MARKETING MANAGEMENT STUDY NOTES
COURSE OUTLINE
1. Nature and definition of marketing management ……………………. 2
Meaning and importance of products
Importance of product innovation
Planning and development of new product
Product line and product mix
Major product line strategies
Factors influencing change in product mix
Planned obsolescence and fashion
Branding, packaging, labeling and image building factors
2. Price-pricing system …………………………………….…………………… 24
Meaning and importance of price and pricing system/objective
Procedure for price determination
Basic methods of setting price
Price polices and strategies
3. Distribution structure …………………………………….………………… 34
Channel of distribution
Nature of retail market.
Designing and managing channel of distribution.
Managing of physical distribution
4. Promotional activities ……………………………………………………… 44
The promotional program
Campaign concept
Promotional mix- sales promotions, personal selling
Nature and importance of advertising
Development of advertising.
Marketing communication
5. Marketing strategy …………………………………………………………………… 60
Meaning of strategy
Strategy process
Marketing strategy
Marketing management relations
Understanding business markets
Consumer buyer behaviour
Societal marketing
Marketing information system brief
PREPARED BY MR. ANTONY AMBIA Page 1
, CHAPTER ONE
NATURE AND DEFINITION OF MARKETING MANAGEMENT
Introduction
Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services that satisfy individual and organizational goals.
(AMA)
Market:-
Market is a place where buyers and sellers meet to transact and exchange goods and services
from suppliers and producers. Product is the platform for attracting customers, and
organizations are in the business of attracting customers.
Markets have gone through the following evolution;
a. Traditional bazaars
b. Separation of supply and consumption
c. Mass Markets / Media
d. Target Markets / Niche Media
e. Electronic Markets: Meta Markets
Since the days of barter trade to the modern times of crypto currencies, the market has
reflected the changes through agricultural, industrial, commercial and technological
improvements to better the living standards of all humanity.
Marketing:-
It is a total system of business activities design to plan promote and distribute want satisfying
goods and services to target market.
Marketing management:-
It can be define as an art and science of choosing target volume and getting keeping and
growing customer to creating delivering and communicating superior customer value.
1. Marketing Management is both a Science as well as an Art:-
Marketing Management is both a science as well as an art. The science of marketing
management provides certain general principles which can guide the managers in their
professional effort. The Art of Marketing management consists in tackling every situation in
an effective manner. As a Matter of fact, science should not be over-emphasized nor should
art be discounted the science and the art of marketing management go together and are both
mutually interdependent and complimentary. Marketing Management is thus a science as
well as an art. It can be said that-"the art of Marketing management.
2. Choosing target Market:-
A marketer can rarely satisfy everyone in a market. Not everyone likes the same soft
Drink, automobile, college, and movie. Therefore, marketers start with market segmentation.
They identify and profile distinct groups of buyers who might prefer or require Varying
products and marketing mixes. Market segments can be identified by examining
Demographic, psychographic, and behavioral differences among buyers. The firm then
decides which segments present the greatest opportunity—those needs the firm can meet in a
superior fashion.
3. Marketing Mix
Marketers use numerous tools to elicit the desired responses from their target markets.
PREPARED BY MR. ANTONY AMBIA Page 2
,These tools constitute a marketing mix Marketing mix is the set of marketing tools that the
firm uses to pursue its marketing objectives in the target market. Four broad groups called the
four Ps of marketing: product, price, place, and promotion.
Stages in the Evolution of the Marketing Concept
1. Production Concept
Demand for goods and services is greater than Supply ... therefore consumers gladly
purchased what was being produced. Producers have a captive market. Investment on
increasing the efficiencies of production had the greatest impact on company
profitability. Thus smart businesses focused on increasing productivity, rather than
understanding the consumer. Henry Ford's quote: "The customer can have any color car
as long as it is black" is closely identified with this era! This is appropriate for developing
countries, and evolved in the US with the advent of the industrial revolution.
2. Sales Concept
Demand is equal to Supply ... therefore producers had to convince consumers to purchase
their products. Focus of business investment starts shifting towards developing a robust
sales mechanism in order to communicate with consumers. The sales concept is also
relevant for products consumers do not seek out ordinarily, such as life insurance and
dental treatment.
3. Marketing Concept
Supply is greater than Demand ... therefore producers need to first understand what
consumers wanted, then produce those products, then convince consumers to purchase
those products. Target marketing and market segmentation became the new tools to
increase company profitability.
4. One 2 One (Relationship) Marketing Concept
The Marketing era evolved and saw producers further segment their markets, targeting
smaller groups of consumers within those markets. With the potential unleashed by the
microprocessor and information technology, we are seeing targeting down to the
individual, one to one. A commonly cited example is Amazon. Notice, if you make a
purchase from this site (or similar) when you return to the site, you will receive
recommendations based on your previous purchases. This presentation is based not only
on your purchases (data stored in your cookie file allows for this), but on purchases of
others who have bought the same book and similar books.
5. Viral Marketing
An interesting thing is occurring, as we are now in a networked economy. Our consumers
are able to "talk" to each other and serve as an extended sales force. This lateral
communication and / or transaction between customers and non-customers can serve as
an opportunity for companies to leverage. The pioneer of viral marketing was Hotmail.
6. Societal Marketing Concept
Companies, more aware of society and the environment at large, promote their affiliation
with the environment.
Importance of Marketing Management through the experiences of the United States of
America (USA)
PREPARED BY MR. ANTONY AMBIA Page 3
, 1. Globally:-
Profit and growth objectives are most likely to be achieved through a combination of
domestic and international marketing rather than solely from domestic marketing.
Until the late 1970s American firms had a large and secure domestic market. The only
significant foreign competition was in selected industries, Such as agriculture, or for relatively
narrow markets, such as luxury automobiles. But this change domestically through the 1980s
as more foreign firms developed attractive products, honed their marketing expertise, and
then successfully entered the US market. Imported products in some industries, such as office
equipment, autos, apparel, watches and consumer electronics, have been very successful. As a
result in recent years the U.S. has been importing more than its exports, creating large annual
trade deficits.
2. Domestically:-
Aggressive, effective marketing practices have been largely responsible for the high standard
of living in the United States. The efficiency of mass marketing – extensive and rapid
communication with customers through wide verity of media and a distribution system that
makes products rapidly available- Combined with mass production brought the cost of many
products within reach of most customers.
a) Employment and costs:-
When we get an idea of significant marketing in the U.S. economy by looking at how many
of us are unemployed in same way in marketing and how much of what we spend covers the
cost of marketing. Between one third and one fourth of the U.S. civilian labor force is
engaged in marketing activities.
b) Creating Utility:-
A customer purchases a product because it provides satisfaction. The Want satisfying power
of a product is called its utility and it becomes in many forms. It is through marketing that
much of a products utility is created.
3. Organizationally:-
Marketing consideration should be integral part of all short and long range planning in any
company. Here’s why:
The success of any business comes from satisfying the wants of its customers which is the
social and economic basis for the existence of all organizations.
Although many activities are essential to a company’s growth , marketing is the only one
that produce revenue directly.
a) Services marketing:-
The U.S has gone through from primarily manufacturing economy to the world’s first service
economy. As opposed to goods, services are activities that are the object of a transaction. For
example transportation, communication entertainment, medical care, financial services,
education and repair services account of over two third of the nation’s gross domestic
product.
b) Not for profit marketers:-
During 1980s and early 1990s many not for profit organizations realized they needed
effective marketing programs to make up for shrinking government subsidies a decrease in
charitable contribution and other unfavorable economic. Not for profit organizations need to
PREPARED BY MR. ANTONY AMBIA Page 4
COURSE OUTLINE
1. Nature and definition of marketing management ……………………. 2
Meaning and importance of products
Importance of product innovation
Planning and development of new product
Product line and product mix
Major product line strategies
Factors influencing change in product mix
Planned obsolescence and fashion
Branding, packaging, labeling and image building factors
2. Price-pricing system …………………………………….…………………… 24
Meaning and importance of price and pricing system/objective
Procedure for price determination
Basic methods of setting price
Price polices and strategies
3. Distribution structure …………………………………….………………… 34
Channel of distribution
Nature of retail market.
Designing and managing channel of distribution.
Managing of physical distribution
4. Promotional activities ……………………………………………………… 44
The promotional program
Campaign concept
Promotional mix- sales promotions, personal selling
Nature and importance of advertising
Development of advertising.
Marketing communication
5. Marketing strategy …………………………………………………………………… 60
Meaning of strategy
Strategy process
Marketing strategy
Marketing management relations
Understanding business markets
Consumer buyer behaviour
Societal marketing
Marketing information system brief
PREPARED BY MR. ANTONY AMBIA Page 1
, CHAPTER ONE
NATURE AND DEFINITION OF MARKETING MANAGEMENT
Introduction
Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services that satisfy individual and organizational goals.
(AMA)
Market:-
Market is a place where buyers and sellers meet to transact and exchange goods and services
from suppliers and producers. Product is the platform for attracting customers, and
organizations are in the business of attracting customers.
Markets have gone through the following evolution;
a. Traditional bazaars
b. Separation of supply and consumption
c. Mass Markets / Media
d. Target Markets / Niche Media
e. Electronic Markets: Meta Markets
Since the days of barter trade to the modern times of crypto currencies, the market has
reflected the changes through agricultural, industrial, commercial and technological
improvements to better the living standards of all humanity.
Marketing:-
It is a total system of business activities design to plan promote and distribute want satisfying
goods and services to target market.
Marketing management:-
It can be define as an art and science of choosing target volume and getting keeping and
growing customer to creating delivering and communicating superior customer value.
1. Marketing Management is both a Science as well as an Art:-
Marketing Management is both a science as well as an art. The science of marketing
management provides certain general principles which can guide the managers in their
professional effort. The Art of Marketing management consists in tackling every situation in
an effective manner. As a Matter of fact, science should not be over-emphasized nor should
art be discounted the science and the art of marketing management go together and are both
mutually interdependent and complimentary. Marketing Management is thus a science as
well as an art. It can be said that-"the art of Marketing management.
2. Choosing target Market:-
A marketer can rarely satisfy everyone in a market. Not everyone likes the same soft
Drink, automobile, college, and movie. Therefore, marketers start with market segmentation.
They identify and profile distinct groups of buyers who might prefer or require Varying
products and marketing mixes. Market segments can be identified by examining
Demographic, psychographic, and behavioral differences among buyers. The firm then
decides which segments present the greatest opportunity—those needs the firm can meet in a
superior fashion.
3. Marketing Mix
Marketers use numerous tools to elicit the desired responses from their target markets.
PREPARED BY MR. ANTONY AMBIA Page 2
,These tools constitute a marketing mix Marketing mix is the set of marketing tools that the
firm uses to pursue its marketing objectives in the target market. Four broad groups called the
four Ps of marketing: product, price, place, and promotion.
Stages in the Evolution of the Marketing Concept
1. Production Concept
Demand for goods and services is greater than Supply ... therefore consumers gladly
purchased what was being produced. Producers have a captive market. Investment on
increasing the efficiencies of production had the greatest impact on company
profitability. Thus smart businesses focused on increasing productivity, rather than
understanding the consumer. Henry Ford's quote: "The customer can have any color car
as long as it is black" is closely identified with this era! This is appropriate for developing
countries, and evolved in the US with the advent of the industrial revolution.
2. Sales Concept
Demand is equal to Supply ... therefore producers had to convince consumers to purchase
their products. Focus of business investment starts shifting towards developing a robust
sales mechanism in order to communicate with consumers. The sales concept is also
relevant for products consumers do not seek out ordinarily, such as life insurance and
dental treatment.
3. Marketing Concept
Supply is greater than Demand ... therefore producers need to first understand what
consumers wanted, then produce those products, then convince consumers to purchase
those products. Target marketing and market segmentation became the new tools to
increase company profitability.
4. One 2 One (Relationship) Marketing Concept
The Marketing era evolved and saw producers further segment their markets, targeting
smaller groups of consumers within those markets. With the potential unleashed by the
microprocessor and information technology, we are seeing targeting down to the
individual, one to one. A commonly cited example is Amazon. Notice, if you make a
purchase from this site (or similar) when you return to the site, you will receive
recommendations based on your previous purchases. This presentation is based not only
on your purchases (data stored in your cookie file allows for this), but on purchases of
others who have bought the same book and similar books.
5. Viral Marketing
An interesting thing is occurring, as we are now in a networked economy. Our consumers
are able to "talk" to each other and serve as an extended sales force. This lateral
communication and / or transaction between customers and non-customers can serve as
an opportunity for companies to leverage. The pioneer of viral marketing was Hotmail.
6. Societal Marketing Concept
Companies, more aware of society and the environment at large, promote their affiliation
with the environment.
Importance of Marketing Management through the experiences of the United States of
America (USA)
PREPARED BY MR. ANTONY AMBIA Page 3
, 1. Globally:-
Profit and growth objectives are most likely to be achieved through a combination of
domestic and international marketing rather than solely from domestic marketing.
Until the late 1970s American firms had a large and secure domestic market. The only
significant foreign competition was in selected industries, Such as agriculture, or for relatively
narrow markets, such as luxury automobiles. But this change domestically through the 1980s
as more foreign firms developed attractive products, honed their marketing expertise, and
then successfully entered the US market. Imported products in some industries, such as office
equipment, autos, apparel, watches and consumer electronics, have been very successful. As a
result in recent years the U.S. has been importing more than its exports, creating large annual
trade deficits.
2. Domestically:-
Aggressive, effective marketing practices have been largely responsible for the high standard
of living in the United States. The efficiency of mass marketing – extensive and rapid
communication with customers through wide verity of media and a distribution system that
makes products rapidly available- Combined with mass production brought the cost of many
products within reach of most customers.
a) Employment and costs:-
When we get an idea of significant marketing in the U.S. economy by looking at how many
of us are unemployed in same way in marketing and how much of what we spend covers the
cost of marketing. Between one third and one fourth of the U.S. civilian labor force is
engaged in marketing activities.
b) Creating Utility:-
A customer purchases a product because it provides satisfaction. The Want satisfying power
of a product is called its utility and it becomes in many forms. It is through marketing that
much of a products utility is created.
3. Organizationally:-
Marketing consideration should be integral part of all short and long range planning in any
company. Here’s why:
The success of any business comes from satisfying the wants of its customers which is the
social and economic basis for the existence of all organizations.
Although many activities are essential to a company’s growth , marketing is the only one
that produce revenue directly.
a) Services marketing:-
The U.S has gone through from primarily manufacturing economy to the world’s first service
economy. As opposed to goods, services are activities that are the object of a transaction. For
example transportation, communication entertainment, medical care, financial services,
education and repair services account of over two third of the nation’s gross domestic
product.
b) Not for profit marketers:-
During 1980s and early 1990s many not for profit organizations realized they needed
effective marketing programs to make up for shrinking government subsidies a decrease in
charitable contribution and other unfavorable economic. Not for profit organizations need to
PREPARED BY MR. ANTONY AMBIA Page 4
