Management

Science
Week 6
Marketing Management
MARKETING
• As a social process by which individuals and groups obtain
what they need and want through creating, offering
exchanging products and services of value with others.
MARKETING MANAGEMENT
• According to Philip Kotler, Marketing Management is the
process of planning and executing the conception, pricing,
promotion and distribution of goods, services and ideas to
create exchanges with target groups that satisfy customer
and organizational objectives.
Selling versus Marketing:
• Selling – refers to the act of transferring the ownership of the
goods and services from seller to the buyer.

• Marketing – Refers to the whole process encompassing the

entire range of activities starting from identifying the
customer requirements to satisfying in a mutually beneficial
manner.
Marketing Functions:

1) Buying – Involves both marketing and the customers. The

marketing manager must know about the type of customers,
their consuming habits demands and buying pattern.
2) Selling – It creates a demand for a product selling function
involves:
◼Product planning and development
◼Finding out or locating buyers
◼Demand creation through salesmanship, advertising, and
sales promotion.
◼Negotiation of terms of sales such as price, quantity, quality
and etc.
3) Transporting – It involves the creation of pace utility in
order to have value goods must first be transported from the
place are produced to the place where they are needed.
4) Storage – It concerned with storing finished products
property without any damage, until they are dispatched to the
customers, it is also concerned to the customers with
maintaining stocks of raw materials , to meet production
schedules.
5) Standardization and grouping – These two functions are
supplementary and complementary to each other, a standard
is a measure of fixed value, the standard could be based on
color, weight, quality, and number of items, price, or any other
parameter, both domestic and export markets rely extensively
on this function.
6) Finance – Finance is the life blood of business value of
goods is expressed, money and it donated by price to be paid
by buyer to seller credit is necessary in marketing, it plays all
important role in retail trade particularly in the sales of costly
consumer goods.
7) Marketing research – The marketing personnel must study
the trends in market demand, supply prices and related
market information. The knowledge about the latest market
information may help the firm to reduce risk loss in
purchasing, pricing, in forecasting market demand and in
facing competition in the market.
Marketing Mix
◼Product – It is used to describe the assortment of different
product types and their varieties. In addition different
tangible and intangible features of the product also form the
product mix.
◼Price – Refers to the decision relating to the amount charge
for product and services.
◼ Promotion - Refers to the activities relating to promoting of the
product and service.
◼ Place – Pace or physical distribution refers to the activities that are
involved in transferring ownership to customers at the right time and
price.
Product Life Cycles
Many new products go through a Product life cycle in terms of
demand. When an item is first introduced, it may be treated
as a curiosity. Demand is generally low at this point because
potential buyers have not had much time to familiarize
themselves with the item. Many potential buyers recognize
that all of the bugs have probably not been ironed out and
that the price may drop after the introductory period.
Five Product Life Cycle Stages:
• Product Development – Begins when the company finds and
develops a new product idea. During product development
sales are zero and the company’s investment cost
movement.
2) Introduction – The stage in which new product is first
distributed and made available for purchase.

◼It is a period of slow sales growth as the product is

introduced in the market. Profit is nonexistent in this stage
because of heavy expenses of product introduction.
◼Invest heavy on advertising and promotion.
3) Growth – The stage in which a product sales starts climbing
quickly. It is a period of rapid market acceptance, strong
demand and substantial profit improvement.
◼To sustain market growth and demand for the product the
following strategies are used:

a)Product quality improvement

b)Entry to new market segment or new distribution channels
c) Adding of new models
d) Some advertising shift from building product awareness to
bringing product conviction and purchase.
e) Lowering price to attract non-users and price sensitive
consumers.
4) Maturity – The stage in which sales growth slows or level off.
Profit level off or decline because of increased marketing outlays
to defend the product against competitors.
The following Strategies are used:
• Market Expansion
• Modification of Marketing Mix
• Product Modification
The following Strategies are used:

• Market Expansion

• Modification of Marketing Mix

• Product Modification
5) Decline – The period when sales falls off and profits drop
and new product will replace the old. The stage in which a
products sales decline.
Research and Development
◼Organized efforts to increased scientific knowledge or
product innovations.

Most of the recent developments in semiconductors, medical

technology, communications, and space technology can be
traced to research and development (R&D).
• The costs of much of these efforts were so great that only
the largest companies and the government could afford to
underwrite their expense. The research projects from which
these and countless other scientific advancement have
sprung are typically conducted by colleges and universities,
research foundations, and large corporations.
Customer Service
• Customer service is the act of providing support to both
prospective and existing customers. Customer service
professionals commonly answer customer questions through
in-person, phone, email, chat, and social media interactions
and may also be responsible for creating documentation for
self-service support.
• Organizations can also create their own definitions of
customer service depending on their vaues and the type of
support they want to provide. For example, at Help Scout,
we define customer service as the act of providing timely,
empathetic help that keeps customers’ needs at the
forefront of every interaction.
Importance of Customer Service
• When 86% of customers quit doing business with a company
due to a bad experience, it means that businesses must
approach every support interaction as an opportunity to
acquire, retain, or up-sell.
• Good customer service is a revenue generator. It gives
customers a complete, cohesive experience that aligns with
an organization’s purpose.
• According to a variety of studies, U.S. companies lose more
than $62 billion annually due to poor customer service, and
seven out of 10 consumers say they’ve spent more money to
do business with a company that delivers great service.
• Understanding that customer service is the cornerstone of
your customer experience helps you leverage it as an
opportunity to delight customers and engage them in new,
exciting ways.
Principles of good Customer Service
• There are four key principles of good customer service: It's
personalized, competent, convenient, and proactive. These
factors have the biggest influence on the customer experience.
1) Personalized:
Good customer service always starts with a human touch.
Personalized interactions greatly improve customer service and let
customers know that your company cares about them and their
problems. Instead of thinking of service as a cost, consider it an
opportunity to earn your customer’s business all over again.
2) Competent:
Consumers have identified competency as the element that
plays the biggest role in a good customer experience. To be
competent, a customer support professional must have a
strong knowledge of the company and its products, as well as
the power to fix the customer’s problems. The more
knowledge they have, the more competent they become.
3) Convenient:
Customers want to be able to get in touch with a customer
service representative through whichever channel is the most
convenient for them. Offer support through the channels of
communication your customers rely on most, and make it easy
for customers to figure out how to contact you.
4) Proactive:
Customers want companies to be proactive in reaching out to
them. If one of your products is backordered or your website
is going to experience downtime, proactively reach out to your
customers and explain the problem. They may not be happy
about the situation, but they will be thankful that you kept
them in the loop.
• By building your customer service strategy around these four
main principles, you'll create a positive, hassle-free customer
experience for everyone who deals with your company.
Ten Customer Service Skills
• Anyone may learn these skills and build customer loyalty as
well as foster strong relationships among employees and
teams. It is likely you already possess some of these skills or
simply need a little practice to sharpen them.
1) Empathy
Empathy is the ability to understand another person’s
emotions and perspective. Delivering a good customer
experience requires tapping into their headspace to fulfill their
needs. It means reading cues and anticipating what they
want. The outcome of empathy can look like treating
customers kindly when they enter your restaurant, allowing
for refunds within 30 days, and assisting them in their
decision-making process.
• Example: A customer calls their internet service provider
complaining that their WiFi has been spotty over the past
week. The representative says, “I understand how frustrating
that can be. Let me do some tests to troubleshoot the issue.”
2) Problem solving
Being able to solve problems is key to customer service. If a
customer contacts the business with an issue or complaint, the
employee needs to figure out why they are experiencing the
problem and how to fix it. Solving the problem at hand may require
you to be patient and respectful as they explain the problem. You
should possess adequate technical knowledge to help the
customer resolve the issue, and help them prevent it in the future.
• Example: Over live chat, a customer cannot reset their
password to log into their account. The representative
performs a manual reset and then walks the customer
through how to reset their own password in the future.
3) Communication
Communication can occur in many forms, through various
channels, penetrating customers through in-person interactions,
the instruction manual, and social media copy. Effective
Communication is utilizing clear and concise language when
educating customers on products and company policies, so that
they feel confident making a purchase and feel that they’ll be
supported even after the purchase. When speaking with customers
in person, body language should be positive, refraining from
mumbling or crossing the arms and looking bored.
• Example: A customer calls a local cafe to inquire about
opening hours. The barista on the phone responds quickly
and cheerfully, instead of muttering incoherently and placing
them on hold.
4) Active listening
Every conversation requires a listener and a speaker. Listening
to a customer’s questions and concerns and responding in a
way that makes them feel heard paves the way forward to a
solution. The use of verbal cues like “mmm”, paraphrasing, and
clarifying with questions, are all part of the practice of active
listening.
• Example: When a customer calls a restaurant to make a
reservation, the host listens and then repeats, “You’re all set!
To confirm, your reservation is 7 PM on Saturday at our
Brooklyn location.”
5) Technical knowledge
As a customer service professional, you’ll want to be familiar
with technical and industry knowledge to help customers make
informed decisions and troubleshoot any issues.
Representatives should be up-to-date on all product
specifications, the purchasing process, product or service
usage, and company policies. Plus, technical knowledge is
helpful if you’re trying to upsell a product or service because
you’ll be able to list out the features of the newest edition.
• A good practice for businesses is to list out FAQs on the
website to empower customers to find the information
without contacting the support team.

• Example: An electronics sales representative helps a

customer decide which mechanical keyboard to purchase
because they explained every model, brand, and key type.
They even convinced the customer to opt for the pricier, but
higher quality option.
6) Patience
Patience comes in handy when dealing with customers,
especially if they are angry, resentful, or rude. A heated
argument with a customer can diminish your brand reputation,
especially given the star rating systems on Google Maps, Yelp,
or Glassdoor, where your business might be listed. Practicing
compassion can help you deliver a positive customer
experience. Your presence and actions can lift someone’s
spirits instead of making a bad situation worse.
• Example: A customer drops her umbrella while leaving the
nail salon and ruins her just-polished nails. The nail
technician calls her back with a smile and repaints the ruined
nails.
7) Tenacity
Tenacity, the ability to remain doggedly persistent throughout a
difficult situation, is a quality often overlooked but very important
in customer service. Along with patience and developing a thick
skin when working in customer service, tenacity is required to get
the job done thoroughly and accurately. Customers appreciate it
when service professionals walk them through the process when
they need help. They are more likely to continue doing business
with you if you have ensured customer satisfaction.
• Example: A landscaper who is new to the job makes a
mistake when tending the lawn and accidentally cuts the
client’s beloved rose bush. The next day, he drives several
hours to find the exact same plant to replace it.
8) Adaptability
Customers want to be able to reach a business on nearly every
platform. Their channel of communication might change
depending on the situation. That means your customer service
needs to be adaptable. Sometimes, the same customer will contact
a business through different channels each time. Integrating
customer information with a customer relationship management
(CRM) system helps to streamline inquiries from multiple channels.
It also helps to be accommodating to the different backgrounds
and personalities of your customers.
• Example: A customer contacts a dermatologist by phone
(with a headset) if they’re in the car and running late for their
appointment, but prefers to email or text for appointment
confirmations and administrative questions.
9) Resourcefulness
Resourcefulness is a useful customer service skill in problem
solving. Finding innovative and quick ways to solve the
problem can decrease time with each customer so that you
can help more customers in a day. It requires being familiar
with different departments within a business and referring
customers if needed. Developing creative approaches to
problem solving is a skill that can be sharpened while on the
job.
• Example: Customers are responsible for return shipping for a
company that is based in Australia. With an uptick in
complaints, the CEO decides to experiment with free shipping
for two months to keep up with the status quo. Five-star
ratings increased shortly thereafter.
10) Positive attitude
Maintaining a positive approach to customer service can be
difficult if your customers are frustrated with your product or
service. A rule of thumb is to stay calm and try to meet the
customer where they are, to empathize with their situation
and why they might be upset. Driving customers away with a
negative attitude will only cause more pain for the business, as
it can lead to a poor reputation and a decrease in sales.
• Example: A customer who just bought a board game from
the store is upset because some important pieces are
missing. The employee thanks the customer for their
patience and understanding as they mail the missing pieces
to them within one week.