Marketing Management

Marketing Management Mr. Ahsan Ali Ashraf (Lecturer) ahsanali.lhr@gmail.com

Teaching Methodology My basic teaching philosophy for this course is to blend the theory and practice of Marketing Planning and Implementation in a comfortable, supportive & easy language that promotes active learning.

Assessment Criteria Your assessment & final grades will be based as per University existing rules.

LECTURE-1 Defining Marketing

Chapter Questions • Why is marketing important? • What is the scope of marketing? • What are some fundamental marketing concepts? • How has marketing management changed? • What are the tasks necessary for successful marketing management?

What is Marketing? Marketing is 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. (American Marketing Association Formal Definition)

What is Marketing Management? Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Goods Services Events and experiences Persons Places and properties Organizations Information Ideas What is Marketed?

Negative Demand Consumers dislike the product e.g. Vaccination, Dental work Nonexistent Demand Consumers may be unaware of the product e.g. Foreign Language course Latent Demand Consumers may share a strong need that can’t be satisfied with existing product e.g. Harm less cigarettes, Fuel Efficient cars Declining Demand Consumers begins to buy the product less frequently e.g. churches, Govt. Schools Irregular Demand Consumers purchases vary on a seasonal, monthly, weekly, daily or hourly e.g. Museums on week days, Travelling Peak Off Peak time Unwholesome Demand Consumers attracted to products that have undesirable social consequences e.g. Cigarettes, Alcohol, Drugs Full Demand Consumers are adequately buying all products. Overfull Demand More consumers would like to buy than can be satisfied. Demand States

Key Customer Markets • Consumer markets • Business markets • Global markets • Nonprofit/Government markets

Functions of CMOs • Strengthening the brands. • Measuring marketing effectiveness. • Driving new product development based on customer needs. • Gathering meaningful customer insights. • Utilizing new marketing technology.

Needs, wants, and demands 1. Stated needs (The customer wants an inexpensive car.) 2. Real needs (The customer wants a car whose operating cost, not initial price, is low.) 3. Unstated needs (The customer expects good service from the dealer.) 4. Delight needs (The customer would like the dealer to include an onboard GPS navigation system.) 5. Secret needs (The customer wants friends to see him or her as a savvy consumer.) Target markets, positioning, segmentation Offerings and brands Value Proposition Value and satisfaction Customer value Triad Quality, Service & Price (QSP) Marketing channels Communication Channels e.g. Newspapers, Magazines Radio., Television, Mail, Telephone, Billboards, Posters, Fliers, CDs, Audio Tapes & Internet Distribution Channels e.g. Distributors, Wholesalers, Retailers, & Agents Supply chain Competition Marketing environment Task Environment e.g. Company, Suppliers, Distributors, Dealers & Target Customers Broad Environment e.g. Demographic, PESTL Marketing planning Core Marketing Concepts

The New Marketing Realities Major Societal Forces • Network information technology • Globalization • Deregulation • Privatization • Heightened competition • Industry convergence • Consumer resistance • Retail transformation • Disintermediation

New Consumer Capabilities • A substantial increase in buying power • A greater variety of available goods and services. • A great amount of information about practically anything. • Greater ease in interacting and placing and receiving orders. • An ability to compare notes on products and services. • An amplified voice to influence public opinion.

New Company Capabilities • Marketers can use the Internet as a powerful information and sales channel • Marketers can collect fuller and richer information about markets, customers, prospects, and competitors • Marketers can tap into social media to amplify their brand message • Marketers can facilitate and speed external communication among customers • Marketers can send ads, coupons, samples, and information to customers who have requested them or given the company permission to send them • Marketers can reach consumers on the move with mobile marketing • Companies can make and sell individually differentiated goods • Companies can improve purchasing, recruiting, training, and internal and external communications • Companies can facilitate and speed up internal communication among their employees by using the Internet as a private intranet • Companies can improve their cost efficiency by skillful use of the Internet

Company Orientations Toward The Market Place • The Production Concept • Consumers will prefer products that are widely available & inexpensive e.g. Lenovo, Haier etc. • The Product Concept • Consumer favor products that offer the most quality, performance, or innovative features e.g. Rolex etc. • The Selling Concept • Consumers & businesses, if left alone, won’t buy enough of the organization’s products e.g. Insurance, Encyclopedias etc. • The Marketing Concept • Emerged in mid 1950s Customer-Centered “Sense & Respond” e.g. Dell Computer etc.

Four Ps Product Product Variety/Quality/ Design/ Features/Brand Name/ Packaging/ Sizes/Services/Warranties/Returns Price List Price/Discounts/Allowances/ Payment Period/Credit Terms Place Channels/Coverage/Assortments/ Locations/Inventory/Transport Promotion Sales Promotion/Advertising/Sales Force/Public relations/ Direct Marketing Four Cs Customer solution Customer cost Convenience Communication Marketing Mix and the Customer

The Holistic Marketing Concept • Relationship Marketing • Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. • Integrated Marketing Communication • Integrated marketing communication (IMC) is a process for planning, executing and monitoring the brand messages that create customer relationship. • Internal Marketing • Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

The Holistic Marketing Concept… • Performance Marketing • Financial Accountability • Social Responsibility Marketing • Corporate Social Initiatives • Corporate social marketing • Cause marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices

Marketing in an Age of Turbulence • Secure your market share from core customer segments • Push aggressively for greater market share from competitors • Research customers more now, because their needs and wants are in flux • Minimally maintain, but seek to increase, your marketing budget • Focus on all that’s safe and emphasize core values • Drop programs that aren’t working for you quickly • Don’t discount your best brands • Save the strong; lose the weak

References & Bibliography • Marketing Management – A South Asian Perspective • by Philip Kotler, Kevin Lane Keller, Abraham Koshy & • Mithileshwar Jha, 13th Edition, Published by Pearson • Education, Inc. • Strategic Marketing Management – Meeting The • Global Marketing Challenges by Carol H. Anderson & • Julian W. Vincze Published by Houghton Mifflin Company. • Principles of Advertising & IMC by Tom Duncan 2nd • Edition, Published by McGraw-Hill Irwin. • Principles of Marketing by Philip Kotler & Gary Armstrong • Thirteenth Edition, Published by Prentice Hall

"Unless you try to do something beyond what you have already mastered, you will never grow." - Ronald E. OsbornThe End…

Marketing Management