Marketing management lecture

1. Ace Institute of Management
EMBA, Fall 2023
MKT 561: Marketing Management
$
MKT 561: Marketing Management
© Sujan R Shrestha, EMBA 2023

2. Using our text…
 The “Bible” of Marketing;
a “Must Have” if you’re into
marketing…
But…
 Very “High Density” - a lot of readings
 For best results: Read it…
 Suggested Approach:
Focused… read the base text / skim
the rest…
 Read other elements as you connect
to concepts which need clarification/
expansion.

3. Ace Institute of Management
EMBA, Fall 2023
MKT 561: Marketing Management
$
Lecture 01:
Understanding Marketing Management
© Sujan R Shrestha, EMBA 2023
You are with:

4. Structure of Flows
in a Modern Exchange Economy

5. A Simple Marketing System

6. Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING
SOCIETAL MARKETING

7. The Value of Marketing
 Financial success often depends on marketing ability
 Successful marketing builds demand for products and
services, which, in turn, creates jobs
 Marketing builds strong brands and a loyal customer
base, intangible assets that contribute heavily to the
value of a firm

8. The Scope of Marketing
 Marketing is about identifying and meeting human and
social needs
 AMA’s formal definition: 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

9. Marketing Management
 The art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value.

10. What is Marketed?
 Goods
 Services
 Events
 Experiences
 Persons
 Properties
 Organizations
 Information
 Ideas
 Places

11. Who Markets?
 A marketer is someone who seeks a response—attention,
a purchase, a vote, a donation—from another party,
called the prospect

12. Core Marketing Concepts
 Needs: the basic human requirements such as for air,
food, water, clothing, and shelter
 Wants: specific objects that might satisfy the need
 Demands: wants for specific products backed by an ability
to pay

13. Core Marketing Concepts
 Segmentation
 Target markets
 Positioning

14. Core Marketing Concepts
 Offerings: a combination of products, services,
information, and experiences
 Value proposition: a set of benefits that satisfy those
needs
 Brands: an offering from a known source

15. Core Marketing Concepts
 Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE

16. Core Marketing Concepts
 Paid media: TV, magazine and display ads, paid search,
and sponsorships
 Owned media: a company or brand brochure, catalogue,
web site, blog, facebook page, or twitter account
 Interactive media: refers to the different ways in which
people process and share information. It is meant to
engage the user and interact with.
 Earned media: word of mouth, buzz, or viral marketing
 Impressions: occur when consumers view a
communication
 Engagement: the extent of a customer’s attention and
active involvement with a communication

17. Core Marketing Concepts
 Value: a combination of quality, service, and price (qsp:
the customer value triad)
 Satisfaction: a person’s judgment of a product’s perceived
performance in relationship to expectations

18. Core Marketing Concepts
 Supply chain: a channel stretching from raw materials to
components to finished products carried to final buyers

19. Core Marketing Concepts
 Competition: all the actual and potential rival offerings
and substitutes a buyer might consider

20. Core Marketing Concepts
 Marketing environment
– Task environment
– Broad environment

21. Marketing Mix Components (4 Ps)

22. MODERN MARKETING MANAGEMENT
PROCESSES
PEOPLE
PHYSICAL EVIDENCES
3 MORE Ps

23. MODERN MARKETING MANAGEMENT
PROCESSES
PEOPLE
PROGRAMS
PERFORMANCE
4 MORE Ps

24. Holistic Marketing Dimensions

25. MARKETING MANAGEMENT TASKS
 Capturing marketing insights
 Connecting with customers
 Building strong brands
 Creating value
 Delivering value
 Communicating value
 Creating successful long-term growth
 Developing market strategies and plans

26. Marketing plan
 The central instrument for directing and coordinating the
marketing effort
1. Marketing Situation
2. Marketing Objectives
3. Strategic Plan
4. Tactical Details

27. Strategic Planning, Implementation, and
Control Processes

28. Corporate and division strategic planning
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each strategic business unit
4. Assessing growth opportunities

29. Defining the corporate mission
1. What is our business?
2. Who is the customer?
3. What is of value to the customer?
4. What will our business be?
5. What should our business be?

30. Good Mission statements
Focus on a limited number of goals
Stress the company’s major policies and values
Define the major competitive spheres within which the
company will operate
Take a long-term view
Are as short, memorable, and meaningful as possible

31. Establishing Strategic Business Units
 A single business or collection of related businesses
 Has its own set of competitors
 Has a leader responsible for strategic planning and
profitability

32. Assigning Resources to Each SBU
 Management must decide how to allocate corporate
resources to each SBU
 Portfolio-planning models
 Shareholder/market value analysis

33. The Business Unit
Strategic-planning Process

34. P5F Model
Originally developed by Harvard Business School's Michael E. Porter in 1979, the five forces model looks
at five specific factors that determine whether or not a business can be profitable in relation to other
businesses in the industry. Using Porter's Five Forces in conjunction with a SWOT analysis will help you
understand where your company or business fits in the industry landscape.

35. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

36. SWOT Analysis

37. Internal environment
 Strengths
 Weaknesses

38. External environment
 Marketing opportunity: an area of buyer need and
interest that a company has a high probability of
profitably satisfying.
 Environmental threat: challenge posed by an unfavorable
trend or development that, in the absence of defensive
marketing action, would lead to lower sales or profit

39. Market Opportunity Analysis (MOA)
 Can we articulate the benefits convincingly to a defined
target market(s)?
 Can we locate the target market(s) and reach them with
cost-effective media and trade channels?
 Does our company possess or have access to the critical
capabilities and resources we need to deliver the
customer benefits?
 Can we deliver the benefits better than any actual or
potential competitors?
 Will the financial rate of return meet or exceed our
required threshold for investment?

40. TOWS Matrix
The acronym TOWS is a variant of SWOT and was developed by the American international business
professor Heinz Weirich in 1980s.
The TOWS Matrix is aimed at developing strategic options from an external-internal analysis and is a
practical tool, particularly in the fields of business administration and marketing.

41. Goal formulation (MBO)
 Unit’s objectives must be arranged hierarchically
 Objectives should be quantitative
 Goals should be realistic
 Objectives must be consistent

42. The Business Unit
Strategic-planning Process

43. Strategic formulation:
Porter’s Generic Strategies
COST LEADERSHIP
DIFFERENTIATION
FOCUS
Michael Porter described the theory in his 1985 book ‘Competitive Advantage: Creating and Sustaining
Superior Performance’. The basis was formed by three strategies, namely cost
leadership, differentiation and focus. He divided the latter into cost focus and differentiation focus.

44. Feedback and control
 Peter Drucker: it is more important to
“do the right thing”—to be effective (Leadership),
than
“to do things right”—to be efficient (Management)
 The most successful companies, however, excel at both
Peter Drucker (1909-2005) was one of the most widely-known and influential thinkers on
management, whose work continues to be used by managers worldwide.

45. Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
Marketing Objectives
 Marketing strategy
 Marketing tactics
 Financial projections
 Implementation controls

46. Evaluating a Marketing Plan
 Is the plan simple/succinct?
 Is the plan complete?
 Is the plan specific?
 Is the plan realistic?

47. Other marketing plan contents
 Marketing research
 Specifications for internal and external relationships
 Action plans and schedules