Lecture 1
Applied Marketing Management and Marketing Basics
Applied Marketing management is the practical analysis, planning, implementation, and control
of programs designed to create, build, and maintain beneficial exchanges with target buyers for
the purpose of achieving organizational objectives. It needs an understanding of the basic
principles of marketing.
Marketing defined
Marketing is an organizational function and a set of processes for creating, communicating, and
delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders. Marketing revolves around the exchange of goods and services
in various markets.
In marketing, exchange is the focus. Exchanges are carried out by business firms, and also by
non-business organisations and even individuals.
Four conditions must exist for an exchange to be able to occur:
 Two or more people or organisations must be involved
 The parties must be involved voluntarily
 Each party must have something of value to exchange, and the parties must believe they
will each benefit from the exchange
The parties must communicate with each other in a simple marketing system.
A simple marketing system
Marketing is a process by which companies create value for customers and build strong
customer relationships to capture value from customers in return Kotler and Armstrong (2013)
Products and services are the value that companies create to give value to customers. A product is
a set of basic real (tangible) and symbolic (intangible) attributes assembled in and which can
be offered obtained and consumed in order to satisfy wants or/and needs. Products are
identifiable in terms of size, price, appearance, and performance. They can be in the form of an
be object, service, place, person, or an idea.
In marketing the product is usually assigned a brand name. A brand is a name and/or a mark
intended to identify the product of one seller or group of sellers and differentiate it from
competing products.
The marketing discipline over time
Marketing Management Orientations/Philosophies/Concepts
These are ways of thinking that guide the selection of marketing strategy. The concepts also
represent the evolution or development of marketing over time.
Productio
n concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Production concept is the idea that consumers will favor products that are available or highly
affordable
Product concept is the idea that consumers will favor products that offer the most quality,
performance, and features. Organization should therefore devote its energy to making
continuous product improvements.
Selling concept is the idea that consumers will not buy enough of the firm’s products unless it
undertakes a large scale selling and promotion effort
Marketing concept is the idea that achieving organizational goals depends on knowing the
needs and wants of the target markets and delivering the desired satisfactions better than
competitors do
Societal marketing concept is the idea that a company should make good marketing decisions
by considering consumers’ wants the company’s requirements, consumers’ long-term interests,
and society’s long-run interests
Holistic Marketing Decisions
Marketing decisions need to consider the following if ever they are to be all encompassing
The changing marketplace
Markets are ever changing. Below is a summary of some of the notable changes that have
characterized modern markets. Marketing managers need to realize these changes and
incorporate them in their marketing efforts
Information technology
Globalization
Deregulation
Privatization
Competition
Convergence
Consumer resistance
Retail transformation
Understanding the Applied Marketing Management Process
In applied marketing management, the process below need to be understood.
.
• Societal Marketing Orientation
• Understanding the marketplace
.
.
• Planning
• Implementation
.
• Connection with customers