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MKTG 302 MARKETING MANAGEMENT

PART 1. UNDERSTANDING
MARKETING MANAGEMENT

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Outline
Chapter 1. Defining Marketing for the New Realities
Chapter 2. Developing Marketing Strategies and Plans

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PART 1. UNDERSTANDING MARKETING MANAGEMENT

Chapter 1. Defining Marketing

for the New Realities

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Questions
Why is marketing important?
What is the scope of marketing?
What are some core marketing concepts?
What forces are defining the new marketing realities?
What new capabilities have these forces given consumers

and companies?
What does a holistic marketing philosophy include?
What tasks are necessary for successful marketing
management?

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Outline
The Value of Marketing
The Scope of Marketing
Core Marketing Concepts
The New Marketing Realities
Changed Marketplace
Marketing in Practice
Company Orientation
Updating the Four Ps
Marketing Management Tasks

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The Value of Marketing

Financial success often depends on marketing ability.
Marketing has helped introduce new or enhanced

products that ease or enrich peoples lives.

Successful marketing builds demand for products and
services, which, in turn, creates jobs.
Successful marketing allows firms to more fully engage in
socially responsible activities.

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The Value of Marketing

Many firms, even service and nonprofit, now have a chief

marketing officer (CMO) to put marketing on a more equal

footing with other C-level executives such as the chief
financial officer (CFO) or chief information officer (CIO).

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What is Marketing?

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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.

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The Scope of Marketing

Marketing management is the art and science of choosing
target markets and getting, keeping, and growing
customers through creating, delivering, and communicating
superior customer value.

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The Scope of Marketing

Aim of marketing is to make selling superfluous. The aim of
marketing is to know and understand the customer so well
that the product or service fits him and sells itself.

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The Scope of Marketing

What is marketed?
goods
services
events
experiences
persons
places
properties
organizations
information
ideas

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The Scope of Marketing

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.

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The Scope of Marketing

Demand states
Negative demand - Consumers dislike the product and may even pay to avoid it.
Nonexistent demand - Consumers may be unaware of or uninterested in the product.
Latent demand - Consumers may share a strong need that cannot be satisfied by an
existing product.
Declining demand - Consumers begin to buy the product less frequently or not at all.
Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or
even hourly basis.
Full demand - Consumers are adequately buying all products put into the marketplace.
Overfull demand - More consumers would like to buy the product than can be satisfied.
Unwholesome demand - Consumers may be attracted to products that have
undesirable social consequences.

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The Scope of Marketing

Markets
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).

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The Scope of Marketing

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Core Marketing Concepts

NEEDS
WANTS
DEMANDS

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Core Marketing Concepts

TARGET MARKETS
POSITIONING
SEGMENTATION

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Core Marketing Concepts

OFFERINGS
BRANDS

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Core Marketing Concepts

MARKETING CHANNELS

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Core Marketing Concepts

PAID MEDIA
OWNED MEDIA
EARNED MEDIA

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Core Marketing Concepts

IMPRESSIONS
ENGAGEMENT

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Core Marketing Concepts

VALUE
SATISFACTION

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Core Marketing Concepts

SUPPLY CHAIN

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Core Marketing Concepts

COMPETITION

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Core Marketing Concepts

MARKETING ENVIRONMENT

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The New Marketing Realities

TECHNOLOGY

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The New Marketing Realities

GLOBALIZATION

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The New Marketing Realities

SOCIAL RESPONSIBILITY

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Changed Marketplace
New Consumer Capabilities
Consumers can use the Internet as a powerful information
and purchasing aid.
Consumers can search, communicate, and purchase on
the move.
Consumers can tap into social media to share opinions
and express loyalty.
Consumers can actively interact with companies.
Consumers can reject marketing they find inappropriate.

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Changed Marketplace
New Company Capabilities
Companies can use the Internet as a powerful information and sales
channel, including for individually differentiated goods.
Companies can collect fuller and richer information about markets,
customers, prospects, and competitors.
Companies can reach consumers quickly and efficiently via social
media and mobile marketing, sending targeted ads, coupons, and
information.
Companies can improve purchasing, recruiting, training, and internal
and external communications.
Companies can improve their cost efficiency.

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Changed Marketplace
Changing Channels
Retail transformation
Disintermediation

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Changed Marketplace
Heightened Competition
Private labels
Mega-brands
Deregulation
Privatization

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Marketing in Practice
Marketing Balance
Companies must always move forward, innovating
products and services, staying in touch with customer
needs, and seeking new advantages rather than relying
on past strengths.

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Marketing in Practice
Marketing Accountability
Marketers are increasingly asked to justify their
investments in financial and profitability terms, as well as
in terms of building the brand and growing the customer
base.

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Marketing in Practice
Marketing in the Organization
Marketing is not done only by the marketing department;
every employee has an impact on the customer.
To create a strong marketing organization, marketers
must think like executives in other departments, and
executives in other departments must think more like
marketers.

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Company Orientation
The Production Concept
The production concept is one of the oldest concepts in
business. It holds that consumers prefer products that are
widely available and inexpensive and concentrates on
achieving high production efficiency, low costs, and mass
distribution.

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Company Orientation
The Product Concept
The product concept proposes that consumers favor
products offering the most quality, performance, or
innovative features.

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Company Orientation
The Selling Concept
The selling concept holds that consumers and
businesses, if left alone, wont buy enough of the
organizations products.

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Company Orientation
The Marketing Concept
The marketing concept is a customer - centered, senseand-respond philosophy. The job is to find not the right
customers for your products, but the right products for
your customers.

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Company Orientation
The Holistic Marketing Concept
The holistic marketing concept is based on the
development, design, and implementation of marketing
programs, processes, and activities that recognize their
breadth and interdependencies.

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Company Orientation
The Holistic Marketing Concept
Relationship marketing
Integrated marketing
Internal marketing
Performance marketing

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List Four Ps

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Updating the Four Ps

McCarthy classified various marketing activities into

marketing-mix tools of four broad kinds, which he called

the four Ps of marketing: product, price, place, and
promotion.

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Updating the Four Ps

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Updating the Four Ps

Understanding the Four As
Acceptability
Affordability
Accessibility
Awareness

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Marketing Management Tasks

Developing marketing strategies and plans
Capturing marketing insights
Connecting with customers
Building strong brands
Creating value
Delivering value
Communicating value
Conducting marketing responsibly for long-term success

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Outline
The Value of Marketing
The Scope of Marketing
Core Marketing Concepts
The New Marketing Realities
Changed Marketplace
Marketing in Practice
Company Orientation
Updating the Four Ps
Marketing Management Tasks

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Keywords
marketing, chief marketing officer (CMO), marketing management,
goods, services, events, experiences, persons, places, properties,
organizations, information, ideas, negative demand, nonexistent
demand, latent demand, declining demand, irregular demand, full
demand, overfull demand, unwholesome demand, market, need,
want, demand, target market, positioning, segmentation,
offerings, brands, marketing channels, paid media, owned media,
earned media, impressions, engagement, value, satisfaction,
supply chain, competition, marketing environment, technology,
globalization, social responsibility,

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PART 1. UNDERSTANDING MARKETING MANAGEMENT

Chapter 2. Developing
Marketing Strategies and Plans

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Questions
How does marketing affect customer value?
How is strategic planning carried out at the corporate and

divisional levels?
How is strategic planning carried out at the business unit
level?
What does a marketing plan include?

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Marketing and Customer Value

The task of any business is to
deliver customer value at a profit.

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Marketing and Customer Value

The Value Delivery Process
Choosing the value
Providing the value
Communicating the value

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Marketing and Customer Value

The Value Chain
Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing
Service

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Marketing and Customer Value

The Value Chain
Supporting activities
Procurement
Technology development
Human resource management
Firm infrastructure

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Marketing and Customer Value

Core Competencies
A core competency has three characteristics:
It is a source of competitive advantage and makes a
significant contribution to perceived customer benefits
It has applications in a wide variety of markets
It is difficult for competitors to imitate.

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Marketing and Customer Value

Planning
Marketing Plan
Strategic Marketing Plan
Tactical Marketing Plan

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Marketing and Customer Value

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Corporate and Division Planning

Defining the corporate mission
Establishing strategic business units
Assigning resources to each strategic business unit
Assessing growth opportunities

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Corporate and Division Planning

Defining the Corporate Mission
Business definition
Crafting a business definition

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Corporate and Division Planning

Establishing Strategic Business Units (SBU)
It is a single business, or a collection of related businesses, that
can be planned separately from the rest of the company.
It has its own set of competitors.
It has a manager responsible for strategic planning and profit
performance, who controls most of the factors affecting profit.

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Corporate and Division Planning

Assigning Resources to Each SBU
Once it has defined SBUs, management must decide how to
allocate corporate resources to each.

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Corporate and Division Planning

Assessing Growth Opportunities

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Corporate and Division Planning

Organizational Culture
Shared experiences, stories, beliefs, and norms that
characterize an organization.

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Corporate and Division Planning

Marketing Innovation
Senior management should encourage fresh

ideas from three generally underrepresented

groups:
employees with youthful or diverse perspectives
employees far removed from company headquarters
employees new to the industry

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Business Unit Strategic Planning

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Business Unit Strategic Planning

The Business Mission
Each business unit needs to define its specific mission

within the broader company mission.

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Business Unit Strategic Planning

SWOT Analysis
External Environment (Opportunity and Threat) Analysis
Internal Environment (Strengths and Weaknesses)

Analysis

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Business Unit Strategic Planning

Goal Formulation
Goals must be prioritized
Goals should be quantitative
Goals should be realistic
Goals should be consistent

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Business Unit Strategic Planning

Strategic Formulation
Goals indicate what a business unit wants to
achieve; strategy is a game plan for getting there.
Every business must design a strategy for achieving
its goals, consisting of a marketing strategy and a
compatible technology strategy and sourcing
strategy.

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Business Unit Strategic Planning

Program Formulation and
Implementation
Even a great marketing strategy can be sabotaged by

poor implementation.

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Business Unit Strategic Planning

Feedback and Control
Do the right thing or do things right?

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Marketing Plan
A marketing plan is a written document that summarizes
what the marketer has learned about the marketplace and
indicates how the firm plans to reach its marketing
objectives.

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Marketing Plan
Sections:
Executive summary & table of contents
Situation analysis
Marketing strategy
Marketing tactics
Financial projections
Implementation controls

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Keywords
Value delivery process, segmentation, targeting,
positioning, choosing the value, providing the value,
communicating the value, value chain, primary activities,
supporting activities, core competencies, marketing plan,
strategic marketing plan, tactical marketing plan, corporate
and divisional planning,