Marketing Management

Course Overview & Course Overview & IntroductionIntroduction

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Agenda

What is Marketing?What is Marketing?

Marketing ManagementMarketing Management

Five Business OrientationsFive Business Orientations

The Marketing ConceptThe Marketing Concept

IllustrationsIllustrations

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What is Marketing?

AMA definition of AMA definition of marketing:marketing:

the process of planning and executing the the process of planning and executing the conception, pricing, promotion, and conception, pricing, promotion, and distribution of ideas, goods, and services distribution of ideas, goods, and services to create exchanges that satisfy to create exchanges that satisfy individuals, organizations, and society.individuals, organizations, and society.

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What is Marketing?

Marketing is managing profitable Marketing is managing profitable customer relationshipscustomer relationships Attracting new customersAttracting new customers Retaining and growing current Retaining and growing current

customerscustomers

““Marketing” is NOT synonymous with Marketing” is NOT synonymous with “sales” or “advertising”“sales” or “advertising”

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What Can Be

Marketed?

GoodsGoodsServicesServicesPlacesPlacesIdeasIdeasEventsEventsPersonsPersonsPropertiesPropertiesOrganizationsOrganizationsInformationInformationExperiencesExperiencesWhat is being

marketed in this ad?

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Elements of a Modern Marketing System

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Marketing Management

Customer Management:Customer Management: Marketers select customers that can be Marketers select customers that can be

served well and profitably.served well and profitably.

Demand Management:Demand Management: Marketers must deal with different Marketers must deal with different

demand states, ranging from no demand states, ranging from no demand to too much demand demand to too much demand (“demarketing”).(“demarketing”).

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Marketing Management

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

Management Orientations

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Production Concept

Consumers will favor Consumers will favor products that are widely products that are widely available and low in costavailable and low in costTherefore: focus on Therefore: focus on production- and distribution-production- and distribution-efficienciesefficienciesWhen valid?When valid?

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Product (technology) orientation

Consumers will favor Consumers will favor products that offer superior products that offer superior quality, performance & quality, performance & featuresfeaturesTherefore: focus on R&D, Therefore: focus on R&D, NPDNPDProblem?Problem?

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Selling Orientation

Push consumers into buying Push consumers into buying moremoreTherefore: go for aggressive Therefore: go for aggressive “hard-sell” approach“hard-sell” approachFocus: selling, meeting sales Focus: selling, meeting sales targets/ quotastargets/ quotasProblem?Problem?

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Marketing Concept

Key to achieving Key to achieving organizational organizational goalsgoals is to determine the is to determine the needs needs & wants& wants of the of the target market(s)target market(s) and to deliver the desired and to deliver the desired benefits more efficiently and benefits more efficiently and effectively than the effectively than the competitioncompetition..

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Figure 1-3: The Selling and Marketing

Concepts Contrasted

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Marketing Concept – 4 Pillars

Customer focusCustomer focus

Competitor focusCompetitor focus

Integrated company effortIntegrated company effort

Goal-driven behaviorGoal-driven behavior

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Customer Orientation

Satisfy customer Satisfy customer expectationsexpectationsIt costs 5-10X MORE to attract It costs 5-10X MORE to attract a new customer than to keep a new customer than to keep oneoneLifetime value of the Lifetime value of the customer – Customer Equitycustomer – Customer Equity

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Competitor Orientation

DirectDirect

Indirect – substitutes Indirect – substitutes Sony PlayStationSony PlayStation

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Integrated Company Effort

Closely coordinated within Closely coordinated within company with other company with other functional areasfunctional areas

and, ideally, with and, ideally, with collaborators outside (e.g., collaborators outside (e.g., suppliers, distributors).suppliers, distributors).

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Goal-Directed Behavior

Behavior directed at Behavior directed at achieving goals of the achieving goals of the organizationorganization

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Considerations Underlying the Societal Marketing Concept

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Some Examples

AmazonAmazon

B & JB & J

GiordanoGiordano

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Strong sales, no or Strong sales, no or tiny profitstiny profitsCustomer-driven Customer-driven to its coreto its coreEach customer’s Each customer’s experience is uniqueexperience is unique

Provides great Provides great selection, good selection, good value, discovery value, discovery as well as as well as convenienceconvenienceA true online A true online communitycommunity

cAmazonAmazon