MARKETING

MANAGEMENT PROCESS

What is Marketing?
Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
services of value with others.
- Philip
Kotler

What is Marketing Management?

Marketing management is the process of
planning and executing the conception,
pricing, promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals (Philip Kotler)
Marketing management has the task of
influencing the level, timing, and composition
of demand in a

way that will help the

organization achieve its objectives.

Five Components of Marketing

Management
a.
b.
c.
d.
e.

Planning
Research
Implementation
Control
Evaluation

Marketing Management
Marketing managers must consider the
following, to ensure a successful
marketing strategy:
1. What customers will we serve?
What is our target market?

2. How can we best serve these

customers?
What is our value proposition?

Simple Marketing
System
Communication

Industry
(a collection
of sellers)

Goods/services
Money

Information

Market
(a collection
of Buyers)

Marketing Defined
Marketing is a process that is

Managerial
Social
Individual
Wants, Desires
Demands Products and/or
Services

Needs, Wants, and Demands

Need: State of felt deprivation including physical,
social, and individual needs.
Physical needs: Food, clothing, shelter, safety
Social needs: Belonging, affection
Individual

needs:

Learning,

knowledge,

self-

expression
Want: Form that a human need takes, as shaped by
culture and individual personality.
Demand= Wants + Buying Power

The Marketing
Process
A simple model of the marketing process:

Understand the marketplace and customer

needs and wants.

Design a customer-driven marketing strategy.

Construct an integrated marketing program

that delivers

Build
customer

superior value.

profitable

relationships

and

create

delight.

Capture value from customers to create profits

and

customer quality.

Processes in Strategic
Marketing Management
1. Defining the organizations business,
mission, and goals
2. Identifying and framing organizational
growth opportunities
3. Formulating product-market strategies
4. Budgeting marketing, financial, and
production resources
5. Developing reformulation and recovery
strategies

PROCESS ONE

What business?

An organization should define a business by:

The type of customers it wishes to serve
The particular needs of those customer groups it
wishes to satisfy
The means or technology by which the
organization will satisfy the customer needs

What Mission?
1. Crystallizes managements vision of the
organizations long-term direction and character
2. Provides guidance in identifying, pursuing, and
evaluating market and product opportunities
3. Inspires and challenges employees to do those
things that are valued by the organization and
its customers
4. Provides direction for setting business goals or
objectives

Business Goals
Goals or objectives convert the organizations
mission into tangible actions and results that are
to be achieved, often within a specified time
frame.
Three major categories
of goals:
1. Production
2. Financial
3. Marketing

Production Goals
Apply to the use of
manufacturing and
service capacity and to
product and service
quality.

Marketing Goals
market share
marketing productivity
sales volume
profit
customer satisfaction
customer value creation

Financial Goals
Focus on return on
investment, return on
sales, profit, cash
flow, and shareholder
wealth.

PROCESS TWO

SWOT Analysis

A formal framework for identifying and

framing

organizational

growth

opportunities
Strengths
Weaknesses

internala good fit between an

organizations INTERNAL
CAPABILITIES

Opportunities
Threats

external
its EXTERNAL ENVIRONMENT

Strength

SWOT
What the organization is good at
Analysis

doing or a characteristic that gives

it an important capability

Weakness

What an organization lacks or does

poorly relative to competitors

Opportunities

Developments or conditions in the

environment that have favorable
implications for the organization

Threats

Pose dangers to the welfare of the

organization

PROCESS THREE

Product-Market
Strategies
Existing
products

New
products

Existing
markets

Market
Market
Penetration
Penetration

Product
Product
Development
Development

New
markets

Market
Market
Development
Development

Diversification
Diversification

The Growth Matrix

Market

penetrationMarketing

products to present

of

present

markets.

Market developmentMarket present products to

new markets.
Product developmentMarketing new products
to present

markets.

DiversificationMarket new products to new

markets.

PROCESS FOUR

The Budget

A formal, quantitative expression of an

organizations planning and strategy initiatives
expressed in financial terms
A well-prepared budget meshes and balances an
organizations
Financial,
Production, and
Marketing Resources
so that overall organizational goals or objectives
are attained.

Marketing Ethics and

Social Responsibility

PROCESS FIVE

Marketing decisions reflect an organizations

orientation toward the publics with which it
interacts

The market place is populated by individuals

with diverse value systems

Their actions will be judged publicly by others

with different values