Management- manage latin word MANUS (hand)
AGERE (act)
-The French word mesnagement (or ménagement)
17th and 18 century when the word management is
developed
Management- is an art and science of coordinating
and overseeing the work activities of others so that their
activities are completed efficiently and effectively
Management is an ART
Is an art because it implies application of knowledge
& skill to trying about desired results.
CHARACTERISTICS OF ART
1. PRACTICAL KNOWLEDGE - Every art
requires practical knowledge therefore learning
of theory is not sufficient. It is very important to
know practical application of theoretical
principles. E.g. to become a good painter, the
person may not only be knowing different colour
and brushes but different designs, dimensions,
situations etc to use them appropriately. A
manager can never be successful just by
obtaining degree or diploma in management; he
must have also know how to apply various
principles in real situations by functioning in
capacity of manager.
2. PERSONAL SKILLS - Although theoretical
base may be same for every artist, but each one
has his own style and approach towards his job.
That is why the level of success and quality of
performance differs from one person to another.
E.g. there are several qualified painters but M.F.
Hussain is recognized for his style. Similarly
management as an art is also personalized. Every
manager has his own way of managing things
based on his knowledge, experience and
personality, that is why some managers are
known as good managers (like Aditya Birla,
Rahul Bajaj) whereas others as bad.
3. CREATIVITY
4. PEFECTION THROUGH PRACTICE -
Practice makes a man perfect. Every artist
becomes more and more proficient through
constant practice. Similarly managers learn
through an art of trial and error initially but
application of management principles over the
years makes them perfect in the job of managing.
5. GOAL – ORIENTED - Every art is result
oriented as it seeks to achieve concrete
results. In the same manner, management is
also directed towards accomplishment of pre-
determined goals. Managers use various
resources like men, money, material,
machinery & methods to promote growth of
an organization.
MANAGEMENT IS AN ART OF HIGHEST
ORDER (it molds behavior and attitude of a person
at work)
Management is a SCIENCE - Because it is based
on universal truth and in Imperical evidence that it
is exist.
FUNCTIONS OF MANAGEMENT
PLANNING - Defining performance goals for the
organization and determining what actions and
resources are needed to achieve the goals. Through
planning, management defines what the future of the
organization should be and how to get
there. Strategic plans are long-term and affect the
entire organization. A strategic plan bridges the gap
between what an organization is and what it will
become. Tactical plans translate strategic plans into
specific actions that need to be implemented by
departments throughout the organization. The
tactical plan defines what has to be done, who will
do it, and the resources needed to do it. For instance,
recall the example used at the beginning of this
module. It described how ThyssenKrupp AG decided
to become an elevator manufacturing and servicing
company because of increased competition from
Chinese steel. The management of the company set a
goal of deriving the majority of its revenue from
elevator-related activities. To do this, the
management team made plans to create partnerships
or take over existing elevator companies. The team
devised plans to develop new human resources and
to acquire other material resources. The company
also had to divest existing steel-related resources to
raise capital for the new initiative. This example is a
long-term strategic plan that will take years to
complete and require many changes along the way.
But it starts by defining a goal and a preliminary path
to achieve it.
ORGANIZING - Once plans are made, decisions
must be made about how to best implement the
plans. The organizing function involves deciding
how the organization will be structured (by
departments, matrix teams, job responsibilities, etc.).
Organizing involves assigning authority and
responsibility to various departments, allocating
resources across the organization, and defining how
the activities of groups and individuals will be
coordinated. In the case of ThyssenKrupp AG, the
management had to determine how to support two
very different sets of activities if it were to achieve
its long-term goal. Management needed to continue
steel production activities to provide continuity of
funds as the emphasis gradually shifted to elevator
production. It also had to develop new skills and
resources to build the company’s elevator
capabilities. A new organizational structure was
needed that could support both business activities as
one was downsized and the other built up.
LEADING - Nearly everything that is accomplished
in an organization is done by people. The best
planning and organizing will not be effective if the
people in the organization are not willing to support
the plan. Leaders use knowledge, character, and
charisma to generate enthusiasm and inspire effort to
achieve goals. Managers must also lead by
communicating goals throughout the organization,
by building commitment to a common vision, by
creating shared values and culture, and by
encouraging high performance. Managers can use
the power of reward and punishment to make people
support plans and goals. Leaders inspire people to
support plans, creating belief and commitment.
Leadership and management skills are not the same,
but they can and do appear in the most effective
people. It is very difficult to motivate people when
plans involve radical change, particularly if they
include downsizing and layoffs. Many people are
naturally resistant to change. When the change
means loss of jobs or status, people will be very
resistant. At ThyssenKrupp, the labor unions
vehemently opposed the shift from steel production
to elevator manufacturing. Although the people
involved in the new business functions were excited
by the plans, people involved with steel production
felt abandoned and demotivated. Management would
have been wise to get union support for its vision of
the company’s new future.
CONTROLLING - There is a well-known military
saying that says no battle plan survives contact with
the enemy. This implies that planning is necessary
for making preparations, but when it’s time to
implement the plan, everything will not go as
planned. Unexpected things will happen. Observing
and responding to what actually happens is called
controlling. Controlling is the process of monitoring
activities, measuring performance, comparing results
to objectives, and making modifications and
corrections when needed. This is often described as
a feedback loop, as shown in the illustration of a
product design feedback loop.
Fix it, improve it make changes
Sell the improved product
Assess progress (is it selling?)
Ask the customer if they like the new product
Controlling may be the most important of the four
management functions. It provides the information
that keeps the corporate goal on track. By controlling
their organizations, managers keep informed of what
is happening; what is working and what isn’t; and
what needs to be continued, improved, or changed.
ThyssenKrupp had little experience in elevator
manufacturing when it was making plans. It was
developing new products and processes and entering
new markets. The management knew it could not
anticipate all the difficulties it would encounter.
Close monitoring as the plan progressed allowed the
company to make changes and state-of-the-art
innovations that have resulted in a very successful
transition.
MANAGER - somebody who is responsible for
directing and controlling the work and staff of a
business, or of a department within it.
MARKETING – is a form of communicating or
promoting the value of product. Not only a product
but also a service brand to the consumers.
An Activity, set of institutions, and processes for
creating, communicating, delivering, and
exchanging offerings that have value for customers.
-American Marketing Association
It is an art and science and also a profession guided
principally by the universal principles of ethics,
corporate citizenship and social responsibility
-Phil. Marketing Association
Importance of PROFIT
It is for the costs and expenses of the business. Ex.
Salaries, Utilities,rentals. Etc.
MARKETING = PROFIT (Marketing for profit
aims to increase sales of product or services.)
MARKETING = NON-PROFIT (Marketing for
non-profit aims to communicate messages for social
purposes, Examples: public safety announcement
health announcement.)
WHAT THE MARKETERS SHOULD NOT DO
HARMFUL
IMMORAL
PROMOTE VIOLENCE
(Marketers must avoid offering product and services
that may harmful to one’s health and well-being or
promote violence and immorally. Products services
that serve no purpose or contribute nothing to
individual and societal well-being should not be
marketed. )
GOALS OF MARKETING
1. Understand the market and its consumers, and
satisfy their changing needs and wants.
(Marketers must avoid offering product and services
that may harmful to one’s health and well-being or
promote violence and immorally. Products services
that serve no purpose or contribute nothing to
individual and societal well-being should not be
marketed.)
2. Introduce and innovate
(Introduce and innovate product or services that
improve human condition and the quality of life.)
3. Design and implement
(An effective customer –driven marketing
strategies.)
4. Develop
(To develop marketing programs that deliver
superior value to consumers.)
5. Build and maintain
(Mutually beneficial and profitable customer
relationships.)
6. Capture customer value
(To create PROFITS)
7. Promote value
(Promote value transactions with full regard to
society’s well-being.)
UTILITY CONCEPT OF MARKETING
*CONCEPT OF UTILITY* - It is the power of a
goods or a service to satisfy particular need of want
of a costumer. It is also the term for the benefit that
the consumers derive from acquiring and using a
particular goods or service.
FOUR KINDS OF UTILITY
1. FORM UTILITY - Converting of raw
materials into products
(That suits the preferences of consumers so that they
do not have to create their desired products
themselves. For examples, a clothing company like
bench or levis uses fabric, buttons, zippers and other
accessories to produce garments so the consumers
need not to assemble the materials together. To make
sure it can cater different types of customers, clothes
in different colors, designs, shapes, and sizes
offered.)
FORM UTILITY (TASK UTILITY) - It is
refer to offering services which consumers may not
be capable of doing or may not like to do themselves.
Ex: a man will go to barbershop because he did not
want it to do for himself.
2. PLACE UTILITY - Availability of products
or service at accessible locations
3. TIME UTILITY - Satisfaction derived by
customers in availing products services on time.
(Example: Restaurant promise of on time
delivery and when the delivery is late it becomes
free for the costumer. And the other restaurant
offer some appetizer for the impatient
customers.)
4. POSSESSION UTILITY - Satisfaction derived
by customers in availing products services on
time
THE MARKETING ORGANIZATION
It is Refer to the department that ensures the smooth
flow of marketing plans, policies and program that
monitor sales activities, Customer service and
distribution and promotion of efforts. The marketing
organization can be the best described with the 6 Cs
of marketing.
SIX C’S IN MARKETING ORGANIZATION
1. CONSUMER CONTENT
Any organization that employs marketing should
keep costumers informed about what they offer
and should always be in constant contact with
them. Marketers should be updated on their
costumer’s behaviours, values, interests, and
other factors that influence their purchase.
Consumer content firms work toward satisfying
customers’ needs before creating products
offering services.
Ex. Texas instruments a global semi-conductor
design and manufacturing company is known for
 its calculators and microcontrollers, power
products etch. In June 1979 it launched its home
computer called 99/4 the product was the worst
machines ever introduced in the market at that
time nothing is spectacular on that computer
because it can be only used for playing games.
Like the keyboard did not even have the question
mark etch. They sell and introduced that
computer without identifying the needs of the
costumer.
2. COMPANY CAPABILITIES
To be at far with the other competitors, marketing
organizations need to strengthen their
capabilities in production and operations to
develop and produce goods that will meet
consumer needs.
3. COMMUNICATON
A marketing organization must have a positive,
long-lasting relationship with its customers
because they constantly look for cues provided
by the organization as they make their purchase
decisions.
4. COMPETITION
A real challenge for any organization is to face
its strongest competitor head on. It should know
the competitor’s strengths and weakness and
determine the best way to respond. Example:
Jollibee faced mcdonalds as their competitors in
1981- ang umakma sa mga lasa ng pilip[ino is
yung kanilang tag line na langhap sarap. And
hindi lang sa chicken or katulad na product ang
competitor but also in the other products n
mayroon sila like burger kalaban din niya ang
burger king at wendys kaya binili ni Jollibee si
Greenwich in 1984, chowking 2000 eventually
70 % ni mang inasal in 2008 and the remaining
30 % in 2016 and in 2005 it also acquired red
ribbon making the company as complete
package.
5. CROSS FUNCTIONAL PRODUCT
Human resource is very important in marketing
organization it cannot work alone without the
support and assistance of other departments.
6. COMMUNITY CONTACT
A marketing organization is updated with local,
international and community news it has constant
contact with different agencies and organization
within its surroundings. It also personifies
corporate social responsibility by integrating
sustainability and ethics in conducting business.
CONTEMPORARY AND TRADITIONAL
APPROACH IN MARKETING
(CONTEMPORARY VS. TRADITIONAL)
TRADITIONAL APPROACH - It is focused on
production methods, product quality, and effective
selling methods as profit drivers in marketing.
1. THE PRODUCTION OF CONCEPT - It
assumes that costumers prefer products that are
inexpensive, affordable, and widely available.
(Efforts are concentrated in expanding distributions
and improving production efficiency the objective of
this concept is to lower production costs resulting in
lower prices. However, this concept is relevant only
if costumer tastes and preferences are stable and
product demand is high.)
2. THE PRODUCT CONCEPT - It assumes that
costumers will always prefer and patronize
products of high quality.
(Resources are focused on product improvement and
innovation. Product attributes and features are
continuously enhanced while this maybe important,
too much preoccupation on product quality may
neglect the costumers changing needs.)
3. THE SELLING CONCEPT - It emphasizes
aggressive selling and promotional efforts.
(It assumes that customers are generally timid and
must be persuaded into buying. The objective is to
sell what is manufactured rather than manufactured
what the market wants.)
CONTEMPORARY APPROACH - It is centered
on the customer relationships, and well – being of
society.
1. THE MARKETING CONCEPT - It considers
the needs of both costumers and the product
offered.
(The objective is to provide a solution to the
customer’s actual or perceived problem. The key is
to be more effective in the creation, communication
and delivery of this value to customers.)
2. RELATIONSHIP MARKETING CONCEPT
- It believes that all marketing activities are for
the purpose of establishing, maintaining, and
strengthening meaningful long-term
relationships with customers.
(Extensive costumers databases are created,
maintained and updated. Customer’s profiles,
purchase habits, and preferences are tracked and
monitored. This is to ensure customer’s needs are
fulfilled and the relationship with them is
maintained. )
3. SOCIETAL MARKETING APPROACH –
similar to marketing concept.
(However, beyond providing solution to costumers,
the societal marketing concepts goes further to
include consideration that protect the costumers
well-being and interests, as well as the interests of
the environment and society.)
CUSTOMER BEHAVIOR (RELATIONSHIP
MARKETING)
CUSTOMER BEHAVIOR - It is refers to any
action that a customer takes related or associated to
the company. It is also the perception of the
customers towards the product or service of a
company.
FACTORS THAT AFFECT CUSTOMER
BEHAVIOR
1. CULTURE - Culture and social classes. This
refers to the general or overall culture of a group
of people. For instance, there is a thing called as
filipino culture, but there are also distinct cultural
behaviors within it. For example ang ilokano ay
may kulturang hindi nman kuripot but they have
the core priority than your product and it must be
considered.
2. SOCIAL FACTORS - Family groups, roles,
and status. This is about the norms of behavior
among even smaller group the terms deciding on
what they should wear what you should eat who
to aspire to be like where to go and more can
affect the markets behavior.
3. PERSONAL FACTOR - Age, lifecycle stage,
occupation and economic status. Example the
taste of younger people will be different from that
of more senior individuals.
4. PSYCHOLOGICAL FACTOR - Motivation,
perception, learning, beliefs and attitude. It is the
reflection on how we raise by our family.
CUSTOMER VALUE - It is the relationship
between benefits and the costs including money and
time to sacrifice that is necessary to get those
benefits.
(Equation –Benefits- Cost= Customer value)
*It is not simply about high quality.
*It is also not about pricing alone.
Customer value products and services that are of
quality they expect and that are sold at prices they are
able and willing to pay.
COMPONENTS OF CUSTOMER VALUE
(SQIP)
Customer value products and services that are of
quality they expect and that are sold at prices they are
able and willing to pay.
COMPONENTS OF CUSTOMER VALUE
1. SERVICE - The intangible value offered to the
customers.
2. QUALITY - Customers perception of how well
a company’s products and services meet
expectations.
3. IMAGE - Customers perception of the
company or business they interact with.
4. PRICE - The price a company can command for
its products and services and that its customer
are able and willing to pay.
CUSTOMER VALUE - Customer value
encompasses the total experience of the customer
regarding the organization, its products and
services, purchase and post purchase. And the
overall impact of the interaction or experience
between the customer and product, the benefits
conferred and how these affect well-being are
perceived by influential others. Every consumer has
unique set of needs and resources.
Individual differences.
Delivering customer value
customers are the lifeblood of all business.
They are source of current profits and the
foundation of future growths.
DELIVERING CUSTOMER VALUE
1. Provide the consumer the best cost -
Companies can choose to focus their efforts on
providing a reliable product at a reasonable
price. The low price helps to increase the value
of their offering to their consumer even if it’s
weighed against a low benefit. For instance a
person might place a high customer value in a
meal at a mc Donald’s restaurant because he
 knows he will receive a consistent satisfactory
meal at a low price.
2. Provide the customer with the best product.
- Companies that offer top quality products
increase the customer value of their offerings to
their consumers by providing a high benefits
which exceeds the high cost. (Ex: Hal ang I
phone kahit mahal bibilhin kasi ung value at
quality ay na sasatisfy and need ng customer.)
3. Provide the consumer with the best service.
IMPORTANCE OF CUSTOMER VALUE
1. Designing and providing superior customer
value are the keys to successful business
strategy in the 21st century.
2. Value reigns supreme in today’s marketplace
and market-space.
3. Customers will not pay more than a product is
worth and will reward excellence.
4. A customer- centric culture provides focus
and direction for the organization, ensuring
that exceptional value will be offered to
customer.
5. Designing and delivering superior customer
value propels organizations to market
leadership positions in today’s highly
competitive global markets- absolute
advantage.
6. Providing outstanding customer value has
become a mandate for management.
7. In choice- filled arenas, the balance of power
has shifted from companies to value- seeking
customers.
8. Managing customer value is even more
critical to organizations in the new service and
information-based economy.
9. Firms not providing adequate value to
customers will struggle or disappear-
customer value is a key ingredient in building
competitive advantage.
10. Today’s customers are quite smart and
sophisticated and are looking for companies
that:
A. Create maximum value for them based on
their needs and wants.
B. Demonstrate that they value their
business.
COMMERCIAL ADVERTISING
ADVERTISING - The act or practice of offering
goods or service to the public through
announcements in the media.
OBJECTIVES
1. TO INCREASE SALES AND PROFITS
2. ENCOURAGE TRIALS AND USAGE
3. REMINDER ADVERTISING ( TO RECALL
CUSTOMER SATISFACTION)
4. FOLLOW – UP (COMPANIES MUST
DELIVER WHAT THEY PROMISE IN
THEIR ADS)
*KINDS OF ADVERTISING*
1. PRINT ADS.
2. BROADCAST
3. SOCIAL MEDIA
4. EMAIL
5. BILL BOARDS
6. COMMERCIAL ADVERTISEMENT
PRINCIPLES OF ADVERTISING
1. VISUAL CONSISTENCY – Repeatedly
expose your target to a specific image of display.
2. CAMPAIGN DURATION
3. REPEATED TAGLINES CONSISTENT
TAGLINES GO HAND – IN – HAND WITH
VISUAL CONSISTENCY
4. CONSISTENT POSITIONING
5. SIMPLICITY THE PILLAR OF
ADVERTISEMENT. A SIMPLE
ADVERTISEMENT IS MUCH EASIER TO
COMPREHEND THAN A COMPLEX ONE.
6. IDENTIFY A SELLING POINT. ONE OF
THE MOST IMPORTANT ASPECTS OF
ADVERTISEMENT.
(Attempting to offer multiple selling points to
viewers can confuse them by presenting too many
ideas at once. Focus on one point for the campaign
that you believe. Will best sell the benefits of the
product to your consumers. )