Republic of the Philippines

Davao Oriental State College of Science and Technology

BUSINESS AND MANAGEMENT DEPARTMENT

MGT 31 Marketing Management Lecture Notes

Prepared by: Ms. Fatima Q. Bagay
The Ten Deadly Sins Of Marketing
Commandments Of Marketing
1. The company is not sufficiently market
focused and customer driven.
2. The company does not fully understand its
target customers.
3. The company needs to better define and
monitor its competitors.
4. The company has not properly managed
its relationships with its stakeholders.
5. The company is not good at finding new
opportunities.
6. The company's marketing plans and
planning process are deficient
7. The company's product and service
policies need tightening.
8. The company's brand-building and
communications skills are weak.
9. The company is not well organized to
carryon effective and efficient marketing.
10. The company has not made maximum
use of technology.

The Ten

1. The company segments the market, chooses the best

segments, and develops a strong position in each chosen
segment.
2. The company maps its customers' needs, perceptions,
preferences, and behavior and motivates it stakeholders to
obsess about serving and satisfying the customers.
3. The company knows its major competitors and their
strengths and weaknesses.
4. The company builds partners out of its stakeholders and
generously rewards them.
5. The company develops systems for identifying
opportunities, ranking them, and choosing the best ones.
6. The company manages a marketing planning system that
leads to insightful long-term and short-term plans.
7. The company exercises strong control over its product and
service mix.
8. The company builds strong brands by using the most costeffective communication and promotion tools.
9. The company builds marketing leadership and a team
spirit among its various departments.
10. The company constantly adds technology that gives it a
competitive advantage in the marketplace.

*DEVELOPING MARKETING STRATEGIES AND PLANS

The value delivery process involves choosing (or identifying), providing (or delivering),
and communicating superior value. The value chain is a tool for identifying key activities
that create value and costs in a specific business.
Market-oriented strategic planning is the managerial process of developing and
maintaining a viable fit between the organization's objectives, skills, and resources and
its changing market opportunities. The aim of strategic planning is to shape the
company's businesses and products so that they yield target profits and growth.
Strategic planning takes place at four levels: corporate, division, business unit, and
product.

Strategic planning for individual businesses entails the following activities:

1. defining the business mission,
2. analyzing external opportunities and threats,
3. analyzing internal strengths and weaknesses,
4. formulating goals,
5. formulating strategy,
6. formulating supporting programs,
7. implementing the programs,
8. gathering feedback and exercising control.
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The marketing plan is the central instrument for directing and coordinating
the marketing effort. The marketing plan operates at two levels: strategic and
tactical. The strategic marketing plan lays out the target markets and the
value proposition the firm will offer, based on an analysis of the best market
opportunities. The tactical marketing plan specifies the marketing tactics,
including product features, promotion, merchandising, pricing, sales channels, and
service.
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The Marketing Plan and Its Content
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Executive Summary and Table of Contents. The marketing plan should open
with a brief summary for senior management of the main goals and
recommendations. A table of contents outlines the rest of the plan and all the
supporting rationale and operational detail.
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Situation Analysis. This section presents relevant background data on sales,
costs, the market, competitors, and the various forces in the macroenvironment.
How do we define the market, how big is it, and how fast is it growing? What are
the relevant trends? What is the product offering and what critical issues do we
face? Firms will use all this information to carry out a SWOT (strengths,
weaknesses, opportunities, threats) analysis.
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Marketing Strategy. Here the product manager defines the mission, marketing
and financial objectives, and groups and needs that the market offerings are
intended to satisfy. The manager then establishes the product line's competitive
positioning, which will inform the "game plan" to accomplish the plan's objectives.
All this requires inputs from other areas, such as purchasing, manufacturing, sales,
finance, and human resources.
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Financial Projections. Financial projections include a sales forecast, an expense

forecast, and a break-even analysis. On the revenue side, the projections show the
forecasted sales volume by month and product category. On the expense side,
they show the expected costs of marketing, broken down into finer categories. The
break-even analysis shows how many units the firm must sell monthly to offset its
monthly fixed costs and average per-unit variable costs.
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Implementation Controls. The last section of the marketing plan outlines the
controls for monitoring and adjusting implementation of the plan. Typically, it spells

out the goals and budget for each month or qU31ter, so management can review
each period's results and take corrective action as needed. Firms must also take a
number of different internal and external measures to assess progress and suggest
possible modifications. Some organizations include contingency plans outlining the
steps management would take in response to specific environmental
developments, such as price wars or strikes.
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*CAPTURING MARKETING INSIGHTS

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Marketing Information System (MIS) - consists of people, equipment,
and procedures to gather, sort, analyze, evaluate, and distribute needed, timely,
and accurate information to marketing decision makers. The company's marketing
information system should be a cross between what managers thinks they need,
what they really need, and what is economically feasible.
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3 Components of MIS: (a) an internal records system, which includes
information on the order-to-payment cycle and sales information systems; (b) a
marketing intelligence system, a set of procedures and sources used by
managers to obtain everyday information about pertinent developments in the
marketing environment; and (c) a marketing research system that allows for
the systematic design, collection, analysis, and reporting of data and findings
relevant to a specific marketing situation.
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Within the rapidly changing global picture, marketers must monitor six major
environmental
forces:
demographic,
economic,
social-cultural,
natural,
technological, and political-legal.
Demographic environment, marketers must be aware of worldwide population
growth; changing mixes of age, ethnic composition, and educational levels; the
rise of nontraditional families; and large geographic shifts in population.
Economic arena, marketers need to focus on income distribution and levels of
savings, debt, and credit availability.
Social-Cultural Arena, marketers must understand people's views of
themselves, others, organizations, society, nature, and the universe. They must
market products that correspond to society's core and secondary values and
address the needs of different subcultures within a society.
Natural environment, marketers need to be aware of the public's increased
concern about the health of the environment. Many marketers are now embracing
sustainability and green marketing programs that provide better environmental
solutions as a result.
Technological arena, marketers should take account of the accelerating pace of
technological change, opportunities for innovation, varying R&D budgets, and the
increased governmental regulation brought about by technological change.
Political-Legal Environment, marketers must work within the many laws
regulating business practices and with various special-interest groups.
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