STRATEGIC MARKETING

MANAGEMENT
ALUBEL K (ASSISTANT PROFESSOR)
NOVEMBER, 2019
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STRATEGIC MARKETING …… DEFINITIONS

CLASSICAL ALTERNATIVES
• Gaining and sustaining competitive advantage
• Planning process • How to use resources and capabilities in a given
• Markets and products market
•
• Objectives & Goals – future, path, intentions, Relating this to marketing mix and attainment of
objectives
• Profitability – market share and stability
• Methodologies of analysis for future potentialities
• Analysis • Consumers, corporations and competition
• Resource Allocation • Where, How and When to Compete
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WHAT IS MARKETING?
According to the definition given by The American Marketing Association (AMA) : 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 objectives.”
According to Philip Kotler “Marketing is the social process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others.”
Marketing is the delivery of customer satisfaction at a profit.
Marketing is the management process that identifies, anticipates and satisfies customer requirements
profitably.”
marketing is everything. In essence it’s the process by which a company decides what it will sell, to whom,
when & how and then does it.
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THE GOAL OF MARKETING IS:
1) To attract new customers by promising superior value more than any other
competitors, and
2) To keep current customers by delivering satisfaction.
If customers are really satisfied with the superior value offered by the
organization in question, then they remain loyal. Loyal customers will
never switch over to competitors product or service.
5 THE GOAL OF MARKETING… CONT’D
• Marketing, more than any other business functions, deals with customers.
Because central aim of marketing is customer satisfaction. Customer is a king.
• Creating customer value and satisfaction are at the very heart of modern
marketing thinking and practice.
• Some people believe that only large business organizations, operating in highly
developed economies, use marketing. However, sound marketing is critical to the
success of every organization – whether large or small, for profit or non – profit,
domestic or global.
 MARKETING DEFINED
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• Many people think of marketing only as selling and advertising.
• Selling and advertising are only the tip of the marketing ice-berg. The core
function of marketing is to sense, know, understand and satisfy consumer
needs and wants.
• Marketers act as the customers’ voice within the firm and marketers are
responsible for many more decisions such as:
• Analyze industries to identify emerging trends.
• Determine which national and international markets to enter or exit.
• Conduct research to understand consumer behavior.
• Design integrated marketing mixes – products, prices, channels of
distribution, and promotion programs.
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CONT’D
Marketing is a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products of value with others.
To clearly understand this definition, we have to clearly discuss the following important terms
known as core concepts of marketing management:
• Needs, wants, and demands
• Products (goods, services and ideas)
• Value, satisfaction and quality
• Exchange, transactions, and relationships
• Markets
• Prospects and marketers
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NEEDS, WANTS, AND DEMANDS
Needs:
• The most basic concept underlying marketing is that of human needs.
• Human needs are states of felt deprivation.
• Human have many complex needs:
• Physical needs for food, clothing, warmth, and safety
• Social needs or belonging and affection
• Individual needs for knowledge and self – expression
Wants:
• Wants are the form taken by human needs as they are shaped by culture and individual personality.
• People have almost unlimited wants but limited resources.
• They want to choose products that provide the most value and satisfaction for their money.
Demands:
• When backed by buying power, wants become demands.
• Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.
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MARKET OFFERINGS, PRODUCTS AND SERVICES
Product:
• Anything that can be offered to a market to satisfy a need or want.
• The concept of product is not limited to physical objects – anything capable of
satisfying a need can be called a product.
Services:
• In addition to tangible goods, products also include services, which are activities
or benefits offered for sale that are essentially intangible and do not result in the
ownership of anything.
• Market offerings: Some combination of products, services, information, or experiences offered to
a market to satisfy a need or want.
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VALUES, SATISFACTION, AND QUALITY
Values:
• Customer value is the difference between the values the customer gains from owning and using a product and the costs of
obtaining the products.
• Customers often do not judge product value and costs accurately or objectively. They act on perceived value.
Satisfaction:
• Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectation.
• If the product’s performance falls short of the customer’s expectations, the buyer is dissatisfied.
Quality:
• Customer satisfaction is closely linked to quality.
• Quality has a direct impact on product performance.
• Quality can be defined as “freedom from defects”.
• TQM programs designed to constantly improve the quality of products, services, and marketing processes.
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EXCHANGE, TRANSACTIONS, AND
RELATIONSHIPS
Exchange :
• The act of obtaining a desired object from someone by offering something in return
Transaction :
• A trade off between two parties that involves at least two things of value, agreed –
upon conditions a time of agreement, and a place of agreement.
Relationship marketing :
• The process of creating, maintaining, and enhancing strong value–laden
relationships with customers and other stakeholders.
• Market offerings: Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
 MARKETING MYOPIA

• Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the
benefits and experiences produced by these products.
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MARKETS
The set of all actual and potential buyers of a product or service

Communication

Industry Products / Services Market (a collection of buyers)

(a collection of sellers)

Money

Information

A simple marketing system

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Main actors and forces in a modern marketing system

Competitors

Marketing
intermediaries End user market
Suppliers

Company
(marketer)
15 MARKETING MANAGEMENT

The analysis, planning, implementation, and

control of programs designed to create, build, and
maintain beneficial exchanges with target buyers
for the purpose of achieving organizational
objectives.
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MARKETING MANAGEMENT INVOLVES:
• Demand Management: The organization has a desired level of demand for its
products. At any point in time, there may be no demand, adequate demand,
irregular demand, or too much demand, and marketing management must find
ways to deal with these different demand states.
• Building Profitable Customer Relationships: Beyond designing strategies to
attract new customers and create transactions with them, companies now are
striving to retain current customers and build lasting customer relationships.
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MARKETING MANAGEMENT PHILOSOPHIES
• The role that marketing plays within a company varies according to the overall
strategy and philosophy of each firm.
• There are five alternative concepts under which organizations conduct their
marketing activities:
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concepts
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1. PRODUCTION CONCEPT

The philosophy that consumers will favour products that are

available and highly affordable and that management should
therefore focus on improving production and distribution efficiency.
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2. PRODUCT CONCEPT

 The philosophy that consumers will favour products

that offer the most quality, performance, and
innovative features.
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3. SELLING CONCEPT

 The idea that consumers will not buy enough of the

organization’s products unless the organization undertakes a
large – scale selling and promotion effort.
The selling concept is typically practiced with unsought goods—
those that buyers do not normally think of buying, such as insurance or
blood donations.
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MARKETING CONCEPT

 The marketing philosophy that holds that achieving organizational goals

depends on determining the needs and wants of target markets and delivering
the desired satisfactions more effectively and efficiently than competitors do.
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The selling and Marketing Concepts Contrasted
Starting point
Focus Means Ends

Selling
Factory Existing products and promoting Profits through sales volume

The selling concept

Profits through customer

Market Customer needs Integrated
satisfaction
marketing

The marketing concept

 SOCIETAL MARKETING CONCEPT
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 The idea that the organization should determine the needs, wants, and interests of
target markets and deliver the desired satisfactions more effectively and efficiently
than competitors in a way that maintains or improves the consumer’s and society’s
wellbeing.
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THREE CONSIDERATIONS UNDERLYING THE
SOCIETAL MARKETING

Society
(Human welfare)

Societal
marketing
concept

Consumers Company
(Want satisfaction) (Profits)
 END OF
CHAPTER ONE