Marketing Management Lecture Notes

Jul 1, 2024

Marketing Management Lecture Notes

Introduction to Marketing Management

  • Definition: Marketing management involves managing the marketing function of an organization.
  • Key Points:
    • Business organization attempts to satisfy community needs and wants while making a profit.
    • Businesses convert inputs into outputs (products/services) for the community.
  • Marketing Function:
    • Involves transferring products or services to the market (people willing to use and pay for them).
    • Elements: Environmental scanning and development of market offerings.

Learning Outcomes

  • Understand evolution of marketing thoughts.
  • Define marketing and its components.
  • Conduct market research and analyze consumer behavior.
  • Execute market segmentation, target market selection, and positioning.
  • Make decisions on product, pricing, distribution, and marketing communication.
  • Understand customer service principles.

Evolution of Marketing Thoughts

  • Historical Development:
    • Pre-WW1, Post-WW1, Post-WW2 periods affected marketing evolution.
    • Shift from operation-oriented to relationship marketing.
  • Key Approaches:
    • Operation-oriented: Focus on product production and organizational capabilities.
    • Sales-oriented: Characterized by misleading adverts and aggressive sales techniques.
    • Marketing-oriented: Balances multiple market factors, including quality and consumer preferences.
    • Consumer-oriented: Emphasizes consumer needs and preferences.
    • Strategic and Relationship Marketing: Focus on long-term survival and building customer relationships.

Marketing Concept

  • Principles:
    • Profitability
    • Consumer Orientation
    • Social Responsibility
    • Organizational Integration
  • Implications:
    • Align marketing activities with overall business goals.
    • Ensure long-term sustainability and customer satisfaction.

Defining Marketing

  • Definition: Management tasks to meet opportunities and threats by transferring market offerings to satisfy consumer needs.
  • Components:
    • Product or Service
    • Price
    • Place (Distribution)
    • Promotion (Communication)

Market Research

  • Importance: Provides information for effective business management.
  • Methodologies:
    • Problem Identification
    • Problem Solving
  • Processes: Market forecasting and marketing research steps.

Consumer Behavior

  • Definition: Decision-making patterns in purchasing and using products.
  • Types of Acts:
    • Overt Acts: Observable consumer actions.
    • Covert Processes: Internal decision-making processes.
  • Determinants:
    • Individual Factors: Motivation, attitude, perception, learning, personality, lifestyle.
    • Group Factors: Family, reference groups, opinion leaders, cultural groups.
  • Decision-Making Process: Awareness, information gathering, evaluation, action, post-purchase evaluation.

Market Segmentation

  • Definition: Dividing total market into homogeneous subgroups with uniform needs.
  • Steps:
    • Identify needs.
    • Group into homogeneous subgroups.
    • Select target markets.
    • Position products within segments.
  • Requirements for Segmentation: Identifiable, measurable, substantial, reachable, responsive.
  • Criteria: Geographic, demographic, psychographic, behavioral.

Marketing Instruments

  • Components: Product, Distribution, Marketing Communication, Pricing.
  • Marketing Mix (4 Ps): Product, Place, Pricing, Promotion.

Product Decisions

  • Components of Consumer Products: Core Product, Formal Product, Need-satisfying Product, Product Image, Total Product.
  • Classification: Durable vs. Non-durable, Convenience, Shopping, Specialty products.
  • Branding: Importance, advantages for consumers and marketers.
    • Phases of Brand Loyalty: Brand recognition, brand preference, brand insistence.
  • Packaging and Differentiation: Types of packaging and differentiation methods.
  • Product Lifecycle: Introduction, Growth, Maturity, Decline phases and marketing strategies for each.
  • New Product Development Steps: Idea generation, idea screening, development, testing, commercialization.

Pricing Decisions

  • Definition: Exchange value of a product or service.
  • Processes: Cost determination, market price assessment, target price setting, final price setting.
  • Pricing Strategies: Skimming, market penetration, market price level, leader pricing, odd pricing, bait pricing.

Distribution Decisions

  • Definition: Activities to direct product flow to consumers.
  • Channels: Direct, retail, wholesale, selective/exclusive distribution.
  • Physical Distribution: Warehouse selection, transportation methods, inventory levels.

Marketing Communication Decisions

  • Elements: Advertising, personal selling, direct marketing, sales promotion, publicity, public relations.
  • Communication Channels: TV, radio, print, digital, face-to-face.

Customer Service

  • Definition: Value added to products/services in eyes of consumers.
  • Types: External Customers (buyers) and Internal Customers (employees).
  • Importance: Leads to better teamwork, motivation, and customer satisfaction.
  • Key Points: First impression, positive attitudes, communication, relationship building, expectation management.

Conclusion

  • Major Topics: Marketing as a function, product decisions, pricing strategies, distribution channels, marketing communication, customer service.
  • Importance of integration across all business functions and maintaining customer relationships for long-term success.

Note: For detailed explanations and examples, refer to the prescribed textbook as indicated throughout the lecture.