── .✦ ‧₊˚.
MARKETiNG MANAGEMENT
FUNDAMENTALS OF MARKETiNG
1. Definition and Core Concept
Marketing Management is defined as the art and science of:
• Choosing target markets.
• Getting, keeping, and growing customers.
• Creating, delivering, and communicating superior customer value.
The core goal of the process is "Finding customer needs and satisfying them
better than the competition".
Example:
• Google: Satisfied the need to access information effectively and efficiently.
• IKEA: Satisfied the need for good furniture at lower prices.
2. Marketing Philosophies (The Evolution of Marketing)
Companies conduct their marketing activities based on five different philosophies
regarding the role of the marketing department:
Concept Focus/Philosophy
Production Concept Consumers favor products that are cheap and widely
available. Focus is on high production efficiency.
Product Concept Consumers favor products that offer the most quality,
performance, and innovative features
Selling Concept Consumers will not buy enough unless the firm
undertakes a large-scale selling and promotion effort.
Marketing Concept Success depends on understanding consumer
needs and delivering satisfaction better than
competitors.
Market-Value Every functional area (not just marketing) should be
Concept actively focused on creating value for customers, the
company, and collaborators.
, ── .✦ ‧₊˚.
3. The New Marketing Realities
The marketing environment is being reshaped by four major forces:
1. Technology: AI, Big Data, E-commerce, Social Media.
2. Globalization: Multicultural markets, global competition, changing needs.
3. Physical Environment: Climate change, health crises (pandemics).
4. Social Responsibility: Ethics, legal constraints, social context.
Impact on the Market Environment:
• New Consumer Capabilities: Consumers can compare prices instantly, share
opinions globally (social media), and interact directly with brands.
• New Company Capabilities: Companies can collect detailed data, reach
consumers efficiently via social media, and improve recruiting/training
remotely.
• New Competitive Environment: Characterized by deregulation, privatization,
retail transformation, disintermediation, private labels, and mega-brands.
4. Holistic Marketing Approach
To cope with these new realities, successful companies use a Holistic
Marketing approach, recognizing that "everything matters." It consists of four
components:
1. Relationship Marketing: Building long-term, mutually satisfying relations with
key parties (customers, employees, suppliers) to earn or retain their business.
→ E.g.: Starbucks Rewards program.
2. Integrated Marketing: Coordinating all marketing activities (product, price,
place, promotion) so they deliver a consistent message and value.
→ E.g.: Nike’s "Just Do It" slogan used consistently across all channels.
3. Internal Marketing: Hiring, training, and motivating able employees who
want to serve customers well. Marketing starts inside the company.
→ E.g.: IKEA’s extensive employee onboarding.
4. Performance Marketing: Understanding the financial and non-financial
returns to business and society (ROI, social impact, legal ethics).
→ E.g.: Unilever tracking sales growth alongside social impact (e.g., Dove's Real Beauty
campaign).
, ── .✦ ‧₊˚.
5. Organizational Structure
Traditional vs. Customer-Oriented Organization:
• Traditional (Pyramid): Top management is at the top, giving orders down to
middle managers, then frontline employees, with customers at the bottom.
• Customer-Oriented (Inverted/Circular): Customers are the most important
element. Frontline employees serve customers, middle managers support
frontline employees, and top management supports the middle managers.
Customers are viewed as the only true "profit center."
MARKETiNG MANAGEMENT
FUNDAMENTALS OF MARKETiNG
1. Definition and Core Concept
Marketing Management is defined as the art and science of:
• Choosing target markets.
• Getting, keeping, and growing customers.
• Creating, delivering, and communicating superior customer value.
The core goal of the process is "Finding customer needs and satisfying them
better than the competition".
Example:
• Google: Satisfied the need to access information effectively and efficiently.
• IKEA: Satisfied the need for good furniture at lower prices.
2. Marketing Philosophies (The Evolution of Marketing)
Companies conduct their marketing activities based on five different philosophies
regarding the role of the marketing department:
Concept Focus/Philosophy
Production Concept Consumers favor products that are cheap and widely
available. Focus is on high production efficiency.
Product Concept Consumers favor products that offer the most quality,
performance, and innovative features
Selling Concept Consumers will not buy enough unless the firm
undertakes a large-scale selling and promotion effort.
Marketing Concept Success depends on understanding consumer
needs and delivering satisfaction better than
competitors.
Market-Value Every functional area (not just marketing) should be
Concept actively focused on creating value for customers, the
company, and collaborators.
, ── .✦ ‧₊˚.
3. The New Marketing Realities
The marketing environment is being reshaped by four major forces:
1. Technology: AI, Big Data, E-commerce, Social Media.
2. Globalization: Multicultural markets, global competition, changing needs.
3. Physical Environment: Climate change, health crises (pandemics).
4. Social Responsibility: Ethics, legal constraints, social context.
Impact on the Market Environment:
• New Consumer Capabilities: Consumers can compare prices instantly, share
opinions globally (social media), and interact directly with brands.
• New Company Capabilities: Companies can collect detailed data, reach
consumers efficiently via social media, and improve recruiting/training
remotely.
• New Competitive Environment: Characterized by deregulation, privatization,
retail transformation, disintermediation, private labels, and mega-brands.
4. Holistic Marketing Approach
To cope with these new realities, successful companies use a Holistic
Marketing approach, recognizing that "everything matters." It consists of four
components:
1. Relationship Marketing: Building long-term, mutually satisfying relations with
key parties (customers, employees, suppliers) to earn or retain their business.
→ E.g.: Starbucks Rewards program.
2. Integrated Marketing: Coordinating all marketing activities (product, price,
place, promotion) so they deliver a consistent message and value.
→ E.g.: Nike’s "Just Do It" slogan used consistently across all channels.
3. Internal Marketing: Hiring, training, and motivating able employees who
want to serve customers well. Marketing starts inside the company.
→ E.g.: IKEA’s extensive employee onboarding.
4. Performance Marketing: Understanding the financial and non-financial
returns to business and society (ROI, social impact, legal ethics).
→ E.g.: Unilever tracking sales growth alongside social impact (e.g., Dove's Real Beauty
campaign).
, ── .✦ ‧₊˚.
5. Organizational Structure
Traditional vs. Customer-Oriented Organization:
• Traditional (Pyramid): Top management is at the top, giving orders down to
middle managers, then frontline employees, with customers at the bottom.
• Customer-Oriented (Inverted/Circular): Customers are the most important
element. Frontline employees serve customers, middle managers support
frontline employees, and top management supports the middle managers.
Customers are viewed as the only true "profit center."
