marketing management

1. Lesson 1
Introduction to Marketing Management
1
Nuresh Eranda, PhD

2. Define Marketing
 Marketing is about identifying and meeting human and
social needs (Kotler and Keller, 2016)
 Marketing is the management process responsible for
identifying, anticipating and satisfying customer
requirements profitably (CIM, UK)
 Marketing is the activity, set of institutions, and processes
for creating, capturing, communicating, delivering, and
exchanging offerings that have value for customers, clients,
partners and society at large (American Marketing
Association)
2

3. The Updated Marketing Definition
 The process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return
(Kotler and Armstrong, 2016)
3

4. The marketing process
Understa
nd
marketpla
ce and
customer
needs
Design a
customer
value-
driven
marketing
strategy
Construct
an
integrated
marketing
program
to deliver
superior
value
Build
profitable
relationsh
ips and
create
customer
delight
Capture
value
from
customers
to create
profits
and
customer
equity
4

5. What is customer value?
 Value is not what goes into goods and services, it is what
customers get out of them; in other words, value emerges
in the customers’ space rather than in the producer’s space
(Vandermerwe, 1996)
 Value is not created in the supplier’s processes of
designing, manufacturing, packaging and pricing products
but in the customer’s practices
 Customer value is the outcome of a process that begins with a
business strategy anchored in a deep understanding of customer
needs.
 Marketers should satisfy all the customer touch-points in
marketing
5

6. Customer Value Composition
Monetary
costs
Time
Psychic and
physic costs
Product
Services
Employees
Image
Benefits
Costs
(sacrifices)
Customer Value
6

7. Core aspects of marketing
Marketing is about
satisfying customer
needs and wants
Marketing enables
an exchange
Marketing requires
product, price, place
and promotion
decisions
Marketing can be
performed by both
individuals and
organizations
Marketing affects
various stakeholders
Marketing helps
create value
7

8. Marketing is about satisfying
customer needs and wants
 Understanding the
marketplace and consumer
needs and wants is
fundamental to marketing
success
 Good marketers search for
potential customers who have
interest in the product and an
ability to buy it
8
Dr. Lasantha Malavige

9. Marketing entails an exchange
 The trade of things of value between buyer and the
seller so that each is better off as a result
9

10. Marketing requires product, price,
place, and promotion decisions
 Four P’s: the controllable set of decisions or activities
that the firm uses to respond to the wants of its target
markets
10
• Creating value
Product
• Capturing value
Price
• Delivering value
Place
Promotion Communicating value

11. Marketing can be performed by
both individuals and organizations
 B2B marketing: Selling of goods and services from one
business to another
 B2C marketing: Businesses sell to consumers
 C2C marketing: consumers sell to other consumers
11

12. Marketing affects various
stakeholders
 Marketing can influence supply chain partners,
employees, government and society at large
12

13. Marketing helps to create value
 Marketing has evolved to create value for various
stakeholders
 Value reflects the relationship of benefits to costs
(what you get for what you give)
 A creative way to provide value to customers is to
engage in value cocreation – customers act as
collaborators to create the product or service
13

14. Scope of Marketing:
What is marketing?
 Marketing is not only selling.
 Marketing makes product/service fits customer
& sells itself ==> customer ready to buy
 In the end, Marketing makes selling unnecessary
14

15. 15
Apple iPhone
SONY VAIO
Do you need a salesperson to sell this?

16. Scope of Marketing:
What is Marketed?
 goods
 services
 experiences
 events
 persons
 places
 properties
 organizations
 information
 ideas
16
“Any thing that can be offered to a market for attention,
acquisition, use or consumption and that might satisfy a need
or want”

17. Scope of Marketing:
Who markets?
 Marketers and prospects
 Marketer is someone who
seeks a response –
attention, a purchase, a
vote, a donation – from
another party, called the
prospect
 Market is a physical place
where buyers and sellers
gathered to buy and sell
products
17

18. Company orientation toward the marketplace
(Evolution of marketing philosophies)
18

19. Production Orientation
 The idea that consumers will favor products that are widely
available and inexpensive
 Businesses concentrate on achieving:
 High production efficiency
 Lower cost
 Mass distribution
 Popular in developing countries
 Marketers use this concept in expanding the market
19

20. Product Orientation
 Proposes that consumers favor products
that offer:
 The most quality
 Performance or
 Innovative features
 Businesses focus on making superior
products and improving them over time
(Continuous product Improvements)
 Product concept can lead to ‘marketing
myopia’- the mistake of paying more
attention to the specific products a
company offers than to the benefits and
experiences produced by these products.
20

21. Selling Orientation
 Consumers are always neutral. They must be forced
to buy, unless they will not buy
 Businesses should undertake:
An aggressive selling and
Promotion efforts
21

22. Marketing Orientation
 A philosophy in which achieving organizational goals
depends on knowing the needs and wants of target markets
and delivering the desired satisfactions better than
competitors do
 Four pillars of marketing concept:
 Target market
 Customer needs
 Integrated marketing
 Profitability
22

23. Selling Vs Marketing
23

24. Traditional Organization Vs Marketing Oriented
Organization
Source: Kotler et al., 2009

25. Benefits of a marketing orientated
approach
 Customer satisfaction and it leads to increase
customer loyalty
 Gives rise to new products and innovations, thus
sustaining company’s business.
 Satisfied customers will spread a good word about the
company among the community.
 Increase in organization performance
25

26. New Orientation:
Holistic Marketing Concept
26
Holistic
Marketing
Internal
Marketing
Integrated
Marketing
Performance
Marketing
Relationship
Marketing
Marketing
department
Senior
management
Other
departments
Communications Products &
services
Channels
Customers Channels
Partners
Legal
Environment
Ethics
Brand & customer
equity
Sales revenue
Community
Pricing

27. New Orientation:
Holistic Marketing Concept
 “Everything matters” in marketing: broad & integrated
perspective
 Four components:
 Relationship marketing: Build mutually satisfying long-
term relationships with key constituents to earn and retain
business
 Integrated marketing: Marketers should design and
implement any one marketing activity with all other activities
in mind
 Internal marketing: Ensuring that everyone in the
organization embraces appropriate marketing principles
 Performance marketing: Understand the returns to
business from marketing activities and address broader
concerns
27

28. How do marketing firms become
more value driven?
 Sharing information
 Balancing benefits with costs
 Building relationships with customers
 Connecting with customers using social and mobile
media
28

29. Why is marketing important?
 Marketing expands firms’ global presence
 Marketing is pervasive across marketing channel
members (Firms do not work in isolation and they
operate with strategic relationships and networks)
 Marketing enriches society
 Marketing can be entrepreneurial – marketing plays a
major role in the success of organizations
29
W.K.H. Wegapitiya
CEO – Laugfs Holdings