LU3 Chapter 13: Marketing management
Theme 1: What is Marketing?
LO1: Define marketing in your own words
LO2: Explain the evolution of the marketing thought
LO3: Explain the marketing concept
LO4: Distinguish between the components of the marketing process
Theme 2: Aspects to consider in marketing
LO5: Discuss:
1. Market research methodologies and techniques
2. Consumer behaviour and its determinants
3. Market segmentation
4. Criteria for market segmentation
5. Target market selection and positioning
6. Pricing decisions including the price-determination process and how final
prices can be adapted
7. Distribution decisions
8. The evaluation of distribution channels
9. The concept of channel leadership
10. Marketing communication decisions
11. What a product is, its classification, packaging and branding
12. Product obsolescence
13. The product life cycle and appropriate marketing strategies to be
undertaken at each stage
Theme 3: Marketing Communications
LO6: Distinguish between marketing instruments
LO7: Discuss customer service
LO8: Distinguish between different marketing communication methods
1
,Theme 1: What is Marketing?
LO1: Define marketing in your own words
Marketing consists of management tasks and decisions directed at successfully
meeting opportunities and threats in a dynamic work environment
Do this by developing and transferring a need-satisfying market offering to
consumers in such a way that the objectives of the business, the consumer and
society will be achieved
LO2: Explain the evolution of the marketing thought
Operation-oriented management
Focus on the capabilities of the org
Try to increase the number and variety of prod they produced
Org were organized around product lines
Disadvantage: management concentrated on increasing production to solve
operation problems
Sales-oriented management
New machinery introduced and stocks began to accumulate problem
Sales more NB to try to sell mass-produced prod
Used unethical sales methods to sell at any cost
High advertising and sales costs
Idea that prod need to be marketed instead of just sold
Marketing-oriented management
Not only sales message and price of prod NB but quality, packaging, choice of
distribution channels and methods of reaching consumers also NB
Advertising useful to transfer info to a mass market
All functional areas of business need to work closely together to make marketing of
prod successful
2
,Consumer-oriented management
Competition for consumers and better financial position of consumers meant
changing demands
Consumers needs, demands and preferences NB when making decisions
No sense in producing a prod if there was no demand for it – consumer oriented
The strategic approach to management
Management needs to scan environment and work on long-term issues
Allows management to identify environmental chgs – tech innovation, preferences
etc
Relationship marketing
To survive in the changing environment long-term relationships with people and
institutions in said environment had to be est.
L-t relationship with customers – loyalty
L-t relationship with supplier – avail of materials and inventory
Objective is to est. and maintain relationships with loyal, profitable clients
o Focus must be on attraction, retention and enhancement of customer
relationships
Corporate image NB
Ethical practices need to be upheld – the marketing concept
3
, LO3: Explain the marketing concept
= ethical code according to which the marketing task is performed
The principle of profitability
Primary objective of org in a free-market syst = long-term maximisation of
profitability
Emphasises profitability instead of sales
The principle of consumer orientation
Emphasis placed on consumer needs to satisfy needs, demands and preferences
Complete satisfaction of consumer needs can never be achieved
The consumer also has to be supplied with adequate and correct info about the
business’s market offering
The principle of social responsibility
Responsibility to community in which market task is performed
Businesses often spend money on projects like housing, education, etc.
o Enhances corporate image for employees, consumers and the public
Legislation dictates businesses can be punished if do not comply with norms
Nothing should be done to violate the ethical stds of the community
If a business sponsors an event it must be well organized, supported by market
communication to ensure a large turn-out and provide a marketing benefit for the
business
The principle of organisational integration
Close co-operation btw marketing, operations, purchasing and all other functions of
the business in pursuit of its mission and objectives
Org integration is a prerequisite to success
Sales, finance and production need to work together and co-ordinate their efforts in
order to meet customer needs
Merits of the marketing concept
Long-term max of profits is primary objective of the business and marketing
management – entitled to this profit to offset risks of dev products
4
Theme 1: What is Marketing?
LO1: Define marketing in your own words
LO2: Explain the evolution of the marketing thought
LO3: Explain the marketing concept
LO4: Distinguish between the components of the marketing process
Theme 2: Aspects to consider in marketing
LO5: Discuss:
1. Market research methodologies and techniques
2. Consumer behaviour and its determinants
3. Market segmentation
4. Criteria for market segmentation
5. Target market selection and positioning
6. Pricing decisions including the price-determination process and how final
prices can be adapted
7. Distribution decisions
8. The evaluation of distribution channels
9. The concept of channel leadership
10. Marketing communication decisions
11. What a product is, its classification, packaging and branding
12. Product obsolescence
13. The product life cycle and appropriate marketing strategies to be
undertaken at each stage
Theme 3: Marketing Communications
LO6: Distinguish between marketing instruments
LO7: Discuss customer service
LO8: Distinguish between different marketing communication methods
1
,Theme 1: What is Marketing?
LO1: Define marketing in your own words
Marketing consists of management tasks and decisions directed at successfully
meeting opportunities and threats in a dynamic work environment
Do this by developing and transferring a need-satisfying market offering to
consumers in such a way that the objectives of the business, the consumer and
society will be achieved
LO2: Explain the evolution of the marketing thought
Operation-oriented management
Focus on the capabilities of the org
Try to increase the number and variety of prod they produced
Org were organized around product lines
Disadvantage: management concentrated on increasing production to solve
operation problems
Sales-oriented management
New machinery introduced and stocks began to accumulate problem
Sales more NB to try to sell mass-produced prod
Used unethical sales methods to sell at any cost
High advertising and sales costs
Idea that prod need to be marketed instead of just sold
Marketing-oriented management
Not only sales message and price of prod NB but quality, packaging, choice of
distribution channels and methods of reaching consumers also NB
Advertising useful to transfer info to a mass market
All functional areas of business need to work closely together to make marketing of
prod successful
2
,Consumer-oriented management
Competition for consumers and better financial position of consumers meant
changing demands
Consumers needs, demands and preferences NB when making decisions
No sense in producing a prod if there was no demand for it – consumer oriented
The strategic approach to management
Management needs to scan environment and work on long-term issues
Allows management to identify environmental chgs – tech innovation, preferences
etc
Relationship marketing
To survive in the changing environment long-term relationships with people and
institutions in said environment had to be est.
L-t relationship with customers – loyalty
L-t relationship with supplier – avail of materials and inventory
Objective is to est. and maintain relationships with loyal, profitable clients
o Focus must be on attraction, retention and enhancement of customer
relationships
Corporate image NB
Ethical practices need to be upheld – the marketing concept
3
, LO3: Explain the marketing concept
= ethical code according to which the marketing task is performed
The principle of profitability
Primary objective of org in a free-market syst = long-term maximisation of
profitability
Emphasises profitability instead of sales
The principle of consumer orientation
Emphasis placed on consumer needs to satisfy needs, demands and preferences
Complete satisfaction of consumer needs can never be achieved
The consumer also has to be supplied with adequate and correct info about the
business’s market offering
The principle of social responsibility
Responsibility to community in which market task is performed
Businesses often spend money on projects like housing, education, etc.
o Enhances corporate image for employees, consumers and the public
Legislation dictates businesses can be punished if do not comply with norms
Nothing should be done to violate the ethical stds of the community
If a business sponsors an event it must be well organized, supported by market
communication to ensure a large turn-out and provide a marketing benefit for the
business
The principle of organisational integration
Close co-operation btw marketing, operations, purchasing and all other functions of
the business in pursuit of its mission and objectives
Org integration is a prerequisite to success
Sales, finance and production need to work together and co-ordinate their efforts in
order to meet customer needs
Merits of the marketing concept
Long-term max of profits is primary objective of the business and marketing
management – entitled to this profit to offset risks of dev products
4
