Marketing Management Basics

Study Notes

Marketing focuses on customer satisfaction through offering valuable products and services.
Defined by the Chartered Institute of Marketing as a management process for identifying, anticipating, and satisfying customer needs profitably.

Involves product development, pricing, distribution channels, and promotion strategies.

An organizational function that creates, communicates, and delivers customer value.
A societal process that facilitates the exchange of products and value.
A management process focusing on customer needs to generate profits.
A commercial function transferring goods from producers to consumers.
Ensures the right product is made available in a suitable location at the optimal time and price.
Adapts organizational resources to meet changing customer needs.

Identify the target market for product marketing.
Understand the needs and wants of the target audience.
Develop products to fulfill these identified needs effectively.
Establish pricing based on manufacturing costs, competition, market conditions, and product quality.
Ensure timely distribution via adequate channels.
Implement promotion techniques to influence customer purchasing decisions.
Continuously adapt to satisfy evolving customer requirements.
Utilize various channels to attract new customers and retain existing ones.
Conduct research to improve existing products and innovate new offerings.

Barter Stage: Goods exchanged for goods; dating back to 6000 BC; known for its prevalence during the Great Depression.
Production Stage: From early capitalism to mid-1950s; focused on production with limited lines and minimal research or promotion.
Sales Stage: Mid-1950s to early 1970s; post-World War II demand led to aggressive advertising and competitor-based pricing.
Marketing Stage: Began in the 1970s; emphasizes consumer needs and wants as drivers for business decisions.

To Society:
- Identifies and satisfies societal needs through valuable goods and services.
- Develops goods and services that cater to societal demands.
- Acts as a bridge between producers and consumers.
- Facilitates fair pricing and creates a competitive market landscape.
- Generates employment and distributes products across various regions.
- Educates consumers through promotion.
- Offers diverse products, allowing choices based on personal preferences.
To Firms:
- Pinpoints target markets effectively.
- Aids in product/service development aligned with market needs.
- Gauges product demand accurately.
- Provides crucial information to customers.
- Ensures efficient product delivery through distribution systems.
- Analyzes competitors and identifies product competitive advantages.
- Discovers new product opportunities and potential markets.

Marketing resolves scarcity by enhancing the availability of goods and services.
Drives entrepreneurial activities leading to effective resource use and increased national income.
Fosters the development of foundational industries like agriculture and mining.
Enhances foreign exchange through exports.
Contributes to the growth of the industrial sector.