MARKETING MANAGEMENT Dr.

Adnan Pitafi
LECTURE – WEEK 1 &2 (19-8-2019) Assistant Professor
adnanpitafi@gmail.com
UNDERSTANDING MARKETING & MARKETING MANAGEMENT
ACHIEVING CORPORATE SUCCESS
 THE TODAY'S BUSINESS ENVIRONMENT
Technological
development
Worldwide competitive Mergers & acquisitions
environment between companies

Demanding Product life cycle

customers shortening

Employees new New Legal

profiles environment
.......we all believe that by globalization and in an environment with no
trade barriers, the world will became a single united market. Whoever
reaches it first will become the best.

Donald Shinkel, Vice President

Wall-Mart Stores
FEW EXAMPLES FROM THE PAKISTANI MARKET
MARKETING MANAGEMENT
Lecture Overview

What is Marketing?
Marketing as an organisation and management function
Marketing as a concept and philosophy
Evolution of Marketing concept
Core concept of marketing
Marketing orientations
The competitive environment
Marketing mix
WHAT IS MARKETING?
Marketing is everyone’s business. Every person working for an
organisation should understand the importance of marketing.

Definitions:
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”
– CIM
“Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services
to create exchange and satisfy individual and organisational needs.”
 AMA
Why It’s Important

Effective marketing puts the

products in the hands of its
targeted customers.
 Basics of Marketing

A market is a group of customers who

share common wants and needs, and
who have the ability to purchase a
particular product.
 Basics of Marketing

Marketing is the process of creating,

promoting, and presenting a product to
meet the wants and needs of consumers.
 Key Words

market
marketing
marketing concept
target marketing
relationship marketing
marketing mix
break-even point
 Key Words

market research
demographics
channel of distribution
direct distribution
indirect distribution
wholesaler
Retailer
Trade Marketing
 MARKETING IS AN ORGANISATIONAL FUNCTION
The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
of marketing.

CRM Sales Promotion Advertising P.R.

Selling
Display

Financing
Stockholding
The operational
functions of marketing Buying
Servicing
Forecasting

Risk Taking
Pricing

Transporting Market Research Merchandising Publicity

 MARKETING AS A MANAGEMENT FUNCTION
Here the role of marketing is ensuring that the operational activities of the organisation (not just marketing) are clearly
directed towards the principal objective of meeting the needs of the customers effectively. It involves analysing
customers and anticipating their needs, planning, resource allocations, control and investment in terms of money,
appropriate skilled people and physical resources to ensure both customer and organisational needs are met to each’s
satisfaction.

Marketing as a Business Concept – in this regard marketing is the study of exchange processes especially those
associated with the provision of goods and services. It takes its lead from the social sciences in that, the basic tenant
of society is that we all need each other. The idea here is, if I’ve got something you want and you’ve got something I
want, then we do a deal (which is the exchange process)
MARKETING AS A BUSINESS CONCEPT
The Exchange Process

Something of value

Goods, services, benefits

Supplier Customer

Money, exchange of goods

Something of value
EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations

Cash

Quench
thirst
Customer Pepsi

Insurance
premiums
Medical
treatment
Patient Private Hospital

Fees

Education
Student University
EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations

Time

Sense of
community
Volunteer service Non-profit youth group

Vote

Sense of economic/social
progress continued
Voter employment etc Politic Party

Taxes

Reader
Lone parent Public Library, Benefit agency
MARKETING AS A BUSINESS PHILOSOPHY
Simply a way (i.e. orientation) towards how the business will behave. As a philosophy it
recognises the importance of the customer and that all business exists to serve customers
rather than manufacturing products.

To quote Adam Smith C A in his famous text ‘ The wealth of

“Consumption is the sole purpose of production and the interests of the product ought to be
attended o only so far as it may be necessary for promoting those of the customer”
CORE CONCEPTS OF MARKETING
Needs Products/ Value
Wants Services &
Demand Satisfaction

Exchange
Process
Markets Marketing

Exchange
Transactions
Relationships
What is Utility?
EVOLUTION OF MARKETING CONCEPT AND MARKETING ORIENTATION
 Self-sufficiency – No exchange process

 Simple – Start of exchange process

 Local markets – Economic specialisations

 Money economy – Medium of exchange

 Industrial revolution – Rapid growth in world population leading to increased demand.

Problem – How to supply?

 Production orientation – More efficient production eventually led to oversupply.

Problem changed to – How to dispose?

 Soles orientation – Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.

 Product orientation – Demand. Problem – how to keep customers? Companies sought

to keep customers by increasing emphasis on product design,
Problem – competition quickly copied and the design didn’t suit
everyone. Too many products than they demand for them.

 Marketingorientation – Production based on customer needs and wants. Specific markets identified and
matched their requirements to the capabilities of the company to ensure both parties needs were satisfied.
BUSINESS ORIENTATION
Orientation Profit Driver Approximate Characteristics
Time Frame
Production Production Methods Up to 1940’s Improvement of production and in order
to achieve a reduction of costs and
improved efficiency.
Product Quality of Product Until 1960’s The quality of the product is paramount.
Focus on product not customer needs.

Selling Selling Methods 1950-1970’s Effective selling and promotion are the
new drivers to success.

Marketing Needs and wants of 1970 to date Focus on providing the goods and
customers services that satisfy the needs and wants
of consumers.
Further approaches to marketing
Relationship Building and keeping 1990’s to date Emphasis placed on keeping as well as
Marketing good customer winning customer strategies.
relations
Societal Benefit the society 1990’s to date Similar to marking orientation but also
Marketing concerned with the long term impact of
organisational activities on the
environment (society)
 Marketing Mix: The 4 Ps

Place

Promotion The Marketing Mix Product

Price
 Importance of 4Ps by Industry –
examples of promotions
Consumer Goods Industrial Goods
High
Advertising Personal Selling

Sales Promotion Sales Promotion

Importance

Personal Selling Advertising

PR PR
Low
 Push versus Pull
Demand Demand

Push Strategy Manufacturer Intermediary End User

e.g Lever Brothers

Demand Demand

Pull Strategy Manufacturer Intermediary End User

e.g. P & G
ASSIGNMENT – DUE BEFORE NEXT CLASS
Q.1: Decide on a company that you will be writing your Marketing Case Study on?
Q.2: Submit a two page review on why you selected that company and why its wroth
writing a Marketing Case Study on it?
THANK YOU