Introduction to marketing management-1.pdf

Management

1. OSHADI RUPASINGHE
BBA (SEUSL), PGDIP (SLIM)

2. Meaning
Market:itisaplacewherebuyersandsellerssalesandbuysfrom
producers.
Marketing:Marketingisanorganizationalfunctionandasetof
processesforcreating,communicating,anddeliveringvalueto
customersandformanagingcustomerrelationshipsinwaysthatbenefit
theorganizationanditsstakeholders.
MarketingManagement:Itcanbedefinedasanartandscienceof
choosingtargetvolumeandgettingkeepingandgrowingcustomerto
createdeliveringandcommunicatingsuperiorcustomervalue.

3. definitions
AccordingtoAmericanMarketingAssociation(AMA),Marketingisthe
activity,setofinstitutionsandprocessesforcreating,communicating,delivering
andexchangingofferingthathavevalueforcustomers,clients,partnersand
societyatlarge.
AccordingtoDr.PhilipKotlerdefinesmarketingasthescienceandartof
exploring,creatinganddeliveringvalueofsatisfyingtheneedsoftargetmarketat
aprofit.Marketingidentifiesunfulfilledneedsanddesires.Itdefines,measureand
quantifiesmarketandprofitpotential.

4. Marketing Management
What is marketing management?
«Marketing management is the process of planning and executing
the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual
and organizational goals» (Philip Kotler)
Marketing management has the task of influencing the level,
timing, and composition of demand in a way that will help the
organization achieve its objectives.

5. What Is Marketing?
Simple definition:
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably.
Goals:
1.Attract new customers by promising superior value.
2.Keep and grow current customers by delivering
satisfaction.

6. Marketing Defined
Marketingistheactivity,setofinstructions,andprocessesfor
creating,communicating,delivering,andexchangingofferingsthat
havevalueforcustomers,clients,partners,andsocietyatlarge.
OLD view of
marketing:
Making a sale—
“telling and selling”
NEW view of
marketing:
Satisfying
customer needs

7. Feature of Marketing
Customer satisfaction.
Objective is to earn profit through customer’s satisfaction.
Marketing activity starts before production & continues
even after the sales of the product.
Marketing is concerned with the production and
distribution of goods & services which increase the
standard of living.

8. Nature of Marketing
Marketing generate Revenue.
Marketing is a Business.
Marketing is a part of Overall Business.
Marketing must Deliver Value.
Marketing is a Customer Oriented.
Marketing is a Managerial Function.
Marketing as a Discipline.
Marketing is a System.

9. Scope of Marketing
Research
Marketing research
Product planning & Development
Function of Exchange
Buying & Assembling
Selling
Function of Physical Treatment
Packaging
Standardization, Grading & Branding
Storage
Transportation
Facilitating Exchange
Salesmanship
Advertisements
Pricing
Financing
Insurance
After-Sale Service

10. Importance of Marketing
Importance of Marketing to Customer
Increase in customer satisfaction
Provide good quality product
Make Alternative available
Increase in standard of living
Price stabilization
Increase in knowledge
Importance of Marketing to Society
Provides Employment
Increase in National Income
Protection from Depression
Reduction in Distribution Cost

11. Importance of Marketing to Firm/ Manufacturer
Increase profit
Planning & Decision-Making
Helps in selecting the best Distribution Channel
Liaison between firm & Society
Importance of Marketing as Business Function
Creating of Utility
Base for Business Function
Base for Economic Activities

12. MARKETING MANAGEMENT
Marketingmanagementistheartandscienceofchoosingtarget
marketsandgetting,keeping,andgrowingcustomersthrough
creating,delivering,andcommunicatingsuperiorcustomervalue.

13. Objective of Marketing
Management
To Perform Managerial Functions
To Create Customer for the Business
To Ensure Consumer Satisfaction
To Increase Market Share
To Generate Maximum revenue
To Raise the Standard of Living

14. Function of Marketing
Management
Planning of Marketing Activities
Organizing Marketing Activities
Staffing for Marketing Activities
Directing for Marketing Activities
Controlling for Marketing Activities

15. Significance of Marketing
Management
It satisfy the need of consumer
It increase the market share of the firm
It raises the standard of living of people
It increase the employment
It increase the income of business

16. Difference Between -Sales & Marketing ?
Sales
trying to get the customer to want what the companyproduces
Marketing
trying to get the company produce what the customerwants

17. Selling vs. Marketing
SELLING MARKETING
“Sells what the producer has and need
not necessary be a product or service that
the Buyer wants
Markets a product or service that meets
the needs of the Buyer and is not what
the producer has to sell
Focus on the needs of the Producer”Focus on the needs of the Buyer
TACTICS Selling makes use of short-
term tactics to get sales –examples are
free gifts, discounts, rebates, bribes, etc.
STRATEGIES Marketing makes use of
long-term strategies to get sales –
examples, value-added service, customer
education, meeting objectives

18. What is Marketed?
Goods
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas

19. Structure of Flows in a Modern
Exchange Economy

20. A Simple Marketing System

21. The Marketing Process
Asimplemodelofthemarketingprocess:
Understandthemarketplaceandcustomerneedsandwants.
Designacustomer-drivenmarketingstrategy.
Constructanintegratedmarketingprogramthatdeliverssuperiorvalue.
Buildprofitablerelationshipsandcreatecustomerdelight.
Capturevaluefromcustomerstocreateprofitsandcustomerquality.

22. Core Concepts of Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.

24. Core Concepts of Marketing

25. Needs, Wants, and Demands
Need:State of felt deprivation including physical, social,
and individual needs.
Physical needs: Food, clothing, shelter, safety
Social needs: Belonging, affection
Individual needs: Learning, knowledge, self-expression
Want: Form that a human need takes, as shaped by
culture and individual personality.
Wants + Buying Power = Demand

26. Need/ Want Fulfillment
Needs & wants are fulfilled through a Marketing
Offering:
Products:
Persons, places, organizations, information, ideas.
Services:
Activity or benefit offered for sale that is essentially
intangible and does not result in ownership.
Experiences:
Consumers live the offering.

27. How Do Consumers Choose Among
Products & Services?
27
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

28. Customer Value and Satisfaction
Dependent on the product’s perceived performance
relative to a buyer’s expectations.
Care must be taken when setting expectations:
If performance is lowerthan expectations, satisfaction is
low.
If performance is higherthan expectations, satisfaction is
high.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding
expectations.

29. Marketing Management
Marketing managers must consider the following, to
ensure a successful marketing strategy:
1.What customers will we serve?
—What is our target market?
2.How can we best serve these
customers?
—What is our value proposition?

30. Choosing a Value Proposition
The set of benefits or values a company promises to
deliver to consumers to satisfy their needs.
Value propositions dictate how firms will
differentiate and position their brands in the
marketplace.

31. Concepts of marketing (Marketing
Philosophies)
Theproductionconcepts
Theproductconcepts
Thesellingconcepts
Themarketingconcepts
Thesocietalmarketingconcepts

32. Production Concept
Theproductionconceptisoneoftheoldest
conceptsinbusiness.Itholdsthatconsumers
preferproductsthatarewidelyavailableand
inexpensive.
Managersofproduction-orientedbusinesses
concentrateonachievinghighproduction
efficiency,lowcosts,andmassdistribution.

33. Product Concept
The product concept proposes that consumers favor
products offering the most quality, performance, or
innovative features.
Managers focus on making superior products and
improving them over time.

34. Selling Concept
The selling concept holds that consumers and
businesses, if left alone, won’t buy enough of the
organization’s products.
The organizationmust undertake an aggressive selling
and promotion effort.

35. Marketing Concept
Themarketingmanagementphilosophythatholdsthatachieving
organizationalgoalsdependsondeterminingtheneedsandwantsof
targetmarketsanddeliveringthedesiredsatisfactionsmoreeffectively
andefficientlythancompetitorsdo.

36. Societal Marketing Concept
Theideathattheorganizationshoulddeterminetheneeds,wants,and
interestsoftargetmarketsanddeliverthedesiredsatisfactionsmore
effectivelyandefficientlythancompetitorsinawaythatmaintainsor
improvestheconsumer’sandsociety’swell–being.

37. Holistic Marketing Concept
Theholisticmarketingconceptisbasedonthe
development,design,andimplementationof
marketingprograms,processes,andactivitiesthat
recognizetheirbreadthandinterdependencies.
Holisticmarketingacknowledgesthateverything
mattersinmarketingandthatabroad,integrated
perspectiveisoftennecessary.

39. Marketing environment
Avarietyofenvironmentalforcesinfluenceacompany’smarketing
system.Someofthemarecontrollablewhilesomeareuncontrollable.It
istheresponsibilityofthemarketingmanagertochangethecompany’s
policiesalongwiththechangingenvironment.
Accordingto“PhilipKotler”Acompany’smarketingenvironment
consistoftheinternalfactorsandforces,whichaffectthecompany’s
abilitytodevelop&maintainsuccessfultransaction&relationshipwith
thecompany’stargetcustomer’s.
Thereare2classificationofenvironments:Macro&Micro.

40. Importance
Understandingofclearmarketingenvironmentisessentialfor
marketingmanagerinordertohavefavorablerelationshipswith
desirablecustomerswhichinturnensuresgoodrerunforhisinvestment
studyingtheenvironmentallowsmarketerstotakeadvantageof
opportunitiesaswellastocombatthreats.
Marketingintelligenceandresearchareusedtocollectinformation
abouttheenvironment.
Manycompanieshavestartedutilizingtheopportunitiesthatare
emerginginachangingenvironment.

41. Types of market environment
Micro environment: these are internal factors, which the organization
can control.
Macro environment: (PEST factors): these are external forces which the
organization does not have direct control over these factors. PEST
(Political, Economical, Social and Technological).

42. Micro environment
Suppliers
Shareholder
Customer
Competitor
R&D
employees

43. Macro environment
Political
Socio cultural
Technology
Demography
Economical

44. What is Marketing Mix?
The marketing mix is the combination of marketing activities that an
organization engages in so as to best meet the needs of its targeted
market. Traditionally the marketing mix consisted of just 4 Ps.
Getting the mix of these elements right enables the organization to meet
its marketing objectives and to satisfy the requirements of customers.

45. The Marketing Mix
The set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target
market.
Product: Variety, features, brand name, quality, design,
packaging, and services.
Price: List price, discounts, allowances, payment period,
and credit terms.
Place: Distribution channels, coverage, logistics, locations,
transportation, assortments, and inventory.
Promotion: Advertising, sales promotion, public relations,
and personal selling.

47. product
Aproductisanitemthatisbuiltorproducedto
satisfytheneedsofacertaingroupofpeople.
Theproductcanbeintangibleortangibleasit
canbeintheformofservicesorgoods.
Aproducthasacertainlifecyclethatincludes
thegrowthphase,thematurityphase,andthe
salesdeclinephase.Itisimportantformarketers
toreinventtheirproductstostimulatemore
demandonceitreachesthesalesdeclinephase.

48. price
Priceisaveryimportantcomponentof
themarketingmix.Itisalsoaveryimportant
componentofamarketingplanasitdetermines
firm’sprofitandsurvival.Adjustingthepriceof
theproducthasabigimpactontheentire
marketingstrategyaswellasgreatlyaffecting
thesalesanddemandoftheproduct.
Pricingalwayshelpshapetheperceptionofyour
productinconsumerseyes.Alwaysremember
thatalowpriceusuallymeansaninferiorgood
intheconsumerseyesastheycompareyour
goodtoacompetitor.

49. place
Placementordistributionisaveryimportantpart
oftheproductmixdefinition.Youhaveto
positionanddistributetheproductinaplacethat
isaccessibletopotentialbuyers.
There are many distribution strategies, including:
Intensive distribution
Exclusive distribution
Selective distribution
Franchising

50. promotion
Promotionisaveryimportantcomponentof
marketingasitcanboostbrandrecognitionand
sales.Promotioniscomprisedofvarious
elementslike:
SalesOrganization
PublicRelations
Advertising
SalesPromotion

51. Extended marketing mix

52. People
Thecompany’semployeesareimportantinmarketing
becausetheyaretheoneswhodelivertheservice.Itis
importanttohireandtraintherightpeopletodeliver
superiorservicetotheclients,whethertheyruna
supportdesk,customerservice,copywriters,
programmers…etc.
When a business finds people who genuinely believe
in the products or services that the particular business
creates, it’s is highly likely that the employees will
perform the best they can.
Additionally, they’ll be more open to honest feedback
about the business and input their own thoughts and
passions which can scale and grow the business.

53. process
Processcouldbeyourentiresalesfunnel,a
paysystem,distributionsystemandother
systematicproceduresandstepstoensure
aworkingbusinessthatisrunning
effectively.

54. Physical
evidence
Intheserviceindustries,thereshouldbephysical
evidencethattheservicewasdelivered.
Additionally,physicalevidencepertainsalsoto
howabusinessandit’sproductsareperceivedin
themarketplace.
Itisthephysicalevidenceofabusiness’
presenceandestablishment.Aconceptofthisis
branding.Forexample,whenyouthinkof“fast
food”,youthinkofMcDonalds.
Whenyouthinkofsports,thenamesNikeand
Adidascometomind.

55. Marketing Mix with 4C’s
The 4Cs marketing model was
developed by Robert F. Lauterborn in
1990. It is a modification of the 4Ps
model. It is not a basic part of
themarketing mix definition, but
rather an extension.

56. Here are the components of this marketing model:
Cost–According to Lauterborn, price is not the only cost incurred when
purchasing a product. Cost of conscience or opportunity cost is also part of the
cost of product ownership.
Consumer Wants and Needs–A company should only sell a product that
addresses consumer demand. So, marketers and business researchers should
carefully study the consumer wants and needs.
Communication–According to Lauterborn, “promotion” is manipulative while
communication is “cooperative”. Marketers should aim to create an open dialogue
with potential clients based on their needs and wants.
Convenience–The product should be readily available to the consumers.
Marketers should strategically place the products in several visible distribution
points.

57. Convenience goods-Inexpensive products that require little time and
effort on the purchase decisions and are purchased regularly.
Staple goods-Used often/regularly and are kept on hand. Examples:
bread, toilet paper
Impulse goods-Unplanned purchases. Examples: magazine or candy in
a grocery store check-out aisle
Emergency goods-Purchased to satisfy an immediate need. Example:
Medicine purchased on the way to a sporting event to sooth a headache.
Classifications of
Consumer
Products/Services

58. Specialtygoods-Soughtbyaconsumerwhodesiresaspecificbrandor
product.Theconsumerwillnotacceptasubstitute.Theconsumermay
havesavedmoneyforlongperiodoftimebeforepurchasingormayhave
toborrowmoneytopurchase.
Examples:Rolexwatch,house,boat.
Classifications of Consumer
Products/Services

59. Shopping goods -Products that usually require a great
deal of time and effort for the purchase decision.
Consumers search and compare similar products prior to
purchase.
Clothing items and hardware or appliances are often
considered shopping goods.
Classifications of Consumer
Products/Services

60. Pure services: Activities performed that do not include a tangible
product.eg airline, bank, management and consultant service
Non-good services -Personal/professional service for a fee. Example: tax
preparation.
Owned-good services -Activities that alter, improve, or repair products already
owned. Example: dry cleaning, appliance repair service.
Rented-good services -Provide a product to use for a brief period for a fee.
Example: carpet cleaners, movie rental.
Classifications of Consumer
Products/Services

61. Productrelatedservices-Activitiesofferedwithorto
complimentaproduct.Examples:warranties,alterations.
Classifications of Consumer
Products/Services

62. Marketing Management Tasks
Developing Marketing Strategies and Plans
Capturing Marketing Insights
Connecting with Customers
Building Strong Brands
Shaping the Market Offerings
Delivering Value
Communicating Value
Creating Successful Long-Term Growth

63. THANK YOU.