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Marketing Management

Marketing Management 12e
ISBN 0-13-145757-8
Note: all credits for contents goes to the original author.
Summarized by Wawan Setiawan (
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Redefining Marketing for 21st
Marketing is everywhere, but tricky
It makes Marketing management difficult
because it needs continuous improvement
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The scope of marketing: What is
marketing? (1)
Marketing: meeting needs profitably
Marketing: an organizational function and a set
of processes for creating, communicating, and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders
Marketing management: 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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The scope of marketing: What is
marketing? (2)
Marketing is not only selling.
Marketing makes product/service fits customer
& sells itself ==> customer ready to buy
In the end, Marketing makes selling
Example: iPhone by Apple
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The scope of marketing: What is
marketing? (3)
at least 2 parties
each has something that might be of value for
the other
each is capable of communication & delivery.
each is free to accept or reject the exchange
each believes it is appropriate or desirable to
deal with the other party.
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The scope of marketing: What is
marketing? (4)
Transaction involves:
2 things of value
certain conditions
time & place
Transaction is not transfer (one way)
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The scope of marketing: What is
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The scope of marketing: Who
markets? (1)
Marketers market to Prospects
Marketers do Demand management: seek to
influence the level, timing & composition of
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The scope of marketing: Who
markets? (2)
Eight demand states:
negative: dislike & avoid
nonexistent: unaware or uninterested
latent: strong need unsatisfied by existing product
declining: buy less frequently if not at all
irregular: purchases vary
full: buying all
overfull: customers demand is more than product availability
unwholesome: for product that may have undesirable social
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The scope of marketing: Who
markets? (3)
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The scope of marketing: Who
markets? (4)
Key customer markets: consumer, business,
global, and nonprofit.
Marketplace: physical
Marketspace; digital
Metamarket: a cluster of complementary P&S,
closely related in the minds of consumers,
spread across a diverse set of industries
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Digital revolution
increase in buying power
a greater variety of G&S (Goods & Services) or
P&S (Product & Services)
more information
a greater ease in interacting and placing and
receiving orders
ability to compare G&S
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Business & Marketing changes
changing technology
deregulation: greater competition & growth opportunities
privatization: increasing efficiency
customer empowerment
heightened competition
industry convergence
retail transformation
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Company Orientation toward
production concept: high production efficiency, low cost &
mass distribution. Usually good developing countries
product concept: Q, performance or innovation
selling concept: aggressive selling & more promotion
marketing concept: customer-centered, "sense-and-
Note: marketing dept is not the most important but
customer is.
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New Orientation
Holistic marketing concept
everything matters
4 components: relationship marketing, integrated
marketing (4 Ps), internal marketing, and social
responsibility marketing.
4 Ps (seller) of marketing mix: Product, Price. Place,
4 Cs (customer): customer's solution, Cost, Convenience,
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Core Concepts (1)
Needs: basic human requirements
Wants: directed to specific objects that might satisfy the
Demands: wants for specific products backed by an ability
to pay
5 types of needs:
1. Stated (an inexpensive car).
2. Real (a car whose operating cost, not its initial price, is low).
3. Unstated (expects good service from the dealer).
4. Delight (would like the dealer to include an onboard navigation
5. Secret (to be seen by friends as a savvy consumer).
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Core Concepts (2)
target market: swhich segments present the greatest
market offering for each chosen target market
offering: for target buyers, delivering some central
brand: an offering from a known source
successful: if it delivers value & satisfaction to the target
Value: perceived tangible & intangible benefits & costs to
satisfaction: judgments/outcome vs expectations
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Core Concepts (3)
Marketing channel:
service: to carry out transactions with potential buyers
Supply chain: from raw materials to components to final
products that are carried to final buyers
Supply chain = value delivery system
Competition: actual & potential
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Core Concepts (4)
Marketing environment:
task environment: immediate actors involved in producing,
distributing, and promoting the offering.
broad environment: demographic, economic, physical,
technological, political-legal, social-cultural
Marketing planning: analyzing opportunities; selecting
target markets; designing strategies; developing programs;
and managing effort.
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Core Concepts (5)
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Shift in Marketing Management (1)
Marketing does Marketing ==> Everyone does Marketing
Organizing by Product units ==> by Customer segments
Making everything ==> buying more G&S from outside
using many suppliers ==> working with fewer in a
relying on old marketing positions ==> uncovering new
emphasizing tangible assets ==> intangible assets
building brands through advertising ==> through
performance & integrated communications
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Shift in Marketing Management (2)
attracting customer through stores & salespeople ==>
making products available online
selling to everyone ==> being the best firm serving well-
defined target markets
focusing on profitable transactions ==> on customer
lifetime value
focus on gaining market share ==> on building customer
being local ==> being “glocal” (both global & local)
focusing on financial scorecard ==> on marketing
focusing on shareholders ==> on stakeholders
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Marketing Management Tasks
developing marketing strategies & plans
capturing marketing insights
connecting with customers
building strong brands
shaping the market offerings
delivering value
communicating value
creating long-term growth
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Marketer's FAQ (1)
How to:
spot & choose the right segments?
differentiate offerings?
respond to customers who buy on price?
compete against lower-cost, lower-price
grow business?
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Marketer's FAQ (2)
How to:
build stronger brands?
reduce the cost of customer acquisition?
keep our customers loyal for longer?
tell which customers are more important?
measure the payback for advertising, sales
promotion & PR?
improve sales force productivity?
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Marketer's FAQ (3)
How to:
establish multiple channel and yet manage
channel conflict?
get the other company depts to be more
customer oriented?
How far to go in customizing offering for each
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10 Rules of Radical Marketing (1)
CEO must own the marketing function: no
marketing department must start small and flat
and stay small and flat: not allow layers of management
between them and the market.
Face-to-face with customers: direct interaction.
Use market research cautiously: prefer grassroots
Hire only passionate missionaries
Love and respect customers as individuals, not
as numbers
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10 Rules of Radical Marketing (2)
Create a community of consumers unified by
certain brands
Rethink the marketing mix: e.g. short, targeted ad
Celebrate common sense and compete with
larger competitors through fresh and different
marketing ideas
Be true to the brand: brand integrity & quality
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Internet Advantage
reaching worldwide
more information
speed up internal communication
2 way communication with customers &
able to send ads, coupons, etc. easily
customizing offerings based on customer
improve other processes & more savings
... First, CS is considered customers' judgment of the perceived performance of a product or service in line with their expectations, as well as the level of pleasure acquired from consumption-related fulfillment (Kotler and Keller, 2016). In the online environment, satisfaction arises as one of the most important indicators of CL and firm success (Jacka and Keller, 2013). ...
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Purpose – Based on relationship marketing theory, this study aims to test the effect of social customer relationship management (social CRM) on customer satisfaction (CS) and loyalty (CL). Design/methodology/approach – To assess the proposed framework, structural equation modeling was performed on the data of 314 automotive customers surveyed online. Findings – Social CRM dimensions [traditional CRM (TCRM) and social media (SM) technology use] have a direct and positive effect on CS. On the other hand, only TCRM has a direct and significant influence on CL, while the SM technology use effect seems to be indirect rather than direct. Indeed, the findings have provided empirical support for the contention that CS plays a mediating role between social CRM dimensions and CL. Practical implications – In the automotive sector and developing countries in particular, companies’ managers could increase CS and CL and consequently enhance their competitiveness and market share by adopting an effective social CRM strategy. From this perspective, companies should focus their social CRM campaigns on the most SM used by customers, offer personalized choices and improve customer experience, interaction and value co-creation. Originality/value – This paper enriches the understanding of how social CRM can affect CS and CL. The scales of social CRM, CS and CL were validated in the context of developing countries and the automotive sector. Furthermore, the direct and mediating effect of CS between social CRM (TCRM and SM) and CL was also confirmed. Keywords: Social CRM, Social media, Customer satisfaction, Customer loyalty, Automotive sector.
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