Marketing Management
Marketing Mix
Ljubica Kostic-Bukarica
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Tell me and I forget, teach me and I may
remember, Involve me and I learn.”
Benjamin Franklin
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What is marketing?
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The most common misconceptions of
marketing
 Marketing = Advertising
 Marketing = Market Research
 Marketing= Promotion
 Marketing = Distribution
 Marketing = Sales
 Marketing = Public Relations
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Meaning of the word marketing
 Compound word of Anglo-Saxon origin
 The word "market" means market, the addition of "ing"
verb creates a noun that indicates an action, "placing on
the market“
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The importance of marketing in XXI
century
The main causes which led to the new role of marketing:
Globalization- the whole world is one market
The development of technology (computerization of
society) - the information is the main resource
New customer - the customer is king
A new way of doing business - integration within the
enterprise (creating value for the customer is unique goal of
all businesses); learning organization (constant adjusting to
the dynamic conditions on the market)
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The importance of marketing in the
XXI century
 Relations Marketing develops a long-term and close relationship with all
stakeholders (customers, employees, suppliers, distributors, agencies,
shareholders, investors and others) that may directly or indirectly affect the
marketing strategy of the company. This concept is known as "one on one".
 Integrated marketing means designing marketing activities in order to
communicate, create and deliver value to consumers. In Integrated
Marketing, many marketing activities (marketing mix: product, price,
channels of sales and promotion) are used to communicate and deliver
value to customers.
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The importance of marketing in the
XXI century
 Internal Marketing defines that all marketing functions within a company
(sales, advertising, customer service, product management, marketing
research) need to act together, a kind of thinking that all the other
departments in the enterprise have to accept.
 Socially Responsible Marketing involves understanding the broader
interests of the community, such as the respect of ethical norms and
customs, environmental protection issues, social welfare of the society.
Throughout this human dimension of marketing companies want to
improve their reputation, increase brand awareness, strengthen customer
loyalty, increase sales and media coverage.
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Your customer will always be the king
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Definition of Marketing
 AMA:"The organization of functions and a set of
processes of creating, communicating and delivering the
value to consumers and managing the relations with
customers and its stakeholders"
 "The art and science of choosing a target markets and the
ability of gaining, keeping and increasing the number of
customers through the creation, delivery and
communication of superior value for customers"
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Scope of Marketing
 Marketing is the fulfillment of individual and social needs
 “Profitable meeting of needs”
 Market leaders must not fall asleep!
 The main risk comes from customers!
 Financial success depends on marketing!
 Good marketing is not made by chance!
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The main features of the Marketing
concept
 Begins with customers
 Long-term perspective
 Full involvement of all company resources
 Constant innovation
Marketing concept consists of three main dimensions:
 Customer Orientation
 Competitor Orientation
 Interfunctional Coordination
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The essence of the Marketing concept
 The essence of the Marketing concept is in the study of needs, demands and
wishes of consumers in order to collect information so that all products or
services offered to the them can meet their expectations to the greatest
extend. Creating new values is the most important part of the internal
capability of the company that strives to provide the highest possible
satisfaction to the customer.
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Marketing Strategy
Precise defining of business ideas
Defining the target group
Positioning (determining the place of products or services
over the competition)
Defining of short-term and long-term goals
Specifying the distribution channels
Defining the promotional mix
Feedback from users
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The tasks of Marketing Management
 Developing marketing strategies and plans
 Connection with customers
 Building strong brands
 Creating long-term growth
 Insight into marketing research
 Modeling Marketing Supply
 Delivering value to the customer
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SWOT analysis
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Marketing mix
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4P = 4C
4P seller
Product
Price
Place
Promotion
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4C customer
Customer Solutions
Customer Cost
Convenience
Communication
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Product
 The product represents everything that the company
can offer to the market whether it is a physical
product, service or idea, and as such is the most
important marketing tool and has the most important
role in creating strategies.
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5 levels of product
 The essence of the benefits - benefits that consumer really


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buys
Basic products
Expanded product - what customers expect
Expected product - meets customers beyond their expectations
Potential product - indicates a possible evolution in terms of
improved product
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Product Lifecycle
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Price
 Price is an important dimension in the creation of the
competitiveness of enterprises and of all the instruments
of the marketing mix and it is the only thing that has a
quantitative character.
 In modern business conditions, increased competition and
dynamic changes in the market, the role of prices is
increasingly important in the formation of competitive
advantage of a company.
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Cost&Value based pricing
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Place/Distribution
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Distribution or sales channels represent an organized system of
interdependent and simultaneously independent brokers who participate
in physical and ownership course of goods (services) from producers to
consumers.
The company should carefully select sales channels in order to find the
best way to the target market and achieve the greatest possible coverage.
It is the most inflexible instrument of marketing mix. It takes time to
create the appropriate systems and once established distribution channel
is not easily changed.
In order to be effective sales channel requires the selection of a
mediators, their training and motivation. The aim is to build long-term
partnership that will be profitable for all members of the channel
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Promotional mix
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Advertising
 The main goals of propaganda are to inform (creating
brand awareness and knowledge about new products or
new features of existing products), persuade (creating
likeability, preferences, beliefs, leading to the purchase of
products or services), and a remind (stimulating
repurchase of products or services).
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5M of Advertising
 Mission: What are the goals of advertising?
 Money: How much can be spent?
 Message: what the message should be sent?
 Media: what type of media should ne choosen for placing
the message?
 Measurement: How should the results be measured?
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Sales Promotion
 Main tools of sales improvement are: samples, coupons,
reduced packages, gifts, frequent purchases programs, prizes
(competitions, prize games), free testing, product guarantee,
joint promotions,cross promotions, display and presentation at
places of sale
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Personal Selling
 Direct contact between seller and buyer
 Sale presentations, sale meetings, stimulating program,
samples, trade fairs and trade exhibitions
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Direct Marketing
 Direct marketing involves using direct channels to reach
consumers and to deliver products and services without using
other agents (sale channels). Those links include direct mail,
catalogues, telemarketing, interactive television, kiosks, web
pages and mobile devices.
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Interactive Marketing
 Social media
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Events & Experiences
 Sponsored activities and programs designed to create
daily or special brand – related interactions.
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Public Relations
 Public Relations is defined as “the deliberate, planned and
sustained effort to establish and maintain mutual
understanding between an organization and its publics”
Institute of PublicRelations
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