Understanding
Marketing
Management
At the end of the module, you should be able to:
1. Understand the importance of marketing
2. Know and understand the scope of marketing?
3. Identify and learn some core marketing concepts?
4. Learn and understand how has marketing management changed in recent years
5. Identify the tasks necessary for successful marketing management.
6. Know and understand how does marketing affect customer value
7. Familiarize how strategic planning carried out at different levels of the
organization
8. Identify the nature and contents of marketing plan.
THE IMPORTANCE OF
MARKETING
7 Major Importance of Marketing | Marketing Management
1. Marketing Helps in Transfer, Exchange and Movement of Goods
2. Marketing Is Helpful In Raising And Maintaining The Standard Of Living Of The
Community
3. Marketing Creates Employment
4. Marketing as a Source of Income and Revenue
5. Marketing Acts as a Basis for Making Decisions
6. Marketing Acts as a Source of New Ideas
7. Marketing Is Helpful In Development Of An Economy
THE SCOPE OF MARKETING
Marketing is about identifying and meeting human and social needs. One of the
shortest good definitions of marketing is “meeting needs profitably.”
The American Marketing Association offers the following
formal definition:
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.
Social definition: Marketing is a societal process by which
individuals and groups obtain what they need and want through
creating, offering, and freely exchanging products and services of
value with others.
Managerial definition: Managers sometimes think of marketing as
“the art of selling products,” but many people are surprised when
they hear that selling is not the most important part of marketing!
Selling is only the tip of the marketing iceberg.
What Is Marketed?
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Goods
Services
Events
Experiences
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Persons
Places
Properties
Organizations
Information
Ideas
Who Markets?
A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect. If two parties
are seeking to sell something to each other, we
call them both marketers.
Eight demand states are possible:
1.Negative demand
2.Nonexistent demand
3.Latent demand
4.Declining demand
5.Irregular demand
6.Full demand
7.Overfull demand
8.Unwholesome demand.
Five basic markets and their connecting flows are shown
in figure below
Traditionally, a “market” was a physical
place where buyers and sellers
gathered to buy and sell goods.
Economists describe a market as a
collection of buyers and sellers who
transact over a particular product or
product class (such as the housing
market or the grain market).
Figure below shows the relationship between the industry and the market. Sellers
Key Customer Markets
• Consumer Markets.
• Business Markets.
• Global Markets.
• Nonprofit and Governmental Markets.
The marketplace is physical, such as a store you shop in.
The marketspace is digital, as when you shop on the Internet.
CORE MARKETING CONCEPTS
Needs Wants Demands
We can distinguish five types of needs:
1. Stated needs
2. Real needs
3. Unstated needs
4. Delight needs
5. Secret needs
Target Market
Market Offering
Positioning
Marketing Segmentation
Value Proposition
Brand
Branding
Value
Customer Value Triad
Satisfaction
Communication Channels
Distribution Channels
Supply Chain
Competition
Marketing Environment
THE NEW MARKETING
REALITIES
Major Societal Forces
Network information technology.
Globalization.
Deregulation.
Privatization.
Heightened competition.
Industry convergence.
Retail transformation.
Disintermediation.
Consumer buying power.
Consumer information.
Consumer participation.
Consumer resistance.
New Company Capabilities
• Marketers can use the Internet as a powerful information and sales channel.
• Marketers can collect fuller and richer information about markets, customers, prospects, and
competitors.
• Marketers can tap into social media to amplify their brand message.
• Marketers can facilitate and speed external communication among customers.
• Marketers can send ads, coupons, samples, and information to customers who have requested
them or given the company permission to send them.
• Marketers can reach consumers on the move with mobile marketing.
• Companies can make and sell individually differentiated goods.
• Companies can improve purchasing, recruiting, training, and internal and external communications.
• Companies can facilitate and speed up internal communication among their employees by using the
internet as a private intranet.
• Companies can improve their cost efficiency by skillful use of the internet.
COMPANY ORIENTATION
TOWARD THE
MARKETPLACE
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept
Relationship marketing
marketing network
Integrated marketing
Internal marketing
Performance marketing
UPDATING THE
FOUR P’S
MARKETING MANAGEMENT TASKS
1.
Developing Marketing Strategies and Plans
2. Capturing Marketing Insights
3. Connecting with Customers
4. Building Strong Brands
5. Shaping the Market Offerings
6. Delivering Value
7. Communicating Value
8. Creating Successful Long-Term Growth