• Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers.

• The art also seeks to create, deliver and communicate value to the customers.

Marketing:level 300,Lecture 1

Marketing management is defined as the art and science of choosing target markets and building profitable customer relationships with them.

Phillip Kotler ;Principles of Marketing

– The marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value.

• Marketing 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.

The scope of Marketing and the Market planning process

• Time and time again, firms suffer losses and some even go out of business.

• Why?• This is because of a failure to meet

customer needs.• It is the role of Marketing to help an

organization maintain focus on the marketplace.

Marketing does so by:• Identifying needs• Finding out which needs an organization

can and should serve.• Developing an offering (something of

value) which meets those needs.

According to Peter Drucker • Marketing is so basic that it is not just

enough to have a strong sales force and entrust marketing to it.

• Marketing is not only much broader than selling, it is not a specialized activity at all.

• It is the whole business seen from the point of view of its final results, that is form the customer’s point of view.

The essential elements of the marketing concept are:

• Careful analysis of markets to understand needs

• The selection of target groups whose needs match up with the firm’s capabilities.

• Tailoring the product offering to achieve customer satisfaction.

As Phillip Kotler put it ‘instead of “hunting”, marketing is “gardening”.

• The job is not to find the right customers for your product, but the right products for your customers.

• The concept is customer-centered, “sense and respond” philosophy.

• The marketing concept however is also a philosophy that provides long range direction and purpose for the organization. Therefore marketing decision making takes place at the top management level

Because the Marketing concept requires a consumer –buyer orientation

• Middle managers activities focus on specific customer needs and on adapting the firm’s products, prices, promotional efforts and other activities to meet these needs.

The two levels of Marketing Management

Level Personnel Decisions they makeTop Management CEO Markets to be served

Vice President Marketing Products to offerOther Vice Presidents Product objectives

Allocation of resources

Middle Management Marketing managers Product designProduct & Brand Managers PricesSales Managers AdvertisingAdvertising managers Sales PromotionPromotion Managers Selling &Distribution

Customer Service Managers Customer Service

• Although top mgmt and middle mgmt personnel focus on different decisions, their activities are equally related to the marketing concept.

• Top management must identify general long term positions to ensure future customer satisfaction in a changing environment

• The responsibility of middle managers is to identify more specific, short term actions to achieve customer satisfaction

Example:Automobile industry Top managers are identifying

fuel efficiency and product quality as long term priority goals

Whereas Middle managers are focusing on the designing and marketing of specific products and features that meet current customer preferences.

Vodafone entry—• Zain • MTN

• Information flow is important• Middle managers should provide top mgmt

with information on sales and profit trends• And Information on problems and

opportunities existing in the marketplace for each product

• The decisions made by top managers must influence the difficulty of the tasks faced by middle managers

The set of tasks necessary for successful marketing management includes

• Developing marketing strategies• Connecting with customers • Building strong brands• Shaping the market offerings• Delivering and communicating value• Creating Long term growth

• Corporate Strategies addresses what businesses a multiple-business-unit organization will be in and how resources will be allocated among those businesses.

• Business strategies focus on how to compete in a given business.

• Functional strategies deal with the activities of the functional areas of a business-production, marketing ,HR

Role of Marketing in Strategic planning

What is Strategic planning?

• Strategic Planning- Is the managerial process of creating and maintaining a fit between the organization’s objectives , resources and the evolving market opportunities.

Corporate Situational Analysis

THE STRATEGIC PLANNING PROCESS

Corporate Mission, Goals,& Objectives

Business Unit Situation Analysis

Business Unit Mission, Goals & Objectives

Business Unit Strategy

Marketing Goals &Objectives

Marketing Strategy

Implementation

Evaluation & Control

Production Goals &Objectives

Production Strategy

Implementation

Evaluation & Control

Financial Goals &Objectives

Financial Strategy

Implementation

Evaluation & Control

HR Goals &Objectives

HR Strategy

Implementation

Evaluation & Control

Other Functional Goals &Objectives

Other functional Strategies

Implementation

Evaluation & Control

Marketing plans

Production plans

Financial plans

HR plans

Other functional plans

Generally the cycle of events goes like this• Top management determines the

corporate philosophy, purpose, mission, objectives and strategy for the organization. As well as guidelines for the strategic business units (SBUs)

• Each SBU then does its own strategic planning.

• Top management then reviews and approves the strategic plans of each SBU.

• Each SBU then moves to develop a strategic plan for each of its functional areas (marketing, production, finance)

• Whether at the corporate, business unit or functional level, the planning process begins with an in-depth analysis of the organization’s internal and external environment-sometimes referred to as situation analysis.

• This analysis focuses on the firm’s resources, strengths, and capabilities vis-à-vis competitive, customer and environmental issues.