Marketing Management – Mkt 301

Lecture 1
Defining Marketing for the 21st Century

Marketing Management, 13th edition; Philip Kotler/ K Kevin Lane

Prepared by
Dost Md. Samsuzzaman (Ronik)
Faculty, CBA, IUBAT.
Email: dm.samsuzzaman@iubat .edu
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 What is Marketing?
• Marketing is an activity –
directed at satisfying customer Needs and Wants
through exchange transactions in the Market.
(Exchange at Market – the transaction between Buyer and Seller)

• Marketing is the Management Process,

responsible for identifying, anticipating and
satisfying customer requirements profitably.
• Marketing links 2 basic functions in the Community:
a. Production.
b. Consumption.
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 What does Marketing actually do?

• (a) Identifying Market Opportunities

• (b) Managing Products

• (c) Choosing and Motivating the Channels of Distribution

• (d) Advertising and Promoting Products and Services

• (e) Setting prices and terms of supply

• (f) Planning the Marketing activity

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 (a) Identifying Market Opportunities

• It researches the Needs and Wants of the

different types of customer to be found in the
Market. This is called “Market Research”.
* From Market Research, the Marketing
functions should be as follows:-
- Trends in the demand pattern for existing
products.
- Market opportunities for new products.
- Detailed needs for further new product
development that the company should undertake.
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 (b) Managing Products

• The marketing function should be responsible

for forecasting and managing the rate of
Supply and Distribution of the company’s
existing products.

- Also, Determine,
what New products should be developed
by the company and Launched into the
various markets.

- New Product should be designed in such

a way as to meet the requirements of different
section (Segment) of the Market.
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(c) Choosing and Motivating the Channels of Distribution

• Manufacturer couldn’t –
possibly Supply and Distribution of their items
to the Customers directly.
* So their must have some Distributors to
Stock and Sell their Product on behalf of them.
* The Manufacturer recruits some Wholesalers
and Retailers:
- Who will look after the interest of the manufacturer?
- Who will put most effort into selling its products?
- These Wholesalers and Retailers are an important
“Channel of Distributor”.
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(d) Advertising and Promoting Products and Services

• The marketing function will be responsible for

communicating to target market customers for the existence
of its products. The advertising and promotional process aimed
at the target customer group, so that it:
- Communicate with the customer.
- Encourage the customer to consider the Product or
Service and understand its benefits.
- Persuades the customer.
- Supports the wholesaler and Retailer in Selling the
product to the customer.
- Reassure the customer that they have made the
correct purchase decision.
- Encourage the customer to make further
purchases of the company’s products or services. 1-7
 (e) Setting prices and terms of supply
• The marketing activity will be closely involved in agreeing
and setting Market-Prices, terms of supply and payment
conditions. Finance and Credit control is also involved in the
important of business area.
•
1. Prices are quoted both to the Distributor and to the Final
customer, which encourage them to buy the company’s product.

2. The Transaction must be financially rewarding to the

distributor, whilst the customer must perceive that the prices
being charged are reasonably competitive in comparison with
the prices of other manufacturers.

3. Condition of supply and terms of payment are

established with the distributor, so that:
- The distributor is given adequate credit to
encourage him to Stock and Sell quantities of the merchandise.
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 (f) Planning the Marketing activity

• Planning is an important and essential part of the

operation of any business. Marketing Planning covers the
following:
- Annual sales forecasting, which is the vital first
step in company budgetary planning & control?
- The annual budget and expenditure on
advertising and promotion.
- The rate at which customers can be encouraged to
pay for the goods they have received.
- the time scale of new product development and
launch onto the market.
- the actual cost and cash flow expenditure of the
marketing activity as a whole.
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 Marketing Tasks
Marketing Task Commentary
• Identify target markets:• Management have to identify those
customers with whom they want to trade.
The choice of target markets will be
influenced by the wealth consumers hold
and the business' ability to serve them
• Market research: • Management have to collect
information on the current and
potential needs of customers in the
markets they have chosen to supply.
Areas to research include how
customers buy (which marketing
channels are used) and what
competitors are offering
• Product development • Businesses must develop
products and services that meet
needs and wants sufficiently to attract
target customers to wish and buy 1-10
 Marketing Tasks
Marketing Task Commentary
• Marketing mix: • Having identified the target markets
and developed relevant products,
management must then determine the
price, promotion and distribution for the
product. The marketing mix is tailored to
offer value to customers, to communicate
the offer and to make it accessible and
convenient

• The objective in marketing is to first

• Market monitoring: attract customers - and then (most
importantly) retain them by building a
relationship. In order to do this
effectively, they need feedback on
customer satisfaction. They also need to
feed this back into product design and
marketing mix as customer needs and
the competitive environment changes
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 Core Marketing Concepts

• (a) Needs, and • (e) Marketing

demands channels

• (b) Target markets, • (f) Competition

positioning,
segmentation • (g) Marketing
environment
• (c) Brands
• (h) Marketing
• (d) Value and
planning
satisfaction
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 Core Marketing Concepts – cont ……..

• (a) Needs (basic human requirements)

Demands : Depends on ability to buy.
How Necessity the item is.
• (b) Target markets, Positioning and Segmentation
• (c) Brands: - Speaks directly to product’s target customers
- Attracts/motivates consumers to try it
- Is memorable/sticks in customers’ minds
- Is distinctive enough to protect it legally
• (d) Value and satisfaction:
(Strength/ Dignity/Exceptionality/ Weight/ Sophisticated/ Standard).
- Satisfaction reflects a person’s judgment of a
product’s perceived performance.
- Value proposition: a set of benefits they offer to
customers to satisfy their needs
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 Core Marketing Concepts – cont ……..

• (e) Marketing Channels

i. Communication channels – Media (Press/ Electronics/
Leaflet/ Billboard)
ii. Distribution channels – Agent / Distributor – Who work
on behalf of the company
iii. Service channels – Service provider – Prompt response
• (f) Competition:

• (g) Marketing environment

• Demographic
• Economic
• Technological
• Political-Legal
• Social-cultural

• (h) Marketing Planning.

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 Value Composition

Product

Services
Benefits
Employees

Image
Value
(gain/loss)
Monetary
costs Costs
Time
(sacrifices)
Physical costs

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* What is Marketing Management?

Marketing management is the

art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

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What is Marketed?

Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
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 Marketing Mix

• A. Definition:
• The marketing mix decisions are an
important part of marketing action plans.

• *** “Marketing mix” is the set of

controllable variables and their levels that
the company uses to influence the target.

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Elements in the Marketing Mix (4 P’s)

Product Place

Marketing
Program
Buy at
Computers
‘R Us

Price Promotion

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 ABCs of Marketing

Always be customer-driven.
Benchmark against the best in the world.
Continuously improve product/performance.
Develop the best value package.
Empower your employees.
Focus on relationships.
Generate profit and meet other organizational objectives.
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 Marketing Management Tasks

• Developing marketing • Shaping market

strategies offerings

• Capturing market • Communicating and

Delivering value
• Connecting with
customers
• Creating long-term
• Building strong brands growth

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