WHAT IS MARKETING?
1. DO YOU AGREE THAT MARKETING IS ADVERTISING? EXPLAIN
2. CAN YOU DEFINE THE MARKETING CONCEPT AND MARKETING
MANAGEMENT IN YOUR OWN WORDS?
3. WHAT IMPRESSED YOU DURING THE COURSE PRINCIPLES OF
MARKETING?
4. WHAT DO YOU EXPECT FROM THIS COURSE?
THE UNIVERSITY OF DANANG
UNIVERSITY OF ECONOMICS
Chapter 01
Overview of Marketing
Management
Marketing Management
Faculty of Marketing
LEARNING OBJECTIVES
LO1. Define the scope of marketing.
LO2. Describe the new marketing realities.
LO3. Explain some fundamental concepts.
LO4. Explain the role of marketing in the organization.
LO5. Illustrate how to organize and manage a modern marketing department.
LO6. Explain how to build a customer-centric organization.
LO7. Explain the process of marketing planning.
LO8. Describe the key components of an actionable marketing plan.
Definition of Marketing
Marketing is about identifying and meeting human and social
needs in a way that harmonizes with the goals of the
organization.
AMA’s formal definition: Marketing is the activity, set of
institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
TL1
Marketing Management
innovation and accountability
The art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering,
and communicating superior customer value.
why??
để tìm ra điểm mạnh vượt trội của mình so với đối thủ
TL1
Customer perceived value and Customer
satisfaction
- Customer perceived value: the difference between total customer
benefits and costs when buying and using a product.
- Customer satisfaction: the extent to which a product’s perceived
performance matches a buyer’s expectations.
what is the total cost related to buying and using a fridge?
TL1 LO3
Customer needs, wants, and demands
LO3
Who markets?
A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from another
party, called the prospect.
TL1
What is marketed?
Goods
Services
Events
Experiences
Persons
anything else???
Can you give examples of what
is marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties (rights of ownership to real property (real estate) or financial
property (stocks and bonds)
• Organizations
• Information
• Ideas
Market offerings
Market offerings are some combination of products, services,
information, or experiences offered to a market to satisfy a need
or a want.
Key customer markets
• Consumer markets
• Business markets [client]
• Global markets
• Non-profit & governmental markets
Figure 1.1 Structure of Goods, Services, and Money
Flows in a Modern Exchange Economy
Five Basic Markets
• Resource markets
• Manufacturer markets
• Consumer markets
• Intermediary goods markets
• Government markets
The Market Exchange
• Marketers view industry as a group of sellers and use the
term market to describe customer groups
Figure 1.2 A Simple Marketing System
The New Marketing Realities
The market forces that shape the relationships among the different market entities
The market outcomes that stem from the interplay of these forces
The emergence of holistic marketing as an essential approach to succeeding in the
rapidly evolving market
TL1 LO 2
Figure 1.3 The New Marketing Realities
LO 2
TL1
Major Market Forces
Technology
Globalization
Physical environment
Social responsibility
TL1 LO2
A Dramatically Changed Marketplace (1 of 5)
New consumer capabilities
▪ Can use online resources as a powerful information and purchasing aid
▪ Can search, communicate, and purchase on the move
▪ Can tap into social media to share opinions and express loyalty
TL1 LO2
A Dramatically Changed Marketplace (2 of 5)
New consumer capabilities
▪ Can actively interact with companies
▪ Can reject marketing they find inappropriate or annoying
▪ Can extract more value from what they already own
TL1 LO2
A Dramatically Changed Marketplace (3 of 5)
New company capabilities
▪ Can use the internet as a powerful information and sales channel, including for individually
differentiated goods
▪ Can collect fuller and richer information about markets, customers, prospects, and competitors
▪ Can reach customers quickly and efficiently via social media and mobile marketing, sending
targeted ads, coupons, and information
TL1 LO2
A Dramatically Changed Marketplace (4 of 5)
New company capabilities
▪ Can improve purchasing, recruiting, training, and internal and external communications
▪ Can improve cost efficiency
TL1 LO2
A Dramatically Changed Marketplace (5 of 5)
New competitive environment
▪ Deregulation
▪ Privatization
▪ Retail transformation
▪ Disintermediation
▪ Private labels
▪ Mega-brands
TL1 LO2
Marketing management
orientations
???????
TL1 LO4
Defining the Role of Marketing in the
Organization
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
Market-value concept
Production concept
Production concept is the idea that consumers will favour
products that are available or highly affordable.
LO4
Product concept
Product concept is the idea that consumers will favour
products that offer the most quality, performance, and
features. Organisations should therefore devote its
energy to making continuous product improvements.
LO4
marketing myopia
Marketing myopia is focusing only on existing wants and losing
sight of underlying consumer needs.
LO4
The Explainer: Don’t Just Sell
Stuff — Satisfy Needs
[Link]
What is marketing myopia?
What cures marketing myopia?
LO4
Selling concept
Selling concept is the idea that consumers will not buy enough of
the firm’s products unless it undertakes a large scale selling and
promotion effort.
LO4
Marketing concept
Marketing concept is the idea that achieving organizational goals
depends on knowing the needs and wants of the target markets
and delivering the desired satisfactions better than competitors
do.
LO4
Societal marketing concept
(1/2)
Societal marketing concept is the idea that a company should
make good marketing decisions by considering consumers’
wants, the company’s requirements, consumers’ long-term
interests, and society’s long run interests.
LO4
Societal marketing concept
(2/2)
LO4
Table 1.1 Product-Oriented
v s Market-Value-Oriented
ersu
Definitions of a Business
Company Product Definition Market-Value Definition
Union Pacific Railroad We run a railroad. We move people and goods.
Xerox We make copying equipment. We help improve office
productivity.
Hess Corporation We sell gasoline. We supply energy.
Paramount Pictures We make movies. We market entertainment.
Encyclopedia Britannica We sell encyclopedias online. We distribute information.
Carrier We make air conditioners and We provide climate control in the
furnaces. home.
Holistic Marketing
An integrated approach to managing strategy and tactics
▪ Relationship marketing
▪ Integrated marketing
▪ Internal marketing
▪ Performance marketing
TL1 LO4
Figure 1.4 The Concept of
Holistic Marketing
TL1 LO4
Relationship Marketing (1 of 3)
Relationship marketing aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business
TL1 LO4
Relationship Marketing (2 of 3)
Customers
Employees
Marketing partners
Financial community
LO4
Relationship Marketing (3 of 3)
The ultimate outcome of relationship marketing is a unique company asset called a
marketing network, which consists of the company and its supporting stakeholders with
whom it has built mutually profitable business relationships
TL1 LO4
Integrated Marketing
Devise marketing activities and
programs that create, communicate, and
deliver value such that “the whole is
greater than the sum of its parts.”
LO4
Internal Marketing
The task of hiring, training, and motivating able employees who want to serve customers
well
TL1 LO4
Performance Marketing
Financial accountability
Environmental impact
Social impact
LO4
Organizing the
Marketing Department
• Functional organization
• Geographic organization
• Product or brand organization
• Market organization
• Matrix organization
TL1 LO5
Figure 1.5 Functional Organization
Figure 1.6 The Product Manager’s Interactions
Managing the Marketing Department
• The role of the CEO and the CMO
• Relationships with other departments
The Role of the CEO
• Convince senior management of the importance of being customer focused
• Hire strong marketing talent
• Facilitate the creation of strong in-house marketing training programs
• Appoint a chief marketing officer
The Role of the CMO
• Act as the visionary for the future of the company
• Build adaptive marketing capabilities
• Win the war for marketing talent
• Tighten the alignment with sales
• Take accountability for returns on marketing spending
• Infuse a customer perspective in business decisions affecting any customer
touch point
Relationships with Other Departments
• Marketers must work closely with:
• customer insights and data analytics teams
• different communication agencies
• channel partners
Building a Customer-
Oriented Organization
Create long-term customer value
▪ Requires managers at every level to be personally engaged in
understanding, meeting, and serving customers
Customers expect companies to listen and respond to them
TL1 LO6
Figure 1.7 Traditional Organization versus Modern
Customer-Oriented Company Organization
Becoming a Market-Driven Company
• Develop a company-wide passion for customers
• Organize around customer segments instead of products
• Understand customers through qualitative and quantitative research
Table 1.2 Characteristics of Customer-Centric Organizations
Low Customer-Centricity High Customer-Centricity
Product driven Market driven
Mass market focused Customer focused
Process oriented Outcome oriented
Reacting to competitors Making competitors irrelevant
Price driven Value driven
Hierarchical organization Teamwork
In class Group discussion
1. What marketing management orientation does the following saying reflect?
If we “build a better mouse trap, the world will beat a path to our doors”.
2. What kinds of market offerings is the selling concept typically practiced with?
3. What is the main difference between the selling concept and the marketing concept?
4. Give examples of companies that know what customers need and want and successfully
satisfy their needs. Do customers always know what they want?
5. Give an example of a company that follows societal marketing concept.
customer-driven marketing VS. customer-driving marketing?
LO4
Starbucks
[Link] Graphical user interface, map
Watch the video and answer the following Description automatically generated
questions:
- Why has Starbucks struggled to grow in Vietnam?
- What consumer needs does a coffee chain
satisfy?
- What are the Vietnamese consumers’ top
reasons to visit a Western coffee chain?
- What consumers needs does Starbucks satisfy?
- What do Vietnamese consumers look for in a
cup of coffee?
- What is the third-wave coffee movement?
- Why are local coffee chains are more flexible
than international coffee chains?
Customer experience
• [Link]
ch?v=GH1TXfQSwUQ
- What is customer experience?
- Why is it important?
Is societal
marketing similar
to social
marketing?
Developing Market Offerings
Strategy involves choosing a well-defined market in which the company will compete and
determining the value it intends to create in this market
Tactics, also called the marketing mix, make the company’s strategy come alive
TL1 LO7
Developing the Marketing
Strategy
Two components:
• Target market
• Value proposition
LO7
Identifying the Target Market
The Five Cs:
▪ Customers
▪ Competitors
▪ Collaborators
▪ Context
▪ Company
TL1 LO7
Figure 2.2 Identifying the
Target Market: The 5-C
Framework
TL1 LO7
The Five Cs (1 of 2)
Target customers are the individuals or organizations whose needs the
company plans to fulfill
Collaborators work with the company to create value for target customers
Competitors aim to fulfill the same needs of the same customers that the
company is targeting
TL1 LO7
The Five Cs (2 of 2)
The company develops and manages a given market offering
The context is the environment in which the company and its
collaborators operate
TL1 LO7
Developing a Value Proposition
(1 of 2)
Customer value
Collaborator value
Company value
TL1 LO7
Developing a Value Proposition
(2 of 2)
An optimal value proposition balances the value for
customers, collaborators, and the company
TL1 LO7
Figure 2.3 The 3-V Market
Value Principle
TL1 LO7
Designing the Marketing
Tactics
The market offering is the actual good that the company
deploys in order to fulfill a particular customer need
TL1 LO7
Figure 2.4 Marketing Tactics:
The Seven Tactics (7Ts)
Defining the Market Offering
TL1 LO7
Figure 2.5 Marketing Tactics as a
Process of Designing,
Communicating, and Delivering
Customer Service
TL1 LO7
Figure 2.6
The Market
Value Map
TL1 LO7
Planning and Managing
Market Offerings
G-STIC Approach
▪ Set a goal
▪ Develop a strategy
▪ Design the tactics
▪ Define an implementation plan
▪ Identify a set of control metrics
TL1 LO7
Figure 2.7 The G-STIC
Action-Planning
Flowchart
TL1 LO7
Setting a Goal
Goal focus:
▪ Monetary goals
▪ Strategic goals
Performance benchmarks:
▪ Quantitative benchmarks
▪ Temporal benchmarks
TL1 LO7
Developing the Strategy (1 of 2)
Target market
▪ Customers
▪ Competitors
▪ Collaborators
▪ Company
▪ Context
TL1 LO7
Developing the Strategy (2 of 2)
Value proposition
▪ Customer value
▪ Collaborator value
▪ Company value
TL1 Lo7
Designing the Tactics
Resource development
Development of the offering
Commercial deployment
TL1 LO7
Identifying Controls
Evaluate performance—use benchmarks to track progress
Monitor the environment—take corrective actions as necessary
TL1 LO7
Developing a Marketing Plan
Three main functions:
▪ Describes the company’s goal and proposed course of action
▪ Informs the relevant stakeholders about the goal and action plan
▪ Persuades the relevant decision makers of the viability of the goal and the
proposed course of action
TL1 LO8
Contents of the Marketing Plan
(1 of 2)
Executive summary—the “elevator pitch”
Situation overview—an overall evaluation of the environment
TL1 LO8
Contents of the Marketing Plan
(2 of 2)
G-STIC section—the core of the marketing plan
▪ Goal
▪ Strategy
▪ Tactics
▪ Implementation
▪ Control
Exhibits
TL1 LO8
Figure 2.8 The
Organization of the
Marketing Plan
TL1 LO8
Updating the Marketing Plan
Marketing plans are not static; they need updating in order to remain relevant
TL1 LO8
Conducting a Marketing Audit
An effective marketing audit should be:
▪ Comprehensive
▪ Systematic
▪ Unbiased
▪ Periodic
TL1 LO8
Evaluating a Marketing Plan
• Is the plan simple/succinct?
• Is the plan complete?
• Is the plan specific?
• Is the plan realistic?
TL1 LO8
LEARNING MATERIAL
Kotler, P. and Armstrong, G. (2017) Principles of Marketing. 17the ed. London:
Pearson
Kotler, Keller and Chernev (2021) Marketing Management, 16th ed. Global
Edition. Pearson