PAPER

MARKETING MANAGEMENT

Prepared to full fill assignment of an English Economics cours

Supporting Lecturer:
Muhammad Zen Masruri, M.Pd.

Arranged by:
1. Mutiara Lailatul Ramadhan (1860403222048)
2. Zulfi Fattakhur Roziq (1860403222067)
3. Rensi Bella Faradeta (1860403222074)
4. Lenny Aprilya Sari (1860403222082)

SHARIA ACCOUNTING 3B
FACULTY OF ISLAMIC STATE ECONOMIC AND BUSSINESS
SAYYID ALI RAHMATULAH STATE ISLAMIC
UNIVERSITY TULUNGAGUNG
NOVEMBER 2023

1
A. Understanding Marketing Management
Marketing Management is the leading marketing text because its content and
organization consistently reflect changes in marketing theory and practice. The very first
edition of Marketing Management, published in 1967, introduced the concept that
companies must be customer and market driven. But there was little mention of what
have now become fundamental topics such as segmentation, targeting, and positioning.
Concepts such as brand equity, customer value analysis, database marketing,
e-commerce, value networks, hybrid channels, supply chain management, and integrated
marketing communications were not even part of the marketing vocabulary then.
Marketing Management continues to reflect the changes in the marketing discipline over
the past 40 years.
Firms now sell goods and services through a variety of direct and indirect channels.
Mass advertising is not nearly as effective as it was, so marketers are exploring new forms
of communication, such as experiential, entertainment, and viral marketing. Customers
tell the company what type of product or service they want regarding the product. Many
of them inform other consumers what they think about companies and products by using
(email, blogs, podcasts, and other digital media).
In response, companies have shifted from managing product portfolios to managing
customer portfolios, building databases on individual customers so they can better
understand and build individualized offers and messages. Companies are also doing less
standardizing products and services and doing more niche and customization. The
company improved its methods of measuring customer profitability.
As companies changes, so does its marketing organization. Marketing is no longer a
company department given limited tasks, but is the responsibility of the entire company.
It can also drive the company's vision, mission and strategic planning. Marketing includes
decisions such as who the company wants as its customers, which needs to satisfy, what
products and services to offer, what prices to set, what communications to send and
receive, what distribution channels to use, and what partnerships develop. Marketing is
successful only when all departments work together to achieve goals and develop
marketing strategies.
To address all these different shifts, good marketers are practicing holistic marketing.
Holistic marketing is the development, design, and implementation of marketing
programs, processes, and activities that recognize the breadth and interdependencies of
today’s marketing environment. Four key dimensions of holistic marketing are:
1. Internal marketing—ensuring everyone in the organization embraces appropriate
marketing principles.
2. Integrated marketing—ensuring that multiple means of creating, delivering, and
communicating value are employed and combined in the best way.
3. Relationship marketing—having rich, multifaceted relationships with customers,
channel members, and other marketing partners.

2
4. Performance marketing—understanding returns to the business from marketing
activities and programs, as well as addressing broader concerns and their legal,
ethical, social, and en- vironmental effects.1

Marketing management strategies are implemented using various methods, tools

and resources. To achieve these goals, the strategy must consist of various marketing
channel management activities related to price, product, place and promotion. This is
widely referred to as the marketing mix. The marketing manager's job is to adjust each of
these elements to maximize sales and ROI. These activities fall into the following
categories:
1. Price: Price is the monetary value placed on a product. It depends on production
costs, the segment of customers targeted, and their ability to pay for the product, as
well as demand for the product.
2. Product: The product on the market needs to be optimized with target customers in
mind for the remainder of the marketing mix to achieve the overall goal.
3. Place: Place refers to both the general and exact locations customers are able to
purchase a product. This involves making choices about online or brick-and-mortar
availability, as well as the specific locations therein.
4. Promotion: Finally, activities such as various advertising channels, direct marketing,
press releases, and even incentives can all be utilized to promote the product once it
has been optimized and produced.

Marketing management encompasses a variety of methods, strategies and processes,

which need to be coordinated effectively to ensure success. Relevant actives often
include:
1. Marketing strategy: Your organization’s plan for reaching prospects and converting
them into customers
2. Business development: Strategic initiatives such as mergers and acquisitions,
business transformation, and entering new markets
3. Brand management: Techniques to increase the perceived value of a brand over time
4. Product development: The process of bringing a new product to market
5. International marketing: Managing international distribution channels
6. Media relations: Engaging with media and influencers to spread the word about your
organization
7. Customer marketing: Managing the customer experience to improve satisfaction and
reduce churn
8. Marketing operations: Managing marketing processes, technology, and data
9. Sales: Generating leads, developing opportunities, and closing deals
1
Philip Kotler, Kevin Lane Keller, Marketing Management (Prentice Hall, 2012) page xvi-xvii

3
Managers can use the following processes to optimize marketing efforts from all angles:
1. Market and customer analysis: This process is all about understanding your
organization’s current market position and analyzing consumer behavior.
2. Development of strategy, goals, and objectives: Where does a business want to go?
How does it plan to get there? After market and customer analysis, strategy will map
the way forward.
3. Product development: Marketing managers play a crucial role in product
development. When it comes to articulating the benefits of a product, these
professionals help craft poignant, on-brand messaging.
4. Marketing program implementation: Once promising programs and campaigns have
been identified, it’s time to deploy the right resources to launch them.
5. Monitoring and control: Analyzing the success of marketing programs and activities is
a crucial process. It informs how future activities will be planned and implemented.2

B. Capturing Marketing Insight

1. Collecting information and forecasting demand
Some firms have marketing information systems that provide rich detail about
buyer wants, preferences, and behavior. Every firm must organize and distribute a
continuous flow of information to its marketing managers. A marketing information
system (MIS) consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to marketing decision
makers. It relies on internal company records, marketing intelligence activities, and
marketing research. The company’s marketing information system should combine
what managers think they need, what they really need, and what is economically
feasible.3
Internal records
To spot important opportunities and potential problems, marketing managers rely on
internal reports of orders, sales, prices, costs, inventory levels, receivables, and
payables.
a. The order to payment cycle
Sales representatives, dealers, and customers send orders to the firm. The sales
department prepares invoices, transmits copies to various departments, and back
orders out of stock items. Shipped items generate shipping and billing documents
2
Wrike. An Introduction to Marketing Management,
https://www.wrike.com/marketing-guide/marketing-management/, Accessed on Sunday, November 5, 2023 at
08.35
3
Philip Kotler, Kevin Lane Keller, Marketing Management Global Edition (United of States:Pearson Education,
2016) Page 90

4
that go to various departments. Because customers favor firms that can promise
timely delivery, companies need to perform these steps quickly and accurately.
b. Sales information systems
Marketing managers need timely and accurate reports on current sales. Walmart
operates a sales and inventory data warehouse that captures data on every item for
every customer, every store, every day and refreshes it every hour. Companies that
make good use of “cookies” records of website usage stored on personal browsers,
are smart users of targeted marketing. Many consumers are happy to cooperate, not
only do they not delete cookies, but they also expect customized marketing appeals
and deals once they accept them. Marketers must carefully interpret sales data,
however, to avoid drawing wrong conclusions.
c. Databases, Data warehousing, and Data mining
The explosion of data brought by the maturation of the Internet and mobile
technology gives companies unprecedented opportunities to engage their customers.
It also threatens to overwhelm decision makers.4
Marketing Intelligence
A marketing intelligence system is a set of procedures and sources that managers use
to obtain everyday information about developments in the marketing environment.
The internal records system supplies results data, but the marketing intelligence
system supplies happenings data. Marketing managers collect marketing intelligence
by reading books, newspapers, and trade publications, talking to customers, suppliers,
distributors, and other company managers and monitoring online social media.5
Analyzing the macroenvironment
Successful companies recognize and respond profitably to unmet needs and trends.
The main demographic factor marketers monitor is population, including the size and
growth rate of population in cities, regions, and nations, age distribution and ethnic
mix, educational levels and household patterns. Purchasing power depends on
consumers income, savings, debt, and credit availability as well as the price level. As
the recent economic downturn vividly demonstrated, fluctuating purchasing power
strongly affects business, especially for products geared to high-income and
price-sensitive consumers. Marketers must understand consumer psychology and
levels and distribution of income, savings, debt, and credit. From our sociocultural
environment we absorb, almost unconsciously, a world view that defines our
relationships to ourselves, others, organizations, society, nature, and the universe.
Marketers should monitor the following technology trends the accelerating pace of
change, unlimited opportunities for innovation, varying R&D budgets, and increased
regulation of technological change. The political and legal environment consists of
laws, government agencies, and pressure groups that influence organizations and
4
Ibid, Page 91
5
Ibid, Page 92

5
individuals. Sometimes these create new business opportunities. Mandatory recycling
laws boosted the recycling industry and launched dozens of new companies making
products from recycled materials. On the other hand, overseas governments can
impose laws or take actions that create uncertainty and even confusion for companies.
Political instability in certain Middle Eastern and African nations has created much risk
for oil firms and others. Two major trends are increased business legislation and the
growth of special-interest groups.6
Forecasting and demand measurement
Understanding the marketing environment and conducting marketing research can
help to identify marketing opportunities. The company must then measure and
forecast the size, growth, and profit potential of each new opportunity. Sales forecasts
prepared by marketing are used by finance to raise cash for investment and operations
by manufacturing to establish capacity and output by purchasing to acquire the right
amount of supplies and by human resources to hire the needed workers. If the
forecast is off the mark, the company will face excess or inadequate inventory.
Because it’s based on estimates of demand, managers need to define what they mean
by market demand. Companies can prepare as many as 90 different types of demand
estimates for six different product levels, five space levels, and three time periods. The
major concepts in demand measurement are market demand and company demand.
Within each, we distinguish among a demand function, a sales forecast, and a
potential. Marketing executives want to estimate total market potential, area market
potential, and total industry sales and market shares. Companies commonly prepare a
macroeconomic forecast first, followed by an industry forecast, followed by a company
sales forecast. The macroeconomic forecast projects inflation, unemployment, interest
rates, consumer spending, business investment, government expenditures, net
exports, and other variables. The end result is a forecast of gross domestic product
(GDP), which the firm uses, along with other environmental indicators, to forecast
industry sales. The company derives its sales forecast by assuming it will win a certain
market share.7
2. Conducting Marketing Research
Marketing research is the function that links the consumer, customer, and public to the
marketer through information information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process.
Marketing research specifies the information required to address these issues, designs
the method for collecting information, manages and implements the data collection
process, analyzes the results, and communicates the findings and their implications.8
The marketing research process:

6
Ibid, Page 94-104
7
Ibid, Page 107-114
8
Ibid, Page 121

6
a. Define the problem, the decision alternatives, and the research objectives
b. Develop the research plan
c. Collect the information
d. Analyze the information
e. Present the findings
f. Make the decision9
Marketing research must assess the efficiency and effectiveness of marketing
activities. Two complementary approaches to measuring marketing productivity are:
(1) marketing metrics to assess marketing effects and (2) marketing-mix modeling to
estimate causal relationships and measure how marketing activity affects outcomes.
Marketing dashboards are a structured way to disseminate the insights gleaned from
these two approaches.10
C. Connecting with Customers
Connecting with customers is more than just communication. Connecting is a
strategic effort to create relationships beyond the initial transaction. It involves
communication, but it is so much more. Connection is a two-way street. Both parties, you
and your customer, have different perspectives and different needs. You each seek
something and you both have something to give.
Importance of customer connection. It’s impossible to say enough about how
important it is to connect with customers. In today’s competitive business world,
businesses need to focus on creating strong and lasting customer relationships to keep
their business and stay ahead. A strong relationship with customers can help a business in
a number of ways, such as:
1. Connected customers are more likely to repeat purchases and recommend you to
others.
2. Customer connection facilitates customer retention and speeds up the company’s
growth.
3. A two-way relationship with the customer is needed. The information must be sent
and received between the customer and the business. A positive connection will
result in profitable sales, customer loyalty, and referrals for the company.
Additionally, you need to provide the customer with quality, support, and value.

Building strong connections with customers can help a business build a loyal
customer base and increase its chances of long-term success.
Creating loyal customers is at the heart of every business. As marketing experts Don
Peppers and Martha Rogers say: “The only value your company will ever create is the
9
Ibid, Page 124-126
10
Ibid, Page 137

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value that comes from customers the ones high you have now and the ones you will have
in the future. Businesses succeed by getting, keeping, and growing customers. Customers
are the only reason you build factories, hire employees, schedule meetings, lay fiber-optic
lines, or engage in any business activity. Without customers, you don’t have a business.”11
To create customers, you can start by building customer value, satisfaction and loyalty.
1. Building Customers Value

Very often, managers conduct a customer value analysis to reveal the

company’s strengths and weaknesses relative to those of various competitors. The
steps in this analysis are:
a. Identify the major attributes and benefits customers value. Customers are
asked what attributes, benefits, and performance levels they look for in choosing
a product and vendors. Attributes and benefits should be defined broadly to
encompass all the inputs to customers’ decisions.
b. Assess the quantitative importance of the different attributes and benefits.
Customers are asked to rate the importance of different attributes and benefits.
If their ratings diverge too much, the marketer should cluster them into different
segments.
c. Assess the company’s and competitors’ performances on the different
customer values against their rated importance. Customers describe where
they see the company’s and competitors’ performances on each attribute and
benefit.
d. Examine how customers in a specific segment rate the company’s performance
against a specific major competitor on an individual attribute or benefit basis.
If the company’s offer exceeds the competitor’s offer on all important attributes
and benefits, the company can charge a higher price (thereby earning higher
profits), or it can charge the same price and gain more market share.
e. Monitor customer values over time. The company must periodically redo its
studies of customer values and competitors’ standings as the economy,
technology, and features change.

Customer-perceived value is a useful framework that applies to many

situations and yields rich insights. It suggests that the seller must assess the total
customer benefit and total customer cost associated with each competitor’s offer in
order to know how his or her offer rates in the buyer’s mind. It also implies that the
seller at a disadvantage has two alternatives: increase total customer benefit or
decrease total customer cost. The former calls for strengthening or augmenting the
economical, functional, and psychological benefits of the offering’s product, services,
personnel, and image. The latter calls for reducing the buyer’s costs by reducing the

11
Philip Kotler and Kevin Lane Keller, “Marketing Management”, (United States of America, Pearson, 2012),
page 123.

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price or cost of ownership and maintenance, simplifying the ordering and delivery
process, or absorbing some buyer risk by offering a warranty.12
2. Satisfaction

In general, satisfaction is a person’s feelings of pleasure or disappointment

that result from comparing a product’s perceived performance (or outcome) to
expectations. If the performance falls short of expectations, the customer is
dissatisfied. If it matches expectations, the customer is satisfied. If it exceeds
expectations, the customer is highly satisfied or delighted. Customer assessments of
product performance depend on many factors, especially the type of loyalty
relationship the customer has with the brand. Consumers often form more favorable
perceptions of a product with a brand they already feel positive about.
Although the customer-centered firm seeks to create high customer
satisfaction, that is not its ultimate goal. Increasing customer satisfaction by lowering
price or increasing services may result in lower profits. The company might be able to
increase its profitability by means other than increased satisfaction (for example, by
improving manufacturing processes or investing more in R&D). Also, the company
has many stakeholders, including employees, dealers, suppliers, and stockholders.
Spending more to increase customer satisfaction might divert funds from increasing
the satisfaction of other “partners.” Ultimately, the company must try to deliver a
high level of customer satisfaction subject to also delivering acceptable levels to
other stakeholders, given its total resources.13
3. Loyalty

Creating a strong, tight connection to customers is the dream of any marketer

and often the key tolong-term marketing success. Companies that want to form such
bonds should heed some specific considerations. One set of researchers sees
retention-building activities as adding financial benefits, social benefits, or structural
ties. The following sections explain three types of marketing activities companies are
using to improve loyalty and retention.
a. Interacting With Customers
Listening to customers is crucial to customer relationship management. Some
companies have created an ongoing mechanism that keeps their marketers
permanently plugged in to frontline customer feedback.14
b. Developing Loyalty Programs
Frequency programs (FPs) are designed to reward customers who buy frequently
and in substantial amounts. They can help build long-term loyalty with high CLV
customers, creating cross-selling opportunities in the process. Pioneered by the
airlines, hotels, and credit card companies, FPs now exist in many other
12
Ibid, page. 126
13
Ibid, page. 128
14
Ibid, page. 141

9
industries. Most supermarket chains offer price club cards that grant discounts
on certain items.15
c. Creating Institutional Ties
The company may supply customers with special equipment or computer links
that help them manage orders, payroll, and inventory. Customers are less
inclined to switch to another supplier when it means high capital costs, high
search costs, or the loss of loyal-customer discounts.16

D. Building Strong Brands

1. Identifying Market Segments and Targets
Companies cannot connect with all customers in large, broad, or diverse
markets. They need to identify the market segments they can serve effectively. This
decision requires a keen understanding of consumer behavior and careful strategic
thinking about what makes each segment unique and different. Identifying and uniquely
satisfying the right market segments are often the key to marketing success.17
To compete more effectively, many companies are now embracing target
marketing. Instead of scattering their marketing efforts, they're focusing on those
consumers they have the greatest chance of satisfying. Effective target marketing
requires that marketers:
a. Identity and profile distinct groups of buyers who differ in their needs and wants
(market segmentation).
b. Select one or more market segments to enter (market targeting).
c. For each target segment, establish, communicate, and deliver the right benefits for
the company's market offering (market positioning).
2. Bases for Segmenting Consumer Markets
Market segmentation divides a market into well-defined slices. A market segment
consists of a group of customers who share a similar set of needs and wants. The
marketer's task is to identify the appropriate number and nature of market segments and
decide which ones to target. To be useful, market segments must rate favorably on five
key criteria:
a. Measurable. The size, purchasing power, and characteristics of the segments can be
measured.

15
Ibid, page. 143
16
Ibid, page. 144
17
Op. Cit., Marketing Management Global Edition, Page 267

10
b. Substantial. The segments are large and profitable enough to serve. A segment
should be the largest possible homogeneous group worth going after with a tailored
marketing program. It would not pay, for example, for an automobile manufacturer
to develop cars for people who are under four feet tall.
c. Accessible. The segments can be effectively reached and served.
d. Differentiable. The segments are conceptually distinguishable and respond
differently to different marketing- mix elements and programs. Actionable.
Effective programs can be formulated for attracting and serving the
segments.
3. Creating Brand Equity
One of the most valuable intangible assets of a firm is its brands, and it is
incumbent on marketing to properly manage their value. Building a strong brand is both
an art and a science. It requires careful planning, a deep long-term commitment, and
creatively designed and executed marketing. A strong brand commands intense
consumer loyalty and at its heart is a great product or service. Building a strong brand
is a never-ending process.
Brand equity is the added value endowed to products and services with
consumers. It may be reflected in the way consumers think, feel, and act with respect to
the brand, as well as in the prices, market share, and profitability it commands.
Marketers and researchers use various perspectives to study brand equity.18
4. Building Brand Equity
Marketers build brand equity by creating the right brand knowledge structures
with the right consumers. The success of this process depends on all brand-related
contacts whether marketer initiated or not. From a marketing management perspective,
however, there are three main sets of brand equity drivers: 19
a. The initial choices for the brand elements or identities making up the brand (brand
names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages,
and signage)
b. The product and service and all accompanying marketing activities and supporting
marketing programs.
c. Other associations indirectly transferred to the brand by linking it to some other
entity (a person, place, or thing)

18
Ibid., Page 324.
19
Ibid., Page 331.

11
There are six criteria for choosing brand elements. The first three-memorable,
meaningful, and likable-are brand building. The latter three-transferable, adaptable, and
protectable-are defensive and help leverage and preserve brand equity against
challenges.
a. Memorable. How easily do consumers recall and recognize the brand element, and
when at both purchase and consumption.
b. Meaningful. Is the brand element credible. Does it suggest the corresponding
category and a product ingredient or the type of person who might use the brand.
c. Likable. How aesthetically appealing is the brand element.
d. Transferable. Can the brand element introduce new products in the same or
different categories.
e. Adaptable. How adaptable and updatable is the brand element.
f. Protectable. How legally protectable is the brand element. How competitively
protectable.
E. Difficult Word Set
1. Hybrid = Hibrida
2. Niche = Ceruk
3. Acquisitions = Akuisisi
4. Demand = Permintaan
5. Partnerships = Kemitraan
6. Marketing = Pemasaran
7. Customers = Pelanggan
8. Environment = Lingkungan
9. Companies = Perusahaan
10. Opportunity = Peluang
11. Retention = Penyimpanan
12. Long-Term = Jangka Panjang
13. Satisfaction = Kepuasan
14. Conduct = Mengadakan
15. Major = Utama
16. Broadly = Secara luas
17. Redo = Mengulangi
18. Scattering = Penyebaran
19. Appropriate = Sesuai
20. Distinguishable = Dapat dibedakan

F. Part Of Speech
1. Hybrid (Noun)
2. Niche (Noun)

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3. Acquisitions (Noun)
4. Demand (Verb)
5. Partnerships (Verb)
6. Marketing (Verb)
7. Customers (Noun)
8. Environment (Noun)
9. Companies (Noun)
10. Opportunity (Noun)
11. Building (Verb)
12. Creating (Verb)
13. Strong (Adjective)
14. Computer (Noun)
15. High (Adjective)
16. Scattering (Noun)
17. Appropriate (Adjective)
18. Distinguishable (Adjective)

G. Example Sentences From Part Of Speech

1. Concepts such as brand equity, customer value analysis, database marketing,
e-commerce, value networks, hybrid channels, supply chain management, and
integrated marketing communications were not even part of the marketing vocabulary
then.
2. Companies are also doing less standardizing products and services and doing more
niche and customization.
3. Business development: Strategic initiatives such as mergers and acquisitions, business
transformation, and entering new markets.
4. Price is the monetary value placed on a product. It depends on production costs, the
segment of customers targeted, and their ability to pay for the product, as well as
demand for the product.
5. Marketing includes decisions such as who the company wants as its customers, which
needs to satisfy, what products and services to offer, what prices to set, what
communications to send and receive, what distribution channels to use, and what
partnerships develop.
6. Some firms have marketing information systems that provide rich detail about buyer
wants, preferences, and behavior.
7. Because customers favor firms that can promise timely delivery, companies need to
perform these steps quickly and accurately.
8. A marketing intelligence system is a set of procedures and sources that managers use
to obtain everyday information about developments in the marketing environment.
9. Companies can prepare as many as 90 different types of demand estimates for six
different product levels, five space levels, and three time periods.

13
10. The company must then measure and forecast the size, growth, and profit potential
of each new opportunity.
11. Building Customers Value.
12. Creating loyal customers is at the heart of every business.
13. Building strong connections with customers can help a business build a loyal
customer base and increase its chances of long-term success.
14. The company may supply customers with special equipment or computer links that
help them manage orders, payroll, and inventory.
15. Although the customer-centered firm seeks to create high customer satisfaction, that
is not its ultimate goal.
16. Instead of scattering their marketing efforts, they're focusing on those consumers they
have the greatest chance of satisfying.
17. The marketer's task is to identify the appropriate number and nature of market
segments and decide which ones to target.
18. The segments are conceptually distinguishable and respond differently to different
marketing mix elements and programs.

Bibliography
Philip Kloter, Kevin Lane keller. (2012). Marketing Management. Prentice Hall.

Philip Kotler and Kevin Lane Keller. (2012). Marketing Management. United States of America:
Pearson.

Philip Kotler, Kevin Lane Keller. (2016). Marketing Management-Global Edition. United Stataes:
Pearson Education.

Wrike. (n.d.). An Introduction to Marketing Management. Retrieved November 5, 2023, from

https://www.wrike.com/marketing-guide/marketing-management/

14