This document provides an overview of key concepts in marketing management. It defines marketing as "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services." It also discusses the marketing concept which focuses on customer orientation, integrated marketing, customer satisfaction and relationship marketing. Segmentation strategies are explained as identifying different groups within a market based on variables like demographics, psychographics and behaviors. The document provides a high-level summary of concepts in marketing management.

1. Marketing Management
Md. Abdul Hamid
Assistant Professor
Dept. of Business AdministrationDept. of Business Administration
Shahjalal University of Science and Technology
Bangladesh
(Now living in Denmark, Slovenia and Spain for higher studies.
Can be reached at mahamid.biz@gmail.com)

2. the act or process of selling or
purchasing
the process or technique ofthe process or technique ofthe process or technique ofthe process or technique of
promoting, selling, andpromoting, selling, andpromoting, selling, andpromoting, selling, and
distributing a product or servicedistributing a product or servicedistributing a product or servicedistributing a product or service

3. Marketing…Marketing…
“the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchange
that satisfy individual and organizational goals.”

4. WantsWantsWantsWants…………
“when needs are shaped by consumers’
culture it can be treated as wants.”

5. Demand
Human wants
that are backed by
buying power
Market
“the set of all
actual and potential buyers
of a Product”

6. “Marketing deals with identifying and meeting social needs”

7. SatisfactionSatisfactionSatisfactionSatisfactionSatisfactionSatisfactionSatisfactionSatisfaction
“…. is the feeling of pleasure or
displeasure that customers feel when
they compare the experience of a
product with their expectations.”

8. Marketing strategy…
“the marketing logic(s)“the marketing logic(s)
by which
the business unit hopes
to achieve its marketing
objectives.

11. Goods...book, pen
Services…teacher, doctor, programmer
Experiences… magic, park
Events...IPL, Close up1
Persons…C. Ronaldo, MZI
Places… Cox’sbazar, JaflongPlaces… Cox’sbazar, Jaflong
Properties… real estate, securities
Organizations… Red-cross, universities, Adhunik
Information… TV news, brokerage house
Ideas… consultants, architect

12. Production concept… holds that consumers will
prefer products that are widely available and inexpensive.
Product concept… holds that consumers will favor
those products that offer the most quality, performance, orthose products that offer the most quality, performance, or
innovative features.
Selling concept… holds that consumers and
businesses, if left alone, will ordinarily not buy enough of the
organization’s products. The organization must, therefore,
undertake an aggressive selling and promotion effort.

13. Marketing concept…Marketing concept…
Customer orientation
Integrated marketing
Customer satisfaction

14. Relationship marketing…Relationship marketing…Relationship marketing…Relationship marketing…cultivating the right kind of relationships with
the right constituent groups (customers, channels, partners, media,
govt. etc)
Integrated marketing…Integrated marketing…Integrated marketing…Integrated marketing…product offerings, price levels, communication
efforts, channel membersefforts, channel members
Internal marketing…Internal marketing…Internal marketing…Internal marketing…ensuring that every one in the organization
embraces appropriate marketing principles (top to bottom… apply
marketing orientation)
Social responsibility marketing…Social responsibility marketing…Social responsibility marketing…Social responsibility marketing…ethical, environmental, legal, and social
context of marketing activities get priority

15. DevelopingDevelopingDevelopingDeveloping… m. strategies and plans
CapturingCapturingCapturingCapturing… m. insights
ConnectingConnectingConnectingConnecting… customers
BuildingBuildingBuildingBuilding… strong brandsBuildingBuildingBuildingBuilding… strong brands
ShapingShapingShapingShaping… market offering
CommunicatingCommunicatingCommunicatingCommunicating…value
CreatingCreatingCreatingCreating… long term growth

16. Globalization
Technology
Customer empowerment
Stiff competition
Powerful mediaPowerful media
Deregulation
Privatization
Customization
Industry convergence
Disintermediation

17. Basic marketing: The salesperson simply sells the
product.
Reactive marketing: The salesperson sells the product
and encourages the customer to call if he or she has
questions or complaints.
Accountable marketing: The salesperson contacts theAccountable marketing: The salesperson contacts the
customer a short while after making the sale to check
whether the product is meeting expectations.
Proactive marketing: The salesperson contacts the
customer from time to time with information about new
products and product uses.
Partnership marketing: The company works continuously
with the customer to discover ways to perform better.

18. WorldwideWorldwideWorldwideWorldwide populationpopulationpopulationpopulation growthgrowthgrowthgrowth............India, China, Africa, Bangladesh(1.37
percent)
PopulationPopulationPopulationPopulation ageageageage mixmixmixmix………… Mexico (young populations). Japan (old populations)
EthnicEthnicEthnicEthnic marketsmarketsmarketsmarkets………… showing respect to the preferences of small ethnic groups
EducationalEducationalEducationalEducational groupsgroupsgroupsgroups………… illiterates, high school dropouts, high schoolEducationalEducationalEducationalEducational groupsgroupsgroupsgroups………… illiterates, high school dropouts, high school
degrees, college degrees, and professional degrees.
HouseholdHouseholdHouseholdHousehold patternspatternspatternspatterns………… nuclear family, single parents, living together,
divorcee, career centered etc. How do you expect household patterns to change
in the next 20 years?
Geographical shifts in population…Geographical shifts in population…Geographical shifts in population…Geographical shifts in population… urban life (employment), natural
calamities (safety), migration to develop countries (Canada, USA, Australia)

19. growing debt problems in developing economies
the speeding up of international transportation,
financial transactions, and communication
the move to market economies in former communist
countriescountries
an explosion of strategic alliances among
multinational companies
the rise of trade blocs in the Europe and North
America
the rapid dissemination of global lifestyles

20. …income…income…income…income
…prices…prices…prices…prices
…savings…savings…savings…savings
…debt, and…debt, and…debt, and…debt, and
…credit…credit…credit…credit
availabilityavailabilityavailabilityavailability

21. Mass marketing
Customized marketing
Market Segmentation

22. A market segmentA market segmentA market segmentA market segment
consists of a large identifiable groupconsists of a large identifiable groupconsists of a large identifiable groupconsists of a large identifiable group
withinwithinwithinwithin a marketa marketa marketa market
with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,with similar wants, purchasing power,
geographical location, buying attitudes,geographical location, buying attitudes,geographical location, buying attitudes,geographical location, buying attitudes,
or buying habits.or buying habits.or buying habits.or buying habits.

23. to find the best customers for ato find the best customers for ato find the best customers for ato find the best customers for a
particular companyparticular companyparticular companyparticular company
to help that company tailor itsto help that company tailor itsto help that company tailor itsto help that company tailor its
operations to those particularoperations to those particularoperations to those particularoperations to those particularoperations to those particularoperations to those particularoperations to those particularoperations to those particular
customers.customers.customers.customers.

24. Survey StageSurvey StageSurvey StageSurvey Stage: go out and learn something about your
market.
What do its members like and dislike?
What’s important to them?
Who are they?
Where do they come from?Where do they come from?
Analysis StageAnalysis StageAnalysis StageAnalysis Stage: process your data, getting rid of
statistical irregularities and focusing on the most significant
clusters of potential customers.
ProfilingProfilingProfilingProfiling StageStageStageStage:come up with a description of each
cluster, a profile that will help you think about how to market to
that particular group.

25. demographicdemographicdemographicdemographic variables like age, gender, and family size.
psychographicpsychographicpsychographicpsychographic categories like lifestyle, personality, and values.
behavior:behavior:behavior:behavior: potential customers’ knowledge of, attitude toward, use of, or
response to your product.
FOR BUSINESS PRODUCTS ?FOR BUSINESS PRODUCTS ?FOR BUSINESS PRODUCTS ?FOR BUSINESS PRODUCTS ?
geographygeographygeographygeography
benefits sought orbenefits sought orbenefits sought orbenefits sought or
usage rate.usage rate.usage rate.usage rate.

26. Measurable: able to measure the size, purchasing power,
and characteristics of the segment. Otherwise, you won’t be able
to compare it effectively to other segments.
Substantial: have enough members and enough buying
power to justify targeting it.
Accessible: able to get your message and your product to the
segment.
Accessible:
segment.
Differentiable: made up of people who respond in a unique
way to particular marketing-mix elements and programs. If two
groups respond the same way to a television commercial, they do
not constitute two different segments.
Actionable: able to devise an effective marketing strategy on
the basis of the segment.

27. Sales information systemsSales information systemsSales information systemsSales information systems,…
…provide current sales data. Marketers need tools
to keep up with the increased pace of company
operations. And a number of companies have
responded to this need, offering products that
provide up-to-the-minute information about
customers and sales.

28. Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…Marketing Decision Support System…
…a coordinated collection of data, systems, tools, and
techniques with supporting hardware and software by
which an organization gathers and interprets relevant
information from business and environment and turns it
into a basis for marketing action.

29. “… the systematic and
objective identification, collection, analysis,
dissemination, and use of information
for the purpose of improving decisionfor the purpose of improving decision
making related to the identification and
solution of problems and opportunities in
marketing.”

30. Problem definitionProblem definitionProblem definitionProblem definition
Development of an approach to theDevelopment of an approach to theDevelopment of an approach to theDevelopment of an approach to the
problemproblemproblemproblem
Research design formulationResearch design formulationResearch design formulationResearch design formulationResearch design formulationResearch design formulationResearch design formulationResearch design formulation
Fieldwork or data collectionFieldwork or data collectionFieldwork or data collectionFieldwork or data collection
Data preparation and analysisData preparation and analysisData preparation and analysisData preparation and analysis
Report preparation and analysisReport preparation and analysisReport preparation and analysisReport preparation and analysis

32. Market demand…Market demand…Market demand…Market demand…
…the total volume that would be bought by a…the total volume that would be bought by a…the total volume that would be bought by a…the total volume that would be bought by a defined customerdefined customerdefined customerdefined customer group in agroup in agroup in agroup in a
defined geographical areadefined geographical areadefined geographical areadefined geographical area in ain ain ain a defined time perioddefined time perioddefined time perioddefined time period in ain ain ain a defined marketingdefined marketingdefined marketingdefined marketing
environmentenvironmentenvironmentenvironment under aunder aunder aunder a defined marketing programdefined marketing programdefined marketing programdefined marketing program....
Market forecast..Market forecast..Market forecast..Market forecast..
…The level of demand that actually occurs under a given level of industry…The level of demand that actually occurs under a given level of industry…The level of demand that actually occurs under a given level of industry…The level of demand that actually occurs under a given level of industry
marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.marketing expenditure is the market forecast.
Market potential…Market potential…Market potential…Market potential…
…the limit approached by market demand as industry marketing expenditure…the limit approached by market demand as industry marketing expenditure…the limit approached by market demand as industry marketing expenditure…the limit approached by market demand as industry marketing expenditure
approaches infinity.approaches infinity.approaches infinity.approaches infinity.
Company demand…Company demand…Company demand…Company demand…
…the company’s estimated share of market demand at alternative levels of…the company’s estimated share of market demand at alternative levels of…the company’s estimated share of market demand at alternative levels of…the company’s estimated share of market demand at alternative levels of
company marketing effort in a given time.company marketing effort in a given time.company marketing effort in a given time.company marketing effort in a given time.

33. Company sales potentialCompany sales potentialCompany sales potentialCompany sales potential
Company sales potential is the sales limit approached by
company demand as company marketing efforts increase
relative to competitors.
Total market potential =Total market potential =Total market potential =Total market potential =
number of buyersnumber of buyersnumber of buyersnumber of buyers xxxx items purchased per buyeritems purchased per buyeritems purchased per buyeritems purchased per buyer xxxx cost percost percost percost per
itemitemitemitem

35. Business missionBusiness missionBusiness missionBusiness mission …a clearly stated statement that will ultimately
focus on the activities that the company wants to achieve in
future.
SWOT analysis…SWOT analysis…SWOT analysis…SWOT analysis…strengths, weaknesses, opportunities and
threats
MacroMacroMacroMacro----environment…environment…environment…environment… the larger world in which the company
operates.operates.
MicroMicroMicroMicro----environment…environment…environment…environment… immediate environment of your business:
customers, competitors, distributors, and suppliers.
Goal formulation…Goal formulation…Goal formulation…Goal formulation… SMART
Strategy formulation…Strategy formulation…Strategy formulation…Strategy formulation… strategy is a game plan for getting there.
Program formulationProgram formulationProgram formulationProgram formulation
ImplementationImplementationImplementationImplementation
Feedback and controlFeedback and controlFeedback and controlFeedback and control

36. …analyzing market opportunities
…developing marketing strategies
… planning marketing programs… planning marketing programs
… managing the marketing efforts &
…ensuring proper feedback.

37. Executive SummaryExecutive SummaryExecutive SummaryExecutive Summary
Table of ContentsTable of ContentsTable of ContentsTable of Contents
Current Marketing SituationsCurrent Marketing SituationsCurrent Marketing SituationsCurrent Marketing Situations
Opportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue AnalysisOpportunity and Issue Analysis
ObjectivesObjectivesObjectivesObjectives
Marketing StrategyMarketing StrategyMarketing StrategyMarketing Strategy
Action ProgramsAction ProgramsAction ProgramsAction Programs
Projected Profit and Loss Statement.Projected Profit and Loss Statement.Projected Profit and Loss Statement.Projected Profit and Loss Statement.

38. Arranged hierarchically from most important to leastArranged hierarchically from most important to leastArranged hierarchically from most important to leastArranged hierarchically from most important to least
importantimportantimportantimportant. You need to know what matter most to your
company and assign your resources accordingly.
Stated quantitatively whenever possibleStated quantitatively whenever possibleStated quantitatively whenever possibleStated quantitatively whenever possible. You want to be
able to measure your progress. It’s a lot easier to do
this if your goal is to increase sales by a specific
amount, than it is if your goal is simply to increase
sales.
amount, than it is if your goal is simply to increase
sales.
RealisticRealisticRealisticRealistic. Why set a goal you can’t achieve? Goal
formulation is the basis of the concrete actions your
company will take in the future. Unrealistic goals lead
to irrational plans.
ConsistentConsistentConsistentConsistent. Your company will have a number of goals,
but they must be compatible. You can’t run in opposite
directions at the same time.

39. Cultural factors: Culture, Sub-culture, Social class

40. Reference groups
Family

42. Role
& Status& Status

43. Age…stage in the life cycle
Occupation…economic
circumstances
Personality and selfPersonality and self
concept
Lifestyle and values

44. MotivationMotivationMotivationMotivation…………
Freud’s Theory people’s behavior are largely
unconscious
Maslow’s Theory human needs are arrangedMaslow’s Theory human needs are arranged
in a hierarchy, from the most urgent to the
least urgent
Herzberg’s Theory people are motivated to
act when there are no dissatisfiers associated
with an action while at the same time there
are sufficient satisfiers present

48. PerceptionPerceptionPerceptionPerception… converting any stimulus in
your own psychology
LearningLearningLearningLearning… experience, ideas, guidance
Beliefs and attitudesBeliefs and attitudesBeliefs and attitudesBeliefs and attitudes…person'sBeliefs and attitudesBeliefs and attitudesBeliefs and attitudesBeliefs and attitudes…person's
enduring favorable or unfavorable evaluations,
emotional feelings, and action tendencies toward
some object or idea

50. Your mother (the initiator) suggests that you might
think about buying your father a new dress for his
birthday.
You ask your sister (the influencer) what she thinks. She
thinks it's a good idea.
You (the decider) agree and decide to buy an expensive
dress from a renowned store.
However, you don't have time to go to the store, so you
send your brother (the buyer) to make the actual
purchase.
Your father (the user) loves the new dress and use it
regularly.

51. Nature of Business buying decisionsNature of Business buying decisionsNature of Business buying decisionsNature of Business buying decisions…

52. Business Buying Process…

53. New task… buying for the first time
Straight rebuy… reorder or rescheduling without
modification
Modified rebuy… reorder with modifications like
price, volume, supply routine etc.

55. Influencing factors on Business Buying Decisions

56. InitiatorsInitiatorsInitiatorsInitiators. Those who request that something be purchased.
They may be users or other people in the organization.
UsersUsersUsersUsers. Those who will use the product or service. In many cases,
the users initiate the buying proposal and help define the product
requirements.
InfluencersInfluencersInfluencersInfluencers. People who influence the buying decision. They
often help define specifications and also provide information for
evaluating alternatives. Technical personnel are particularly
important influencers.
DecidersDecidersDecidersDeciders. People who decide on product requirements and/orDecidersDecidersDecidersDeciders. People who decide on product requirements and/or
on suppliers.
ApproversApproversApproversApprovers. People who have formal authority to select the
supplier and arrange the purchase terms.
BuyersBuyersBuyersBuyers. People who have formal authority to select the supplier
and arrange the purchase terms.
GatekeepersGatekeepersGatekeepersGatekeepers. People who have the power to prevent sellers or
information from reaching members of the buying center. For
example, purchasing agents, receptionists, and telephone operators
may prevent salespersons from contacting users or deciders.