CHAPTER 1:

Introduction to
Marketing
Management
RICHELLE A. ESPINEDA
CHAPTER 1:
Introduction to
Marketing
Overview of Marketing Concept

The marketing concept is a fundamental philosophy in

business that emphasizes understanding and meeting the
needs of customers to achieve organizational goals. This
concept has evolved over time and is widely adopted by
companies across various industries.
Overview of Marketing Concept

The marketing concept revolves around the

idea of identifying and fulfilling customer
needs and wants through strategic planning,
effective implementation, and continuous
evaluation.
Several Key Principles of Marketing
Management
1. Customer Orientation: Businesses
adopting the marketing concept prioritize
understanding their target customers' needs,
preferences, and behaviors. By conducting
market research and analysis, companies
gain insights into customer desires and use
this information to develop products or
services that address those needs.
Several Key Principles of Marketing
Management
2. Integrated Marketing: The marketing concept
emphasizes the importance of integrated marketing efforts
across various channels and touchpoints. This includes
advertising, sales promotion, public relations, direct
marketing, and digital marketing. Integrated marketing
ensures a consistent message and brand experience across
all interactions with customers.
Several Key Principles of Marketing
Management
3. Profitability: While meeting customer needs is essential,
the marketing concept also recognizes the importance of
profitability. Businesses must generate sufficient revenue
and profits to sustain operations, invest in product
innovation, and provide returns to shareholders. Effective
marketing strategies aim to balance customer satisfaction
with financial viability.
Several Key Principles of Marketing
Management
4. Long-Term Perspective: The marketing concept
encourages businesses to take a long-term perspective and
build enduring relationships with customers. This involves
not only acquiring new customers but also retaining existing
ones through superior product quality, customer service, and
ongoing engagement efforts.
Several Key Principles of Marketing
Management
5. Market Orientation: Businesses adopting the marketing
concept are market-driven rather than product-driven. They
continuously monitor changes in consumer preferences, market
trends, and competitive dynamics to adapt their strategies
accordingly. Market-oriented companies are agile and
responsive, allowing them to stay ahead of competitors and
capitalize on emerging opportunities.
Several Key Principles of Marketing
Management
Value Creation: The marketing concept emphasizes the
creation of customer value as a key driver of success.
Businesses must offer products or services that provide tangible
benefits and solutions to customers' problems. By delivering
superior value relative to competitors, companies can build
strong brand loyalty and achieve sustainable competitive
advantage.
Marketing and Selling
Concept

The marketing concept and the selling concept are

two contrasting approaches to business philosophy.
While the marketing concept focuses on
understanding and satisfying customer needs to
achieve organizational goals, the selling concept
revolves around aggressive sales techniques to
generate revenue, often without considering
customer needs.
Marketing and Selling Concept

1. Marketing Concept:
Description: The marketing concept is centered on the idea of
identifying and fulfilling customer needs and wants through strategic
planning, effective implementation, and continuous evaluation. It
prioritizes understanding customer preferences, conducting market
research, developing products or services that address those needs, and
building long-term customer relationships.
Key Characteristics: Customer orientation, integrated marketing,
profitability, long-term perspective, market orientation, value creation.
Marketing and Selling Concept

Selling Concept:
Description: The selling concept, in contrast, is based on the belief that
customers will not buy enough of a company's products unless it
undertakes a large-scale selling and promotion effort. It assumes that
customers will not buy products or services unless persuaded to do
so through aggressive selling techniques such as advertising,
personal selling, and sales promotion.
Key Characteristics: Emphasis on selling and promotion, persuasion-
based approach, transactional focus, short-term orientation.
Marketing and Selling Concept

The selling idea is more concerned with producing sales

volume and hitting short-term income targets than the
marketing concept, which places more emphasis on
providing value to clients and fostering connections.
Businesses must comprehend the distinctions between
these two ideas in order to create marketing plans that
work and sustain growth in highly competitive sectors.
Defining a Marketing
Orientation
A marketing orientation is a business philosophy that focuses on identifying
and meeting the needs and wants of customers through market research,
customer analysis, and the development of products and services that provide
superior value and satisfaction. It involves continuously assessing market
trends, competitor activities, and customer feedback to adapt strategies and
offerings accordingly, with the ultimate goal of achieving long-term customer
loyalty and profitability.
Defining a Marketing
Orientation

Through strategic planning, product development, and

customer involvement, a marketing orientation places a
high priority on comprehending and meeting the
requirements and desires of customers. It entails
coordinating every facet of the business, such as
distribution, pricing, promotion, and product design, to
efficiently satisfy client needs.
Different States of Demand

In marketing, demand refers to the desire and

willingness of consumers to purchase a particular
product or service at a given price and time.
Demand can vary based on several factors, leading
to different states of demand.
Different States of Demand
1. Negative Demand: Negative demand occurs when
consumers actively dislike a product or service and may
even seek to avoid it. This could be due to perceived
negative consequences, ethical concerns, or poor past
experiences with the product or brand.

2. No Demand: No demand refers to a situation where

there is little or no interest or desire for a product or
service. This could be because the product is unknown to
consumers, lacks relevance, or does not solve a
significant problem or need.
Different States of Demand
3. Latent Demand: Latent demand exists when there is a
potential desire for a product or service, but it has not yet
been realized or expressed by consumers. This could be
due to lack of awareness, availability, or affordability of the
product.

4. Declining Demand: Declining demand occurs when the

interest in a product or service decreases over time. This
could be due to changes in consumer preferences,
technological advancements, or the emergence of substitute
products.
Different States of Demand

5. Irregular Demand: Irregular demand refers to fluctuations in

demand over time, often due to seasonal factors, changing
consumer trends, or unpredictable market conditions. Products
such as holiday decorations or seasonal clothing may
experience irregular demand patterns.

6. Full Demand: Full demand occurs when consumer desire for

a product or service matches its availability in the market. In this
state, marketers may need to adjust their strategies to maintain
or increase market share while meeting customer needs.
Different States of Demand

7. Overfull Demand: Overfull demand happens

when consumer demand exceeds the available
supply of a product or service. This could result
from factors such as limited production capacity,
unexpected popularity, or insufficient marketing
efforts.
Building a Marketing Orientation

RATIONALE

Building a marketing orientation involves

aligning the organization's strategies,
processes, and culture towards
understanding and satisfying customer
needs and wants effectively.
Step-by-step guide to building a marketing orientation

1. Market Research and Analysis: Start by conducting

thorough market research to understand your target
market, including demographics, preferences, buying
behavior, and competitive landscape. Use techniques
such as surveys, focus groups, and data analysis to
gather relevant insights.
Step-by-step guide to building a marketing orientation

2. Customer-Centric Culture: Foster a customer-

centric culture within the organization, where
everyone, from top management to frontline
employees, prioritizes customer satisfaction.
Encourage employees to listen to customer
feedback, empathize with their needs, and take
proactive steps to address them.
Step-by-step guide to building a marketing orientation

2. Customer-Centric Culture: Foster a customer-

centric culture within the organization, where
everyone, from top management to frontline
employees, prioritizes customer satisfaction.
Encourage employees to listen to customer
feedback, empathize with their needs, and take
proactive steps to address them.
Step-by-step guide to building a marketing orientation

3. Product and Service Development:

Develop products and services that meet the
needs and preferences of your target
customers. Use insights from market
research to identify gaps in the market and
opportunities for innovation. Continuously
iterate and improve your offerings based on
customer feedback and changing market
dynamics.
Step-by-step guide to building a marketing orientation

4. Integrated Marketing
Communications: Develop integrated
marketing communications strategies that
deliver consistent messages across
various channels and touchpoints. Align
advertising, sales promotion, public
relations, direct marketing, and digital
marketing efforts to reinforce your brand
message and value proposition.
Step-by-step guide to building a marketing orientation

5. Relationship Marketing: Focus on

building long-term relationships with
customers by delivering superior value,
personalized experiences, and
exceptional customer service. Invest in
customer relationship management
(CRM) systems to track customer
interactions, segment customers based
on their preferences, and tailor
marketing efforts accordingly.
Step-by-step guide to building a marketing orientation

6. Market Orientation: Adopt a market-

oriented approach to decision-making,
where strategies and tactics are guided
by market insights and customer
feedback rather than internal
assumptions or preferences. Stay agile
and responsive to changes in consumer
preferences, market trends, and
competitive dynamics.
Step-by-step guide to building a marketing orientation

7. Performance Measurement and

Improvement: Establish key performance
indicators (KPIs) to measure the
effectiveness of your marketing efforts, such
as customer satisfaction, market share, and
customer lifetime value. Use data analytics
and performance metrics to identify areas
for improvement and optimize marketing
strategies accordingly.
CHAPTER II:
Strategic
Marketing
Process
Strategic Marketing Process

The strategic marketing process involves a series

of steps designed to guide organizations in
developing and implementing effective marketing
strategies to achieve their objectives.
Strategic Marketing Process

Outline of the strategic marketing process

1. Market Analysis: Begin by conducting a

comprehensive analysis of the market
environment, including macroeconomic trends,
industry dynamics, competitor strategies, and
consumer behavior. Use tools such as market
research, SWOT analysis, and PESTLE
analysis to gather relevant insights.
Strategic Marketing Process

Outline of the strategic marketing process

2. Segmentation, Targeting, and Positioning

(STP): Segment the market into distinct groups
based on characteristics such as demographics,
psychographics, and behavior. Select target
segments that align with the organization's
objectives and resources. Develop positioning
strategies to differentiate the organization's offerings
and create a unique value proposition for each
target segment.
Strategic Marketing Process

Outline of the strategic marketing process

3. Setting Objectives: Establish clear and

measurable marketing objectives that align with
the organization's overall goals and mission.
Objectives should be specific, achievable,
relevant, and time-bound (SMART). Examples
include increasing market share, launching a new
product, or entering new markets.
Strategic Marketing Process

Outline of the strategic marketing process

4. Developing Marketing Strategies: Based on

the market analysis and STP process, develop
marketing strategies to achieve the objectives.
This may involve decisions regarding product
development, pricing, distribution, and promotion.
Consider factors such as product positioning,
competitive advantage, and resource allocation.
Strategic Marketing Process

Outline of the strategic marketing process

5. Implementation: Execute the marketing

strategies through effective implementation plans
and tactics. This may include activities such as
product launches, advertising campaigns, sales
promotions, and distribution channel management.
Ensure coordination across different departments
and stakeholders to maximize effectiveness.
Strategic Marketing Process

Outline of the strategic marketing process

6. Monitoring and Control: Monitor the

performance of the marketing strategies and
tactics using relevant metrics and KPIs. Track
progress towards achieving objectives and
identify any deviations from the plan. Take
corrective actions as needed to address issues
and optimize performance.
Strategic Marketing Process

Outline of the strategic marketing process

7. Evaluation and Adjustment: Evaluate the

effectiveness of the marketing efforts against the
predefined objectives and benchmarks. Analyze
the outcomes of marketing initiatives and identify
lessons learned. Use insights from the evaluation
process to refine future strategies and make
adjustments as necessary.
RESOURCES
1. Kotler, P., Armstrong, G., Harris, L. C., & Piercy, N. (2017). Principles of Marketing. Pearson
Education Limited.