CHAPTER 1 – WHY IS MARKETING MANAGEMENT
IMPORTANT?
KNOWLEDGE OBJECTIVES
1. Understand the meaning of the term “marketing.”
2. Explain the importance of marketing.
3. Introduce and provide an overview of the marketing
management framework.
CHAPTER OUTLINE
▪ Defining Marketing
▪ Marketing is an Exchange Relationship
▪ Why is Marketing Management Important?
▪ The “Marketing Framework”: 5Cs, STP, and the 4Ps
▪ Managerial Recap
1. Defining Marketing
This section relates to knowledge objective #1
To the average person, the term marketing can have many different meanings. It can
frequently mean advertising or personal selling. However, marketing is much more than
just advertising and sales.
,TEACHING NOTE: Referring to the class as a whole, ask
students to identify the differences between sales,
advertising, and marketing based on their understanding of
these terms. Note student responses on a whiteboard and
encourage a discussion by allowing students to agree or
disagree with their classmates’ views. This activity will
highlight the common misconceptions about marketing and
will show that these three terms are not synonymous with
one another.
2. Marketing is an Exchange Relationship
This section relates to knowledge objective #1
Marketing is defined as an exchange relationship between a
firm and its customers wherein the customer wants something from the
firm, and the firm wants something from the customer.
Figure 1.1 Marketing is an Exchange
This figure shows the interaction between buyers
(customers) and sellers (firms), noting that firms offer
benefits to customers and seek profits, while customers
seek benefits and are willing to pay for them.
TEACHING NOTE: Students can be asked to provide examples of
products of a particular brand that they have been using
for a long time (at least a year) and explain the reasons
for their continued loyalty. This exercise will help them
understand the exchange relationship in marketing.
,Figure 1.2 What We Can “Market”?
This figure shows that just about anything can be marketed,
including services, nonprofit organizations, events, people
(political campaigns), ideas, companies, and industries.
TEACHING NOTE: Ask students to imagine that they are
attending an interview for their dream job. How would they
“sell themselves” to their prospective employer?
3. Why is Marketing Management Important?
This section relates to knowledge objective #2
Marketing can be involved with educating the marketplace. Its importance can be explained
through its evolution from the production-focused stage to the sales-oriented stage, and
finally the customer-oriented marketing world. Due to the current customer-oriented
environment, firms understand the importance of creating and maintaining relationships
with their customers.
Because of its importance, marketing has evolved from a function to an organization-wide
philosophy. There are an ever increasing number of metrics to examine marketing’s
effectiveness. However, many marketing programs remain somewhat difficult to quantify.
4. The Marketing Framework: 5Cs, STP and the 4Ps
This section relates to knowledge objective #3
, This section identifies the 5Cs of marketing: customer,
company, context, collaborators, and competitors. It then
describes the STP (segmentation, targeting, and
positioning) framework, followed by an explanation on the
4Ps of marketing, i.e. product, price, promotion, and place
(distribution).
Figure 1.3 Marketing Framework
The figure lays out the 5Cs, STP, and 4Ps framework as a flow which is indicated by the
direction of the arrows.
First, the 5Cs are examined by conducting a situation
analysis. Then proceed to strategic marketing planning via STP. Finally,
marketing tactics to execute the intended positioning are developed
through a careful analysis of the 4Ps.
TEACHING NOTE: Ask students to select a product and
describe how they would segment the market and identify
their target audience. They should also explain how they
would position their product in the marketplace, to
distinguish it from competitors’ offerings. This exercise
will help students understand the STP process.
TEACHING NOTE: Ask students to select a company of their
choice and to identify its strengths and weaknesses. Then
ask them to analyze the company’s context, customers,
competitors, and collaborators. This activity will allow
students to systematically understand the general and specific environments of
business.
IMPORTANT?
KNOWLEDGE OBJECTIVES
1. Understand the meaning of the term “marketing.”
2. Explain the importance of marketing.
3. Introduce and provide an overview of the marketing
management framework.
CHAPTER OUTLINE
▪ Defining Marketing
▪ Marketing is an Exchange Relationship
▪ Why is Marketing Management Important?
▪ The “Marketing Framework”: 5Cs, STP, and the 4Ps
▪ Managerial Recap
1. Defining Marketing
This section relates to knowledge objective #1
To the average person, the term marketing can have many different meanings. It can
frequently mean advertising or personal selling. However, marketing is much more than
just advertising and sales.
,TEACHING NOTE: Referring to the class as a whole, ask
students to identify the differences between sales,
advertising, and marketing based on their understanding of
these terms. Note student responses on a whiteboard and
encourage a discussion by allowing students to agree or
disagree with their classmates’ views. This activity will
highlight the common misconceptions about marketing and
will show that these three terms are not synonymous with
one another.
2. Marketing is an Exchange Relationship
This section relates to knowledge objective #1
Marketing is defined as an exchange relationship between a
firm and its customers wherein the customer wants something from the
firm, and the firm wants something from the customer.
Figure 1.1 Marketing is an Exchange
This figure shows the interaction between buyers
(customers) and sellers (firms), noting that firms offer
benefits to customers and seek profits, while customers
seek benefits and are willing to pay for them.
TEACHING NOTE: Students can be asked to provide examples of
products of a particular brand that they have been using
for a long time (at least a year) and explain the reasons
for their continued loyalty. This exercise will help them
understand the exchange relationship in marketing.
,Figure 1.2 What We Can “Market”?
This figure shows that just about anything can be marketed,
including services, nonprofit organizations, events, people
(political campaigns), ideas, companies, and industries.
TEACHING NOTE: Ask students to imagine that they are
attending an interview for their dream job. How would they
“sell themselves” to their prospective employer?
3. Why is Marketing Management Important?
This section relates to knowledge objective #2
Marketing can be involved with educating the marketplace. Its importance can be explained
through its evolution from the production-focused stage to the sales-oriented stage, and
finally the customer-oriented marketing world. Due to the current customer-oriented
environment, firms understand the importance of creating and maintaining relationships
with their customers.
Because of its importance, marketing has evolved from a function to an organization-wide
philosophy. There are an ever increasing number of metrics to examine marketing’s
effectiveness. However, many marketing programs remain somewhat difficult to quantify.
4. The Marketing Framework: 5Cs, STP and the 4Ps
This section relates to knowledge objective #3
, This section identifies the 5Cs of marketing: customer,
company, context, collaborators, and competitors. It then
describes the STP (segmentation, targeting, and
positioning) framework, followed by an explanation on the
4Ps of marketing, i.e. product, price, promotion, and place
(distribution).
Figure 1.3 Marketing Framework
The figure lays out the 5Cs, STP, and 4Ps framework as a flow which is indicated by the
direction of the arrows.
First, the 5Cs are examined by conducting a situation
analysis. Then proceed to strategic marketing planning via STP. Finally,
marketing tactics to execute the intended positioning are developed
through a careful analysis of the 4Ps.
TEACHING NOTE: Ask students to select a product and
describe how they would segment the market and identify
their target audience. They should also explain how they
would position their product in the marketplace, to
distinguish it from competitors’ offerings. This exercise
will help students understand the STP process.
TEACHING NOTE: Ask students to select a company of their
choice and to identify its strengths and weaknesses. Then
ask them to analyze the company’s context, customers,
competitors, and collaborators. This activity will allow
students to systematically understand the general and specific environments of
business.
