BUS002 NOTES

MARKETING MANAGEMENT

What is Marketing?

According to the American Marketing Association (AMA), Marketing is the

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

A Simple Marketing System

Communication

Buyer

Seller

Information

Marketing Concept

The marketing concept is the belief that companies must assess the needs of
their consumers first and foremost. Based on those needs, companies can
make decisions in order to satisfy their consumers' needs, better than their
competition.

. It holds that the key to achieving organizational goals consists of the

company being more effective than its competitors in creating, delivering,
and communicating customer value to its chosen target markets
(Kotler,2012).

4 Pillars of the Marketing Concept

Customer Needs
Target Market


Integrated Marketing


Profitability



Company Marketplace Orientation

The production concept holds that consumers will choose products

that are widely available and cheaper.


product concept- holds that consumers will patronize products that

are of better quality, higher performance, or have new features.


selling concept- holds that on their own, customers and businesses

will not buy enough of the organization’s products unless assisted by


the business organization.

societal marketing concept- holds that the organization’s must

determine the needs, wants, and interests of target markets and to


deliver the desired satisfactions more effectively and efficiently than

competitors so as to uphold or improve the welfare of the consumers
and the society as a whole.

Core Marketing Concepts

 Needs, Wants, Demands

 Product/ Offering
Value & Satisfaction


Relationship


Marketing Channels


Supply Chain


Competition


Marketing Environment



4 P’s of the Marketing Mix

Product

Place
Product


Price


Promotion



The Marketing Research Process

Marketing research is the systematic design, collection, analysis, and

reporting of data and findings relevant to a specific marketing situation
facing the company (Kotler, 2012) ).

The American Marketing Association (AMA, 1961) defines it as the

systematic gathering, recording and analyzing of data relating to the
marketing of goods and services‘.

Steps in the Marketing Research Process

 Identifying the Problem & Objective of the Research
Design the Research Activities.


Gather Relevant Data



Analyze & Interpret the Data Collected



Prepare & Communicate the Research Report



Make the Marketing Decision




Factors Affecting Co. Strategy

Politics

Technology

Social

Demographic

The Relationship Of Marketing Plan to Strategic Plan & Other Functional

Plans
Strategic Plan

Marketing Plan

Production Plan

Financial Plan

HR Plan

Operational Plan

Strategic Planning

Feed Back
ENVIRONMENTAL SCANNING

 Internal Environment

 External Environment

STRATEGY FORMULATION

- Objectives & Policies

STRATEGY IMPLEMENTATION

 Programs

 Regulations

 Budget

STRATEGY CONTROL

 Sales Analysis

 Ratio Analysis

 Inventory Control

 Balance Scorecard

What is Marketing Management

According to the Institute of Marketing, Marketing Management is the

“planning, organizing, controlling and implementing of marketing
programs, policies, strategies and tactics designed to create and satisfy the
demand for the firms’ product offerings or services as a means of
generating an acceptable profit.”

On the other hand, Philip Kotler had defined Marketing Management as the
art and science of choosing target markets and building profitable
relationship with them. Marketing management is a process involving
analysis, planning, implementing and control and it covers goods, services,
ideas and the goal is to produce satisfaction to the parties involved”.
Marketing Management Tasks

 Developing Strategic Marketing Plans

 Monitoring the Market Environment

 Relating with Customers

 Creating Better Brands

 Designing the Market Offerings

 Adding Value to the Product/ Service Offerings

 Building long-term Growth

What is Market Planning?

According to MacColm H. B. Me Donald, “Marketing Planning is a logical

sequence of activities leading to the setting of marketing objectives and
formulation of plans for achieving them.”

In the words of Wendell R. Smith, “Marketing Planning is the exercise of

analysis and foresight to increase the effectiveness of marketing activities.”

With Market Planning, management can analyze & interpret past

marketing activities, which can provide the business organization the
required courses of action in achieving the company’s marketing objectives.
Its main interest is the allocation, development and future use of the
marketing resources.

What is Marketing Planning?

Marketing planning is a systematic process involving the assessment of

marketing opportunities and resources, the determination of marketing
objectives and the development of a plan for implementation and control.’
Dibb and Simkin, Marketing: Concepts and Strategies, 2001
Benefits of a Marketing Plan

The benefits of planning include (from McDonald, Marketing Plans, 1999):

 To help identify sources of competitive advantage

 To force an organized approach

 To ensure consistent relationships

 To inform

 To get resources

 To get support

 To gain commitment

 To set objectives and strategies

 To spell out the desired mix of products and services

Barriers to Marketing Planning

 The culture of the organization – is it focused internally rather than

externally?
 Power and politics
 Analysis – not action
 Resource issues – money and time
 Skills and technology – may not match customer need
  Ability to challenge existing ideas

Common Problems of Implementing Strategic Marketing Plans

1. Lack of support from top management.

2. Lack of internal marketing plans.
3. Lack of line management support
4. Confusion over short planning terms.
5. Too much of detail
6. Separation of operational planning from marketing plans.
7. Integrating marketing planning.
8. Delegation of planning to planners.

Steps in the Research Process

Step-1 – Identifying and Defining a Marketing Problem:

The problem may be related to product, price, market competition, sales

promotion and so on.

The research process will start only when the marketing problem has been
identified identified and clearly defined.

Step-2 – Conducting a Preliminary Exploration (Survey):

There could be several problems affecting the company, but the researcher
should only tackle one problem at a time so that a detailed investigation can
be done.

Step-3 – Determining Research Objectives:

The researcher has to formulate hypothesis to fit the problem under

investigation. It is a tentative explanation of a problem under study.

Step-4 – Determining the Data Required and their Sources:

In this stage, the researcher has to decide the type of data required for his
study purpose. The hypothesis guides the data collection process. The
researcher can use primary and/or secondary data for his research project.

Step-5 – Creating Research Design:

Research design is the plan for the conduct of actual research investigation.
Such design provides guideline for the researcher to keep a track on his
actions and to know that he is moving in the right direction on data
collection.

Step-7 – Designing a Sample of Respondents:

For data collection, a representative group will have to be selected out of
the total universe. A sample must be adequately represent the total
population under study.

Step-8 – Collecting Data:

Data are to be collected as per the method selected for data collection. It
can be through personal interview, telephone, or email.

Step-9 – Organizing/Processing the Data Collected:

The questionnaire be organized /processed properly for drawing

conclusions. For this, scrutiny of data, editing, coding and classification of
data are required. It must also be tabulated & arranged for proper analysis
& interpretation.

Step-10 – Analyzing and Interpreting Data:

Tabulated data can be used for detailed and critical analysis. The purpose is
to establish useful and logical relation between the information and
problem.

Conclusions can be drawn after the analysis and interpretation of data.

Such conclusions are useful for suggesting remedial measures.Various
statistical techniques are used for the analysis and interpretation of data.

Step-11 – Preparing Research Report:

After drawing conclusions, the researcher can make concert

suggestions/recommendations for solving the marketing problem in a
satisfactory manner. A researcher also prepares a document giving details
of research problem, data collected, conclusions drawn and the
recommendations made.

Step-12 – Presenting Research Report:

The researcher will submit the report to the decision-makers in the field of
marketing. The decision-makers will study the report minutely and find out
the desirability of execution of the recommendations made.

Step-13 – Follow-Up Steps:

If the recommendations made are accepted, the decision makers have to

take follow-up steps for the execution of the recommendations made. The
follow up steps should be controlled effectively so as to have positive results
in the cause of time.

The Role of Market Research

What can we find out? What does it mean? What should

we do?

 Systematic & objective data collection

 Inferences on & interpretation of the data
 Recommendations or options on the courses of action

The research design contains answers to the following questions:

(a) What is the nature and purpose of study?

(b) What type of data is required?
(c) How to collect required data?
(d) What is the technique of data collection?
(e) How much funds will be required?
(f) How much time/period will be required for completion of research
project?

Step-6 – Designing the Questionnaire:

As per the objective of research project, information will be required. For

collection of data, suitable questionnaire will have to be prepared. All
necessary care should be taken in order to prepare ideal questionnaire, so
as to collect required information easily, quickly and correctly.

Categories of Research
  Market Measurement

 Customer satisfaction surveys

 New product development

 Usage and attitude surveys

Advantages of Marketing Research

1. Indicates Current Market Trends:

Marketing research keeps business unit in touch with the latest market
trends and offers guidance for facing market situation with confidence. It
facilitates production as per consumer demand and preferences.

2. Pinpoints Deficiencies in Marketing Policies:

MR pinpoints the deficiencies as regards products, pricing, promotion etc. It

gives proper guidance regarding different aspects of marketing. They
include product development, branding, packaging and advertising.

3. Explains Customer Resistance:

MR is useful for finding out customer resistance to company’s products.

Suitable remedial measures are also suggested by the researcher to deal
with the situation. This makes the products agreeable to the consumers.

4. Suggests Sales Promotion Techniques:

Marketing research enables a manufacturer to introduce appropriate sales

promotion techniques, select most convenient channel of distribution,
suitable pricing policy for the products and provision of discounts and
concessions to dealers. It facilitates sales promotion.

5. Guidance to Marketing Executives:

Marketing research offers information and guidance to marketing

executives while framing marketing policies. Continuous research enables a
company to face adverse marketing situation boldly. It acts as an insurance
against possible changes in market environment.

6. Selection and Training of Sales Force:

Marketing research is useful for the selection and training of staff in the
sales Organization. It suggests the incentives which should be offered for
motivation of employees concerned with marketing.

7. Facilitates Business Expansion:

Marketing research enables a business unit to grow and expand its

activities. It creates goodwill in the market and also enables a business unit
to earn high profits through consumer oriented marketing policies and
programs.

8. Facilitates Appraisal of Marketing Policies:

Research activities enable marketing executives to have an appraisal of the

present marketing policies in the fight of research findings. Suitable
adjustments in the policies are also possible as per the suggestions made.

9. Suggest Marketing Opportunities:

Marketing research suggests new marketing opportunities and the manner

in which they can be exploited fully. It identifies existing and emerging
market opportunities.

10. Facilitates Inventory Study:

Marketing research is useful for the evaluation of company’s inventory

policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw materials.

11. Provides Marketing Information:

MR provides information on various aspects of marketing. It suggests

relative strengths and weaknesses of the company. On the basis of such
information, marketing executives find it easy to frame policies for the
future period. MR provides information, guidance and alternative solutions
to marketing problems.

12. Suggests Distribution Channels:

Marketing research can be used to study the effectiveness of existing

channels of distribution and the need of making suitable changes in the
distribution system.

13. Creates Progressive Outlook:

Marketing research generates a progressive and dynamic outlook

throughout the business Organization. It promotes systematic thinking and
a sense of professionalization within the company. It also creates
enthusiasm among executives concerned with marketing. This brings
success and stability to the whole business unit.

14. Social Significance:

Marketing research is of paramount importance from the social angle. It

acts as a means by which the ultimate consumer literally becomes king of
the market place.

Key Principles or Guidelines in the Gathering, Recording, and Storing of

Personal Data for Market & Social Research

 Personal data must be processed in accordance with the law.

 It can only be used for its intended purpose

Researchers & clients can only ask for information which is relevant &
necessary for the purpose of the research.


 Getting full consent from respondents is a must.

Data Collection Conditions

The respondents must always give his of her informed consent to

being interviewed.

 You must always have the respondents permission before passing any
of their personal data to another agency.


Clients who commission the research can only use the respondent’s
personal data for the purpose for which the respondent has given


permission.

Data controllers ( not data processors) have the prime responsibility

& clients are the data controllers for customer databases.


Research agencies are the data controllers for any lists they buy or
acquire rights for, any databases created from scratch, and any


databases created.

A market research agency operating to the Industry Code of Conduct

is not allowed to release the name of respondents, where the client’s


intention is to try and sell to them.

Cycle of Research

THEORY

Test Hypotheses (Deduction)

OBSERVATIONS
Generalize from observations (Induction)

Scientific knowledge-refers to a generalized body of laws and theories to

explain a phenomenon or behavior of interest that are acquire using the
scientific method.

Scientific method-refers to a standardized set of techniques for building

scientific knowledge, such as how to make valid observations, how to
interpret results, and how to generalize those results.

Laws-observed patterns of phenomena or behaviors.

Theories-systematic explanations of the underlying phenomenon or

behavior.