Study Notes on Marketing Management

Organizational Overview

  • Document Code: KLL-CBA-PPT-001
  • Effectivity Date: August 23, 2021
  • Revisions: 0
  • College: College of Business Administration
  • Course: Marketing Management
  • Instructor: Erna P. Simanca, MBA
  • Location: Marawoy, Lipa City, Batangas, Philippines

Marketing Definition

  • Marketing refers to the process or techniques of promoting, selling, and distributing products or services.
  • It encompasses:
    • The planning and execution of the conception, pricing, promotion, and distribution of ideas, goods, and services.
    • Objective: To create exchanges that satisfy individual and organizational goals.

Managerial Functions of Marketing

  • 1st Managerial Function:
    • Involves both planning and execution to achieve identifiable objectives.
  • 2nd Functionality:
    • Includes specific elements or functions:
    • Product
    • Pricing
    • Promotion
    • Distribution
  • 3rd Goal Orientation:
    • Aims to create exchanges that satisfy individual and organizational objectives.
  • Marketing is focused on customers and fulfilling their needs in the marketplace.

Strategic Concepts: The 3C's

  • Key components to understand marketing:
    • Company
    • Customers
    • Target Market
  • Interaction:
    • Both the company and target market are equally important.
    • Satisfaction of one without the other does not constitute marketing.
    • A marketer must consider a company's strengths and weaknesses to serve the market effectively.

Marketing Mix

  • Determined post identification of the target market.
  • Market Definition:
    • A place where buyers and sellers interact.
  • Three Interacting Components:
    • Customers
    • Competition
    • Company
  • Combining these components produces the strategic 3C’s of Marketing.

The Marketing Concept

  • A business orientation where the primary focus is to satisfy customers’ needs while maintaining acceptable revenue levels and costs.
    • For profit organizations: revenues and costs relate to targeted returns on investment.
    • Non-profit organizations: focus on balancing revenues and costs.

Marketing Management

  • Defined as a series of strategic management actions aimed at optimizing marketing campaigns for efficiency.
  • Encompasses:
    • Analysis
    • Planning
    • Implementation
    • Control of programs designed to establish desired exchanges with target markets.
  • Philip Kotler's Definition:
    • Marketing Management is the art and science of choosing target markets and building profitable relationships with them.

Marketing Management Process

  • Not a one-time instruction manual, involves continuous updating and adaptation.

The Five Steps of the Marketing Process

  • 1. Understanding Marketplace and Customer Needs and Wants
  • 2. Designing A Customer-Driven Marketing Strategy
  • 3. Constructing an Integrated Marketing Plan that Delivers Superior Value
  • 4. Building Profitable Relationships
  • 5. Capturing Value From Customers

Five Steps of Marketing Management Process

  • Step 1: Market Analysis
  • Step 2: Marketing Goals
  • Step 3: Marketing Strategy
  • Step 4: Marketing Mix
  • Step 5: Marketing Monitoring

Market Analysis

  • Involves a detailed assessment including:
    • Target market evaluation
    • Competitive landscape analysis
  • Purpose: To project success when introducing new brands/products.
  • Elements include:
    • Market size
    • Segmentation
    • Analysis of competition

Methods of Market Analysis

  • Popular Techniques:
    • Market research surveys
    • Personal interviews
    • Focus groups
    • Consumer observations
    • Field trials
    • Social media engagement
    • Competitive analysis

Marketing Goals

  • Defined as specific objectives within a marketing plan.
  • Goals should be part of an overall business plan and can include:
    • Sales targets
    • Brand awareness enhancement
    • Lead generation
    • Customer acquisition
    • Website traffic increase.

SMART Goals Framework

  • Specific: Set realistic numbers with deadlines.
  • Measurable: Ensure tracking of goal accomplishment.
  • Attainable: Goals must be challenging yet possible.
  • Realistic: Honest assessment of capacities.
  • Time-bound: Provide deadlines for goals.

Marketing Strategy

  • Represents a business overall plan to engage potential consumers and convert them into customers.
  • Includes:
    • Promotional efforts
    • Resource allocation
    • Sales channel optimization

Marketing Plan vs. Marketing Strategy

  • Marketing Strategy:
    • Explains goals and objectives to achieve.
    • Shaped by business goals.

Marketing Mix

  • A blend of controllable factors to influence consumer purchasing:
    • Product
    • Price
    • Place
    • Promotion

Marketing Monitoring

  • Involves tracking marketing activities to assess goal achievement and effectiveness.

Market Environment Overview

  • Integral to the marketing planning process.
  • Factors include:
    • Internal
    • External
    • Technological influences
    • Cultural influences.

Components/Elements of a Marketing Plan

  • Nine steps required for a well-crafted marketing strategy:
    1. Set marketing goals
    2. Conduct a marketing audit
    3. Conduct market research
    4. Analyze the research
    5. Identify target audience
    6. Determine budget
    7. Develop specific marketing strategies
    8. Implementation

Business Environment Components

  • Micro Environment: Internal aspects of a business.
  • Competitive Environment: Industry competition specifics.
  • External Environment: Cultural/ socio-cultural factors impacting consumer behavior.
  • Macro Environment: Broader factors influencing business operations beyond organizational control.

Market Segmentation

  • Process of dividing the target market into distinct groups with shared characteristics:
    • Data Points:
    • Age
    • Income
    • Personality traits
    • Behavior
    • Interests
    • Needs
    • Location
  • Helps tailor offerings to target market demands and preferences.
  • Facilitate product positioning to meet specific group needs.

Types of Market Segmentation

  • Geographic: Based on location. Includes:
    • Zip codes
    • Climate
  • Demographic: Based on population statistics. Includes:
    • Age
    • Gender
    • Income
  • Psychographic: Based on lifestyles and personalities.
  • Behavioral: Based on usage, spending habits, and customer loyalty.

Importance of Market Segmentation

  • Assists in identifying targeted groups for appealing product offerings.
  • Minimizes risks and enhances clarity within branding and service delivery efforts.

Market Segmentation Process and Evaluation

  • Incorporates multiple phases to effectively segment the market:
    1. Setting Expectations/Objectives
    2. Identifying Customer Segments
    3. Evaluating Potential Segments
    4. Developing Segment Strategy
    5. Launch and Monitor

Conclusion

  • Effective market segmentation enables a company to focus resources on the most profitable opportunities and optimize market strategies for enhanced business performance.
  • Ensuring alignment of marketing strategies with overall business objectives is crucial for success in competitive landscapes.

Instructor Note

  • Instructor's Name: Erna P. Simanca, MBA(c)
  • Course Theme: Focus on integrating customer needs within marketing strategies to achieve organizational success.
  • Contact: https://www.facebook.com/kulcba
    @Be Sincere. Be Active. Be Honest.