some future
date, given the realities of the environmental
problems and opportunities and the firm’s
particular strengths and weaknesses.
 DEVELOPING
STRATEGIES AND
PROGRAMS
Decision makers must develop both
strategies (long-term actions to achieve
the objectives) and programs.
 PROVIDING
COORDINATION
AND CONTROL
Some mechanism must be developed to assure
that the strategies and programs are
effectively implemented.
MARKET
PLAN
• A written document that details the
necessary actions to achieve one or more
marketing objectives.

• It cover between one and five years

• It is a part of an overall business plan.

• Solid marketing strategy is the
foundation of a well-written marketing
plan.

• While a marketing plan contains a list

of actions, a marketing plan without a
sound strategic foundation is of little
use.
MARKETING
PLANNING
AIMS AND
OBJECTIVES
• Behind the corporate objectives,
which in themselves offer the main
context for the marketing plan, will
lie the “corporate mission”, which in
turn provides the context for this
corporate objectives.
• In a sales-oriented organization, the
marketing planning function designs
incentive pay plans to not only
motivate and reward frontline staff
fairly but also to align marketing
activities with corporate mission.
CORPORATE
MISSION
• It can be thought of as a
definition of what the
organization is, of what it
does.
CONTROL
• Is also essential because the success
of strategies and programs can never
be predicted with certainty.

• Its purpose is to evaluate the degree to

which progress toward and objective is
being made and to pinpoint the causes
of any failure to achieve objectives so
that the remedial actions can be taken.
• Planning is a process. Organizations
operate in complex and dynamic
environments. Therefore, as the
situation changes managers must be
prepared to modify objective and
strategies to deal with those changes.
CONDUCTS A SITUATION
ANALYSIS

ESTABLISH OBJECTIVES

DEVELOP A STRATEGIES
AND PROGRAM

PROVIDE A COORDINATION
AND CONTROL

FIGURE 4. Basic Steps in Planning

MARKETING
PLANNING
CYCLE
 AUDIT AND
ANALYSIS

CONTROL
AND PLANNING
EVALUATION

IMPLEMENTATION
 AUDIT AND
ANALYSIS
• First step in the marketing planning cycle
• In a new business-start-up this forms the
first part of the overall business planning
and objectives
 PLANNING

• Following the audit and analysis

• Write up the marketing plan including;

results of audit and analysis, marketing
objectives, marketing strategy, and overall
tactical plans.
 IMPLEMENTATION
STAGE
• This consist of the marketing and
promotional mix.
• This also includes communications
and delivery of activities derived from
media plans.
 CONTROL AND/OR
EVALUATION
• This examine the overall performance in
meeting our objectives, by utilizing a
number of metrics.
THE END
Thank You

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