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MARKETING

MANAGEMENT
A C C E L E R AT I O N S E M E S T E R ,
AC ADEM I C YEAR 2017/2018
BASIS IN EVALUATING STUDENT
PERFORMANCE
UTS (Mid-Semester Exam) : 25 %

UAS (Final Exam) : 30 %


:
Group Presentations 20%

Group Homework and Participations : 25%


INTRODUCTION
T O M A R K ET I N G
M A N A G I N G P R O F I TA B L E
C U S TO M E R R E L AT I O N S H I P S
INTRODUCTION
Production and Marketing of goods and services are the
essence of economic life in any society.

To SATISFY their commitments to their Stakeholders (Owner,


Customers, and Society)

Utility is the want-satsfying power of goods and services.

Four basic kinds of utility:


Form, Time, Place and Ownership.
INTRODUCTION
RESPONSIBLE
TYPE DESCRIPTION EXAMPLES
FUNCTION
Conversion of Raw Materials Pizza made from several
FORM and components into finished ingredients Production
good and services
Availability of goods and Dial-a-pizza; delivery
TIME services whent consumers want guaranteed in 30 min. Marketing
them
Availability of goods and Delivery at your doorstep
PLACE services where consumers want Marketing
them
Ability to transfer title to goods Pizza sales (in exchange
OWNERSHIP or services from marketer to for cash or CC payment) Marketing
buyer
INTRODUCTION
To survive, all organizations must create utility.

 ‘If we want to know what a business is, we have start with its
purpose. And its purpose must lie outside the business itself.
In fact, it must lie in society since a business enterprise is an
organ of society. There is one valid definition of business
urpose: to create a customer’. (Peter F.Drucker)
DEFINING MARKETING
Social and Mangerial Defenition
• Marketing is a societal process by which individuals and groups
obtain what they need and want through creating, offering, and
exchanging products and services of value freely with others.
• Mangerial defenition, “the art of selling products.”

• The American Marketing Association offers this managerial definition:


Marketing (management) is the process of planning and
executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual
and organizational goals.
DEFINING MARKETING
SELLING VS MARKETING
“Don’t tell me how good your product is, but tell me how good it will
make me.”

Marketing: Managing profitable customer relationships.


THE MARKETING PROCESS
Capture value from
Create value for customers and
customers in return
build customer relationships

Capture value
Construct a Build profitable from
Understand the Design a marketing relationships and customers to
marketplace and Customer-driven program that create customer create profits
customer needs marketing delivers superior delight
and wants
and customer
strategy value
quality
CORE MARKETING CONCEPTS
A Simple Market System

• Global Industry:
Marketplace = Phisycal and Marketspace = Digital
• Metamarket
Mohan Sawhney, describes a cluster of complementary products and
services that are closely related in the minds of consumers but are spread
across a diverse set of industries.
DISCUSSION QUESTIONS CUSTOMER
SATISFACTION
• When have you,
personally, been
extremely satisfied or
dissatisfied with a
product? Why?
• Why is it so difficult for
companies to deliver
value to consumers?

1-11
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
1) Needs, wants, and demands
• Need
– State of felt deprivation
– Example: Need food
• Wants
– The form needs as shaped by culture and the individual
– Example: Want a Big Mac
• Demands
– Wants which are backed by buying power
THE SCOPE OF MARKETING
2) Market Offerings:
GOODS
SERVICES
Marketing myopia
EXPERIENCES occurs when a company
becomes so taken with their
EVENTS own products that they lose
PERSONS sight of underlying customer
needs.
PLACES
PROPERTIES
ORGANIZATIONS
INFORMATION
IDEAS
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
• 3)Value and satisfaction
• Value
– Customer-perceived value
• Customer’s evaluation of the difference between all the benefits and
all the cost of a market offering relative to those of competing
products.
– Customers form expectations regarding value
– Marketers must deliver value to consumers

• Satisfaction
– Customer satisfaction
• The extent to which a product’s perceived performance matches a
buyer’s expectations
– A satisfied customer will buy again and tell others about their good
experience
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
• 4) Exchange, transactions and relationships
• Exchange
– The act of obtaining a desired object from someone by offering
something in return
– One exchange is not the goal, relationships with several exchanges
are the goal
– Relationships are built through delivering value and satisfaction

• 5) Markets
• Market
– Set of actual and potential buyers of a product
– Marketers seek buyers that are profitable
SELECTING CUSTOMER TO SERVE
TARGET MARKETS AND SEGMENTATIONS
• Marketers start with market segmentation.
• Market segments can be identified by examining demographic,
psychographic, and behavioral differences among buyers.
• The firm then decides which segments present the greatest opportunity.
• For each chosen target market, the firm develops a market offering. The
offering is positioned in the minds of the target buyers as delivering some
central benefit(s).
• Target Marketing
Marketing managers must decide which customers they want to target
and on which level, timing, and nature of their demand.
CHOOSING A VALUE PROPOSITION
MARKETING MANAGEMENT ORIENTATIONS

• Production concept • Selling concept


• Product concept • Marketing concept

□ Societal marketing concept

Goal 3: Identify elements of a customer-driven strategy.


THE PRODUCTION CONCEPT
• Assumes that consumers are interested primarily in product
availability at low prices

• Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion
THE PRODUCT CONCEPT
• Assumes that consumers will buy the product that offers them the
highest quality, the best performance, and the most features

• Marketing objectives:
– Quality improvement
– Addition of features
MARKETING MYOPIA

 A focus on the existing product only rather than the consumer needs
it presumes to satisfy

 Management’s failure to recognize the scope of the business

 Product-oriented rather than customer-oriented management


endangers future growth
AVOIDING MARKETING MYOPIA BY FOCUSING ON BENEFITS

Company Myopic Description Marketing oriented


description
Cingular “We are a telephone “We are a communications
company” company”

JetBlue Airways “We are in the airline “We are in the transportation
business” business”

Sony “We are in the video We are in the entertainment


game business” Business
THE SELLING CONCEPT

• Assumes that consumers are unlikely to buy a product unless they


are aggressively persuaded to do so

• Marketing objectives:
– Sell, sell, sell

• Lack of concern for customer needs and satisfaction


THE MARKETING CONCEPT

• Assumes that to be successful, a company must determine the needs


and wants of specific target markets and deliver the desired
satisfactions better than the competition

• Marketing objectives:
– Profits through customer satisfaction
SOCIETAL MARKETING CONCEPT
Assumes that marketing strategy should deliver value to
customers in a way that maintain and improves both the
consumer’s and society’s well-being

Society
(Human Welfare)

Societal
Consumers
Marketing
Company
(Want Satisfaction) Concept (Profits)
THE MARKETING PLAN
• Transforms the marketing strategy into action
• Includes the marketing mix -The 4P’s of marketing
– Product
– Price
– Place
– Promotion

Goal 3: Identify elements of a customer-driven strategy.


MARKETING MIXES- 4P’S
• Product
– Firm must first create a need satisfying market offering
• Price
– Decide how much it will charge for the offer
• Place
– Decide how it will make the offer available to target consumers
• Promotion
– Communicate with target customers about the offer and persuade
them of its merit

Goal 3: Identify elements of a customer-driven strategy.


BUILDING CUSTOMER
RELATIONSHIPS
• CRM–Customer relationship management

–The overall process of building and maintaining profitable


customer relationships by delivering superior customer
value and satisfaction. It deals with all aspects of
acquiring, keeping and growing customers.

Goal 4: Discuss CRM


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