Marketing Management

MBA-I
Dr. Rizwan Alam
Faculty- Marketing

ralam@amityuniversity.ae
rizwan2040@gmail.com
Amity University-Dubai

Module I: Understanding Marketing Management

The orientations towards market

place
Relationship marketing
Social marketing
Strategic Planning

Marketing defined
The management process for identifying,
anticipating and satisfying customer
requirements profitably.
- Chartered Institute of Marketing
Marketing is the human activity directed
at satisfying human needs and wants
through an exchange process.
- Philip Kotler

Cont.
Marketing is managing profitable
customer relationships
Attracting new customers
Retaining and growing current
customers
Marketing is NOT synonymous with
sales or advertising.

1-4

Marketing Management Defined

The art and science of choosing
target markets and building profitable
relationships with them is called
marketing management.
- Phillip Kotler

Marketing Management?
Marketing Management is a social and
managerial process by which individuals or
firms obtain what they need or want through
creating, offering, exchanging products of value
with each other.
As per AMA ( American marketing Association)
It defines marketing management as the
process of planning & executing the conception
of pricing, promotion, distribution of goods,
services, ideas to create exchanges that satisfy
individual and organizational goals.

Cont.

Q: How is marketing management about

creating, delivering and communicating
superior customer value key?

Needs,
wants and
demands

Market,
marketer

Core marketing
concept

Exchange,
transaction
and
relationship

Market
offers

Value and
satisfaction

Cont.
Need: It is state of deprivation of some
basic satisfaction.eg.- food, clothing,
safety, shelter.
Want: Desire for specific satisfier of
need.eg.- soap, toothpaste
Demand: Want for a specific product
backed up by ability and willingnessto
buy.eg.- Need transportation. Want Car
(say, Mercedes)but able to buy only
Maruti.Therefore,demandis for Maruti.

Cont.
Demand influenced by making product
:
Appropriate
Attractive
Approachable/ Affordable
Available Easily

Cont.
(2)PRODUCTS- GOODS/ SERVICES/ PLACE.
Product is anything that can satisfy need/
want.
Product component Physical Good.
Service.
Idea
*Marketing Myopia: Focus on products rather
than on customer needs.

Cont.
(3)VALUE/ COST/ SATISFACTION:
Value is products capacity to satisfy needs/
wants as per consumers perception or
estimation.
Each product would have a cost/ price
elements attached to it.

Cont.
Eg. Travel from city A to city B.
Need to reach B ( from A)
Method/ Products- Rail/ air/ road or train/
plane.
Satisfaction Estimated in terms of time
lead & travel comfort.
VALUE- Products capacity to satisfy.
COST- Price of each products.

Cont.
(4)EXCHANGE/ TRANSACTION:
There must be at least two parties.
Each party has something of value for other
party.
Each party is capable of communication &
delivery
Each party is free to accept/ reject the
exchange offer.
Each party believes it is appropriate to deal
with the other party.

Cont.
TRANSACTION: Event that happens at the end of an
exchange. Exchange is a process towards an agreement.
When agreement is reached, we say a transaction has
taken place.
At least two things of value.
Condition agreed upon.
Time of agreement.
Place of agreement.
May have legal system for compliance.
Proof of transaction is BILL/ INVOICE.
TRANSFER: It is one way. Hence, differ from Transaction.

Cont.
(5)RELATIONSHIP/ NETWORKING:
Relationship marketing:- Its a pattern of building
long term satisfying relationship with customers,
suppliers, distributors in order to retain their long
term performances and business.
Achieved through promise and delivery of
high quality
good service
fair pricing, over a period of time.
Outcome of Relationship Marketing is a
MARKETING NETWORK.

Cont.
(6)MARKET:
A market consists of all potential customers
sharing particular need/ want who may be willing
and able to engage in exchange to satisfy need/
want
Types of Markets:
Resource Market,
Manufacturing Market,
Intermediary Market,
Consumer Market,
Government market.

Cont.
(7)MARKETERS/ PROSPECTS:
Working with markets to actualize potential
exchanges for the purpose of satisfying needs and
wants.
One party seeks the exchange more actively, called
as Marketer, and the other party is called
Prospect.
Prospect is someone whom marketer identifies as
potentially willing and able to engage in exchange.
Marketer may be seller or buyer. Most of time,
marketer is seller.

What is Marketed or scope of

marketing?
Saleable
Examples
Goods Burberry, Miss Sixty
Services- Palace on Wheel, Miracle G.
EventsIPL, Grand Prix
Experiences- Virgin Galactic, Fountain
PersonsOpra Winfray, Chris Gayle

Cont.

PlacesMachu Picchu, Honolulu

Properties- Machineries, Assets
Organizations- Reuter, Disneyland
InformationSuperbowl shows,
IdeasIncredible!India, Cancer Fund

Marketing Mix
4 Ps (McCarthy, 1960)
Product
Price
Place or distribution
Promotion
3 Ps for services
People
Physical evidence
Process

Exercise
What is the managerial implication of
marketing mix? Discuss.

Differences in Sales and Marketing

IN SELLING
Emphasis is on
product
Co. tries to sell and
promote its existing
product line.
Mgt. is sales-volume
oriented
Short-term planning

IN MARKETING
Emphasis is on
consumer wants.
Co. first determines
the wants and then
delivers.
Customers
satisfaction-oriented
Long-term planning

Various
Stages/Orientation/Evolution
of Marketing
Q: Briefly explain the various stages of marketing

orientations. ( Long type question)

A:
-Production orientation
-Product orientation
-Sales orientation
-Market orientation
-Societal marketing orientation

Q: Elaborate on product orientation. ( short type

question)
P. 20-21, MM, Kotler et al, 13th ed.

Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Product
ion
concept

Product
concept

Selling
concept

Marketi
ng
concept

Societal
concept

Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Production concept is the idea that

consumers will favor products that
are available or highly affordable.

Designing a Customer-Driven Marketing

Strategy
Marketing Management Orientations

Product concept is the idea that

consumers will favor products that
offer the most quality, performance,
and features.
Organizations should therefore
devote its energy to making
continuous product improvements.

Cont.
"Build a better mousetrap and the
world will beat a path to your door"

Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Selling concept is the idea that

consumers will not buy enough of
the firms products unless it
undertakes a large scale selling
and promotion effort.

Cont.
Evaluate the statement "We don't have
a marketing department; we have a
customer department."

Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Marketing concept is the idea

that achieving organizational goals
depends on knowing the needs
and wants of the target markets
and delivering the desired
satisfactions better than
competitors do.

Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Societal marketing concept is

the idea that a company should
make good marketing decisions by
considering consumers wants, the
companys requirements,
consumers long-term interests,
and societys long-run interests.

Social Marketing
Social marketingis the use of
commercial marketing principles and
techniques to improve the welfare of
people and the physical, social and
economic environment in which they
live. It is a carefully planned, longterm approach to changing human
behavior.

Social Marketing
Social Marketing
Whereas marketing in the
commercial world ultimately seeks to
influence consumer behaviour for
profit, social marketing encourages
behaviours that provide benefit for
individuals and society as a whole.

Social and Commercial

Marketing
Social Marketing

Commercial Marketing

Meets the needs of the

prioritypopulation

Creates a need for the priority

population

Society and consumer profit

Marketer profits more than

consumer

Organizations with similar goals

cooperate

Businesseswith similar goals

compete

Campaigns take longer to change Shorter time needed to sell a

behavior
product
Comsumer involvement and
commitment needed

Shorter term commitment and

involvement

Mini Case
http://
www.naturalnews.com/032910_KFC_diabet
es.html
www.guardian.co.uk/world/2010/dec/03/india
-billionaire-donation-charity
Mini case on Pepsico

Relationship Marketing
Constituents
Emphasis
Transactional
selling
Emotional
connect
Social
value
Database
facts
Customer Relationship CustomerCentric
Management (CRM)

Marketing Objective of
Relationship Marketing
Customer Awareness and Education
Customer Acquisition
Customer Acceleration
Customer Retention
Niche Marketing
Lapsed Customer Reactivation

Q: Discuss on Relationship marketing does

not suit to all the companies.

Strategic Planning?
It is the managerial process that helps to
develop a strategic and viable fit between
the firms objectives, skills, resources with
the market opportunities available. It helps
the firm deliver its targeted profits and
growth through its businesses and
products.
If you fail to plan, you plan to fail.

Ten Elements of Marketing

Plan
1. Describe Business
2. Conduct a Situation Analysis
3. Define Customer
4. Strategize Market Entry
5. Forecast Sales or Demand Measurement
6. Define Marketing Budget
7. Integrate Marketing Communication
8. Identify Sales Channels
9. Track Marketing Activities
10.Evaluate Progress

Levels of Planning
Top-level managers: Strategic
planning
Middle-level managers: Tactical
planning
Lower-level managers: Operational
planning

Hierarchy of Goals and Plans

Strategic Planning Process

BCG Matrix

Model Questions
Briefly compare and contrast the concepts of needs,
wants, and demands, giving an example of each.
Discuss how these concepts relate to marketing
practices.
Formulate a hypothetical mission statement of any
reputed firm of your choice.
Differentiate between mission and goal.
Critically evaluate challenges in maintaining a right
mix of marketing faced by marketing manager in
large organization.
Elaborate Vision is the art of seeing things
invisible., Jonathan Swift

Model Questions
Marketing has often been criticized
for forcing people to buy things they
dont really want or need, or cannot
afford. Discuss. (Winner)

Task 1
Relationship Marketing-article
CSR of P&G, 12
Coke fro clean water in China

Key Terms

Process
Profit
Marketing mix
Exchange
Relationship
marketing
Societal marketing
Strategic Planning