Module 1 - Introduction to Marketing Management PDF

MARKETING MARKETING MANAGEMEN PLAN TExcited to share our innovative marketing plan designed to elevate your brand to new heights. Let's make waves in the market together. Prepared by: Ms. DJ Fernandez Faculty, Dept. of Management  MODULE ONE: Introduction (Nature, Scope and Definition...

MARKETING MARKETING MANAGEMEN PLAN TExcited to share our innovative marketing plan designed to elevate your brand to new heights. Let's make waves in the market together. Prepared by: Ms. DJ Fernandez Faculty, Dept. of Management  MODULE ONE: Introduction (Nature, Scope and Definition of Marketing Management) Objectives: At the end of the lecture, the students must be able to: 1. know the importance of marketing management; 2. understand the nature and scope of marketing management; and 3. understand the basic terms used in marketing management.  NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketing It is a societal process by which individuals and groups obtain Marketing what they need and want through creating, offering, and freely Itexchanging is a societalproducts process and services by which of valueand individuals with others groups obtain what they need and want through creating, offering, and freely exchanging Formally products orof value and services informally, with others people and organizations engage in a vast number of activitiesorwe Formally could call informally, marketing. people and organizations engage in a vast Goodofmarketing number hascould activities we become increasingly vital for success. call marketing. But what constitutes good marketing is constantly evolving and marketing Good changing. has become increasingly vital for success. Good marketing is no accident, but a result of careful planning and execution using state-of-the-art tools But what constitutes good marketing is constantly evolving and and techniques. changing. Good marketing is no accident, but a result of careful planning and execution using state-of-the-art tools and techniques. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT The importance of Marketing Finance, operations, accounting, and other business functions won’t really matter without sufficient demand for products and services so the firm can make a profit. In other words, there must be a top line for there to be a bottom line. Thus financial success often depends on marketing ability. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketing’s broader importance extends to society as a whole: Marketing has helped introduce and gain acceptance of new products that have eased or enriched people’s lives. It builds demand for products and services, which, in turn, creates jobs. Marketing also allows firms to more fully engage in socially responsible activities. Marketers must decide what features to design into a new product or service, what prices to set, where to sell products or offer services, and how much to spend on advertising, sales, the Internet, or mobile marketing. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketing Demand Jobs Profits Giving Revenue NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT What is Management? Management plays a crucial role within every organization as it encompasses the orchestration of resources to realize specific objectives. In simpler terms, management is the systematic procedure of strategizing, structuring, guiding, and overseeing the endeavors of individuals striving to meet the goals of the organization. This pivotal function is instrumental in enabling organizations to achieve efficiency and effectiveness in their operations. The Definition of Management is "getting things done." A manager does not actually conduct the task but is responsible for delegating it to others so it may be completed. As defined by Koontz and O'Donnel, management is "Getting things done by the people and through the people”. Koontz's approach to management was "human relations". His best known advice is "manage-men-t", where "t" stands for tactfully. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketing Management It is the art and science of choosing targets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Philip Kotler and Kevin Lane Keller, define in their book “Marketing Management," as “the development, design, and implementation of marketing programs, processes, and activities that recognize the breadth and interdependencies of the business environment.” NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketing Management ⚬ Exchange and Transactions ￭ Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. ￭ Transaction is a trade of values between two or more parties. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Conditions to satisfy: 1. There are at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Market Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product and product class.  Simple Marketing System Communication Good, services Industry (a Market (a collection of collection of sellers) Money buyers) Information NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Classification of Market NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services. Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Categories of Market: MARKETPLACES, MARKETSPACES, AND METAMARKETS The marketplace is a physical store, such as a store you shop in. It is also called as brick and mortar store. The marketspace is a digital store, as when you shop on the Internet. It is also called as click and mortar store. Meanwhile, metamarket is a cluster of complementary products and services closely related NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Types of Marketed Entities G__D S__V__E E _E _ _ S _ _ NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Types of Marketed Entities _X _ E _ I _ _ C _ _E_S__S P__C_S _ NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Types of Marketed Entities P__P__T__S O__A_IZ_T__ N NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Types of Marketed Entities I__O__A_IO I_E_S _ Types of Marketed Entities: 1.GOODS. Companies worldwide market billions of fresh, canned, bagged, and frozen food products and millions of cars, refrigerators, television sets, machines, and various other mainstays of a modern and global economy. 2. SERVICES. This include the work of airlines, hotels, car rental firms, barbers, and beauticians, maintenance and repair people, as well as professionals working within or for companies, such as accountants, bankers, lawyers, engineers, doctors, software programmers, and management consultants.  Types of Marketed Entities: 3. EVENTS. Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics or World Cup are promoted aggressively to both companies and fans. 4. EXPERIENCES. Tokyo Disneyland and DisneySea represent experiential marketing: customers visit a fairy kingdom, a pirate ship, or a haunted house. So does that Hard Rock Café, where customers can enjoy a meal or see a band in a live concert. Types of Marketed Entities: 5. PERSONS. Celebrity marketing is a major business. Today, every major film star has an agent, a personal manager, and ties to a public relations agency. Artists, musicians, CEOs, physicians, high- profile lawyers and financiers, and other professionals are also getting help from celebrity marketers. 6. PLACES. Place marketers include national tourism agencies, economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. Types of Marketed Entities: 7. PROPERTIES. Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). Real estate agents work for property owners or sellers to buy residential or commercial real estate. 8. ORGANIZATIONS. Organizations actively work to build a strong, favorable, and unique image in the minds of their target publics. Universities, museums, performing arts organizations, and non- profit use marketing to boost their public images and to compete for audience and funs. Types of Marketed Entities: 9. INFORMATION. Encyclopedias and most non-fiction books market information. The production, packaging, and distribution of information is one of our society’s major industries. 10. IDEAS. Every market offering includes a basic idea. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Marketer and Prospects A Marketer is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect. IF two parties are seeking to sell something to each other, we call them both marketers. Marketers are skilled at stimulating demand for their products; Therefore, marketers are responsible for demand management. They seek to influence the level, timing, and composition of demand to meet the organization’s objectives. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT TYPES OF DEMAND 1. Negative demand 2. Nonexistent demand 3. Latent demand 4. Declining demand 5. Irregular demand 6. Full demand 7. Overfull demand 8. Unwholesome demand NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Negative Demand It is created if the product is disliked in general. The product might be beneficial but the customer does not want it. Nonexistent Demand - Consumers may be unaware of or uninterested in the product. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Declining Demand Consumers begin to buy product frequently or not at all. Latent Demand - Consumers may share a strong need that cannot be satisfied by an existing product. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Full Demand Consumers are adequately buying all products put into marketplace. Irregular Demand - Consumers purchases vary on seasonal, monthly, weekly, daily or even hourly basis. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Unwholesome Demand Consumers may be attracted to products that have undesirable social consequences. Overfull Demand - This demand generates when there is a limited manufacturing capacity of the company for a product, but the demand for it is more than the manufacturing capacity. It means that demand is more but supply is less. Golden Rule: Customer Relationships Expert agrees: “ Sell good merchandise, treat your customers like human beings, and “ If you want your customers to be they will always come back for more loyal, you must prove that you more.” have their best interests at heart. Your concern for the customer’s welfare must be strong that even occasionally trumps your own concern for immediate profits”. Building Customer Loyalty “ The only value your company will ever create is the value that comes from customers – the ones you have now and the ones you will have in the future. Without customers, you don’t have a business.”  Building the Right Relationships with the Right Customers Classification of Customers according to their potential profitability: 1.Butterflies profitable but not loyal enjoy this kind of customers for only a short while and then they are gone. *They should be given a hard sell in the early stages of their purchase, while they are still interested in the company’s products. *However, once it appears that their purchases have dropped off, you should stop investing much time and effort into selling to them. 1.True Friends - both profitable and loyal - the firm wants to make continuous relationship investments to delight these customers and nurture, retain and grow them - to turn these true friends into “true believers” who come back regularly and tell others about their good experience with the company 1.Strangers - little fit between company’s offerings and customer’s needs - lowest profit potential 2.Barnacles - highly loyal but not very profitable - although they think highly of your company and its products, they spend very little. - Ideally, the best course of action is to try to sell them on products that are related to what they already have. REMEMBER: ** different types of customers require different relationship management strategies; the goal is to build the right relationships with the right customers. NATURE, SCOPE AND DEFINITION OF MARKETING MANAGEMENT Post-Test: Identify the type of demand in the given product: 1. Toothpaste 2. Walkman 3. Cellphone with long lasting battery 4. Roller Blades 5. Christmas Decor 6. Medicine 7. Rice 8. Cigarettes