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CHAPTER
11
MARKETING MANAGEMENT
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Objectives
The objectives of this chapter are to:
 introduce marketing management to the reader
 familiarize the reader with basic marketing terms and concepts
 provide an overview of the process of managing the marketing
inputs in order to develop an effective marketing programme
 emphasize on the importance of monitoring and control in the
implementation of marketing programmes
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Learning Outcomes
At the end of this chapter, students should be able to:
 apply marketing management knowledge in their everyday tasks
more effectively
 use critical thinking in overcoming problems creatively and
innovatively
 prepare a business plan that is of quality, effective and viable and
which can reduce the business risks and increase the success of
the business
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Understanding Marketing Terms

Market
 Needs and wants
 Products and services
 Customer value and satisfaction
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The Marketing Concept
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Relationship marketing
 Analysis of the marketing environment
 External environment analysis
 Microenvironment factors
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Suppliers
Marketing intermediaries
Customers
Competitors
Public
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The Marketing Concept (cont.)
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Macroenvironmental factors
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Demographic factors
Economic factors
Political–legal factors
Cultural factors
Technological factors
Natural factors (green technology)
Internal environment analysis
– Strengths
– Weaknesses
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The Marketing Strategy and Process
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Setting marketing objectives
Identifying market opportunities
Selecting target markets
Market segmentation
– geographic segmentation
– demographic segmentation
– psychographic segmentation
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Behavioural segmentation
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The Marketing Strategy and Process
(cont.)
 Segmenting business and international market
 Selection of target market segments
– Undifferentiated marketing
– Differentiated marketing
– Concentrated marketing
 Positioning
 Developing marketing mix
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
Product and Service
A company or business must try to identify the specific ways it can
differentiate its product to obtain its competitive advantage (Kotler,
1997).
 product variety
 packaging
 product quality
 sizes
 product designs
 services
 product features
 warranties
 branding
 returns policies
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The Marketing Strategy and Process
(cont.)
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In the services business, the marketing attributes that need to
be considered are as follows (Kotler, 1997):
Service quality
Consistency of service offering
Service package
Combination of services at competitive price
Service differentiation
Offering that is unique and can be differentiated from the
competitors
– After sales services

Follow-up to ensure customers are satisfied
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The Marketing Strategy and Process
(cont.)
Kotler (1997) suggests that differentiation variables on the
product that may be adopted by entrepreneurs are:
 product features
 product performance
 product conformance
 product durability
 product reliability
 product reparability
 product style
 product design
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The Marketing Strategy and Process
(cont.)
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In addition, in services business the differentiation can be in
the manner of:
ordering ease
delivery
installation
customer training
customer consulting
maintenance and repair
miscellaneous services
after sales service
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
Objectives of Pricing
The objectives of a firm when setting-up the pricing on a product
or services are:
 to achieve target return on investment or net sales
 to improve or stabilize prices
 to sustain or raise market share
 to counter or put off competition
 to maximize profit
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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Pricing decisions need to consider internal and external
factors. The external factors to be considered are:
government, ministries and agencies
demand for the product and economic conditions
consumer associations and groups
competitors and competitive reactions
distribution (distributors)
suppliers (supply of raw materials)
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The Marketing Strategy and Process
(cont.)
Pricing decisions need to consider internal and external factors.
The internal factors to be considered are:
 objectives of marketing
 survival of the company in the market competition
 profit making
 market share leadership
 product quality leadership
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
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The Marketing Strategy and Process
(cont.)
Channel A
Manufacturer directly sells it product or services to consumers
Manufacturer
Customer
Channel B
It consists of one selling intermediary, that is the retailer, who will sell
the product to the consumer
Manufacturer
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Retailer
Customer
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The Marketing Strategy and Process
(cont.)
Channel C
Through this channel arrangement, wholesalers mediate between
manufacturers and retailers. The wholesalers buy from the
manufacturers, and sell to the retailers, who in turn sell to the
consumers.
Manufacturer
Wholesaler
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Retailer
Consumer
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The Marketing Strategy and Process
(cont.)
Channel D
This channel involves 3 intermediaries between the manufacturer and
consumer. This type is practised when a small manufacturer cannot
afford or justify its sales force, or when the market consists of a number
of small retail outlets. Jobber plays a role with products that are not
distributed by large wholesalers.
Manufacturer
Wholesaler
Jobber
Retailer
Customer
Non store retailing – another option for businesses—can take the
form of: door-to-door selling, in-house selling, mail order/direct
response selling, teleshopping or automated vending.
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The Marketing Strategy and Process
(cont.)
Factors influencing distribution strategies:
 Type of product
 Target market and market coverage
 Product standardization
 Transportation ease
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The Marketing Strategy and Process
(cont.)
Promotion
 Promotion is the last marketing tool used to create awareness
and favourable attitude within the target market, community
and among various groups of people that are connected to the
business.
 It consists of all the activities the business undertakes to
communicate and promote its products or services to the
target market.
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The Marketing Strategy and Process
(cont.)
The objectives of promotion may be varied.
Among the objectives are as follows:
 to retain ‘loyal’ customers
 to retrieve ‘lost’ customers
 to recruit ‘new’ customers
 to reassure ‘old’ and ‘new’ customers are making wise decision
in buying the product or service
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The Marketing Strategy and Process
(cont.)
Promotional strategies
 Advertising
 Personal selling
 Sales promotion
 Publicity
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The Marketing Strategy and Process
(cont.)
Advertising
Advertising is dissemination of marketing information through
various media of communication for the purpose of increasing and
maintaining effective demand and helping the sale of goods and
services.
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The Marketing Strategy and Process
(cont.)
Advertising channel can be categorized as printed medium, electronic
and digital medium, and at outdoor settings.
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Printed medium are as follows:
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newspaper
magazines
yellow pages
brochures
business cards
electronic and digital
television
radio
Internet
short messaging system
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
Electronic and digital
medium are as follows:
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television
radio
internet
short messaging system
Outdoors settings are like:
– billboards
– banners
– transportation
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The Marketing Strategy and Process
(cont.)
Sales Promotion
 Refers to promotional activities or incentives carried out or
offered within a set time frame to influence purchase. The
common sales promotional strategies are:
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rebates
coupons
purchase-with-purchase
samples
premiums
contest
point-of-purchase promotion
sweepstakes
free delivery
extended warranty
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The Marketing Strategy and Process
(cont.)
Personal Selling
 Personal selling is the most cost-effective tool at later stages of
buying process. It is a face-to-face selling in which a seller
attempts to persuade a buyer to make a purchase. Personal
sales presentation is normally conducted by a trained sales
person to influence potential customers. It is most often used for
products that require demonstration or explanation.
 Benefits of personal selling:
 Alive, interactive and immediate relationship between the seller
and buyer.
 Cultivation of short- and long-term relationship through sales
activities. It can also create extensive networking.
 Immediate response by the buyer
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The Marketing Strategy and Process
(cont.)
Publicity
• Publicity is about efforts taken by the company to develop and
maintain good relationship with the public, to ensure good
favourable public image of the business.
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Marketing Programme

A marketing programme, also known as the marketing plan,
must eventually be prepared to document the marketing
activities and marketing strategies. A typical marketing
programme consists of the following:
– executive summary and table of contents
– analysis of marketing environment
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product concept and customers’ needs and wants
identify target market and their profile analysis
estimation of market size
identify and analysis of competitors
– analysing the strengths, weaknesses, opportunities and threats
(SWOT) of the business
• SWOT analysis and estimation of market share
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Marketing Programme (cont.)
– marketing objectives
• outline marketing objectives that has been identified
– detailed estimation and breakdown of sale based on areas, customers
group, monthly sales, other purchasing pattern
– marketing action programmes
• this section answers the what, when, where, who and how. Includes
target market selected and justification for selection
– marketing strategies
• marketing strategies such as products, prices, promotion and outlet
location and distribution
– financial projections and marketing budget
• detail on the marketing sales forecast and budget
– monitoring and controls
• explain how the plan programme will be monitored and controlled
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