Marketing Management

What is Marketing?
 Marketing is an  organizational  function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.


What is Marketing Management?
Marketing  management is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
Communicating superior customer value.


Company Orientations

 The five distinct marketing concepts are: Production, Product, Selling, Marketing,
and Holistic. These philosophies have evolved over time and began with the
production concept. The evolution of a new marketing concept does not mean that
all companies are changing. Many companies continue to operate under the
production concept.
  Under a production philosophy the company will seek to mass produce products
and to distribute them on a wide scale. The belief is that consumers prefer products
that are widely available and inexpensive.
  The product concept proposes that consumers prefer products that have higher
quality, performance, or are more innovative. Often, managers focus too much on
the product (a better mousetrap) but this does not always equal success.
  The selling concept argues that members of a market will not purchase enough
product on their own so companies use the “hard-sell” to increase demand.
Typically used with unsought goods such as insurance or cemetery plots, or when
companies face overcapacity.
 The marketing concept first emerged in the 1950’s and focuses more on the
customer with a “sense-and-respond” attitude. Companies that have embraced the
marketing concept have been shown to achieve superior performance than
competitors.
 The holistic concept takes a philosophy that everything matters in marketing.
Figure 1.4 (next slide) outlines the Holistic Marketing Concept.

The Value delivery approach to Marketing
Successful marketers must focus on delivering value to
customers. This is accomplished by:
• Choosing the value – Here marketers do their homework to
segment the market, select the appropriate target, and develop
the offerings value proposition.
• Providing the value – Entails selecting specific product features,
prices, and distribution.
• Communicate the value – The third phase, communicating the
value, is accomplished through the use of the sales force, the
Internet, advertising, and other communication methods to
announce and promote the product.




What is Holistic Marketing?
• Holistic marketing sees itself as integrating the value exploration,
value creation, and value delivery activities with the purpose of
building long-term, mutually satisfying relationships and coprosperity among key stakeholders.
• Holistic marketers thus succeed by managing a superior value chain
that delivers a high level of product quality, service, and speed. They
achieve profitable growth by expanding customer share, building
customer loyalty, and capturing customer lifetime value.
• Holistic marketers address three key management questions:
1. Value exploration—How a company identifies new value  opportunities
2. Value creation—How a company efficiently creates more promising
new value offerings
3. Value delivery—How a company uses its capabilities and
infrastructure to deliver the new value offerings more efficiently.


Good Mission Statements
1. Focus on a limited number of goals Focus on a limited number of goals
2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful



Product Orientation vs. Market  Orientation
• Companies often define themselves in terms of products: They
are in the “auto business” or the “clothing business.” Market
definitions of a business, however, describe the business as a
customer satisfying process.
• Transportation is a need: the horse and carriage, automobile,
railroad, airline, ship, and truck are products that meet that
need.
• Viewing businesses in terms of customer needs can suggest
additi l dditional growth opport itiunes. T blae 2.3 li tss companies th ta
have moved from a product to a market definition of their
business. It highlights the difference between a target market
definition and a strategic market definition.



Dimensions That Define a Business
A business can define itself in terms of three dimensions: customer
groups, customer needs, and technology.
Consider a small comp y an that defines its business as desig g nin
incandescent lighting systems for television studios. Its customer
group is television studios; the customer need is lighting; the
technology is incandescent lighting. The company might want to
expand to make lighting for homes, factories, and offices, or it could
supply other services television studios need, such as heating,
ventilation, or air conditioning.

General Idea about Business Ethics

The meaning of ethics
• Ethics is a conception of right and wrong conduct. Ethics tell us whether our behavior is moral or immoral and deal with fundamental human relationships.
•Another definition from The Josephson Institute of Ethics states:
“Ethics is about how we meet the challenge of doing the right thing when that will cost more than we want to pay”
 Ethical Principles are guides to moral behavior.

Understanding Right and Wrong

• Developing your own ‘Moral Compass
• How Should I live?
• The Value of a Value – intrinsic; instrumental
• Value Conflicts
• Doing The Right Thing
• The Golden Rule – Do unto others as you would have them do unto you. 

Why should business be ethical?

• To meet demands of business stakeholders that require high levels of ethical performance and social responsibility.
•  To enhance business performance since according to scholars ethics pays.
• To comply with legal requirements since doing business ethically is also often a legal requirement.
•  To prevent or minimize harm to the general public and the corporation’s stakeholders.
• To promote personal morality since most people want to act in waysthat are consistent with their own sense of right and wrong.

Ethical Dilemmas accure where the decision you must make requires you to make a "right"choice.

Business Ethics refer to he application of general Ideas to business behavior.

Moral agency within organisations refer to the ability of individuals to exercise moral judgment and behaviour in an autonomous fashion.

Normative discussion is concerned with rules and principles that govern our thoughts and actions.

Descriprive discussion focuses on how things are and they should be.

Reflection implies careful consideration of ethical issues. Reflexive mean to turn back on one's own mind to consider one's own values and personality.

General Idea About Human Resource Management

Human resources management definiton :

The talents and energies of people who are available to an arganization as potential contributors to the creation and realization of the organization's mission, vision and goals.

Competitive Advantage: When all or part of the market prefers the firm’s products and/or services.

Ways firms can use HRM to gain sustainable competitive advantage:

·   Maximize the value added by employees

·   Acquire rare employees

·   Develop a culture that cannot be copied.

WIN-WIN Situation: Effective managers determine the interests of their multiple stakeholders and work with them to find a solution that addresses each set of objectives.

The HR Triad:   1. HR professionals 2. Line Managers 3. Employees

P.E.S.T.E.L. Analysis: It’s a strategic planning technique that provides a useful framework for analysing the environmental pressures on a team or an organisation (P=Political, E=Economic, S=Social, T=Technology, E=Environment, L=Legislative).

Stakeholders: Individuals or groups that have interests, rights or ownership in an organization and its activities. Examples of stakeholders: customers, employees, society, owners, investors, organizational members and other organizations.

4 Current HRM Challenges: 1. Managing Teams

                                             2. Managing Diversity

                                             3. Managing Globalisation

                                             4. Managing Change

Benefits of Team-work:

·         On-time results delivery

·         Improved customer relations

·         Innovation in products and services

·         Cost reduction and improved efficiency

·         Improved product quality

3 Regional Trade Zones:

1. Asia Pasific Economic Cooperation

2. North American Free Trade Agreement (N.A.F.T.A.)

3. European Union

Vision: Top Management’s view of the kind of company it is trying to create.

Mission: Provides a clear view of what the company is trying to accomplish. The mission is the guidance to fulfill the vision.

Leadership: Organising a group of people to achieve a common goal.

Leadership style: Refers to a leaders’ behaviour. It’s the result of the philosophy, personality and experience of a leader.

Leader: Is a person who has a vision, a drive and a commitment to achieve that vision, and also the skills to make it happen.

Trait and skills a leader must have:

• Integrity: leaders are pursuing because is the right thing to do for the company and not because of their ego driven.
• Understands the differences of people and their unique skills and he is able to use those individual skills to achieve a goal.
• Positive: encourages and rewards people.
• Effective communication
• Motivation: motivate everyone to contribute
• Planning: uses a high level plan to keep everyone moving together toward the goal.

In order to develop a competitive strategy you have to find out:

1. Where is the business trying to get to in the long-term? (direction)
2. Which markets should a business compete in and what kinds of activities are involved in such markets? (scope of the market)
3. How can the business perform better? (advantage)
4. What resources are required in order to be able to compete? (resources)
5. What external environmental factors affect the business ability to compete? (environment)
6. What are the values and expectations of those who have power in and around the business? (stakeholders)

SWOT Analysis: S=strengths, W=weaknesses, O=opportunities, T=threats.

Organisational Culture: is an idea in the field that describes the philosophy, attitudes, experiences, benefits and values of an organization.

Elements of HR Planning:

1. SCANNING: scan the external and organizational environment.
2. OBJECTIVES AND METRICS: a) What is to be achieved with regard to the firm’s HR? b) Each firm has to develop its own HR metrics (= measurements used to assess the process of implementing the objectives).
3. PLANS AND TIMETABLES: a) Develop an HR plan for action b) Create a timetable based on each planned activity will e completed.

Which aspects of the external environment are more likely to stimulate change in the next 10 years?  Changing expectations, global competition, government change, regulations and economic conditions.

Job Analysis: a process to identify and determine in detail the particular job duties, requirements, necessary skills, actions and work environment of a particular job.

Competency: measureable sample of knowledge, skills, abilities, behaviours and other characteristics that individuals need to perform work roles successfully.

Recruitment: is the process of identifying that the organisation needs to employ someone up to the point at which application forms for the post have arrived at the organisation (Capon Cl., 2004).

Steps of Recruitment and Selection Process:

•          put out job advert

•          filter application forms

•          interviewing

•          short listing

•          selecting

•          training

Internal Recruitment: the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside.

Advantages of Internal Recruitment

•          Gives existing employees greater opportunity to advance their careers in the business

•          May help to retain staff who might otherwise leave

•          Requires a short induction training period

•          Employer should know more about the internal candidate's abilities (= a reduced risk of selecting an inappropriate candidate)

•          Usually quicker and less expensive than recruiting from outside

Disadvantages of Internal Recruitment

•          Limits the number of potential applicants for a job

•          External candidates might be better suited / qualified for the job

•          Another vacancy will be created that has to be filled

•          Existing staff may feel they have the automatic right to be promoted, whether or not they are competent

•          Business may become resistant to change; by recruiting from outside, new perspectives and attitudes are brought in

External Recruitment: the filling of job vacancies from outside the business.

Selection: Is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons most likely to succeed in the job, given management goals and legal requirements.

Selection Techniques:

•           application

•          applicant screening/filtering

•          assessment centre

•          computer skills testing

•          group activity

•          interview

•          presentation

•          psychometric testing

•          role play

•          referee report

•          work sample

•          written test

The importance of an effective selection process:

•          Selection of skilful people

•          New ideas, knowledge and abilities

•          Achievement of the organisational goals

•          Better image of the company

•          Satisfied employees

                                                  

Training

• Improving employee competencies needed today or very soon
• Typical objective is to improve employee performance in a specific job.

Development

• Improving employee competencies over a longer period of time
• Typical objective is to prepare employees for future roles.

4 Components of NEEDS Assessment:

1. Organisational needs

2. Job Needs

3. Person Needs

4. Demographic Needs

A systematic approach to the evaluation of training includes at least four components:

·         reaction to training

·         learning that took place

·         behavior or performance change

·         results (bottom line)

SETTING UP A TRAINING AND DEVELOPMENT SYSTEM

Create the Right Conditions

·         Insight – Employees need to know what they need to learn.

·         Motivation – People need to be motivated by internal and external means to put in the required effort.

·         New Skills and Knowledge – People must be shown how to acquire the needed competencies.

·         Real-World Practice – Programs that engage participants in realistic activities improve the likelihood that they will apply their learning.

·         Accountability – The responsibility for applying new learning must be shared between managers and employees.

Decide Who Provides

Providers of training and development activities may include:

·         the supervisor

·         a coworker, such as lead worker or buddy

·         an internal or external subject matter expert

·         the employee

Strategic marketing questions and answers

Question 1:

  What is customer value? How would you explain the concept of superior customer value? How is customer value related to a market driven strategy and to a company’s success?

Answer:

  Customer value is the outcome of a process that begins with a business strategy anchored in a deep understanding of customer needs. The creation of customer value is an important challenge for the managers, since it is an ongoing competitive challenge in maintaining successful market-driven strategies. Being able to overcome these challenge, the organization is believed to be able to successfully deliver the customer value.

  Superior customer value occurs when the buyer has a possitive use experience compared to his/her expectations as well as the value offerings of competitors.

   Question 2: 
      Discuss the role of organizational capabilities in a strategy. How do organizational distinctive capabilities contribute to developing market-driven strategy?

Answer:
  Identifing an organization's distinctive capabiliies is a crucial part of market-driven strategy which is very essential in formulating business strategy. Capabilites can be defined as a complex bundles of skills and accumulated knowledge, exercised throw organizational processes that eneble firms to coordinate activities and make use of their assets. 
  The major components of distinctive capabilites are:

• Organizational Processes
• Skills and Accumulated Knowledge
• Coordination of Activities
• Assets

Question 3:
         Marketing has often been defined in terms of satisfying customers’ needs and wants. Critics maintain that marketing does much more than satisfying customers’ needs and wants and, in fact, create needs and wants that did not exist before. According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really do not need. What is your opinion of this on-going debate? Take a stance and defend your position using examples of companies that you perceive to have created or satisfied customer needs.

Answer:
   I believe that marketing shapes the needs and want of customers. In fact, that now marketers create needs and wants that didn't exist before it says that consumers not always know what they really need and want. For example, many years ago, few people might feel that they need a cell phone. If marketers simply followed this information, cell phone will nor be so popular now. Marketers shapes consumers to realize this need and stimulates this market.
  So, marketing may lead consumers to realize a need that might have previously gone unnoticed.

       "If we had listened to customers, we would have made them a faster horse".

                                                                                                                                Henry Ford

Question 4:  
      With marketers increasingly adopting more and more refined market segmentation schemes – fueled by the Internet and other customization efforts- some critics claim that mass marketing is dead. Others counter that there will always be room for large brands that employ marketing programs targeting the mass market. Take a position whether mass marketing is dead versus mass marketing is still a viable way to build a profitable brand.

Answer:
   I think, mass marketing will never die. And there are many reasons for that. 
Firstly, mass marketing is losing popularity is directly related to the maturity of many markets.
There is another reason that mass marketing is on the decline  is the demand from  consumers for personalization. Compared with many years ago, there are more people today who want to be different. 
Advances in technology now let manufacturers create specialty products much more economically than they could before, and because they can, the market for many products has  become extremely competitive. So, in order to compete, manufacturers continue to refine their segmentation to appeal to more slices of the market. It's a vicious circle. 

Question 5:
      What are Segmentation, Targeting and Positioning? How important are they in offering customer value? Why it may become necessary for companies to change their market segmentation identification over time?

Answer:
   Segmentation: Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behavior who might require separate products. 
   Next step is to target one or more segments. Consists of set of buyers who share common needs or characteristics that the company decides to serve.
   Positioning is developing a product and brand image in the minds of consumers.
   It's become necessary for companies to change their market segmentation, because markets are dynamic. The market preference is always changing, so the company should make sure that their capacity and capability match with their market segment demand. If the current segment is not well match toward the company capability, consequently the organization should change their market identification. 


Question 6:
     Often, after a brand begins to slip in the marketplace or disappears altogether, commentators observe, “all brands have their day”. Their rationale is that all brands, in some sense, have a finite life and cannot be expected to be leaders forever. Other experts contend, however, that brands can live forever, and their long-term success depends on the skill and insight of the marketers involved. Take a stance whether brands cannot be expected to last forever versus there is no reason for a brand to ever become obsolete.

      Answer:

        Nothing is forever, but some brands can carry on for an extended time if the brand is managed in a way that its value doesn't depreciate. Brand leaders such as Coca-Cola has survived the test of time because they are constantly modifying and improving their strategy or introdusing new products.

        So, well-managed, a brand could live forever. American Express, Western Union and other brands also still going strong after more than 100 years. Even if brands dies it can rise again. 

        
     Question 7: 
        What is meant by the phrase ‘the customer is always right’? Do you support this statement? If yes, why? If not, why not?

     Answer:
     "Customer is always right" is one of the idea employed by some of the company in the market. There is nothing right or wrong about the idea. It was based on the intention to fulfill and satisfy customer needs. However, this can be achieve by not bound with the mean of the phrase "Customer is always right". but with what we can do to help customer and our own company to achieve the most practical benefits.

The customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption of our work. He is the purpose of it. 
        

    Question 9:
           The ‘form versus function’ debate applies in many arenas, including marketing. Some marketers believe that product performance is the end all and be all. Other marketers maintain that the looks, feel, and other design elements of products are what really make the difference. Take a position whether product functionality is the key to brand success versus product design is the key to brand success.

 Answer:

        Consumers buy products to satisfy a need. A product must perform to an acceptable level according to the consumer's perception of benefits in their customer value hierarchy. Products have unique characteristics and  specific brand identifications that meet consumers' needs that are not related to functionability. Such needs as status, selfactualization and style. For example, most automobiles will perform the task of taking a person from point A to point B. However, it is the design of the automobile that appeals to the buyer. For many consumers style plays more important role. And I think design can be a powerful marketing asset.

Question 11:
       “Consumers do not buy products they buy benefits”. Discuss this statement and its implications for effective marketing.

Answer:

      We make purchases not for the products themselves, but for the problems they solve or the opportunities they offer. Marketing should focus on the product benefits. This must be done so that sonsumers to know the advantages of your product and then interested to use it. 

          They want to buy a benefit, so exactly what  benefit will your product or service be to them? Marketers have to find out what customers personally consider to be benefit.

        For effective marketing:

•       Marketers should define their business in customer benefit term. 
•       What do customers want from products like yours?
•       Why should someone buy your product?
•       What benefits or results the customer recieve from doing business with you?
•       What will your product do for them?

    Marketers should give significant thought to the problem what their product or service is solving in the life of the customer and to put themselfes in their place and think about benefits they as a customer would expect and demand.

Question 12:

         Why is it important that an organization undertakes regular monitoring of its market environment and what are the key areas that should be examined?

Answer:

   Regulary monitoring  market environment is important for business to succeed. The  company should analyse its performance to ensure that it remains effective. This will allow the company to have better control over the performance of company's market strategy. Marketers need to understand the marketing environment and modify their marketing plans so as to maximise opportunities and minimise threats. Businesses are constantly being inluenced by their external and internal environments.

Question 13:

    Explain the relationship between customer value, customer satisfaction, and customer loyalty. Do we need loyal customers? If yes, why? If No, why not?

Answer:

       Customer loyalty positively influenced by customer satisfaction. Customer satisfaction is a key issue for every company wishing to increase customer loyalty and thereby create a better business performance.

     And the other hand, customer satisfaction influenced by customer value. Companys attract new customers by promising superior value and keep and grow current customers by delivering satisfaction.

       There are some reasons why we need loyal customers:

•     Loyal customers will purchase your goods or services again and again over time.
•     The more loyal customers are, the safer the company will be from the competition.
•     Loyal customers can also bring you  new customers.

Question 14:

   The key success factor in new product development revolves around the capabilities of the Research and Development team. How accurate in your view is this statement? Justify your answer.

Answer: 

   Market research is the process by which businesses find out about customers' needs, wants and desires. It makes possible the successful development of new products.

  So, Marketing research helps marketers learn more about their customers' requirements, expectations, perceptions, satisfaction and loyalty.

Question 15:

   In what ways does the global marketing mix and marketing principles differs from the domestic marketing mix and principles?

Answer:

  Both markets refer to the same marketing principles. However, there are same differences between two.

  

	Domestic	Global
Meaning	It refers to those activities which results into transfers of goods and services inside the country itself.	It refers to those activities which results into transfers of goods and services from one country to another.
Barriers	Domestic marketing has no such restrictions.	International trade is characteristics by tariff and non tariff barriers.
Culture	Culture does not affect in domestic marketing.	Trade should be done taking diverse into consideration. Even things like colour combination can be affect the trade.
Competition	Competition is not as intense as it is in international marketing.	International Trade is subject to intense competition.
Risk	Domestic Marketing is also subject to risk but not as high as international marketing.	International Marketing is subject to high risk. Political, foreign exchange risk, bad debt risk are few of them.