Marketing Management

MBA 621
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Marketing Overview
Discussion Questions
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental
marketing concepts?
4. How has marketing management
changed in recent years?
5. What are the tasks necessary for
successful marketing management?
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 Introduction
 Change is occurring at an accelerating rate;
 Today is not like yesterday, and tomorrow will be different from
today.
 Continuing today’s strategy is risky; so is turning to a new strategy.
 Therefore, tomorrow’s successful companies will have to heed
three certainties:
 Global forces will continue to affect everyone’s business and
personal life.
 Technology will continue to advance and amaze us.
 There will be a continuing push toward deregulation of the
economic sector.
 These three developments—globalization, technological
advances, and deregulation—spell endless opportunities to
marketing environment.
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Introduction
 The first decade of the 21st century challenged firms
to prosper financially and even survive in the face of
an unforgiving economic environment.
 Marketing is playing a key role in addressing those
challenges.
 Finance, operations, accounting, and other business
functions won’ t really matter without sufficient
demand for products and services so that the firm
can make a profit.
 But what is marketing and what does it have to do
with these issues?

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 1.1 Importance of Marketing
Marketing’s broader importance extends to society
as a whole.
• Marketing has helped introduce and gain
acceptance of new products that have eased or
enriched people’s lives.
• Successful marketing builds demand for products
and services, which, in turn creates jobs.
• By contributing to the bottom line, successful
marketing also allows firms to more fully engage
in socially responsible activities.

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 Jobs

Profits Giving

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1.2 Scope of Marketing

• To prepare to be a marketer, you need to

understand:
– What marketing is,
– How it works,
– Who does it, and
– What is marketed.

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 What is Marketing

• Marketing is the activity, set

of institutions, and processes
for creating, communicating,
delivering, and exchanging
offers that have value for
customers, clients, partners,
and society at large.

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 ed
fi n
e
D Marketing Management is the art and
science of choosing target markets
and getting, keeping, and growing
customers through creating,
delivering, and communicating
superior
customer value.

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 What is Marketed?
Persons • Experiences
• Events
• Properties
• Organizations
• Information
• Ideas

Goods
Places
Services
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Who markets?

Response
Attention
Purchase
Donation
Vote

Marketer Prospect

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Marketing management involves:
• Demand management:
– The organization has a desired level of demand for
its products.
• Building Profitable Customer Relationships:
– Designing strategies to attract new customers and
create transactions with them,
– Striving to retain current customers and
– Build lasting customer relationships.

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 Types of Demand

Unwholesome Declining

• Nonexistent
• Latent
Irregular • Full
Negative • Overfull
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Markets
• Traditionally, a market was a physical place
where buyers and sellers gathered to buy and
sell goods.
• However, Economists describe a market as a
collection of buyers and sellers who transact
over a particular product or product class.
• Five basic markets and their connecting flows
are shown in the following figure.

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 . 1
e 1
u r Markets
F ig

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 . 2
e 1
u r
F ig Simple Marketing System
The set of all actual and potential buyers of
a product or service

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Main actors and forces in a modern marketing
system

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 Key Customer Markets
Global Markets

Consumer Market

Business Markets Government Market

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Markets

Marketplaces Marketspaces

Metamarkets
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 1.3 Core Marketing Concepts
Needs, Wants, and Demands Segmentation, Target
Markets and Positioning

Offerings and Brands

Value and Satisfaction

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 Core Marketing Concepts
Marketing Channels
•Communication
•Distribution
•Service

Supply Chain

Competition
•Within
•Substitute
Marketing Environment
•Task
•Broad
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1.4 The New Marketing Realities
Globalization Communicate
Information with Customer
Collect
Technology Information

Consumer Differentiate
Information Increased Goods
Competition

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Who is Responsible for Marketing?
Entire Organization
Marketing Department

Chief Marketing Officer

(CMO)

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 The role that marketing plays within a company varies
according to the overall strategy and philosophy of each
firm.
 There are five alternative concepts under which
organizations conduct their marketing activities:
 Production concept

 Product concept

 Selling concept

 Marketing concept

 Societal marketing concepts

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 Production Concept
 The philosophy that
consumers will favour
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
• The philosophy that
consumers will
favour products that
offer the most
quality,
performance, and
innovative
features.

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Selling Concept
The idea that consumers will not buy enough of the
organization’s products unless the organization
undertakes a large – scale selling and promotion
effort.

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Marketing Concept
The marketing
management philosophy
that holds that achieving
organizational goals
depends on
determining the needs
and wants of target
markets and delivering
the desired
satisfactions more
effectively and efficiently
than competitors do.

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The selling and Marketing
Concepts Contrasted
Starting
point Focus Means Ends

Selling
Factory Existing Profits through sales volume
and promoting
products

The selling concept

Profits through customer

Market Customer Integrated marketing satisfaction
needs

The marketing concept

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 Societal Marketing Concept

The idea that the organization

should determine the needs,
wants, and interests of target
markets and deliver the desired
satisfactions more effectively and
efficiently than competitors in a
way that maintains or
improves the consumer’s
and society’s well – being.

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Three Considerations Underlying
The Societal Marketing

Society
(Human welfare)

Societal
marketing concept

Consumers Company
(Want satisfaction) (Profits)

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 Relationship Marketing

Build long-term relationships with

• Customers
• Employees
• Marketing Partners (Channels, Suppliers,
Retailers)
• Financial Community ( Shareholders,
Develop marketing networks
Investors, Analysts

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Integrated Marketing
It assembles marketing activities
and programs to create,
communicate, and deliver
customer value.

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 Internal Marketing
Is the task of hiring, training, and motivating
capable employees who want to serve
customers well.

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Performance Marketing
Performance Marketing
requires the understanding the
financial and nonfinancial
returns to business and society
from marketing activities and
programs.
Social Responsibility

Financial Accountability
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 . 4
1
u r e 1.6 Updating the Four P’s
F ig
The Four P’s of the Marketing Mix

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 The Additional P’s

People Developing objectives and policies in

relation to behavior, attitudes, and
interpersonal selling skills in service
delivery.
Physical Developing objectives and policies for the
evidence physical environment, facilitating goods
and other tangible clues.

Process Developing objectives and policies for the

processes, mechanisms and routines used
to create and deliver service.

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1.7 Marketing Management Tasks

• Developing market strategies and plans

• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth

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Discussion
Does Marketing Create or Satisfy Needs?
• Take a position: Marketing shapes
consumer needs and wants versus
Marketing merely reflects the needs and
wants of consumers.

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