Marketing Management

Session 3 Managing Marketing Communications

The Post Graduate Program

Graduate School of Communications
The London School of Public Relations – Jakarta
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Simple Marketing System

Communication

Industry Goods/services Market

(a collection (a collection
of sellers) of Buyers)
Money

Information

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2
The 4 Ps & 4Cs
Producer v.s. Consumer Views

Marketing
Mix

Place
Product

Customer Convenience
Solution Price Promotion

Customer Cost Communication

The “8Ps” of Integrated Service
Management vs. the Traditional “4Ps”
1. Product elements
2. Place, cyberspace, and
time
3. Process
4. Productivity and quality
5. People
6. Promotion and education
7. Physical evidence
8. Price and other user
outlays

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Marketing Management
 Selling?
 Advertising?
 Promotions?
 Making products available in stores?
 Maintaining inventories?

• All of the above, plus much more!

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Marketing is ...
• Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association

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

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Marketing is ...
 Marketing is the sum of all activities that take you to
a sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all
about push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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Sales v.s. Marketing
• Sales
trying to get the customer to want what the company
produces
• Marketing
trying to get the company produce what the customer
wants

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Scope – What Do We Market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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Core Concepts of Marketing
Based on:
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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Core Concepts of Marketing

Needs, wants Utility, Value &

demands Products
Product
Satisfaction

Marketing & Xchange, TransX

Markets Marketers Relationships
Core Concepts of Marketing
 Need – food ( is a must )
 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

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The Role of Communication in Exchange
Transactions (1)
• Bowersox and Morash (1989) demonstrated how
marketing flows, including the information flow, can be
represented as a network whose sole purpose is the
satisfaction of customer needs and wants.
Communication plays an important role in these
exchange networks.
• At a basic level, communication can assume one of four
main roles:
1. inform
2. Persuade
3. Reminding and Reassurance
4. Differentiate
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The Role of Communication in Exchange
Transactions (2)
• Inform: communication can inform and make potential
customers aware of an organization’s offering.
• Persuade: Communication may attempt to persuade current
and potential customers of the desirability of entering into an
exchange relationship.
• Reinforce-Reminding-and-Reassurance: Communication can
also be used to reinforce experiences. This may take the form
of reminding people of a need they might have, or of
reminding them of the benefits of past transactions with a
view to convincing them that they should enter into a similar
exchange. In addition, it is possible to provide reassurance or
comfort either immediately prior to an exchange or, more
commonly, post-purchase. This is important, as it helps to
retain current customers and improve profitability. This
approach to business is much more cost-effective than
constantly striving to lure new customers.
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The Role of Communication in Exchange
Transactions (3)
• Differentiator: Marketing communications can act as a
differentiator, particularly in markets where there is
little to separate competing products and brands.
• Mineral water products, such as Perrier and Highland
Spring, are largely similar: it is the communications
surrounding the products that have created various
brand images, enabling consumers to make purchasing
decisions.
• In these cases the images created by marketing
communications disassociate one brand from another
and position them so that consumers’ purchasing
confidence and positive attitudes are developed. 16
DRIP Elements of Marketing Communications

DRIP element Examples

Differentiate Burger King differentiates itself from market
leader McDonald’s by stating that its burgers
are flame-grilled for a better taste.
Reinforce AQUA, Air Sehat Setiap Saat
Inform/make Meteorology & Geophysics Agency (Badan
Metrologi dan Geofisika) informs various
organisations, such as Badan Penanggulangan
Bencana, local media and the general public, of
the new flood warning codes or erruptions.
Persuade So good milk is better for us than ordinary milk;
Lebih baik naik Vespa
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Marketing Triangle
• To understand marketing better let us begin with the
marketing triangle

Customers

Company Competition

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Who is a Customer?
• A customer is anyone who is in the market looking at a
product/service for attention, acquisition, use or
consumption that satisfies a want or a need.
• Customer has needs, wants, demands and desires.
• Understanding these needs is starting point of the entire
marketing.
• These needs and wants arise within a framework or an
ecosystem.
• Understanding both the needs and the ecosystem is the
starting point of a long term relationship.

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How Do Consumers Choose Among
Products & Services?
• Value - the value or benefits the customers gain from
using the product versus the cost of obtaining the
product.
• Satisfaction - Based on a comparison of performance
and expectations.
– Performance > Expectations = Satisfaction
– Performance < Expectations = Dissatisfaction

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Customers - Problem Solution
• As a priority , we must bring to our customers “WHAT
THEY NEED”
• We must be in a position to UNDERSTAND their
problems
• Or in a new situation to give them a chance to AVOID
the problems

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Customer Looks for Value
 Value = Benefit /Cost
 Benefit = Functional Benefit + Emotional Benefit
 Cost = Monetary Cost + Time Cost + Energy Cost +
Physics Cost

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Analysis of Competition
 Who are your competitors?
 What are their strengths and weaknesses?
 What have been their strategies?
 How are they likely to respond to your Marketing plan?

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Strategic Marketing
 Strategic marketing management is concerned with how
we will create value for the customer
 Asks two main questions
 What is the organization’s main activity at a particular time? –
Customer Value
 What are its primary goals and how will these be achieved? –
how will this value be delivered

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Strategic Planning
 Strategic Planning is the managerial process of creating
and maintaining a fit between the organization’s
objectives and resources and the evolving market
opportunities.

 Also called Strategic Management Process

 All organizations have this

 Can be Formal or Informal

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Strategic Marketing
 Strategic marketing management is concerned with how
we will create value for the customer
 Asks two main questions
 What is the organization’s main activity at a particular time? –
Customer Value
 What are its primary goals and how will these be achieved? –
how will this value be delivered

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