Marketing Management
NPC
Dr. Derek N. Hassay
Lecture 1
What is Marketing?
“Satisfying consumer needs
and wants… profitably!”
NPC
Lecture 1
Needs, wants,
and demands
Goods &
Services
Core Concepts
in Marketing
Value,
satisfaction,
and quality
Markets
NPC
Exchange, transactions,
and relationships
Lecture 1
What is Marketing?
“In the factory we make cosmetics;
in the drugstore we sell hope.”
Charles Revson
NPC
Lecture 1
General Management Philosophies
Societal
Marketing
Concept
Production
Concept
Marketing
Concept
Selling
Concept
Product
Concept
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Lecture 1
The Societal Marketing Concept
Society
(Public Welfare)
Consumers
(Satisfaction)
Company
(Profits)
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Lecture 1
Marketing System Goals
Maximize
Quality of Life
Maximize
Choice
Maximize
Consumption
Maximize
Satisfaction
NPC
Lecture 1
“Worshipping the
marketing concept
stifles innovation.”
NPC
Lecture 1
Customer Value
Total Customer (Product, Service, Personnel,
& Image Values)
Value
-
Total Customer (Monetary, Time, Energy,
& Psychic Costs)
Cost
=
Customer
(Profit to the
Delivered Value Consumer)
NPC
Lecture 1
Value-Building Approaches
Financial
Benefits
Social benefits
Structural
Ties
NPC
Lecture 1
Customer Satisfaction
Expectations Met
Expectations
Satisfaction
The Goal
of Customer
Satisfaction
Expectations
Exceeded
Customer
Delight
NPC
Lecture 1
Types of Loyalty
Attitude/Affect
Frequency of Purchase
Always/Often
Seldom/Never
Positive
Loyalty
Latent
Loyalty
Negative
Spurious
Loyalty
No
Loyalty
NPC
Lecture 1
Retaining Customers
New
Customer
Costs
Lost
Customer
Costs
Customer
Lifetime
Value
NPC
Lecture 1
Elements of a Marketing Strategy
Product
Place
Target
Price
Consumers
Promotion
NPC
Lecture 1
Marketing Management
“Marketing is not an event, but a process…It has
a beginning, a middle, but never an end, for it is
a process. You improve it, perfect it, even pause
it. But you never stop it completely.”
Philip Kotler
NPC
Lecture 1
Steps in Strategic Planning
Corporate Level
Defining the
Company Mission
Defining Company
Objectives and Goals
Designing the
Business Portfolio
Business Level
Production, Marketing and
Other Functional Strategies
NPC
Lecture 1
Marketing Strategy Elements
Price
Target
Product
Place
Market
Promotion
Marketing Mix (the 4Ps) + Target Market = Marketing Strategy
Marketing Management
Framework
Analysis
Planning
Product
Target
Product
Place
Market
Control
Implementation
Price
Strategies
Portfolio
Mission
Objectives
The
Marketing
Management
Framework
The
Corporate
Strategic
Plan
The Marketing Environment
Natural
Environment
Analysis
Resources
Corporate
Technological
Environment
Political/Legal
Environment
Planning
Suppliers
Price
Product
Objectives
Target
Market
Control
Marketing
Place
Intermediaries
Implementation
Competition
Promotion
Demographic
Environment
Economic
Environment
Publics
Social/Cultural
Environment
Natural
Environment
Analysis
Resources
Corporate
Planning
Price
Product
Objectives
Target
Market
Control
Competition
Demographic
Environment
Technological
Environment
Political/Legal
Environment
Suppliers
Marketing
Place
Intermediaries
Implementation
Promotion
Economic
Environment
Publics
Social/Cultural
Environment
Competitive Strategy
“Induce your competitors not to invest in those
products, markets and services where you expect to
invest the most … that is the fundamental rule of
strategy.”
Bruce Henderson, Founder of BCG
“One does not rely on the enemy not
attacking, but relies on the fact that he
himself is unassailable.”
Sun Tsu, The Art of War
NPC
Lecture 1
Strategies of Firms in a
Hypothetical Market Structure
Market
leader
Market
challenger
Market
follower
30%
20%
Expand Market
Attack leader
Defend Market Share
Imitate
Status quo
40%
Expand Market Share
Market
nicher
10%
Specialize
NPC
Lecture 1
Pursuing a Niche Strategy
•
•
•
•
•
•
•
•
•
•
•
End-user specialist
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialist
Job-shop specialist
Quality-price specialist
Service specialist
Channel specialist
NPC
Lecture 1
Defensive Strategies
(2) Flank defense
Attacker
(3) Preemptive
defense
(4) Counteroffensive
defense
(1)
Position
defense
(6) Contraction
defense
Defender
(5)
Mobile
defense
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Position Defense
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Offensive Strategies
(4) Bypass attack
(2) Flank attack
(1) Frontal attack
Attacker
Defender
(3) Encirclement attack
NPC
(5) Guerilla attack
Lecture 1
Management Decision-making
with “Case Analysis”
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Situation Analysis
Identification of Key Marketing Issue
Identification of Objectives (Decision Criteria)
Generation & Evaluation of Alternatives
Recommendation
Implementation Plan
NPC
Lecture 1
Situation Analysis
External Environment:
•Opportunities & Threats
–Industry (barriers to entry, sales trends)
–P.E.S.T. (stability, forecasted changes)
–Competition (resources, position)
–Customers (preferences)
–Channels
Internal Environment:
•Strengths & Weaknesses
–Marketing Mix
–Consumer Awareness
–Assets, Skills,Resources
NPC
Lecture 1
Key Marketing Issue(s)
• Idea is to present the issue facing the firm
in a succinct manner (2-3 sentences).
• May not be a problem, may be an
opportunity.
• Caution: Make sure that you have
identified the cause and not the symptom
of a problem?
NPC
Lecture 1
Generation of Objectives
(Decision Criteria)
Qualitative:
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Issues of “fit”
Timeliness
Available Skills
Capacity
Quantitative:
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Profit
Market share
Awareness
ROI
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Lecture 1
Generation & Evaluation of
Alternatives
• Selection of 3-4 feasible, mutually distinct alternatives
• Doing nothing (i.e., status quo) is rarely a
feasible alternative
• Evaluation (advantages, disadvantages)
of alternatives based upon decision criteria
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Recommendation
Brief statement outlining:
• Why the recommended course of action is the best available
alternative.
• Decision must be based upon criteria and must be an evaluated
alternative
Implementation Plan
Specifically what is to be done:
• By whom
• When
• Where
NPC
Lecture 1