MARKETING MANAGEMENT

What is Marketing?

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 is a total system of business activities
designed to plan, price, promote, and distribute wantsatisfying products to target markets in order to achieve organizational objectives.

What is Marketing?

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 is a total system of business activities
designed to plan, price, promote, and distribute wantsatisfying products to target markets in order to achieve organizational objectives.

STATE OF DEMAND AND MARKETING TASK

State of demand
Negative Demand No Demand

Marketing task
Conversional Mktg.
Stimulational Mktg. Developmental Mktg. Remarketing Synchro-marketing Maintenance Mktg. Demarketing

Latent Demand
Falling Demand Irregular Demand Full Demand Overfull Demand Un-wholesome Demand

Counter-marketing

Demand States

Negative: Consumers
dislike the product and may even pay a price to avoid it.

Irregular: Consumer purchases

vary on a seasonal, monthly, weekly, daily, or even hourly basis.

Nonexistent: Consumers
may be unaware or uninterested in the product.

Full: consumers are adequately

buying all products put into the marketplace.

Latent: Consumers may

share a strong need that cannot be satisfied by an existing product.

Overfull: more consumers would

like to buy the product than can be satisfied.

Unwholesome: consumers may

be attracted to products that have undesirable social consequences.

Declining: Consumers
begin to buy the product less frequently or not at all.

COMPANY ORIENTATION FOR MARKETING ACTIVITIES

There are SIX competing concepts under which organizations conduct their marketing activities:

The Production Concept The Product Concept The Selling Concept The Marketing Concept The Societal Marketing Concept The Holistic Marketing

Holistic Marketing Dimensions

OVERVIEW
Strategic marketing management is concerned with how we will create value for the customer Asks two main questions
What is the organizations main activity at a

particular time? Customer Value

What are its primary goals and how will these be

achieved? how will this value be delivered

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Three Vs Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

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The Value Delivery Process:

(a) Traditional Physical Process Sequence
Make the Product Design Product Procure Make Price Sell Sell the Product Advertise/ Promotion Distribute Service

(b) Value Creation and Delivery Sequence

Choose the Value
Customer Segmentation Market Selection/ Focus Value Positioning Product Development

Provide the Value

Service Development Pricing Sourcing Making Distributing Servicing

Communicate the Value

Sales Force Sales Promotion Advertising

Strategic Marketing

Tactical Marketing

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Figure 2.2 The Strategic Planning, Implementation, and Control Processes

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Levels of a Marketing Plan

Strategic
Target

Tactical
Product

marketing decisions Value proposition Analysis of marketing opportunities

features Promotion Merchandising Pricing Sales channels Service

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Table 2.3
Product Orientation vs. Market Orientation Company
Missouri-Pacific Railroad Xerox Standard Oil Columbia Pictures

Product
We run a railroad We make copying equipment We sell gasoline We make movies

Market
We are a peopleand-goods mover We improve office productivity We supply energy We entertain people
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THE BCG MATRIX

Nestle beverages Nestle breakfast cereals

iPod
baby food items i.e. nestle cerelace and other baby food products

Nestle pharmaceutical products

DVD players

Figure 2.3 The Strategic Planning Gap

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Ansoffs Product-Market Expansion Grid

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Figure 2.5 The Business Unit Strategic Planning Process

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Porters Generic Strategies

Overall Cost Leadership

Differentiation
Focus

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What is Direct Marketing?

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Direct marketing is the use of consumerdirect channels to reach and deliver goods and services to customers without using market middlemen. OR Direct marketing is a channel free approach to distribution and/or marketing communications

THE RANGE OF DIRECT MARKETING TECHNIQUES

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Designing a Sales Force

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Sales force objectives Sales force strategy Sales force structure Sales force size Compensation

Steps in Effective Selling

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Prospecting/qualifying Preapproach Presentation Overcoming objections Closing Follow up

Steps in Setting Price

Select the price objective Determine demand Estimate costs Analyze competitor price mix Select pricing method Select final price

Price-Adaptation Strategies

Geographical pricing Discounts/allowances Promotional pricing Differentiated pricing

Promotional Pricing Tactics

Loss-leader pricing Special-event pricing Cash rebates Low-interest financing Longer payment terms Warranties and service contracts Psychological discounting
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Differentiated Pricing

Customer-segment pricing Product-form pricing Image pricing Channel pricing Location pricing Time pricing Yield pricing
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Figure 6.1 Model of Consumer Behavior

This model shows that the marketing and other stimuli enter the consumers black box and produce certain responses

Marketers must figure out what is in the buyers black box

Consumer Purchase Decision Process

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Problem Recognition

Post Purchase Behavior

Information Search

Purchase Decision

Evaluation of Alternatives

What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors
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Subcultures
Nationalities

Religions Racial groups

Geographic regions

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Social Factors

Reference groups

Family

Social roles

Statuses
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Personal Factors
Age
Selfconcept Lifestyle Values Personality
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Life cycle stage

Occupation
Wealth

What is Positioning?
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

Value proposition

Perdue Chicken

More tender golden chicken at a moderate premium price A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
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Dominos

Differentiation Strategies

Product Channel Personnel Image

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Product Differentiation

Product form Features Performance Conformance Durability Reliability Reparability

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Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

Brand Naming

Individual names Blanket family names Separate family names Corporate name/individual name combo

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