MARKETING MANAGEMENT (MARKMAN)

The Nature and Scope of Marketing

According to Kotler and Keller (2016), marketing is about identifying and meeting human and social
needs. It is an organizational function and a set of processes for creating, communicating, and
delivering value to customers and managing customer relationships that benefit the organization and its
stakeholders. One of the shortest but good definitions of marketing is "meeting needs profitably."

American Marketing Association

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that value customers, clients, partners, and society at large.

Marketing management takes place when at least one party to a potential exchange thinks about the
means of achieving desired responses from other parties. It is defined as the art and science of choosing
target markets and getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value (Kotler and Keller, 2016).

Marketers Market Various Types of Entities based on Kotler and Keller (2016)
1. Goods. Physical goods comprise the bulk of many countries' production and marketing efforts.
Examples are cars, soap, refrigerators, televisions, and much more.
2. Services. Services include airlines, hotels, car rental firms, barbers and beauticians, maintenance and
repair people, accountants, bankers, lawyers, engineers, doctors, and more.
3. Events. Marketers promote events, such as major trade shows, artistic performances, and global
sporting events such as the Olympics and World Cup.
4. Experiences. By creating several services and goods, a firm can create stage, and market
experiences. Like the Enchanted Kingdom here in the Philippines and other amusement parks.
5. Persons. Persons like artists, musicians, physicians, lawyers, and other professionals get marketers'
help.
6. Places. Cities, states, regions, and whole nations need to be marketed to attract tourists.
7. Properties. Properties are intangible rights of ownership to either real property like real estate or
financial property like stocks and bonds.
8. Organizations. Organizations work to build a strong, favorable, and unique image in the minds of
their target publics.
9. Information. Information is essentially what books, schools, and universities produce, market, and
distribute at a price
10. Ideas. Social marketers are busy promoting such ideas as Charles Revson of Revlon once observed:
“In the factory, we make cosmetics; in the drugstore, we sell hope.”

A marketer is someone who seeks a response may it be attention, a purchase, a vote, or a donation
from another party, called the prospect.
Markets are traditionally defined as physical place where buyers and sellers gather to buy and sell
goods. It is also a collection of buyers and sellers who transact over a particular product or product
class.

Key Customer Markets

1. Consumer markets. The consumer markets represent individuals and families purchasing goods and
services for personal consumption.
2. Business markets. Business markets are individuals and/or organizations that purchase goods and
services for purposes other than personal consumption. They normally use purchased goods to produce
their products and services.
3. Global markets. Global markets consist of companies selling goods and services in the
international/ global markets.
4. Non-profit and governmental markets. These markets consist of organizations such as
universities, charitable organizations, government agencies, and the like.

A marketplace is a physical place or a store where customers shop. It is what we commonly known as
traditional retail stores, street markets, and the like.

Marketspaces are now referred to as the virtual marketplace. These are now what we commonly call
online shops or stores like Lazada, Shopee, etc.

Metamarkets refer to a cluster of complimentary products and services that are closely related in the
minds of consumers but are spread across a diverse set of industries (Kotler and Keller, 2016).
Example: In the automobile meta market, different industries are automobile manufacturers, insurance
providers, service centers, spares, driving academies, finance companies, etc.

Core Marketing Elements and Concepts

Needs are defined as basic human requirements such as air, food, water, clothing, and shelter. These are
states of felt deprivation.
Wants are needs that are directed to specific objects that might satisfy the need and are usually shaped
by our society and personality.
Demands are wants for specific products backed by an ability to pay (Kotler and Keller, 2016).

Exchange is the act of obtaining a desired object from someone by offering something in return.
Transaction is the trade between two parties involves at least two things of value, agreed-upon
conditions, a time of the agreement, and a place of agreement.
Relationship marketing is the process of creating, maintaining, and enhancing strong, value-laden
relationships with customers and other stakeholders (Kotler and Keller, 2016).

Vital to marketing is the concept of value.

Value proposition is the set of benefits companies promises consumers to satisfy their needs.
Marketers provide offerings to their customers, combining products, services, information, or
experiences offered to a market to satisfy a need or want. Market offerings are not limited to physical
products.
Brand is known as an offering from a known source that satisfies the needs and wants of the market.

Customer value is the consumer's assessment of the product’s overall capacity to satisfy his or her
needs.
Customer satisfaction is the extent to which a product’s perceived performance matches a buyer’s
expectations. It actually depends on a product’s perceived performance in delivering value relative to a
buyer’s.
 If the product’s expectations performance falls short of expectations, the buyer is dissatisfied.
 If performance matches or exceeds expectations, the buyer is satisfied or delighted.

Company Orientations toward the Marketplace

1. Production concept. The idea is that consumers will favor available and highly affordable products
and that the organization should therefore focus on improving production and distribution efficiency.
2. Product concept. The idea is that consumers will favor products that offer the most quality,
performance, and features and that the organization should devote its energy to continuous product
improvements.
3. Selling concept. The idea is that consumers will not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion effort.
4. Marketing concept. Philosophy holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than competitors do.
5. Societal marketing concept. The idea is that a company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run
interests.

Holistic marketing recognizes that everything matters in marketing and that a broad, integrated
perspective is important.
Relationship marketing aims to build mutually satisfying long-term relationships with key elements
in order to earn and retain their business. Key elements include customers, employees, marketing
partners such channels, suppliers, distributors, dealers, agencies, and members of the financial
community like shareholders, investors, and analysts.
Integrated marketing occurs when the marketer devises marketing activities and produces marketing
programs to create, communicate, and deliver value for consumers using their own marketing mix:
product, price, place, and promotion.
Internal marketing is the task of hiring, training, and motivating able employees who want to serve
customers well.
Performance marketing requires understanding the financial and non-financial returns to business and
society from marketing activities and programs.

Three Phases of the entire value delivery process:

1. Choosing the value involves activities before any product exists in the market.
2.Providing the value marketing must identify specific product features, prices, and distribution.
3.Communicating the value using the Internet, advertising, sales force, and other communication tools
to promote the product.

Kotler and Keller (2016) defined strategic planning as the process of developing and maintaining a
strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
To ensure that companies execute the right activities, marketers must prioritize strategic planning in
three key areas:
1. managing the businesses as an investment portfolio,
2. assessing the market’s growth rate and the company’s position in the market, and
3. establishing a strategy.

Four organizational levels:

1. Corporate is where designing a corporate strategic plan to guide the whole enterprise is done; it
makes decisions on the amount of resources to allocate to each division and which businesses to start or
eliminate.
2. Division establishes a plan covering the allocation of funds to each business unit within the division.
3. Business Unit is a strategic plan to carry that business unit into a profitable future.
4. Product line or brand develops a marketing plan to achieve its objectives.

Four Key Planning Activities

1. Defining the corporate mission
2. Establishing strategic business unit
3. Assigning resources to each strategic business unit
4. Assessing growth opportunities
Strategic formulation
If goals indicate what a business unit wants to achieve, strategy is now a game plan for getting there.
Each business must design a strategy for achieving its goals that consist of a marketing strategy, a
compatible technology, and a sourcing strategy.
Michael Porter has postulated commonly used strategies by the firm. He proposed three generic
strategies that could provide a good starting point for businesses.

Program Formulation and Implementation

Once businesses have formulated marketing strategies and programs, marketers now must estimate
their costs, and these strategies should be properly implemented and monitored. Marketing
implementation is the process that turns marketing plans into marketing actions to accomplish
strategic marketing objectives.

Feedback and Control

Due to changes in the environment, the strategic fit between the company and the environment is not
constant. Companies must continuously monitor and adapt to these changes to remain in the industry.