INTRODUCTION TO MARKETING MANAGEMENT

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INTRODUCTION TO MARKETING MANAGEMENT

• By
• Elisante Ole Gabriel (Tanzania)
• Chartered Marketer
• egabriel_at_edenconsult.net, www.olegabriel.com
• 255-784-455-499

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SIX COMMANDMENTS OF MARKETING MANAGEMENT (By
Gabriel)

• Create Superior performance
• Sustain Superior performance
• Understand your core business (Value NW)
• Know your Competitor as you know yourself
• Make sure you are sophisticated
• Understand your Internal and External Target
  market and react to the feedback

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(A) BASIC CONCEPTS

• What is Marketing ?
• This is a social and managerial process by which
  individuals and groups obtain their needs through
  creating and exchanging products and values with
  others.
• There is always a consideration connected to this
  exchange, which can be in a material/kind form.

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WHAT IS BUSINESS?

• This is a specific activity for specific
  objectives, for specific people, to be performed
  by specific people within a specified period of
  TIME.

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Business Scope

• Business is beyond just Creating, Promoting, and
  delivering goods Services to consumers and
  Business.
• Nowadays, Marketers are involved in marketing ten
  types of entities
• goods, services, experiences, events, persons,
  places, properties, organizations, information,
  and ideas.

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What is Management ?

• This is an art of coping with complexities
• If compared to Leadership, they differ in the
  sense that leadership tends to cope with changes.
• Leadership can either be Autocratic,
  Bureaucratic or Participatory
• Sometimes a combination is the way forward no
  one is superior to another

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Why studying Marketing Management ?

• Changes in Market structure
• Competition
• Cultural dynamics
• Micro Macro Factors
• Impact of Technology
• Marginal Propensity to Save/Consume
• Changes in Buyers Behavior
• Heterogeneity

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Generic philosophies (Concepts) in Marketing

• The Production Concept (the oldest)
• Consumers will prefer products that are widely
  available and affordable
• The Product Concept
• Consumers will favour those products that offer
  the most quality, performance, or innovative
  features (Fallacy Myopia)
• eg GMhow can they know until they see?..

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Selling Concept

• Consumers and business if left alone, will
  normally buy a small quantity of Organizations
  products. For this very reason, the Organization
  must undertake an aggressive selling and
  promotion effort
• - Buying inertia (resistance)
• - The battery for effective selling to stimulate
  more buying

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The Marketing Concept

• The Organizational goals could be achieved if the
  Company will be more effective than competitors
  in creating, delivering, and communicating
  customer value to its chosen target markets
• - Start and end with the customer
• - Love the customer not the product
• - Profits through customer satisfaction

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Four Pillars of the Marketing Concept

• Target Market
• Customer needs
• Integrated Marketing
• Profitability

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Selling Vs Marketing Concept

• Theodore Levitt of Harvard University gave this
  perceptive contrast
• Selling focuses on the needs of the seller
  Marketing on the needs of the buyer. Selling is
  preoccupied with the sellers need to convert his
  product in to cash Marketing with the idea of
  satisfying the needs of the customer using synergy

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Societal Marketing Concept

• The Organization should determine the needs and
  interests of target markets and serve them while
  maintaining Consumers and society well-being
• This philosophy considers the aspects of
  environment, resources, demographic
  factors,Worldwide economic problems, neglected
  Social services, etc

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TWO ADDITIONAL CONCEPTS

• Relationship Marketing
• There is a need to maintain a good relationship
  with your customers than just saving them with
  products. Mutual relationship will increase
  success in business than transactional.

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• One-to-one Marketing
• With the power of TECHNOLOGY in the market,
  marketer can now serve him and not them. A
  customer can be served exactly according to his
  demand and convenience (eg UPS FEDEX). Find
  More customers for products and more products for
  customers (Ref. Don Peppers Video Cassette)

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Analytical Models

• BCG Boston Consulting Group (USA)
• This model has been developed by students of
  Boston College in USA. The Company classifies all
  its SBUs according to the growth-Share Matrix.
  The BCG Matrix has two axes. The vertical one
  represents Market Growth rate (market
  attractiveness) whereas the Horizontal one
  represents Relative Market share (Market strength)

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Components of BCG

• Problem Children/ Question Marks
• These are low-share SBUs in high Growth Markets.
  Management should think with due care, which SBU
  to build and which to phase out
• Stars
• These are both of High Growth rate and Market
  share. They should be held carefully

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Cash Cows

• These are of Low-growth with high Market share.
  They need less investment to retain them in the
  Market. The Management should harvest cash from
  these SBUs and pay for bills and support other
  SBUs
• Dogs
• These SBUs are of Low-growth and Low
  Market-share. Low cash generation

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BCG MODEL
PROBLEM CHILD (Build)
STAR (Hold)
Market Growth Rate LOW
HIGH
CASH COW (Harvest)
DOG (Divest)
HIGH LOW
Relative Market Share ( Competitor)
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Micro Macro Environment

• Micro
• This is an internal environment. It entails
  dynamic forces within the industry. These factors
  include Vendors, Competitors, Customers
• Macro
• This is the general environment, which sometimes
  is referred as external. It includes the
  following factors (SLEEP-TIN)

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SWOT Analysis

• SW Strength and Weakness (INTERNAL)
• OT Opportunities and Threats (EXTERNAL)
• This analysis is also useful in assessing the
  position of a product or SBU/SBA/SME. The
  internal assessment deals with the Organizational
  capability of the SBU, including managerial
  competence. OT deals with external variables (Eg.
  Mobile Vs Ear disease, Alcohol/Pork Vs Faith)

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SYNERGY

• This is a concept in Marketing management, which
  outlines that, system approach is more effective
  for higher performance. The concept claims that,
  the result of the combined efforts of individuals
  (as a system) is greater than when they perform
  the same separately.
• Mathematically 11 gt 2. (TEAM WORK)

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Customer Vs Consumer

• Customer
• This is the one whom you interact with for the
  service encounter, Moment of truth, Closing the
  sale. This can be an individual or an
  Organization (Eg Wholesalers are .)
• Consumer
• The one who uses/consumes the product in the real
  sense (Eg a of a bar of chocolate)

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TYPES OF CUSTOMERS
Finally

• Customers can be categorized in different forms.
  They can
• Person Vs Non-Person Consumer Vs
  Organizational/Industrial/Institutional
• New Vs Existing
• In Consumer Market, for instance, Individuals can
  represent nine types of customers. These to
  include Snobbish, timid, nervous, .