CAVENDISH UGANDA UNIVERSITY

MBA 16
Overview of Marketing Management and Roles & Functions of Marketing.

By
Ishmael Ssekalo 0772121514/0706212000
ssekalo.Ishmael@gmail.com
 INTRODUCTION
• Marketing is constantly evolving and it’s important
to demonstrate that we have kept up to date
with the latest developments.
• Different people will have different views of what
marketing is.
• The pursuit of customer satisfaction is at the heart
of market –led company(focusing on customers;
follow the dictates of the market to survive;
creating superior customer value to beat
competition).
 Cont’d.
• As the professional has become more diverse, the
balance of power has shifted in favor of the
customer, who now has more control of the
relationship than ever before thanks to
technology. As the role of the customer has
altered, so too the role of marketing needs to
change in response
• Marketing has become more sophisticated – and
yet its status with the customer and the rest of
business has never been lower.
 Key objectives of our discussion
 Define a Market
 Define Marketing as an exchange process
• Explain the role and functions of Marketing in
achieving customer satisfaction
• Discuss the importance of marketing as a cross-
functional activity within the organization
• Analyze the roles and functions of marketing for
internal and external purposes
 What is a Market?
• what is a market?
• The concept of a market is sometimes confusing.
There is a stock market, an automobile market and
retail and a wholesale market for furniture, food,
clothes, etc. However, there are many usages of the
term in economic theory, in business in general and
in marketing in particular.
• Therefore, a market may be defined as a place where
buyers and sellers meet and function. Is a place
where foods and services are offered for a sale and
transfers ownership of title occur.
 Cont’d
• It may also be defined as an aggregate demand by
potential buyers of a product and service. It may also
imply a demand for a product or service. In fact the
term “market” and “demand” are often used
interchangeably and they may also be used “jointly as
market demand”.

• Stanton (1978) defined a market as people with

needs to satisfy, the money to spend and the willingness
to spend it. Thus in the market demand for any given
product as service, there are three factors to consider;
 Cont’d
• People with needs
• Their purchasing power
• And their buying behavior
• Therefore , a market=people with needs and
wants + money to spend+ willingness to spend
it.
 Definitions of marketing
• Marketing-The management process
responsible for identifying ,anticipating and
satisfying customer requirements efficiently
and profitably(CIM)
• Marketing is the process of planning and
executing the conception, pricing, promotion
and distribution of ideas, goods and services
to create, exchange and satisfy individual and
organizational objectives.” (American
Marketing Association)
 Cont’d
• We can see, though, that the CIM definition,
in addition to confirming marketing as a
management process( i.e. analyzing, planning,
Implementing ,and control in order to develop a
competitive advantage),also highlights the fact
that the central focus of this process is the
Customer and the aim is satisfying her/his
needs.
 Cont’d.
• Finally, all this must be done in the most
efficient way possible with a view to
achieving maximum profitability.
• Customer-A person or an organization that
purchases goods and services from an
organization
• Suppliers-Individuals and organization that
provide goods or services to other individuals
and organizations
 Cont’d.
• Exchange Process- The whole of the commercial
transactions that transfers a product or service to
the ownership of another in exchange to money or
other benefits.
• Customer satisfaction-The extent to which an
organization's products or services meet or exceed
its customers expectations.
• Customer Expectations-The minimum level of
satisfaction that a customer will require from an
organization.
 Cont’d.
• Customer Retention-Continuing to meet an existing
customer’s needs usually by ensuring they are satisfied
with recent purchases and by innovating products to meet
their changing needs.
• Multiple contact points-Having more than one point of
contact within any given organization, usually
advantageous.
• Cross-function activity-Any marketing activity that
includes people with different functions expertise often
from marketing operations, finances and human resources
divisions, working towards the same objectives.
 Cont’d.
• Internal marketing and Internal customers-
Marketing aimed at the staff and stakeholders and
for an organization, with the aim of making
everyone aware of the organization's policies and
addressing the needs of all concerned.
• External marketing-Marketing to customers
outside an organization
• External customers-Customers who are not
involved in manufacturing the product or the
services that they wish to buy.
Cont’d
 1.0 MARKETING AS AN EXCHANGE
PROCESS
• As indicated in the CIM’s definition, marketing is a
specific management process focused on the needs
and wants of an organization's customers. As
marketing guru Theodore Levitt once put it, marketing
is about the organization “buying customers’ or
“doing the things that will make people want to do
business with it “it should come as no surprise that
the idea of the marketplace, where buyers and sellers
exchange goods for money or other valuables, is the
origin of marketing as activity.
a)Marketing as a management process
• Marketing is much more than sales and advertising which the
public often perceive it.
• To stimulate demand and achieve customer satisfaction , marketing
has to ensure that the product/services offered by the organization
are of the right quality, right price, right quantity, found in the right
place, handled by the right people( skills, passion, commitment etc.)
• To achieve the above ,marketing management process must be put
into play through ;
 Analysis-The first stage in marketing management’s tasks
Customers, markets, competitors and company strengths and
weaknesses must be analyzed.
 Planning-Includes objective setting, choice of target markets
marketing strategies and tactics
.
 Cont’d.
• Implementation-Includes staffing, allocating
tasks, budgeting and organizing.
• Control-Evaluate progress against objectives
and targets. Then correcting any deficiencies.
b) Identifying, anticipating and satisfying
customer requirements
• One of marketing’s key roles and functions is
to bring the customer’s view point into the
organization
 Cont’d.
• This means the process of marketing involves
understanding customer requirements-
sometimes before the customer even realizes
they need or want a specific product.
• Once an organization has identified or
anticipated a customer’s requirements its
managers then have to decide if they are
going to take steps to satisfy those
requirements by making changes to the
product or service on offer.
 1.2 MARKETING’S ROLE and FUNCTION IN
ACHIEVING CUSTOMER SATISFACTION

• Without customers(or service users and

donors/funders in not-for-profit/charitable
contexts) an organization will soon cease to exist .
• If customers are dissatisfied with the product
/services on offer they spend their money to
competitors of the firm.
• Keeping customers satisfied is critical not just for
growth and success but also for long term survival.
 Cont’d
• Marketing plays a pivotal role on providing
solutions to customers problems or benefits
that meets their needs and wants in order to
make them satisfied.
• To do this effectively marketing must
understand and to a certain extent try to
shape customer expectation
 a) Customer expectations
• Customer expectation is shaped based on the following
factors;
• Previous experience of a product/service can have a strong
influence-either positive or negative
• Promotional materials such as brochures, social
media ,websites, and advertising( done ethically) can also
affect customer expectations
• Competitors products/services can also condition customers
to expect certain features in a product or a particular level of
service( many cafes today offer WI-FI, new cars come with
power steering, airbags, air conditioning as standard etc)
• The views of friends, family members, and other customers
on digital platforms can set a certain level of expectations
 b) Customer retention
While its very costly to acquire new customers, maintaining and
retaining existing customers is less costly.
• Loyal customers are easy to maintain / retain and they yield
the following benefits to the organization;
• They buy company products/services repeatedly or regularly
and in big volumes
• They are less costly, hence very profitable
• They are partners and supporters
• They refer their colleagues, peers and family members to the
companies products/services
• They advertise products/services freely through word of
mouth to their partners, friends and family members
• The company is assured of a valuable long term lasting
relationship
 Cont’d
• They write and talk favorably about the organization
and its products/services
• They may not need to be offered discounts or
introductory prices to buy
• They buy future product/services of the company
• They generate high cash-flows through increased
sales volumes
• They help in planning processes
• They are a source of creativity and innovation
• The 20% of the loyal customers generate 80% of the
sales or profits(based on PARETO PRINCIPLE)
 Cont’d
• Customer loyalty is built on the creation and delivery of superior
customer value- that is, greater than that offered by
competitors, and on a sustainable basis.
• Michael Porter(1980) argued that competitive advantage comes
from the value a company creates for its customers. Value is the
worth of the product/service: what it costs the organization to
produce and what the customer is willing to pay for it
In other words:
• A Firm creates Value-by performing its activities and satisfying
customers better, differently or more efficiently than its
competitors.(the term added value refers to a product /service
being given greater value as a result of the processes that
support it.
 Cont’d.
(e.g. Home delivery, customer service ,product
customization etc.)
• Customer purchase value-basing purchasing
decisions on the perceived value they will
receive, relative to the perceived costs, over
the lifetime/ span of the purchase.
Jobber(2007,p15) defines value using an
equation: Customer value equals perceived
benefits minus perceived sacrifice .
 Cont’d.
• From an accountants view, added value is measured
by the amount customers are willing to pay for a
product/service above the cost to the firm of
carrying out all its value creating activities i.e.
profitability. From this point of view, the organization
gains value either by inducing its customers to pay
more or by reducing its costs.
• From the marketing point of view, added value
resides in augmenting the product: the total bundle
of benefits that offer customers value, confer
competitive advantage and help the organization to
meet its marketing corporate objectives
 Cont’d
• Customer Value is the relationship between
benefits and the sacrifice necessary to obtain
those benefits.
• Customer value is not simply a matter of high
quality or high price. Instead, the customer’s
perception of value is the product/service quality
they expect and a price they are willing to pay.
• Value also includes customization and fast
delivery.
 Cont’d.
• The augmented product (Kotler & Armstrong,2003)
may include a range of tangible and intangible
elements which add value ( and differentiate
competitive products): enhanced features and
optional extras, warranties/guarantee, delivery and
credit facilities, performance, design, packaging,
after sales services, installation, brand image and
fashion-ability, customization, the esteem/prestige
value of ownership, value for money-and the total
customer experience of purchasing and using the
product/service.
 1.3 Marketing as a cross-functional
activity
• In the past marketing has been viewed as a
function or department within an
organization, district from human resources,
finance, production/operations and
purchasing.
• Most organizations still have some sort of
marketing department , but increasingly
marketing is also seen as an activity to which
many different parts of the organization
contribute. This is sometimes referred to as a
market orientation
Cont’d
Summary of Marketing Roles
 a) Types of orientation and their
orientation to marketing
• Production orientation-holds that
consumers will favor products that are
available and highly affordable and that
the management therefore should focus
on improving production and distribution
efficiently and effectively.
• Product orientation-the attitude that a
good product will sell itself.
 Cont’d.
• Sales orientation-this holds that consumers
will not buy enough of the organization's
products /services unless it undertakes large-
scale selling and promotion effort
• Market orientation-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 .
 Cont’d
• Customer orientation-A customer-
oriented organization places customer
satisfaction at the core of each of its
business decisions. Customer orientation
is defined as an approach to sales and
customer-relations in which staff focus
on helping customers to meet their long-
term needs and wants.
 Cont’d
• Societal Marketing Orientation-An
organization exists not only to satisfy customer
wants but also to preserve or enhance
individuals’ and society’s long-term best
interests.
For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable materials
 b) Customer interaction through multiple contact points

• Customers rarely have one single interaction with an

organization when they buy a product/service.
• With FMCGs e.g. confectionaries, drinks, groceries, cleaners
etc., not only will customers be making frequent purchases
but they may also be viewing the organization's advertising,
visiting its website or “liking” it on social media.
• In B2B contexts the buyers and sellers and many other
members of staff from each organization could all be
interacting with each other(contact points in this case include;
initiators, influencers, deciders, buyers, users gatekeepers)
• In this sense marketing becomes something that all parts of
the organization are involved in and more of a guiding
direction for the organization than a management function.
 c) Marketing’s relationship with other
functions
• Marketing can be seen as the customer’s champion
or heart within the organization, so one of its key
roles is to help other parts of the organization to
realize the importance of the customer to its
success-or even survival.
• Business functions that have limited contact with
customers can become indifferent to issues such as
customer satisfaction or the need to maintain
customer loyalty.
• Marketing’s relationship with other functions will be
determined by the orientation of the business.
 1.4 Internal and External marketing
• Marketing has both an external( customer-facing,
government, pressure and interest groups-
professional bodies and trade unions, the news
media, competitors, the local community and wider
society) and internal ( staff- and stakeholder-related,
distributors, suppliers of goods, members of the club,
funders, regional/product divisions ) element to it.
• It is important to understand the external
environment of the organization including wide
trends and changes and factors close to home, such
as customer requirements and competitor offers.
 Cont’d.
• But to ensure the long-term survival and growth of the
organization, its equally important to communicate
these elements these elements to internal groups in
order to help to develop a market orientation and
guide the organization in meeting customer
expectations.
• Internal marketing is all about engaging employees and
keeping them informed so that they can respond
effectively to customer requirements and will have a
customer view of the organization's purpose and
mission.
 a) Identifying internal and external
customers and determining their needs

• Through segmentation we can classify different groups of customers

according to their different requirements.
• The first step in the segmentation process is to research groups of
customers and discover their needs and wants( e.g. knowing where
product/services are purchased, interested in specifications,
product/service benefits etc.)
• Dividing up external customers groups- in the past dimensions such as
income, social class, geographical location, buying patterns, age etc. have
been used to try to find groups of customers with similar needs and
wants.
• However, more recently the amount of data available to marketers via
the internet and from customer interactions has grown substantially
and much more sophisticated approaches can be used to identify
groups of customers and their needs
 Cont’d.
• Internal customers will have particular needs
in terms of what they expect marketing to
deliver (eg the accounting function may want
marketing to be able to manage costs
effectively and provide measurable outcomes
from its expenditure, production may want
marketing to deliver effective forecasts for
future sales to ensure it can plan for the
efficient use of its production line)
 b) Developing and delivering
communication activity
• Once you have determined the different
needs and wants of internal and external
customers, you need to tailor the
communications accordingly so that each
group receives the right message.
• In the case of internal audience , this will
often be about translating changes in the
organization and its environment into a form
that members of a specific group will relate to.
c) Providing information internally
• Marketing’s focus on the external environment means that it
is best placed to give other parts of the organization the
information they need to respond to changes effectively.
• External marketing activities such as promotional campaigns,
relationships with distributors and retailers, or direct sales,
produce a wealth of information about customer
preferences, problems, competing products /services,
opportunities and emerging trends in the market place.
• Translating this information into useful knowledge and
communicating it to the rest of the organization is a key
activity and other at the heart of internal marketing efforts
.
 CLASS EXERCISES
(1) Describe several reasons for studying
marketing in reference to the diagram below;
Important
to Society

Important to Good Career

Business Opportunities

Marketing affects
you every day!
(2) What are the Differences between
Sales and Market Orientations?
 END

THANK YOU