overview of marketing management

8/8/2019 Overview of Marketing Management

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Marketing Management

POLICARPIO R. MALONDA

School of Graduate Studies and Research


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DEFINITIONS:

F.W. Taylor - Art of knowing what you want to do and thenseeing that it is done the best and cheapest way.

Henry Fayol To Manage is to forecast, to plan, to organize,to command, to co-ordinate and to control.

Peter F.Drucker Management is work and as such it has itsown skills, its own tools and its own techniques.

Management is the art of getting things done through and withpeople.

DEFINITIONS:

F.W. Taylor - Art of knowing what you want to do and thenseeing that it is done the best and cheapest way.

Henry Fayol To Manage is to forecast, to plan, to organize,to command, to co-ordinate and to control.

Peter F.Drucker Management is work and as such it has itsown skills, its own tools and its own techniques.

Management is the art of getting things done through and withpeople.

MANAGEMENT


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Art

Practical know how Technical skills

Concrete results Creativity Personalized nature

Science

Empirically Derived Critically tested General principles

Cause and effect relationship Universal applicability

MANAGEMENT AS A SCIENCE PROVIDES PRINCIPLES AND AS

AN ART HELPS IN TACKLING SITUATIONS.


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FUNCTIONS OF MANAGEMENTFUNCTIONS OF MANAGEMENT

PLANNING:

Plans give the org its objectives and set up the best procedures for reachingthem.

ORGANISING:

It is the process of arranging and allocating work, authority and resourcesamong organizations members so they can achieve the orgs goals.

LEADING:

It involves directing, influencing, and motivating employees to perform essentialtasks.

CONTROLLING:

There are three main elements of controlling:

1. establishing standard of performance

2. measuring current performance

3. Comparing these performance to the established standards

4. taking corrective action

PLANNING:

Plans give the org its objectives and set up the best procedures for reachingthem.

ORGANISING:

It is the process of arranging and allocating work, authority and resourcesamong organizations members so they can achieve the orgs goals.

LEADING:

It involves directing, influencing, and motivating employees to perform essentialtasks.

CONTROLLING:

There are three main elements of controlling:

1. establishing standard of performance

2. measuring current performance

3. Comparing these performance to the established standards

4. taking corrective action


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What is Marketing?What is Marketing?

Selling?

Advertising?

Promotions?

Making products available in stores?Maintaining inventories?

Selling?

Advertising?

Promotions?

Making products available in stores?Maintaining inventories?


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MarketingMarketing

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,

goods, services to create exchanges that satisfy

individual and organizational goals

American Marketing Association

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,

goods, services to create exchanges that satisfy

individual and organizational goals

American Marketing Association


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MarketingMarketing

Marketing is a social process by which

individuals and groups obtain what they

need and want through creating,offering, and freely exchanging products

and services of value to others.

Kotler (2000)


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Marketing ManagementMarketing Management

Marketing management is the process of

planning and executing the conception,

pricing, promotion, and distribution ofideas, goods, services to create

exchanges that satisfy customer and

organizational goals.

Kotler (2000)


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MarketingMarketing

Marketing is a social process involving

the activities necessary to enable

individuals and organizations to obtainwhat they need and want through

exchanges with others and to develop

ongoing exchange relationships

Boyd,Walker,and Larrch (1998)


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Marketing management is the process ofanalyzing, planning, implementing,

coordinating, and controlling programs

involving the conception, pricing, promotion,

and distribution of products, services, and

ideas designed to create and maintain

beneficial exchanges with target markets for

the purpose of achieving organizationalobjectives.

Boyd,Walker,and Larrch (1998)


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MarketingMarketing

Marketing is providingon a timely

basisproducts (or services) designed to

meet the needs and wants of target

markets, and arranging for pricing,

distribution, promotion, and post sale

service. Buell (1984)


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Marketing management is the setting of

marketing goalsconsidering company resources

and market opportunitiesand the planning and

execution of activities required to meet the goals.

When carried out effectively and honorably,marketing management results in creating and

satisfying customers in a manner acceptable to

society and leads to profitable growth for thefirm.

Buell (1984)


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Business Goal: Were AllTrying to Do the Same ThingBusiness Goal: Were All

Trying to Do the Same Thing

The only difference is how we do it!The only difference is how we do it!


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Marketing SystemMarketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


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MarketingMarketing

Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.

Marketing is all about creating a pull, sales is all about

push.

Marketing is all about managing the four Ps

product

price

place

promotion

Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.

Marketing is all about creating a pull, sales is all about

push.

Marketing is all about managing the four Ps

product

price

place

promotion


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The 4 Ps & 4CsThe 4 Ps & 4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience


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Difference Between - Sales &MarketingDifference Between - Sales &Marketing

Salestryingto get the customer to want what the

companyproduces

Marketing

trying to get the company produce whatthecustomerwants


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Scope What do we marketScope What do we market

Goods

Services

Events

Experiences Personalities

Place

Organizations

Properties Information

Ideas and concepts

Goods

Services

Events

Experiences Personalities

Place

Organizations

Properties

Information

Ideas and concepts


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Core Concepts ofMarketingCore Concepts ofMarketing

Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.


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Needs, wantsdemands

Markets Marketing &

Marketers

Utility, Value &Satisfaction

exchange, Transaction

Relationships

Products

Core Concepts of MarketingCore Concepts of Marketing


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Core Concepts of MarketingCore Concepts of Marketing

Need food ( is a must )

Want Pizza, Burger, French fry's ( translation of a need

as per our experience )

Demand Burger ( translation of a want as per our

willingness and ability to buy )

Desire Have a Burger in a five star hotel

Need food ( is a must )

Want Pizza, Burger, French fry's ( translation of a need

as per our experience )

Demand Burger ( translation of a want as per our

willingness and ability to buy )

Desire Have a Burger in a five star hotel


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Marketing TriangleMarketing Triangle

Customers

CompetitionCompany


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Who is a Customer ??Who is a Customer ??

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption

thatsatisfiesa want or a need

CUSTOMER IS . . . . .


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CustomerCustomer

CUSTOMER has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystem isthe starting point of a long term relationship

CUSTOMER has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystem isthe starting point of a long term relationship


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How Do Consumers Choose Among

Products & Services?

How Do Consumers Choose Among

Products & Services?

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 performanceand expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

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 performanceand expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

C t P blC t P bl


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Customers - ProblemSolutionCustomers - ProblemSolution

As a priority , we must bring to our customers

WHAT THEY NEED

We must be in a position to UNDERSTAND their

problems

Or in a new situation to give them a chance toAVOID

the problems

As a priority , we must bring to our customers

WHAT THEY NEED

We must be in a position to UNDERSTANDtheir

problems

Or in a new situation to give them a chance toAVOID

the problems


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Customer looks for ValueCustomer looks for Value

Value = Benefit / Cost

Benefit = FunctionalBenefit + Emotional

Benefit

Cost = Monetary Cost + Time Cost +

Energy Cost + Psychic Cost

Value = Benefit / Cost

Benefit = FunctionalBenefit + Emotional

Benefit

Cost = Monetary Cost + Time Cost +

Energy Cost + Psychic Cost

A


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Analysis Of CompetitionAnalysis Of Competition

Who are your competitors?

Whatare their strengths and weaknesses?

Whathave been their strategies?

How are they likely to respond to yourMarketing plan?

Who are your competitors?

Whatare their strengths and weaknesses?

Whathave been their strategies?

How are they likely to respond to yourMarketing plan?


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Strategic MarketingStrategic Marketing

Strategic marketing management is concerned with

how we will create value for the customer

Asks two main questions

What is the organizations main activity at aparticular time? Customer Value

What are its primary goals and how will these be

achieved? how will this value be delivered


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Strategic PlanningStrategic Planning

Strategic Planning is the managerial process of

creating and maintaining a fit between the

organizations objectives and resources and the

evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal

Strategic Planning is the managerial process of

creating and maintaining a fit between the

organizations objectives and resources and the

evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal


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The Strategic-Planning, Implementation,

and Control Process

The Strategic-Planning, Implementation,

and Control Process


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Business Strategic-PlanningProcessBusiness Strategic-PlanningProcess

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusinessMission


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Strategy FormulationStrategy Formulation

Environmental Analysis

Internal AnalysisCompetitorCustomer

Supplier

Regulatory

Social/ Political

Technology Know-How

Manufacturing Know-How

Marketing Know-How

Distribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies


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The Marketing PlanThe Marketing Plan

A written document that acts as a guidebook ofmarketing activities for the marketing manager

A written document that acts as a guidebook ofmarketing activities for the marketing manager


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CONTENTS of MARKETING PLANCONTENTS of MARKETING PLANBusiness Mission Statement

ObjectivesSituation Analysis (SWOT)

Marketing Strategy

Target Market Strategy

Marketing Mix Positioning

Product

Promotion

Price

Place Distribution People

Process

Implementation, Evaluation and Control

The Marketing ProcessThe Marketing Process


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The Marketing ProcessThe Marketing Process

BusinessMission

Statement

Objectives

Situationor SWOTAnalysis

ImplementationEvaluation,

Control

Target MarketStrategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix


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Factors

Influencing

CompanysMarketing

Strategy

Factors

Influencing

CompanysMarketing

Strategy


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DemographicsDemographics

SocialChangeSocial

Change

EconomicConditions

Economic

Conditions

Political &Legal Factors

Political &Legal Factors

TechnologyTechnology

CompetitionCompetition

EnvironmentalScanning

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

ProductDistributionPromotion

Price

External Environmentis not controllable

External Environmentis not controllable Ever-Changing

MarketplaceEver-Changing

Marketplace

External Marketing EnvironmentExternal Marketing Environment

Physical / Natural


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The macro-environmentThe macro-environment

is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities


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P r o d u c tP r o d u c tP r o d u c tP r o d u c t


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Types of ProductsTypes of Products

ConsumerProducts

IndustrialProducts

PRODUCTS

Services


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Product Items, Lines, and MixesProduct Items, Lines, and Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a productthat can be designated as adistinct offering among anorganizations products.

A specific version of a productthat can be designated as adistinct offering among anorganizations products.

A group of closely-relatedproduct items.

A group of closely-relatedproduct items.

All products that anorganization sells.

All products that anorganization sells.

d i


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Product MixProduct Mix

Width how many product lines a company has

Length how many products are there in a product line

Depth how many variants of each product exist within a

product line

Consistency how closely related the product lines are in

end use

Width how many product lines a company has

Length how many products are there in a product line

Depth how many variants of each product exist within a

product line

Consistency how closely related the product lines are in

end use


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Blades and Writingrazors Toiletries instruments Lighters

Fusion 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mixWidth of the product mix

Deptho

ft h

eprodu

ctlin

es

Dept h

o

fthep

rodu

ctlines

What is a Service?What is a Service?


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What is a Service?Defining the Essence

What is a Service?Defining the Essence

An act or performance offered by one party to another(performances are intangible, but may involve use of

physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired

change in customers themselves, or their physical

possessions, or intangible assets

An act or performance offered by one party to another(performances are intangible, but may involve use of

physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired

change in customers themselves, or their physical

possessions, or intangible assets


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Cl ifi ti f S iCl ifi ti f S i


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Classification of ServicesClassification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product with

Minor Services

Product = Service

Major Service with

Minor ProductBusiness Hotels

Good Transportation

Banking

Pure Intangible

Service


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Intangibility Services are intangibility cannot be seen, tasted,

felt, heard or smelled before purchase.

Inseparability - Services are produced and consumed

simultaneously.

Variability or Heterogeneity Services are highly variable

Perishability Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer

of title

Intangibility Services are intangibility cannot be seen, tasted,

felt, heard or smelled before purchase.

Inseparability - Services are produced and consumed

simultaneously.

Variability or Heterogeneity Services are highly variable

Perishability Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer

of title

Major Characteristic of ServicesMajor Characteristic of Services

The Marketing MixThe Marketing Mix


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The Marketing MixThe Marketing Mix

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/distribution and Promotion.

Generally acknowledged that this is too narrow today;

now includes , Processes, Productivity[technology ]

People [employees], Physical evidence

Marketers today are focused on virtually all aspects of

the firms operations that have the potential to affect

the relationship with customers.

The conventional view of the marketing mix consisted of

four components (4 Ps): Product, Price, Place/distribution and Promotion.

Generally acknowledged that this is too narrow today;

now includes ,Processes, Productivity[technology ]

People [employees], Physical evidence

Marketers today are focused on virtually all aspects of

the firms operations that have the potential to affect

the relationship with customers.

The 8Ps of Integrated ServiceThe 8Ps of Integrated Service


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gManagement vs. the Traditional

4Ps

gManagement vs. the Traditional

4Ps

Product elements Place, cyberspace, and time

Process

Productivity and quality

People

Promotion and education

Physical evidence

Price and other user outlays

Product elements Place, cyberspace, and time

Process

Productivity and quality

People

Promotion and education

Physical evidence

Price and other user outlays

G G fTh Gi d G t f M k ti


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The Give and Get of MarketingThe Give and Get of Marketing


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D i f C t S ti f tiDrivers of Customer Satisfaction


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Drivers of Customer SatisfactionDrivers of Customer Satisfaction

Many aspects of the firms value proposition contribute

to customer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

Many aspects of the firms value proposition contribute

to customer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm

Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

Marketers and MarketsMarketers and Markets


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Marketers and MarketsMarketers and Markets

Marketers are focused on stimulating

exchanges with customers who make upmarkets B2C or B2B.

The market is comprised of people who playa series of roles: decision makers,consumers, purchasers, and

influencers.It is absolutely essential that marketers

have a detailed understanding ofconsumers, their needs and wants.

Much happens before and afterthe sale toaffect customer satisfaction

Marketers are focused on stimulating

exchanges with customers who make upmarkets B2C or B2B.

The market is comprised of people who playa series of roles: decision makers,consumers, purchasers, and

influencers.It is absolutely essential that marketers

have a detailed understanding ofconsumers, their needs and wants.

Much happens before and afterthe sale toaffect customer satisfaction


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Stages of Customer InteractionStages of Customer Interaction

What Changed in MarketingWhat Changed in Marketing


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What Changed in MarketingWhat Changed in Marketing

Organize by product units

Focus on profitable transactions

Look primarily at financialscorecard

Focus on shareholders

Marketing does the marketing

Build brands through advertising

Focus on customer acquisition

No customer satisfactionmeasurement

Over-promise, under-deliver

Organize by product units

Focus on profitable transactions

Look primarily at financialscorecard Focus on shareholders

Marketing does the marketing

Build brands through advertising

Focus on customer acquisition

No customer satisfactionmeasurement

Over-promise, under-deliver

Organize by customer segments

Focus on customer lifetime value

Look also at marketing scorecard

Focus on stakeholders

Everyone does the marketing

Build brands through performance

Focus on customer retention

Measure customer satisfaction andretention rate

Under-promise, over-deliver

Old Economy New Economy


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Philosophies


Philosophies


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Holds that customers will favor,products that are available andhighly affordable and that

management should thereforefocus on improving production anddistribution efficiency.

Holds that customers will favor,products that are available andhighly affordable and that

management should thereforefocus on improving production anddistribution efficiency.

Production ConceptProduction Concept


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Product ConceptProduct Concept

Holds that consumers will favorproducts that offer the most

quality, performance and

innovative features. Thus, an

organization should devote

energy to making continuousproduct improvement.

Holds that consumers will favorproducts that offer the most

quality, performance and

innovative features. Thus, an

organization should devote

energy to making continuousproduct improvement.


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Selling ConceptSelling Concept

Holds that consumers will not buyenough of the organizations

product unless it undertakes a

large-scale selling and

promotion effort.

Holds that consumers will not buyenough of the organizations

product unless it undertakes a

large-scale selling and

promotion effort.


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Marketing ConceptMarketing Concept

Holds that achievingorganizational goods depends

on determining the needs and

wants of target markets and

delivering the desired

satisfaction more effectively andefficiently than competitors do.

Holds that achievingorganizational goods depends

on determining the needs and

wants of target markets and

delivering the desired

satisfaction more effectively andefficiently than competitors do.

overview of marketing management

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