SMILE

Observing the Facts:

Gossiping.
Emotion.
Loosing customers.
Historical Thinking.
Shopping.
EFFECTIVENESS
vs
EFFICIENCY
Consumer-Customer
vs
Business
Customer Perception
vs
Customer Value
Marketing Management:
Speech delivered by:

Dr. Hossain Shahid Shohrowardhy

Professor of Marketing
Dept. of Marketing
University of Chittagong.
Bangladesh.
Contract:
Mail: dr_hssmanik@cu.ac.bd
Mobile: 01822-907614
if not received, pls sent a text……
Marketing Management:
Syllabus:

Chapter-1:Introduction to Marketing Management

Chapter-2: Developing Marketing Strategies & creating customer value.

Chatper-3: Segmenting, targeting and positioning the market

Chatper-4: Dealing with competition

Chatper-5: Product strategy

Basic Texts: philip Kotler and Kevin Lane Keller, “Marketing Management: A
South Asian Perspective” Pearson Prentice Hall Publication, 14e and 15e.
Chapter 1: Introduction to Marketing Management
⚫ Defining marketing- Core concepts of marketing: needs, wants, demands,
product, service, brand, value, cost, satisfaction, market, target market,
market target, positioning, segmentation, exchange, transaction, marketing
channel, market place, market space, meta market, prospect, customer,
consumer, marketing mix;
⚫ Company orientation toward the marketplace/conceptual backdrop of
marketing: production concept, product concept, selling concept, marketing
concept, societal marketing concept, and holistic marketing concept,
relationship marketing
⚫ Marketing management process: analyzing market opportunities,
researching and selecting target markets and positioning the offer, designing
marketing strategies, planning marketing program, and organizing,
controlling the marketing effort;
⚫ States of demand: no demand, negative demand, declining demand,
irregular demand, latent demand, full demand, overfull demand, and
unwholesome demand;
⚫ Marketing management tasks.
 Marketing Management
Marketing Management is a process of planning,
executing the conception, pricing, promotion and
distribution of ideas, goods, services to create
exchangers that satisfy individual and
organizational goals. - Philip Kotler
Marketing management refers to the extensive
process of planning, organizing, monitoring, and
executing marketing programs, policies, and
strategies to achieve business objectives. It helps
to generate greater benefits effectively for target
market.
 What is Marketed?

⚫ Goods ⚫ Places
⚫ Services ⚫ Properties
⚫ Events ⚫ Organizations
⚫ Experiences ⚫ Information
⚫ Persons ⚫ Ideas

1-9
State of Demand

Negative Demands
No Demands
Latent Demands
Declining Demands
Irregular Demands
Full Demand
Overfull Demands
Unwholesome Demands
 Core Concepts

⚫ Needs, wants, and demands ⚫ Marketing channels

⚫ Target markets, ⚫ Supply chain
positioning, segmentation ⚫ Competition
⚫ Offerings and brands ⚫ Marketing environment
⚫ Value and satisfaction ⚫ Marketing planning
The marketplace is physical, such as a store you shop in
The marketspace is digital, as when you shop on the Internet.
The Metamarket is to describe a cluster of complementary products
and services closely related in the minds of consumers, but spread
across a diverse set of industries. Metamarkets are the result of
marketers packaging a system that simplifies carrying out these related
product/service activities. 1-11
 Key Customer Markets

⚫ Consumer markets
⚫ Business markets
⚫ Global markets
⚫ Nonprofit/Government markets

1-12
 The Marketing Management Process

Whole-Company
Strategic
Management
Planning

Adjust Plans Marketing

as Needed
Planning

Control Marketing Implement Marketing

Plan(s) and Program Plan(s) and Program
Marketing Management Philosophy

1.The production Concept (1900)

“The production concept holds that the consumers

will prefer products that are widely available and
inexpensive.”
(Get out the production and cut-out the price; Henry Pord in 1900 introduce the
concept)

Application: Managers of production oriented business concentrate on

achieving on high production efficiency, low cost and mass distribution.
This orientation makes sense in developing countries, where consumer
are more interested in obtaining the product than in its feature. It is also
used when a company wants to expand the market. Some service
organizations also operate on the operation concept. Many medical and
dental practices are organized on assembly line principles as are some
Govt. agencies (Unemployment office and license bureau).
Marketing Management Philosophy

2. The production Concept:

“ The product concept hold that consumer

will favor those products that offer the most
quality, performance or innovative feature.”

Assumption of the concept is that the buyers admire well-

made products and can appraise quality and performance. The
managers in these organization focuses on making superior products
and improving them over time. However these managers are sometime
caught in a love affair with their products and don’t realize what the
market needs.

Product oriented companies often design their product with little or no

consumer input. They trust their technical persons can design
expectation product. Somebody criticized this concept that “How can
the public know what kind of product they want until they see what is
available”. Product concept can lead to “marketing myopia”
Marketing Management Philosophy
The selling Concept:

“The selling concept holds that consumers and business, if

left alone will ordinarily not buy enough of the organization’s
products. The organization must, therefore, undertake an
aggressive selling and promotional effort.”
Assumption of this concept is those consumers tropically show buying
inertia or resistance and must be coaxed into buying. It also assumes that the
company has a whole battery of effective selling and promotion tools to stimuli more
buying.
The selling concept is practiced most aggressively with unsought goods,
goods that buyers normally don’t think of buying, such as insurance, encyclopedia
etc. The selling concept also practiced in the non-profit area by fund-raisers, College
admission offices and political parties. Most of the organizations practice the selling
concept when they have over capacity. Their aim is to sell what they make rather
than make what the market needs.
Starting point : Factory
Focus :Products
Means : Selling and promoting
Ends : Aimed through sales volume
Marketing Management Philosophy

The Marketing Concept: (Mid-1950)

“ The marketing concept holds that the key to achieving the

organizational goals consists of the company being ore
effective than competitors in creating, deliveries and
communicating customers value to its chosen target markets.”
Reasons for embrace the marketing concept:
♣ The company assets have little value without existence of customers.
♣ The key company task therefore is to attract and retain customers.
♣ Customers are attracted through competitively superior offering and retained through
satisfaction.
♣ Marketing task is to develop a superior offering and deliver customer satisfaction.
♣ Customer satisfaction is affected by the performance of the other departments.
♣ Marketing needs to influence these other departments to cooperate in delivering customer
satisfaction, for that marketing concept follow a process containing four steps like;
Starting point : Target Market
Focus : Customers needs
Means : Integrated marketing
Ends : Customer satisfaction
Marketing Management Philosophy

The Societal Marketing Concept:

“The societal marketing concept holds that the
organization task is to determine the needs, wants,
and interest of target markets and the deliver the
desire satisfactions more effectively and efficiently
than competitors in a way that preserve and enhance
the consumer’s and the society well-being.”

The societal marketing concept calls upon marketers

to built social and ethical consideration into their marketing
practices. They must balance and juggle the often-conflicting
criteria of company profit, customer want satisfaction and the
public interest. Yet a number of companies have achieved
notable sales and profit gained by adopting and practicing
societal marketing concept.
Marketing philosophies at a glance

Production Concept Ensuring Production

=

Product Concept Ensuring Production + Quality

=

Selling Concept Ensuring Production + Quality +

= Promotion

Marketing Concept Ensuring Production + Quality +

= Promotion + Customer satisfaction

Societal Marketing Ensuring Production + Quality +

Concept Promotion + Customer satisfaction +
= Social welfare
19
The Holistic Marketing Concept:
The holistic concept is based on the
development, design, and implementation of
marketing program, process, and activities that
recognize the breadth and independencies. Holistic
marketing recognize that “ everything is matter for”
marketing.
Components :

1.The relationship Marketing Concept

2.The integrated Marketing concept
3.The internal marketing concept
4.The performance marketing concept
 Senior Communic
Other
Managem ation
Department
ent P&S

Marketing
Department Internal Integrated
Marketing Marketing Channels

Holistic
Sales
Marketing
revenue

Brand &
Customer
equity
Performance Relationship
Marketing Marketing Partners
Ethics

Commu
Environ nity
Legal Customers Channel
ment
1.The relationship Marketing Concept
1. Customer
2. Employee
3. Marketing Partners
4. Members of Financial Community
2.The integrated Marketing concept
4Ps- 4Cs
3.The internal marketing concept

4.The performance marketing concept

1. Financial Accountability
2. Social Responsibility Marketing
Holistic Marketing Concept 1

⚫ Relationship Marketing
⚫ Developing Marketing Networks
⚫ Using CRM
⚫ is “the overall process of building & maintaining profitable
customer relationships by delivering superior customer
value and satisfaction.” (Kotler, 13ed 2006)
⚫ Using information to create marketing strategies that
develop and sustain desirable customer relationships
⚫ Establishing long-term, mutually satisfying buyer-seller
relationships allowing for mutual dependency
Holistic Marketing Concept 2
⚫ Integrated Marketing
⚫ is a comprehensive plan that communicates and
delivers the intended value to chosen customers
⚫ a set of coordinated cross functional activities (a unity
of purpose)
⚫ traditional approach- McCarthy 4P’s
⚫ Robert Lauterborn- 4C’s
Holistic Marketing Concept 3
⚫ Internal Marketing
⚫ External Customers
⚫ Internal Customers
Marketing Strategy

Marketing Implementation

Internal Marketing External Marketing

Program Program

Marketing Mix Marketing Mix

Target Groups Within Customer Groups or

the Organization Target Markets
Holistic Marketing Concept 4
⚫ Social Responsibility Marketing
⚫ Act socially responsibly; consider
⚫ the ethical consequences of one’s actions;
⚫ Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
⚫ Consider the collective needs of society as well as customer
desires and the organization’s profits. (Bell& Emory,1971
JM)
⚫ Society..…… #1 (Human welfare)

⚫ Consumers ..#2 (Want satisfaction)

⚫ Company ….#3 (Profits)

The New Market Realities:
The Challenges of marketing in the 21st century

⚫ Changing technology
⚫ Globalization
⚫ Deregulation
⚫ Privatization
⚫ Empowerment
⚫ Customization
⚫ Convergence
⚫ Disintermediation
1-27
Company Orientations
⚫ Production
⚫ Product
⚫ Selling
⚫ Marketing

1-28
Marketing Mix and the Customer

Four Ps Four Cs
⚫ Product ⚫ Customer solution

⚫ Price ⚫ Customer cost

⚫ Place ⚫ Convenience

⚫ Promotion ⚫ Communication

1-29
 Core Concepts

⚫ Needs, wants, and demands ⚫ Marketing channels

⚫ Target markets, ⚫ Supply chain
positioning, segmentation ⚫ Competition
⚫ Offerings and brands ⚫ Marketing environment
⚫ Value and satisfaction ⚫ Marketing planning

1-30
 Marketing Management Tasks

⚫ Developing marketing ⚫ Shaping market

strategies offerings
⚫ Capturing marketing ⚫ Delivering value
insights ⚫ Communicating
⚫ Connecting with value
customers ⚫ Creating long-term
⚫ Building strong brands growth

1-31