Marketing Management:

An Introduction
Marketing
• According to Kotler, Marketing is a social
managerial process by which individuals and
groups obtain what they need and want through
creating and exchanging products and value with
others.
• Marketing deals with identifying and meeting
human and social needs. One of the shortest
definitions of marketing is “meeting needs
profitably.”
Marketing
• The AMA defines marketing as 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.
Selling is only the tip of the
iceberg

‘There will always be need for

some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available’.
Peter Drucker
Needs, Wants, and Demands
• Needs are states of felt deprivation, personal
requirements that motivate behavior and things
that people cannot live without, like food,
clothing and shelter. Needs are not invented by
marketers; they are basic parts of the human
makeup. When a certain need is not satisfied, a
person may either find a way to reduce the need
or look for an object that will satisfy it.
Types of Needs
Types of Needs
• Stated needs: what customers say they want; for example, “I
need a regular car”
• Real needs: what customers actually require; for example, “A
car that can accommodate the whole family”
• Unstated needs: requirements that customers don’t happen
to mention; for example, “A car with airconditioner”
• Delight needs: the desire for luxuries, as compared to real
needs; for example, “A car that has GPS”
• Secret needs: needs that customers feel reluctant to admit;
for example, “The brand must be well-known but not
expensive”
(some people may have a strong need for social status but feel
uncomfortable about admitting that status is important to
them)
Needs, Wants, and Demands
• Wants are the form taken by human needs as
they are shaped by culture and individual
personality. These are needs translated into
specific satisfiers that may differ from person to
person.
Needs, Wants, and Demands
• Demands are wants backed by purchasing power
or the ability to buy.
Demand States

NEGATIVE NON-EXISTENT LATENT

DECLINING IRREGULAR FULL

OVERFULL UNWHOLESOME
• Negative Demand
• Consumers dislike the product and may even pay a price to
avoid it. (Hospital )
• Non-Existent Demand
• Consumers may be unaware or uninterested in the product.
(Unaware: ;Uninterested: Products made of recycled tetra
paks)
• Latent Demand
• Consumers may share a strong need that cannot be
satisfied by an existing product. (Cure for AIDS)
• Declining Demand
• Consumers begin to buy the product less frequently or not
at all. (CD Players, CRT Monitors)
• Irregular Demand
• Consumer purchases vary on a seasonal, monthly, weekly,
daily, or even hourly basis. (Hotels, Umbrellas)
• Full Demand
• Consumers are adequately buying all products put into the
marketplace. (Ideal Situation where supply = demand)
• Overfull Demand
• More consumers would like to buy the product than can be
satisfied.(McDonalds Value Meal - Minions)
• Unwholesome Demand
• Consumers may be attracted to products that have
undesirable social consequences. (Drugs, Cigarettes)
What is Marketed?
Goods
• Physical goods constitute the bulk of most
countries’ production and marketing effort. Not
only do companies market their goods, but
thanks in part to the Internet, even individuals
can effectively market goods.
Services
• As economies advance, a growing proportion of
their activities is focused on the production of
services. The US economy today consists of a
70:30 services-to-goods mix.
• Many market offering consist of a variable mix of
goods and services.
Events
• Marketers promote time-based events, such as
major trade shows, artistic performances, and
company anniversaries.
• The Olympics and the World Cup are two major
events.
Experiences
• By orchestrating several services and goods, a
firm can create, stage, and market experiences.
• The goal of experiential marketing is to establish
the connection in such a way that the consumer
responds to a product offering based on both
emotional and rational response levels.
Persons
• Marketing activity aimed at creating target
market awareness, and a favorable opinion, of a
particular person
• Celebrity marketing is a major business!
Celebrity Marketing
• Celebrities may express the need for
working an agency in marketing them
for various reasons. One of those
grounds is that their desire would be
to portray an ideal image to the
public. This is common especially with
the celebrities that have difficulty in
actually reaching out to their target
audience depending on what they are
famous for.
• The other reason for carrying out celebrity
marketing would be to help in such individuals to
place themselves in a better position of getting
an endorsement with some organisations that
may come their way. This is very familiar with
many celebrities who are always interested in
building a brand as a way of building a brand for
other organisations.
• Then the other reason is simply that some of
these celebrities regard themselves as brands in
their respective industry. And for that matter,
they need to stay relevant by ensuring that their
presence is felt in the sector throughout hence
the need for ensuring that they get an ideal
agency that will market them accordingly.
Places
• Cities, states, regions, and whole nations
compete actively to attract tourists, factories,
company headquarters, and new residents.
Mt. Pulag: Playground of the gods
Boracay

Baguio City
Properties
• Properties are intangible rights of ownership of
either real property or financial property.
jk
Organizations
• Organizations actively work to build a strong,
favorable, and unique image in the minds of
their target market. Companies spend money on
corporate identity ads.
Information
• Information can be produced and marketed as a
product.
• Example: Information on a particular good /
service / company may actually be marketed and
actually sold.
Ideas
• Every market offering includes a basic idea.
Goods and services are platforms for delivering
some idea or benefit.
• Example: “A mind is a terrible thing to waste”
(an example of idea being promoted by social
marketers )
Value, Satisfaction, and
Quality
• Customer value is the difference between the
value of buying, owning and using the product
and the cost of the product. The customer
compares the cost of the product with the
benefits he gains from using the product. (if the
benefit exceeds the cost, there is positive
customer value and the customer usually decides
to buy the product; if the cost exceeds the
benefit, there is negative customer value and the
customer would most likely avoid the product
and look for something else)
Value, Satisfaction, and
Quality
• Customer satisfaction refers to the difference
between the buyer’s expectation and the
perceived performance of the product. Before
making any purchase, a customer would already
have an expectation in mind and his task is to
look for a product that he thinks would perform
and deliver according to his expectations. (if the
product performs less than expected, the
customer is dissatisfied; if it performs as
expected, the customer is satisfied; if it performs
better than expected, the customer is delighted.
Value, Satisfaction, and
Quality
• Quality is what the customer says it is. The
ultimate evaluator of quality is the customer.
• Quality is the unyielding and continuing effort by
everyone in an organization to understand, meet
and exceed the needs of customers.
Marketing Management
• Marketing guru Philip Kotler defines marketing
management as the analysis, planning,
implementation, and control of programs
designed to create, build, and maintain
beneficial exchanges with target buyers for the
purpose of achieving organizational objectives.
• Art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value.
Core Concepts
• Needs, wants, and • Marketing channels
demands • Supply chain
• Target markets, • Competition
positioning, • Marketing
segmentation environment
• Offerings and brands • Marketing planning
• Value and
satisfaction
Societal Forces that bring about New
Marketing Realities
Network Information
Technology
• The digital revolution has created an
Information Age that promises to lead to
more accurate levels of production, more
targeted communications, and
more relevant pricing.
Globalization
• Technological advances in transportation,
shipping, and communication have made it
easier for companies to market in other
countries and easier for consumers to buy
products and services from marketers in other
countries.
Deregulation
• Many countries have deregulated industries to
create greater competition and growth
opportunities.
Privatization
• Many countries have converted public
companies to private ownership and
management to increase their efficiency.
Customer Empowerment
• Customers increasingly expect higher quality and
service and some customization. They are more
and more time-starved and want more
convenience. They perceive fewer real product
differences and show less brand loyalty.

Consumer buying power

Consumer information
Consumer resistance
Customization
• The company is able to produce individually
differentiated goods whether ordered in person,
on the phone, or online.
Heightened Competition
• Brand manufacturers are facing intense
competition from domestic and foreign brands,
which is resulting in rising promotion costs and
shrinking profit margins.
Industry Convergence
• Industry boundaries are blurring at an incredible
rate as companies are recognizing that new
opportunities lie at the intersection of two or
more industries.
Retail Transformation
• Small retailers are succumbing to the growing
power of giant retailers and “category killers.”
Disintermediation
• In response to disintermediation, many
traditional companies engaged in
reintermediation.
New Consumer Capabilities
A substantial increase in buying
power
• Credit Cards
• Checks
• Schemes such as “buy now, pay
later”, lay-away or installment
A greater variety of available goods
and services
• The availability of a variety of goods
and services makes companies
strengthen the purchasing power of
buyers.
A great amount of information
about practically anything
• The internet is a very powerful tool
Greater ease in interacting and
placing and receiving orders
• There are many ways of buying products. Aside
from the traditional direct selling strategies, or
the dependence on several channels of
distribution, we also depend much on the
internet.
An ability to compare notes on
products and services
• There are websites and magazines designed to
accommodate the evaluation of people regarding
the products and services that they use. They can
be relied upon especially when making
purchasing decisions.
An amplified voice to influence
public opinion.
• A lot of websites have been designed to publish
what people think about goods and services in the
market.
• Freedom of speech has further amplified that
“voice”
The Holistic Marketing
Concept
• This is based on the development, design, and
implementation of marketing programs,
processes, and activities that recognizes their
breadth and interdependencies. Holistic
marketing recognizes that “everything matters”
with marketing – and that a broad, integrated
perspective is often necessary. Holistic
marketing is thus an approach to marketing that
attempts to recognize and reconcile the scope
and complexities of marketing activities.
Holistic Marketing Dimensions
Marketing Management
Tasks
• Develop market strategies and plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Deliver value
• Communicate value
• Create long-term growth