MARKETING MANAGEMENT

CHAPTER 1
INTRODUCTION

Mai Thị Mỹ Quyên

School of Industrial Management – HCMUT

2023

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CONTENT

1. What is marketing management

2. Core marketing concepts
3. New marketing realities
4. Building a customer-oriented organization
5. The main tasks of marketing management

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I. DEFINING MARKETING MANAGEMENT

 Marketing is about identifying and meeting human and social needs

 AMA’s definition (2017): 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.

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I. DEFINING MARKETING MANAGEMENT

 Kotler & Amstrong (2018): Marketing is a process by which companies

create value for customers and build strong customer relationships in order
to capture value from customers in return

Keller et al. (2022): Marketing is a societal process by which individuals

and groups obtain what they need and want through creating, offering, and
freely exchanging products and services of value with others.

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I. DEFINING MARKETING MANAGEMENT

The marketing process

Kotler P. T. & Amstrong G. 2018, Principles of Marketing (17th Global Edition), Pearson

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I. DEFINING MARKETING MANAGEMENT

The marketing iceberg

(Source: Baker, 2013)

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I. DEFINING MARKETING MANAGEMENT

 Marketing Management is the art and science of choosing target

markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value

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Figure 1.1 Structure of Goods, Services, and
Money Flows in a Modern Exchange Economy

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I. DEFINING MARKETING MANAGEMENT
A simple marketing system: Marketers view industry as a group of
sellers and use the term market to describe customer groups

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 I. DEFINING MARKETING MANAGEMENT

 What is marketed?
Goods
Services
Events
Experiences
Persons

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 I. DEFINING MARKETING MANAGEMENT

 What is marketed?
Places
Properties
Organizations
Information
Ideas

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II. CORE MARKETING CONCEPTS
 Needs: the basic human requirements
(ex: needs for air, food, water, clothing,
and shelter)
 Wants: specific objects that might
satisfy the need
 Demands: wants for specific products
with an ability to pay

Maslow’s hierarchy of needs

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II. CORE MARKETING CONCEPTS

 Market segmentation: Dividing the market into segments

of customers

 Target marketing: selecting which segments it will go

after

 Position: key benefits of offerings in target byers’ minds

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II. CORE MARKETING CONCEPTS
 Value: a combination of quality, service, and price (qsp: the customer value
triad)
 Customer perceived value: The difference between total customer
perceived benefits and customer cost

 Value proposition: a set of benefits that satisfy it promises to deliver to

customers to satisfy their needs

 Satisfaction: a person’s judgment of a product’s perceived performance in

relationship to expectations

 Offerings: a combination of products, services, information, and

experiences

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II. CORE MARKETING CONCEPTS

Paid media: include TV, magazine and display ads, paid search, and
sponsorships, all of which allow marketers to show their ad or brand for a fee

Own media: communication channels marketers actually own, like a company or

brand brochure, Web site, blog, Facebook page, or Twitter account

Earned media: streams in which consumers, the press, or other outsiders

voluntarily communicate something about the brand
III. NEW MARKETING REALITIES

•E-commerce, online & mobile communication, AI, massive amounts

of data
Geographic and political barriers have been eroded, countries
increasingly become multicultural

Climate change and changes in global health conditions

Ethical, environmental, legal, and social context of marketing activities

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III. NEW MARKETING REALITIES

UNICEF sponsored this

advertising campaign against child
labor. The field of consumer
behavior plays a role in addressing
important consumer issues such
as child exploitation.

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III. NEW MARKETING REALITIES

More readings: Chandy, R. K., Johar, G. V., Moorman, C., & Roberts, J. H. (2021).
Better marketing for a better world. Journal of Marketing, 85(3), 1-9.

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Figure 1.3 The New Marketing Realities

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III. NEW MARKETING REALITIES
New consumer capabilities:
 Can use the internet as a powerful information & purchasing aid
 Can search, communicate, and purchase on the go
 Can tap into social media to share opinions and express loyalty
 Can actively interact with companies
 Can reject marketing they find inappropriate
 Can extract more value from what they already own

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III. NEW MARKETING REALITIES
New company capabilities:
 Use the internet as a powerful information and sales channel, including for
individually differentiated goods
 Collect fuller and richer information about markets, customers, prospects, and
competitors
 Reach customers quickly and efficiently via social media and mobile marketing,
sending targeted ads and information
 Improve purchasing, recruiting, training, and internal and external communications
 Can improve cost efficiency

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III. NEW MARKETING REALITIES
New competitive environment

 Deregulation
 Privatization
 Retail transformation
 Disintermediation
 Private labels
 Mega-brands

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 III. NEW MARKETING REALITIES

Holistic marketing: An integrated

approach to managing strategy and tactics
 Relationship marketing
 Integrated marketing
 Internal marketing
 Performance marketing

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III. NEW MARKETING REALITIES

 Relationship marketing aims to build mutually satisfying long-

term relationships with key constituents in order to earn and retain
their business
 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.”
 Internal Marketing: The task of hiring, training, and motivating
able employees who want to serve customers well
 Performance Marketing: requires understanding the financial
and nonfinancial returns to business and society from marketing
activities and programs.

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IV. CUSTOMER ORIENTED ORGINAZATION
The role of marketing in the organization

Emphasizing the Emphasizing the superior Emphasizing the

availability and quality, performance, and aggressive promotion
affordability of the product innovative features efforts to sell the product
Production concept Product concept Selling concept

Identifying the needs of Focusing on creating value

customers and satisfying it for customers, the company,
better than competitors and its collaborators

Marketing concept Market-value concept

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Table 1.1 Product-Oriented v s Market-Value-Orientedersu

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

furnaces. the home.

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IV. CUSTOMER ORIENTED ORGINAZATION
Customer-Oriented: managers at every level must be personally engaged in
understanding, meeting, and serving customers

Figure 1.7 Traditional Organization versus Modern Customer-Oriented Company Organization

Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Characteristics of a customer-centric organization

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

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IV. CUSTOMER ORIENTED ORGINAZATION
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

Customer is the company’s only true “profit center”

Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
V. THE ROLE OF MARKETING MANAGEMENT
Marketing management tasks

 Develop market strategies & plans

 Capture marketing insights
 Connect with customers
 Build strong brands
 Create value
 Deliver value
 Communicate value
 Create successful long-term growth

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 End of chapter 1
Thanks for your attention !

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