Introduction to Marketing Management

Introduction to Marketing Management

Also, Marketing can consider as managing profitable customer relationships.

What is Marketed?

  • Goods – Eg: jewelry, furniture
  • Services – Eg: lecturing
  • Experiences – Eg: Theme park
  • Events – Eg: ICC World Cup
  • Places – Eg: pyramids
  • Properties

For example: Tangible – land, Building    Intangible – shares

  • Organizations – For example : Lion club
  • Ideas – For example : consultant, counselling

Marketing Process

A simple model of the marketing process. In here each step has its own value-added activities.

  • Understand the market place and customer needs and wants.
  • Design a customer driven marketing strategy.

To design a Marketing Strategy the marketing manager must find answers to 2 questions.

  • What will serve to the customers
  • How can we serve these customers
  • Construct an integrated marketing program that delivers superior value.
  • Build profitable relationship and create customer delight.
  • Capture value from customers to create profits and customer quality.

In the first 4 steps, 

Companies work to understand consumers, create customer value and build strong customer relationships.

In the 5th step, 

Companies reap the rewards of creating superior customer value by creating values for customers.

Importance of Marketing

  • Marketing has ever growing competition in the market place.
  • Financial success often depends on the marketing ability.
  • To ensure profitability and survival.
  • Customers tendency to become more and more demanding. (such as, Information technology, globalization)

Core Marketing Concepts 

Marketing Concept is a customer-centered philosophy.

  • Needs, wants and demand

Needs – states of felt deprivation.

It includes physical needs for food, clothing, warmth, and safety.

As social needs, it includes belonging and affection.

Individual needs for knowledge and self-expression.

Wants are the form human needs take as they are shaped by culture and individual personality.

  • Market offering

Customer’s needs and wants are fulfilled through a market offering.

This consists of physical products and services.

Products are any offers that can satisfy a need or wants.

In addition, it includes other entities such as persons, places, organizations, information, and ideas.

  • Customer Value and Satisfaction

Customer value – Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product.

Satisfaction – The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations.

Marketers must be careful to set the right level of expectations.

Expectations are too low – they must satisfy those who buy the product. Then, they fail to attract enough buyers.

Expectations are too high – Buyers will be disappointed.

This is a key part of developing and managing customer relationships.

Delighted customer 😀

  • Perceived performance is higher than Expected performance

Satisfied Customer 😃

  • Perceived performance is equal to Expected performance

Dissatisfied Customer 😞

  • Perceived performance is lower than Expected performance

Negative impact of having delighted customers

When a company adding extra features for the product to delight their customers that customers think of these features as normal product features. After that, for them, it will be normalized.

If the company cuts down these additional features then their customers become dissatisfied.

  • Exchanges and relationships

Exchange is the act of obtaining a desired object from someone by offering something in return.

  • Markets

The set of all actual and potential buyers of a product or service.

Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote, store and deliver them.

Core Marketing Activities 

  • Consumer research
  • Product development
  • Communication
  • Distribution
  • Pricing
  • Service

Marketing managers want to decide plans that will build a profitable relationship with target customers.

There are five alternative concepts under which organizations design and carry out their marketing strategies. They are,

  • Production concept 

The production concept holds that consumers will favor products that are available and highly affordable.

So, management should focus on improving production and distribution efficiency.

Then the production concept can lead to marketing myopia.

  • Product concept 

This holds that consumers will favor products that offer the most in quality, performance, and innovative features.

Also, marketing strategy focus on making continuous product improvement.

Product quality and improvements are the most important parts of most marketing strategies.

  • Selling concep

Many companies follow that concept.

This holds that consumers will not buy enough of the firm’s product until it undertakes a large-scale selling and promotion effort.

  • Marketing Concept

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

Customer focus and value are the paths to sales and profits.

  • Social marketing concept

The company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumer’s long-run interests, and society’s long-run interests.