MARKETING MANAGEMENT Word Format

MARKETING MANAGEMENT
Marketing Management
Ø the entire process of product creation, promotion, selling, delivery, and continuous development
Ø within these processes are created goods, services, experiences, e vents, persons, places properties,
organizations, information, and ideas to satisfy different types of customers and various entities
Market
Ø any individual, organization, or group, which has an existing or potential transaction or exchange,
beginning with a customer and ending with another customer
Ø at the core of marketing activities is the creation and delivery of superior customer value in the form of a
manufactured product or in the provision of a service.
Various Marketing Concepts That Intertwine within the Marketing Management Process
1. Production concept of marketing
2. Product concept
3. Selling concept
4. Profit concept
5. Modern marketing concept
6. Social marketing concept
Production concept of marketing

- customers are inclined to choose products which are available and are affordable
- marketing management efforts should concentrate on efficient production and distribution activities
Product concept of marketing

- customers are inclined to choose products which provide the best quality, performance, and features
- marketing management efforts should be devoted to continuous product improvement
Selling concept of marketing

- puts importance on the sales efforts that must be exercised, for customers to buy the product or service
- substantial management efforts should address selling and promotion challenges, using aggressive tools to
drive up the sales of products and services
Profit concept of marketing

- emphasizes that profitability is the responsibility of marketing even if the production and operations side
determine the cost of manufacturing products and rendering of service
- marketing management efforts are maximized by making sure that the right product is brought to the right
people, at the right time, with the right price, through the right distribution channel, and using the right
promotion
- costs must be minimized at every level so that profit is realized at every level and every function
Modern Marketing Concept

- puts the customer at the center of any marketing effort, valuing his/her satisfaction, unique needs and
preferences, and expectations
- marketing management efforts must be focused on creating the unique selling proposition of the product
or service to meet customer requirements
Social Marketing Concept

- underscores the need for marketing activities to support and ensure social well-being
- marketing management efforts must concentrate in addressing societal concerns such as pollution, scarcity,
false advertising, cheap labor in manufacturing places, and inflation
Marketing Variables
First introduced by J. Culliton (1948); Borden – “marketing mix”(1949); E.J. Mc Carthy- 4Ps of Marketing
(1960); Booms and Bitner – addition of People (1981)
• Product
• Price
• Place
• Promotion
For service customers
• People
• Process
• Physical evidence
1
 Product
- decisions involve determining product features such as size, color, materials, form, composition,
packaging, product line, and product purpose
- its features are altered according to the identified place of the product in the product cycle of
introduction, growth, maturity, and decline
 Price
- determined based on production cost, level of demand, degree of competition, buyer behavior, and
market psychology
 Place (channel of distribution)

- determined by the characteristics of the product itself, the buying behavior of customers, and the
financial resources of both the buyer and the seller
 Promotion
- determined based on situation about competitors, differentiation in the extent of buyer awareness, and
the depth of buyer involvement in the product
- the task is to persuade customers to act trough making a purchase that is based on any or a
combination of personal selling, advertising, sales promotion, point of purchase or product display,
public relations campaign, and publicity
 People
- account for the skills and personality of people involved in the marketing process, and whether these
skills and personality can impact customer relationships and promote customer loyalty
 Process
-considers cost efficiency in logistics, delivery, and schedule as well as the kind of experience from the
service obtained
 Physical Evidence
- includes packaging and design for differentiation, information, and adding value to the service and its
corollary products
Networks within the system of marketing management:

• Advertising agencies
• Marketing research firms
• Retailers and distributors
• Freight transportation companies
• Direct marketing people
• Public relations consultants
• Event managers
Functions Involving Marketing Management:

• Research
- identification and exploration of marketing opportunities, and in product research and development
• Physical treatment
- entails packaging, standardization, grading, branding, storage, warehousing, and transportation
• Facilitation of exchange
- involves advertising, pricing, financing, and insurance
General Business Analysis:

ü A clear marketing management plan will provide necessary inputs in the areas of:
a. Competitor activities
b. Economic situation
c. Developments in technology
d. Socio-cultural factors
e. Government and legal factors
f. Global factors
Customers
ü value-maximizing entities who form an expectation of value and eventually act on it
ü will buy from the firm whom they perceive to offer the best customer value (the difference between total
customer value and total customer cost)
ü satisfaction is a function of the product’s perceived performance and the customer expectations
2
Total Customer Satisfaction
ü the aim of most companies due to the recognition that high satisfaction leads to high customer loyalty
ü involves creating a marketing network in which the company works closely with all parties in the
production and distribution chain, from suppliers of raw materials to retailers and distributors
ü key to keeping customers happy
Relationship Marketing
ü the key to retaining customers
ü done by adding financial or social benefits to the products or services or create structural ties between the
company and its customers
u Three prominent ways to make strong structural ties with customers include a) creating long term
contracts, b) charging lower price to customers who buy large supplies, and c) turning the service into long
term
https://www.marketing91.com/building-structural-ties-customer-retention /
a) Creating Long term contracts –

- taking a yearly subscription of a magazine or a newspaper ensures a customer for the company for a
minimum of 1 year; thus, retaining a one time customer for a whole year.
- a cable network can offer 6 months plans for retaining the customers.
- an internet service provider can have varying packages for customer retention.
b) Charging lower price to customers who buy large supplies
- especially used in modern retail and has been the best performing tactic of modern retail
- offering discounts for regular customers as well as giving discounts for purchase of a certain value
has motivated people to visit the same store over and over again thereby increasing customer
retention.
c) Turning the service into long term
- the frequent flier miles concept is used widely in airlines to retain customers for a long time. In
this strategy, if the customer flies a certain set of miles he is offered a reward and recognition.
Similarly, the more miles he flies, the more rewards and recognition he gets. Thus, the service is by
itself turned into long term for the customer and he would like to take as much advantage of the
service as he can.
Marketing Managers Responsibilities in Quality-Centered Companies:

ü participate in formulating strategies and policies designed to help the company win through total quality
excellence
ü deliver marketing quality alongside production quality

MARKETING MANAGEMENT Word Format

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MARKETING MANAGEMENT

Production concept of marketing

Product concept of marketing

Selling concept of marketing

Profit concept of marketing

Modern Marketing Concept

Social Marketing Concept

 Place (channel of distribution)

Networks within the system of marketing management:

Functions Involving Marketing Management:

General Business Analysis:

a) Creating Long term contracts –

Marketing Managers Responsibilities in Quality-Centered Companies:

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