Chapter 1: Defining Marketing for the New Realities

1. The Value of Marketing: Marketing builds demand for products and services to fulfill the consumers’
need and wants. Business functions like Finance, Operations, Accounting and other activities are
depended on sufficient demand for products and services. The company can earn profit. Marketing
creates job opportunities. Marketing Decision Making.
2. What is Marketing: Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have value for customers, clients, partners
and society at large
3. What is Marketing Management: Marketing management is a process of controlling the marketing
aspects, setting the goals of a company, organizing the plans step by step, taking decisions for the firm,
and executing them to get the maximum turn over by meeting the consumers' demands.
4. Objectives of Marketing:
 Attracting new customers: to increase the sales using different strategies
 Satisfying the demands of customers: to keep satisfied the customer who is associated with the
company's products for a long period
 Profitability: keeps the marketing on track by entertaining their old and reliable customers and
attracting the new customer to make maximum profit for maximum growth.
 Maximizing the market share: to make maximum marketing share using different tools by having
comparison with a market economy.
 Creating a good public reputation: By marketing, the reputation of a company can be made good and
trustworthy for the consumers that increase the growth.
5. What is Marketed:
 Goods: Food products, cars, refrigerators, televisions, machines.
 Services: Airlines, hotels, car rental firms, barbers and beauticians
 Events: trade shows, artistic performances, and company anniversaries
 Experiences: Walt Disney, Fantasy Kingdom
 Persons: Artists, musicians, CEOs
 Places: Cox’s Bazar, Sundorbon
 Properties: Real property (real estate) or financial property (stocks and bonds)
 Organizations: Universities, museums, performing arts organizations, corporations, NGO
 Information: production, packaging, and distribution of information
6. Who Markets:
(a) Marketers and Prospects: A marketer is someone who seeks a response- attention, a purchase, a vote,
a donation from another party called as the Prospect. Marketers are skilled at stimulating demand for
their products. Eight Demand states are possible-
 Negative Demand: Employees have negative demand for ex-convicts and alcoholics as employees.
 Nonexistent demand: Farmers my not be interested in a new farming products.
 Latent demand: Harmless cigarettes, more fuel- efficient cars.
 Declining demand: Kohinoor soap
 Irregular demand: Parks are overcrowded on weekends
 Full Demand: A situation where the no. of shirts produced by the manufacturers meets the level of
demand.
 Overfull Demand: Tourist spot Cox’s Bazar on vacation time.
 Unwholesome demand: cigarettes, alcohol, large families.
(b) Markets: A market is a collection of buyers and sellers who transact over particular product or
product class.

Figure: A simple marketing system

(c) Key Customer Markets:
 Consumer markets: Mass consumer goods and services such as juices,
cosmetics, athletic shoes.
 Business Markets: Business buyers buy goods to make or resell a product to others at a profit.
 Global Markets : Companies in the global marketplace must decide which countries to enter; how to
enter each (as an exporter, licenser, joint venture partner, contract manufacturer)
 Nonprofit and Governmental Markets: Universities, charitable organizations, and government
agencies.
7. Core Marketing Concepts:
 Needs, wants and demand
 Target markets, positioning and Segmentation
 Offerings and Brands
 Marketing Channels
 Impressions and Engagement
 Value and Satisfaction
 Supply chain
 Competition
 Marketing Environment
8. Self-Assessment-1: State whether the following statements are true or false:
(a) Marketing is a continuous relationship building process. True
(b) The situation where the customer is totally unaware about the existence of a product is referred to as a
negative demand situation. False
9. The New Marketing Realities
 Technology
 Globalization
 Social Responsibility
10. Company Orientation toward the Marketplace:
 The Production Concept: Consumers prefer products that are widely available and inexpensive.
 The Product Concept: Consumers favor products offering the most quality, performance, or
innovative features
 The Selling Concept: Consumers and businesses, if left alone, won’t buy enough of the
organization’s products.
 The Marketing Concept: The marketing concept emerged in the mid-1950s41 as a customer-
centered, sense-and-respond philosophy.
 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.

Figure: Holistic Marketing Dimensions

 Relationship marketing: To build mutually satisfying long-term relationships with key constituents.
 Integrated marketing: when the marketer devises marketing activities and assembles marketing
programs to create, communicate, and deliver value for consumers.
 Internal marketing: Task of hiring, training, and motivating able employees who want to serve
customers well.
 Performance marketing: Understanding the financial and nonfinancial returns to business and society
from marketing activities and programs.
11. Marketing mix/the Four Ps

Figure: The four P components of the marketing mix

12. Updating the Four Ps
Modern Marketing Management 4Ps
 People reflects internal marketing and the fact that
employees are critical to marketing success.
 Processes reflects all the creativity, discipline, and
structure brought to marketing management.
 Programs reflects all the firm’s consumer-directed
activities.
 Performance as in holistic marketing, to capture
the range of possible outcome measures that have
financial and nonfinancial implications (social
responsibility, legal, ethical, and community
related).
Figure : The evaluation of marketing management
13. The New Marketing Realities:

14. Marketing Management Tasks

 Developing Marketing Strategies and Plans
 Capturing Marketing insights
 Connecting with customers
 Building strong brands
 Creating values
 Communication value
 Delivering value
 Conducting marketing responsibility for long-term success
15. Self-Assessment-2:
(a) Selling is more………………oriented and marketing is more……………oriented.
Product, Consumer
(b) ………………………..is the only marketing mix variable can be altered quickly.
(a) Product (b) Price
(c) Place (d) Promotion
 Chapter 2: Developing Marketing Strategies and Plans

1. Marketing and Customer Value.

The Value Chain: a tool for identifying ways to create more customer value.

(a)Primary Value Activities

 Inbound logistics: material handling and warehousing.
 Operations: transforming inputs into the final product.
 Outbound logistics: order processing and distribution.
 Marketing and sales: communication, pricing and channel management.
 Service: installation, repair and parts supply.
(b)Support Activities: The support activities are handled in certain specialized departments.
 Procurement: procedures and information systems.
 Technology development: improving the product and process or system.
 Human resource management: hiring, training and compensation.
 Firm infrastructure: general management, finance, accounting, government relations and quality
management.
2. The Central role of Strategic Planning:

3. Corporate and Division Strategic Planning:

(a) Defining the corporate mission: Organizations develop mission statements to share with managers,
employees, and customers. A clear, thoughtful mission statement provides a shared sense of purpose,
direction, and opportunity.
Characteristics of good mission statements:
 Focus on a limited number of goals.
 Stress the company’s major policies and values.
 Take a long-term view.
 They are as short, memorable, and meaningful as possible.
(b) Establishing strategic business units: Large companies normally manage different businesses, each
requiring its own strategy.
An SBU has three characteristics:
 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.
(c) Assigning resources to each strategic business units

The Boston Consulting Group Matrix

 Question marks are the strategic business units which have a low share in a market that is growing
at a high rate. The business must decide to either sell the unit or invest in it to enable it to grow
with competitors.
 Stars are the units that are seeing high market growth and also have a high share in within that
market. Stars are considered the most successful of the four types of units.
 Dogs are the units that are in markets characterized by low growth and only have a low share of
this weaker market. Dogs aren't expected to bring in much income to the business and are often
sold to other businesses or eliminated.
 Cash cows are the units that have a high share of a market that is seeing low growth. The business
must determine if it needs to make improvements to these product.
(d) Assessing growth opportunities: Planning new businesses, downsizing, and terminating older
businesses.
 “Product-market expansion grid,” which considers the strategic growth opportunities for a
firm in terms of current and new products and markets.
 Gap between future desired sales and projected sales, will develop or acquire new businesses
to fill it.
 The lowest curve projects expected sales from the current business portfolio
 The highest describes desired sales over the same period. How can it fill the strategic planning
gap?
 To identify opportunities for growth within current businesses.
 To build or acquire businesses related to current businesses
 The third is to identify opportunities to add attractive unrelated businesses

4. Business Unit Strategic Planning:

 The Business Mission: Each business unit needs to define its specific mission within the broader
company mission.
 SWOT: The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats
is called SWOT analysis.
 Goal Formulation: Goals are objectives that are specific with respect to magnitude and time.
 Strategic Formulation: Goals indicate what a business unit wants to achieve; strategy is a game
plan for getting there.
 Program Formulation and Implementation: Even a great marketing strategy can be sabotaged
by poor implementation. If the unit has decided to attain technological leadership, it must
strengthen its R&D department, gather technological intelligence, develop leading-edge products,
train its technical sales force, and communicate its technological leadership.
 Feedback & Control: It is more important to “do the right thing”—to be effective —than “to do
things right”—to be efficient. The most successful companies, however, excel at both