Marketing Management

Prepared by: Norman Pacheco Salamat

Chapter 1

Marketing for the 1st century

 Finance success depends on marketing ability

 There must be a top line for there to be a bottom line (CMO)
 Sustained and steady top line growth and customer loyalty/retention
 It also recognizes the importance of marketing to building brands and a
loyal customer base
 Marketing is tricky, and it has been the Achilles heel of many formerly
prosperous companies

“Some companies recognize that they cannot afford to relax as their

leadership is challenged. Jack welch, GE’s former CEO repeatedly warned his
company “change or die”

The scope of Marketing

To prepare to be a marketer,
you need to understand what marketing is?
How it works?
What is marketed?
And who does the marketing?

The scope of marketing involves both science and an art that needs a
dynamic approach to solve real-world problems and crises in society. In
modern business, the marketing department uses key strategies to guide a
product from conceptualization, development, and execution to promotion
and distribution.

1. Study of Consumer Behaviors

The first and foremost role of marketing professionals is to be familiar with
the expectations and expenditure patterns of the consumer in general. A
thorough understanding of what they like to purchase? When do they do
that? How much expense they are prepared to make for a novel item, what is
their usual budget for the category of your product and so on.

It helps to determine the time and approach for your product launches. It lies
in the nature of marketing management to gauge your consumer behaviors
and strategize accordingly.

2. Identify Their Wants and Requirements

To ensure a streamlined product launch and satisfy the user demand,
marketers first need to identify the pain points of the audience. A strategic
approach to marketing requires a complete understanding of the consumer
lifestyle. Only this allows you to place a product or service that amplifies or
complements their life.

3. Planning & Product Development

In this phase, the idea of the product is conceptualized. With the ideation of
the product, it lies in the scope of marketing channels to determine the
correct branding strategy that addresses consumer demands and desires.

4. Pricing and Policy Determination

Marketing professionals may leverage various factors in the product
development cycle to identify the correct pricing. It takes into consideration
existing competition in the market and the expenditure pattern of the target
audience. The strategy should help marketers determine attractive
packaging and prices that encourage buyers.

5. Distribution
Identifying the proper distribution channel for the product is vital to optimize
your ROI. To ensure the desired amount of sales, the distribution line must
ensure wider target group outreach at the minimum cost.

6. Promotion
In this step, marketers can use a mix of online and offline marketing
channels to promote the product or service. Based on the type of
product/service, and its target group – a particular marketing channel might
be more suitable than others.

7. Consumer Satisfaction
Every product or service is created and distributed in the market with the
end goal of satisfying the user’s demand or making their life easier.
Therefore, after market distribution, it is essential to get feedback from the
clients on how the product is being received. Depending on the kind of
response, a future iteration of the same product or service can be improved
to target the maximum number of potential customers.

8. Marketing Control
It befalls the marketing department to ensure that the strategies
implemented are able to produce the desired amount of results. After the
product distribution and launch, marketers perform an in-depth audit to
determine the utility of the approach and optimize it accordingly.

Marketing

•It is about identifying and meeting human and social needs.

•One of shortest definitions of marketing is “meeting needs profitably”
•As 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 the process of promoting, selling, and distributing a product or

service. It involves understanding consumer needs and preferences, creating
value through products or services, and effectively communicating that value
to potential customers. Marketing aims to attract and retain customers,
ultimately driving business growth and profitability.

Key aspects of marketing include:

Market Research: Gathering and analyzing data about consumer needs,

preferences, and behaviors to inform marketing strategies.

Targeting and Segmentation: Identifying specific groups of potential

customers and tailoring marketing efforts to meet their needs.

Product Development: Creating or improving products or services based

on market research and consumer feedback.

Branding: Establishing a unique image and identity for a product or

company to differentiate it from competitors.

Promotion: Communicating the value of a product or service through

various channels, such as advertising, public relations, social media, and
content marketing.

Sales and Distribution: Ensuring that products or services are available to

customers through appropriate sales channels and distribution methods.

Customer Relationship Management (CRM): Building and maintaining

positive relationships with customers to enhance satisfaction and loyalty.

When the marketing management takes place?

It takes place when at least one party to a potential exchange thinks about
the means of achieving desired responses from other parties.

Marketing management is a dynamic and iterative process that requires

continuous adjustment and refinement based on market conditions,
consumer behavior, and business goals.
Marketing management is crucial for aligning marketing efforts with
overall business objectives, adapting to changing market conditions, and
ensuring the effective use of resources to achieve desired outcomes.

Marketing management involves the planning, execution, and oversight of

marketing strategies and activities to achieve organizational goals. It
encompasses a range of tasks designed to understand and meet consumer
needs while driving business growth and profitability. Here’s a more detailed
breakdown of what marketing management entails:

1. Marketing Planning
Market Analysis: Assess market conditions, trends, and consumer needs. This
includes competitive analysis and understanding the target market.
Setting Objectives: Define clear, measurable marketing goals aligned with
overall business objectives.
Strategic Planning: Develop a marketing strategy that outlines how to
achieve the objectives, including target market selection, positioning, and
value proposition.

2. Marketing Strategy Development

Segmentation: Divide the market into distinct groups based on
demographics, psychographics, behavior, or geography.
Targeting: Select the most appropriate segments to focus on based on their
attractiveness and the company's capabilities.
Positioning: Create a unique market position for the product or service that
highlights its benefits and differentiates it from competitors.

3. Marketing Mix (4Ps)

Product: Decide on the features, design, quality, and branding of the product
or service.
Price: Determine the pricing strategy, considering factors like cost,
competition, and perceived value.
Place (Distribution): Choose distribution channels and logistics to ensure the
product reaches the target market effectively.
Promotion: Plan and execute promotional activities, including advertising,
public relations, sales promotions, and digital marketing.

4. Implementation and Execution

Campaign Management: Develop and launch marketing campaigns,
coordinating with various departments and external agencies as needed.
Resource Allocation: Manage budgets and allocate resources effectively to
different marketing activities and channels.
Sales Support: Provide tools, training, and support to the sales team to help
them effectively promote and sell the product.
5. Monitoring and Control
Performance Tracking: Use key performance indicators (KPIs) and metrics to
evaluate the effectiveness of marketing activities.
Feedback Collection: Gather feedback from customers, sales teams, and
other stakeholders to understand the impact of marketing efforts.
Adjustments: Make necessary adjustments to strategies and tactics based on
performance data and market changes.

6. Analysis and Reporting

Data Analysis: Analyze data to assess the outcomes of marketing activities
and determine their impact on business goals.
Reporting: Prepare reports on marketing performance, including insights and
recommendations for future strategies.

7. Continuous Improvement
Learning and Adaptation: Stay updated with market trends, emerging
technologies, and changing consumer behaviors. Continuously refine
marketing strategies and practices based on new insights and experiences.
Marketing management is crucial for aligning marketing efforts with overall
business objectives, adapting to changing market conditions, and ensuring
the effective use of resources to achieve desired outcomes.

Core marketing concepts form the foundation of marketing theory and

practice. Understanding these concepts is essential for developing effective
marketing strategies. Here are some of the key core marketing concepts:

1. Needs, Wants, and Demands

Needs: Basic human requirements such as food, water, and shelter. In

marketing, understanding these needs helps in creating products or services
that fulfill them.

Wants: Specific desires shaped by culture, personality, and individual

preferences. Marketing aims to identify and address these wants.

Demands: Wants backed by purchasing power. Effective marketing involves

creating offerings that meet both wants and demands.

2. Market Offerings
Products: Physical goods or services designed to satisfy needs and wants.
Services: Intangible activities or benefits provided to customers.

Experiences: Encounters designed to create emotional responses and fulfill

customer desires.

3. Value and Satisfaction

Value: The perceived benefit derived from a product or service relative to its
cost. Value is a key determinant in purchasing decisions.

Satisfaction: The degree to which a product or service meets or exceeds

customer expectations. High satisfaction typically leads to customer loyalty
and repeat business.

4. Exchanges and Relationships

Exchange: The process by which customers give something of value

(money, time, etc.) to obtain a product or service.

Relationships: Building and maintaining positive, long-term interactions

with customers. Effective relationship management fosters loyalty and can
lead to more valuable exchanges.

5. Markets and Segmentation

Market: A collection of potential customers who have a need or want and

the ability to make a purchase.

Segmentation: The process of dividing a broad consumer or business

market into sub-groups of consumers based on shared characteristics. This
allows for more targeted and effective marketing.

6. Targeting and Positioning

Targeting: Selecting specific market segments to focus marketing efforts

on. This involves tailoring products, services, and messaging to meet the
needs of those segments.

Positioning: Crafting a distinct image and identity for a product or brand in

the minds of consumers. Effective positioning differentiates the offering from
competitors and aligns it with customer needs.

7. Marketing Mix (4Ps)

Product: What the company offers to the market, including its features,
design, and benefits.
Price: The amount customers pay for the product, reflecting its perceived
value and influencing purchasing decisions.
Place: The distribution channels and locations where the product is made
available to customers.
Promotion: The activities and communications used to inform, persuade,
and remind customers about the product.

8. Branding

Brand: A name, term, symbol, or design that identifies and differentiates a

product or company from others.
Brand Equity: The value that a brand adds to a product or service based on
consumer perception and loyalty.

9. Customer Value and Satisfaction

Customer Value: The ratio of perceived benefits to the cost of acquiring

and using a product or service. High customer value leads to satisfaction and
loyalty.
Customer Satisfaction: The level of contentment a customer feels after
using a product or service. Satisfied customers are more likely to become
repeat buyers and advocates.

10. Competitive Advantage

The unique attributes or benefits that set a company’s offerings apart from
competitors and provide a superior value to customers.

These core concepts are interrelated and provide a framework for developing
and implementing effective marketing strategies. Understanding and
applying these principles helps businesses meet customer needs,
differentiate themselves in the market, and achieve their marketing
objectives.

These new marketing realities reflect the need for businesses to adapt to
a rapidly changing environment by leveraging technology, understanding
evolving consumer expectations, and adopting innovative strategies. The
marketing landscape is constantly evolving, influenced by technological
advancements, changing consumer behaviors, and global events. Here are
some of the new marketing realities shaping today’s business environment:

1. Digital Transformation

Online Presence: The shift to digital channels is crucial. Brands need a

strong online presence through websites, social media, and digital
advertising.
E-commerce Growth: The rise of online shopping requires businesses to
optimize their e-commerce platforms for a seamless user experience.
Data-Driven Marketing: Leveraging data and analytics to understand
customer behavior and personalize marketing efforts has become essential.

2. Customer-Centric Marketing

Personalization: Consumers expect personalized experiences and

communications. Tailoring content, offers, and recommendations based on
individual preferences and behavior is now a standard expectation.

Customer Experience (CX): Providing a consistent and positive customer

experience across all touchpoints is crucial for building loyalty and
satisfaction.

3. Social Media and Influencer Marketing

Social Media Influence: Social platforms are central to brand engagement,

customer service, and community building. Each platform has its own unique
audience and best practices.

Influencer Partnerships: Collaborating with influencers can enhance brand

visibility and credibility. Influencers often have trusted relationships with their
followers.

4. Content Marketing Evolution

Quality Content: High-quality, valuable content is key to engaging and

retaining customers. Content marketing strategies focus on educating,
entertaining, and providing solutions.

Multichannel Distribution: Distributing content across various channels

(blogs, videos, podcasts, social media) maximizes reach and impact.

5. Privacy and Data Security

Data Protection: With increasing concerns over privacy, companies must
adhere to data protection regulations (like GDPR, CCPA) and be transparent
about how they collect and use customer data.

Ethical Marketing: Building trust by practicing ethical marketing and

respecting customer privacy is crucial in today’s environment.

6. Omnichannel Marketing
Integrated Experience: Providing a seamless experience across multiple
channels (online and offline) ensures that customers can interact with the
brand in a consistent manner.
Cross-Channel Strategies: Coordinating marketing efforts across various
channels to create a cohesive brand message and customer journey.

7. Sustainability and Corporate Responsibility

Green Marketing: Consumers are increasingly concerned about

environmental issues. Brands that demonstrate a commitment to
sustainability and social responsibility can gain a competitive edge.
Authenticity: Transparency and genuine efforts in sustainability and ethical
practices resonate better with consumers.

8. Artificial Intelligence and Automation

AI-Driven Insights: AI tools help analyze large amounts of data, predict

customer behavior, and automate tasks such as customer service (e.g.,
chatbots) and marketing campaigns.

Automation: Marketing automation platforms streamline repetitive tasks,

allowing for more efficient campaign management and personalized
customer interactions.

9. User-Generated Content and Reviews

Authentic Content: User-generated content (UGC) and reviews are
powerful tools for building credibility and trust. Consumers often trust peer
recommendations more than traditional advertising.

Engagement: Encouraging and leveraging UGC can increase

engagement and foster a sense of community around the brand.

10. Mobile Optimization

Mobile-First Approach: With the growing use of mobile devices, optimizing
websites and content for mobile is essential. This includes responsive design
and mobile-friendly interfaces.
App Usage: Developing and promoting mobile apps can enhance customer
engagement and provide additional channels for interaction.

11. Real-Time Marketing

Agility: The ability to respond quickly to current events, trends, and

customer feedback in real time can enhance brand relevance and
engagement.
Live Interaction: Using live streaming and real-time communication tools to
connect with audiences directly and authentically.

A company's orientation toward the marketplace refers to its overall

approach and philosophy regarding how it interacts with, serves, and
responds to the market and its customers. There are several key orientations
that businesses can adopt, each reflecting a different focus and strategy.
Here’s a look at the primary company orientations toward the marketplace:

1. Product Orientation

Focus: Emphasis on the product itself, including its quality, features, and
innovation.
Approach: Companies with a product orientation prioritize developing high-
quality, advanced products and believe that superior products will naturally
attract customers.
Pros: Can lead to innovative and high-quality products.
Cons: May overlook customer needs and preferences, leading to
mismatched products and market disconnects.

2. Sales Orientation
Focus: Emphasis on aggressive sales techniques and promotional strategies.
Approach: Companies prioritize selling their products through persuasive
sales tactics, extensive promotions, and high-pressure sales methods.
Pros: Can lead to short-term sales boosts.
Cons: May result in customer dissatisfaction if products or services do not
meet actual needs; can damage brand reputation if perceived as overly
aggressive.

3. Market Orientation
Focus: Emphasis on understanding and responding to customer needs and
preferences.
Approach: Companies collect and analyze market data to tailor their
products, services, and marketing strategies to meet customer demands.
The goal is to create value and build long-term relationships with customers.
Pros: Aligns offerings with customer needs, leading to higher customer
satisfaction and loyalty.
Cons: Requires ongoing market research and adaptability, which can be
resource-intensive.

4. Customer Orientation
Focus: Deep focus on individual customer needs and personalized
experiences.
Approach: Companies prioritize personalized service and tailored solutions,
often going beyond just meeting basic needs to create unique and
memorable customer experiences.
Pros: Can lead to high levels of customer satisfaction and loyalty.
Cons: May be challenging to scale, and highly personalized services can be
resource-intensive.

5. Societal Orientation
Focus: Emphasis on the broader societal impact, including social
responsibility and environmental sustainability.
Approach: Companies integrate social and environmental concerns into
their business practices, aiming to contribute positively to society while
achieving business goals.
Pros: Can enhance brand reputation and appeal to socially-conscious
consumers.
Cons: Requires balancing social goals with business profitability and may
involve higher costs or complex trade-offs.

6. Integrated Orientation
Focus: Holistic approach that combines elements of product, sales, market,
customer, and societal orientations.
Approach: Companies integrate various orientations to create a cohesive
strategy that addresses product quality, customer needs, effective sales
tactics, and social responsibility.
Pros: Provides a well-rounded strategy that can adapt to diverse market
conditions and customer expectations.
Cons: Requires careful coordination and management across different areas
of the business.

7. Service Orientation
Focus: Emphasis on delivering high-quality service and support.
Approach: Companies prioritize exceptional service delivery, including pre-
sales support, customer service, and after-sales service.
Pros: Can lead to strong customer relationships and differentiation in
competitive markets.
Cons: May require significant investment in training, infrastructure, and
service systems.

Choosing the Right Orientation

The best orientation for a company depends on its industry, market
conditions, customer base, and strategic goals. Many successful companies
adopt a combination of these orientations to address different aspects of the
marketplace and align with their overall business strategy.