1.

Understanding Marketing
Management

1. Defining Marketing for the New Realities

2. Developing Marketing Strategies and Plans
3. Creating Long-Term Loyalty Relationships
 1

Defining Marketing
for the New Realities
 Questions
• Why is marketing important?
• What is the scope of marketing?
• What are some core marketing concepts?
• What forces are defining the new marketing
realities?
• What does a holistic marketing philosophy
include?
• What tasks are necessary for successful
marketing management?
 Defining Marketing for the New
Realities
• Formally and informally, people and organizations
engage in a vast number of activities we can call
marketing.

• In the face of a digital revolution and other major

changes in the business environment, good
marketing today is both increasingly vital and
radically new.
 Unilever- “ Crafting Brands for Life”
• Unilever is fundamentally changing how it is
doing its marketing, including putting more
emphasis on developing markets.
• It’s new model establishes social, economic,
and product missions for each brand.
• Sustainability- a part of the mission, to halve
its ecological footprint while doubling
revenues.
• It aims to draw 70-75% of business from D&E
markets by 2020.
• It has also adopted “reverse innovation” by
applying branding and packaging innovations
from developing markets to developed
markets.
 The Value of Marketing
• The election of Narendra Modi as the Prime Minister
was attributed, in part, to the adoption of new
marketing practice

• From “Acche din ayenge” and “Ab ki baar Modi

Sarkar”in2014 to “Phir Ek baar Modi Sarkar” in 2019
elections, BJP’s election campaigns combined a
popular politician, a powerful message of hope, and
a thoroughly integrated modern marketing program.
 The Value of Marketing
360-degree campaign
•Apart from the conventional TV, print and radio, the
BJP was all over on social media.
•MyGov India (Official) is an official Facebook page of
BJP which has keenly focused on creating and nurturing
a constant trust in the work carried by their party.
•BJP encouraged people to join together under the
‘Main Bhi Chowkidar’ campaign as well as inviting views
from people through the campaign “Bharat Ke Man Ki
Baat.”
 The Value of Marketing
• They emphasized with user-generated content and
built and maintained the interest of different voter
groups.
• The YouTube channel of BJP has almost completed 9
years. The channel has 1,314,817 subscribers, and 3,
892, 525 views till now.
• BJP Instagram handle “BJP4india” has 1.7 million
followers. This also helped in creating ‘Modi wave’.
• Launch of a promotional Tv channel, “Namo TV” and
his biopic, certainly created the desired chatter and
made an impact on the people it was meant for.
 The Value of Marketing
• Availability of clean and safe drinking water, especially
to the poorer sections of society, is a challenge many
South Asian countries have been grappling with.

• Many companies in India are showing the way to meet

this challenge by designing technologically advanced
household water purifiers that are appropriate for
consumers’ usage conditions, and yet available at
affordable price ranges.
 The Value of Marketing
• Tata chemicals, for example, has
launched an innovative water purified
called Tata Swach, which requires
neither electricity nor running water
to function. The purifier, made from
natural materials such as rice husk ash filled with nano-silver
particles, is marketed at a price of about Rs. 1,000.

• As this product does not require electricity to operate, it is

suitable for geographical areas where there is little or no
electricity..
 The Value of Marketing
• Eureka Forbes Ltd., a leader in the water purification
market with its well-known brand Aquaguard, has
launched an innovative product called AquaSure.

• This product is also available at prices affordable for

middle-income consumers and does not require
electricity or running water

• Hindustan Unilever Limited is yet another company

that has launched battery-operated water purifiers
at lower price ranges under the brand name PureIt.
 The Value of Marketing
• Walmart on the other hand is committed to support
India’s smallholder farmers through investments from
the Walmart Foundation and by sourcing 25% of all
fresh produce in Best Price Stores directly from
farmers.
 The Value of Marketing
• Such initiatives that address the unmet needs of the
masses through appropriate technology and product
design at affordable price points reflect
contemporary marketing thought, and this trend has
inspired many companies in emerging markets to
innovate and grow.
 Good Marketing is No Accident
• It is a result of careful planning and execution using
state-of –art tools and techniques.

• It becomes both an art and science as marketers

strive to find creative new solutions to often-
complex challenges amid profound changes in the
21st century
 Good Marketing is No Accident
The roaring success of four-
wheeler Tata Ace, in a
market earlier dominated
by three-wheeler load
carriers, was due to a deep
understanding of the
market needs and customer
requirements.
 The Importance of Marketing
• The first decade of the 21st century challenged firms to
prosper financially and even survive in the face of an
unforgiving economic environment.
Marketing is playing a key role in addressing those
challenges.
• Finance, operations, accounting, and other business
functions won’t really matter without sufficient demand
for products and services so the firm can make a profit.
• In other words, there must be a top line for there to be a
bottom line. Thus financial success often depends on
marketing ability.
 The Importance of Marketing
• Marketing has helped introduce and gain acceptance of
new products that have eased or enriched people’s lives.
• It can inspire enhancements in existing products as
marketers innovate to improve their position in the
marketplace.
• Successful marketing builds demand for products and
services, which, in turn, creates jobs.
• By contributing to the bottom line, successful marketing
also allows firms to more fully engage in socially
responsible activities.
 The Importance of Marketing
• Marketers must decide what features to design into a
new product or service, what prices to set, where to
sell products or offer services, and how much to
spend on advertising, sales, the Internet, or mobile
marketing.

• They must make those decisions in an Internet-fueled

environment where consumers, competition,
technology, and economic forces change rapidly, and
the consequences of the marketer’s words and
actions can quickly multiply.
 The Importance of Marketing
• One of the defining changes resulting from the
increasing popularity of the Internet is the explosive
growth of the social networking media.

• This powerful medium is rapidly changing the ways

in which companies connect with customers and
how they market their products and services
 The Scope of Marketing?
• What is Marketing ?
• Who Markets ?
• What is Marketed ?
 What is Marketing?
• Marketing is about identifying and meeting human
and social needs.
Therefore Marketing is also defined as
“meeting needs profitably”

Google came up with a powerful search engine

when it realized that people needed to more
effectively and efficiently access information on the
Internet. Thus, converting a social need into a
profitable business opportunity
 Definition of Marketing

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.
(The American Marketing Association)
 Social Definition of Marketing

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
 Marketing and Exchange
• Marketing is an exchange between a firm and
customer

The customer The company

seeks benefits Customer
offers benefits to
from the its customers,
company, Company and seeks profits.
and expects to
pay.
 For an exchange to occur…..
• There are at least two parties.
• Each party has something that might be of value to the
other party.
• Each party is capable of communication and delivery.
• Each party is free to reject the exchange offer.
• Each party believes it is appropriate or desirable to deal
with the other party.
 Discussion Questions
• Why might an exchange NOT occur?
• What is the long term benefit of having satisfaction
in an exchange?
What is 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.
 What is Marketing Management?
The process of setting marketing goals for an
organization (considering internal resources and market
opportunities), the planning and execution of activities
to meet these goals, and measuring progress toward
their achievement.

Comment: The process is ongoing and repetitive (as

within a planning cycle) so that the organization may
continuously adapt to internal and external changes
that create new problems and opportunities.
Selling is only the tip of the iceberg

“There will always be a need for

some selling. But the aim of marketing is to
make selling superfluous. The aim of
marketing is to know and understand the
customer so well that the product or service
fits him and sells itself. Ideally, marketing
should result in a customer who is ready to
buy. All that should be needed is to make
the product or service available.”
Peter Drucker
What is Marketed?
 What Can We Market?
1.Goods 6. Places
2.Services 7.Properties
3.Events 8.Organizations
4.Experiences 9. Information
5.Persons 10.Ideas
 Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

 Demand States
Negative Demand: Consumers dislike the product and even
pay to avoid it
Nonexistent demand: Consumers may be unaware or
uninterested in the product
Latent demand: Consumers may share a strong need that
can not be satisfied by an existing product
Declining demand: Consumers begin to buy the product less
frequently or not at all
Irregular demand: Consumer purchase vary on a seasonal or
hourly basis
Unwholesome demand: Consumers may be attracted to
products that have undesirable social consequences.
 Demand States

• Marketers stimulate demand for their

product and also seek to influence the level,
timing, and composition of demand to meet
the organization’s goals.

• The role of the marketers is to identify the

underlying cause(s) of the demand state and
determine a plan of action to shift demand to
a more desired state.
 Who Markets?

• Marketers and Prospects

Marketer is someone who seeks a response-attention,

a purchase, a vote, a donation from other party, called
the prospect
 Who Markets ?
• Markets
oPhysical place where buyers and sellers gathered to
buy and sell goods

oCollection of buyers and sellers who transact over a

particular product class (housing market/rice market)

oMarketers view sellers as the industry and use the

term market to describe customer groups (Chinese
market/shoe market/ youth market/labor market)
A Simple Marketing System
Structure of Flows in a Modern
Exchange Economy
 Key Customer Markets
Consumer Markets
Global Markets

Business Markets Nonprofit/ Government Markets

 Core Marketing Concepts
• Needs, wants, and • Value and satisfaction
demands • Marketing channels
• Segmentation, • Supply chain
Targeting, and • Competition
Positioning • Marketing
• Offerings and brands environment
• Impressions and • Paid, Owned and
Engagement Earned Media.
 Needs, Wants, and Demands
• Needs are the basic human requirements
(food, clothing, shelter etc.)

• Want is a need directed towards a specific

object that might satisfy the need and is
shaped by a person’s knowledge, culture and
personality.

• Demands are the wants for specific products

backed by an ability to pay.
 5 Types of Needs
• Stated needs (The customer wants an inexpensive car)
• Real needs (The customer wants a car whose operating
cost, not its initial price, is low)
• Unstated needs (The customer expects good service
from the dealer)
• Delight needs (The customer expects the dealer to
include a GPS)
• Secret needs (The customer wants friends to see him as
a savvy consumer)
 Responding only to the stated needs may
shortchange the customers. What features should
be there in a cell phone. To gain an edge, companies
must help customers learn what they want
Maslow’s Hierarchy of Needs
 Discussion Question
• Can you think of a single product that satisfies
everyone’s needs/preferences?
– Consider the following:
• A 12 ounce can of Pepsi
• Magic Kingdom at Disney World
• A Ritz Carlton Hotel
 What is Segmentation?
• Segmentation
– Breaking the heterogeneous market into smaller,
homogeneous markets

• Segment
– A group of customers who share similar
inclinations toward a brand
Groups of Customers
 Groups of Customers
• Mass Marketing
– All customers are treated the same
• Customer needs are not met
• But…less expensive to implement

• One-to-one Marketing
– Each customer serves as own segment
• More expensive to implement
• But…customer needs are better met
 Groups of Customers
• Marketing Segmentation
– Customers are broken into more homogeneous
groups
• Groups are small enough that customer needs are
met
• But…large enough to be profitable

• Niche marketing
– A segment is broken into smaller customer groups
with particular needs that the company can serve well
• Falls between segmenting and one-to one
 How to Choose a Target
• When choosing target market(s), marketers should
consider
1. The market’s fit with the firm’s capabilities
– More subjective/challenging to assess
2. The profitability potential of the market
– More objective
 Strategic Criteria for Targeting
• Go for it:
– Sports apparel producer
in the attractive volley ball
apparel market

• Hmm:
– CD producer in the attractive
video game market

• Hmm:
– Typewriter producer in the
unattractive typewriter
market

• Avoid:
– PC producer in the
unattractive e-book market
 Discussion Question
• Assume you are the market leader in the refrigerator
market. Which markets might fall into each of the
categories below?
 1. Fit with Firm’s Capabilities
• Does this market “fit” with what we are?
– Questions
• Can we satisfy this market?
• What are our strengths?
• What resources do we have?
• What is our experience?
• What is our corporate culture?
• What are our current brand personalities, etc.?
 What is Positioning?
• Positioning: who you are in the marketplace vis-à-vis the
competition
– Determine who you are in the market
– Then decide who you want to be
• Positioning statement is a subset of a value
proposition, but it’s not the same thing
• Positioning is important
– It involves all of the marketing mix variables
 Positioning

Press ads of the

Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on
emotional benefits.
Offerings and Brands
 Offerings and Brands
• Company address customer needs by Value Proposition,
a set of benefits that satisfy those needs

• The intangible value proposition is made physical by an

offering, which can be a combination of products,
services, information, and experience

• A Brand is an offering from a known source.

Value Proposition Value Proposition
• Fuel- efficient • i10,positioned as “the
• Easy to park in Mumbai most feature rich
• Wife can drive it too compact car in India.”
• High on manufacturing • The target is the first
standards time buyer or an
• Lots of features upgrader from entry
level compact car single
• Light on maintenance
or DINKs; 25 - 28 years
• Good service backup of age with a monthly
• All at around Rs. 6 lakhs household income of
• i10, Ritz, Ford Figo around Rs 40,000. 
The value proposition answers
three questions

Which
Which needs?
customers?

• What end • Which

users? products?
• What • Which
What relative
channels? features?
price?
• Which
• Premium? services?
Discount?
• The first test of a strategy is whether your value
proposition is different from your rivals. If you are
trying to serve the same customers and meet the
same needs and sell at the same relative price, then
by Porter’s definition, you don’t have a strategy.
 Each value proposition is best delivered by a tailored value chain
Hertz Enterprise Zipcar
Value proposition
Office locations Airports, hotels, train Throughout metro None (¢)
stations ($$$) area, strip malls ($)
Fleet choices Full range of late “Sensible” cars, “Cool” cars
models older fleet
Marketing Consumer Market through Word of mouth, partnerships with
advertising ($$$) body shops, schools (¢)
insurers ($)

Value chain choices

Office locations Airports, hotels, train Throughout metro None (¢)

stations ($$$) area, strip malls ($)
Fleet choices Full range of late “Sensible” cars, “Cool” cars
models older fleet
Marketing Consumer Market through Word of mouth, partnerships with
advertising ($$$) body shops, schools (¢)
insurers ($)
• The value proposition is the element of strategy that
looks outward at customers, at the demand side of the
business. The value chain focuses internally on
operations.

• Strategy is fundamentally integrative, bringing the

demand and supply sides together.

• Typically, value propositions based on needs appeal to a

mix of customers who might defy traditional
demographic segmentation
Customer Value and Satisfaction

Quality
• Customer value = the sum
of the customer’s perceived
benefits and costs
Value
• Combination of the
customer value triad (QSP) Price Service

Customer Value Triad

Four Types of Customer Value
• Consumers get economic value when a product
provides tangible monetary savings either at the time of
purchase or over its long-term use.
For example, an energy-efficient lightbulb or a fuel-
efficient car reduces the consumer’s cost of owning
these products.

• Sometimes, when comparing many products (for

example, mobile phones or laptops), consumers
consider not only the price but also different features, or
the functional value of the products.
• Many consumers also buy products for their experiential
value—intangible psychological and emotional value that
can be derived from brands or great service.
For example, Apple created an image for its brands that
allowed it to charge a premium for its products.
Amazon has established itself as a leading e-commerce
player, not only by offering low prices but also by
providing excellent customer service.

• In many settings consumers derive social value from

products. The value of Facebook comes from sharing
information, pictures, and videos with friends.
Many restaurants and cafés provide customers with good
food and drink as well as a place to meet friends.
Determinants of Customer Delivered
Value
Image
Image Benefits
Benefits

Personnel
Personnel benefits
benefits Total
Total
customer
customer
Services benefits
benefits
Services benefits
benefits

Product
Product benefits
benefits
Customer
Customer
value
value
Monetary
Monetary cost
cost

Time
Time cost
cost
Total
Total
customer
customer
Energy
Energy cost
cost cost
cost

Psychic
Psychic cost
cost
 Customer Value
• Customer value is a moving target. As the
environment changes, customers accumulate
experience and their needs evolve – the values they
seek also evolve.

• Principle of Differential Advantage:

“The firm should offer customers a net benefit or
cluster of benefits which they value and are willing
to pay for but cannot get, or believe they cannot get
elsewhere.”
 Customer Value
Apple
Originally a computer company, the $800 billion dollar tech giant
has adapted its focus to include self-driving cars, augmented reality
and even the payment space historically controlled by banks.
Google
The company that originally started as an online search engine built
Android which now owns the majority of market share for mobile
operating systems. It also invaded the GPS navigation and mapping
industries and is working on internet-beaming balloons as well as
self-driving cars.
Facebook
No longer “just” a social networking site but a technology
powerhouse intent on creating augmented-reality glasses as well as
ways to let you type with your brain.
 Satisfaction

Is a person’s feelings of pleasure or disappointment

resulting from comparing a product’s perceived
performance (or outcome) in relation to his or her
expectations.
 Satisfied Customers:
• Are loyal longer
• Buy more (new products & upgrades)
• Spread favorable word-of-mouth
• Are more brand loyal (less price sensitive)
• Offer feedback
• Reduce transaction costs
 Marketing Channels
• Communication Channels: deliver and receive
messages from target buyers

• Distribution Channel: display, sell, deliver

• Service Channels: carry out transactions

 Paid, Owned, And Earned Media
• Owned Media: communication channels owned by
marketers like a company or brand brochure, Website, blog,
Fb page, or Twitter account.

• Paid Media: communication channels which allow

marketers to show their ad or brand for a fee like TV,
magazine and display ads.

• Earned Media: are streams in which consumers, the press,

or other outsiders voluntarily communicate something
about the brand via word of mouth, buzz or viral marketing
methods.
 Impressions and Engagement
• Impressions, occur when consumers view a
communication.
It is a useful metric for tracking the scope or breadth
of a communication’s reach that can be compared
across all communication types.
The downside is that impressions don’t provide any
insight into the results of viewing the
communication.
 Impressions and Engagement
• Engagement, is the extent of a customer’s attention
and active involvement with a communication.
It reflects a much more active response than a
mere impression and is more likely to create value
for the firm.
Some online measures of engagements are
Facebook “likes,” Twitter tweets, comments on a blog
or Web site, and sharing of video or other content.
It can extend to personal experiences that
augment or transform a firm’s products and services.
 Supply Chain
• Longer channel

• Stretching from raw materials to components to

finished products carried to final buyers
The Supply Chain for Coffee
 Competition

• All actual and potential rival offerings and

substitutes a buyer might consider
 Marketing Environment
• Task Environment: Actors in producing, distributing, and
promoting the offerings

• Broad Environment: Demographic, Economic, Physical,

Technology, Politico-legal, Socio-Cultural
 Marketing Environment

Demographic Economic

Socio-
Political-legal cultural

Technologica
l Natural
The New Marketing Realities

Technology

Globalization

Social
Responsibility
 Marketing in Practice
Marketing Balance: Retaining winning practices from the
past while adding fresh approaches that reflect the new
marketing realities

Marketing Accountability: Assessing the direct and indirect

value created by the marketing efforts by applying metrics
like brand equity, customer lifetime value (CLV), return on
marketing investment.

Marketing in the Organization: Marketing is not done only

by the marketing department; every employee has an
impact on the customer.
 Company Orientations

Production Product

Selling Marketing
 Holistic Marketing Orientation
Based on the development, design, and implementation
of marketing programs, processes, and activities that
recognizes their breadth and interdependencies.

Everything matters in marketing and a broad, integrated

perspective is necessary.
Holistic Marketing Orientation
Relationship Marketing

It aims to build mutually satisfying

long-term relationships with key
constituents in order to earn and
retain their business
 Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community
 Outcome of RM
Marketing Network
Company and its supporting stakeholders
(Customers, Employees, Suppliers,
Distributors, Retailers, Ad agencies,
Scientists)
 Integrated Marketing
• Integrated Marketing occurs when the marketer
devises marketing activities and assembles marketing
programs to create, communicate, and deliver value
for consumers such that “ the whole is greater than
the sum of its parts.”
 Integrated Marketing
The Four P’s (McCarthy)
Marketing Mix and the Customer
Four Ps Four Cs
• Product • Customer solution
• Price • Customer cost
• Place • Convenience
• Promotion • Communication

1-91
 Customer’s view of four Ps

Solution: How can I solve my problem?

Information: Where can I learn more about it?

Value: What is the total sacrifice to get this solution?

Access: Where can I find it?

The New Four Ps

People

Processes
Programs

Performance
 Focus on
Instead of ProductSOLUTION
Define the offering by the needs they meet, not by their features,
function or technological superiority

Focus on
ACCESS
Instead of Place Develop an integrated cross-channel program that considers
customers‘ entire purchase journey instead of emphasizing individual
purchase location and channels

Focus on
Instead of Price VALUE
Anticipate the benefits related to price, rather than stressing on how
price relates to production cost, profit margin or competitors’ price

Focus on
PROMOTION
Instead of Promotion
Provide information related to customers’ specific needs at each
point in the purchase cycle rather than relying on advertising, PR, and
personal selling that covers the waterfront
 Internal Marketing
Internal marketing is the task of hiring, training, and
motivating able employees who want to serve
customers well.
•All marketing functions-sales force, ad, customer
service, product management, MR must work together.
•Other departments must embrace marketing: think
marketing
•It requires vertical and horizontal alignment in the
organization.
 Performance Marketing
Understanding the financial and
nonfinancial returns to business and society
from marketing activities and programs.

Social
Financial
Responsibility
Accountability
Marketing
 Performance Marketing
• Financial Social Initiatives
Accountability • Corporate social marketing
• Social Responsibility • Cause marketing
Marketing • Cause-related marketing
• Corporate philanthropy
• Corporate community
involvement
• Socially responsible business
practices
 Performance Marketing
Financial Accountability Social Responsibility
Marketing
• Justify investments in
financial and profitability • Effects of marketing extend
terms beyond the company and
the customer to society as
a whole to include ethical,
• Building brands and
environmental, legal, and
growing customer base
social context
Type Description
CS Initiatives Example
Corporate social Supporting behavior change McDonald’s promotion of a statewide
marketing campaigns childhood immunization campaign in
Oklahoma
Cause Marketing Promoting social issues through McDonald’s sponsorship of Forest (a gorilla) at
efforts such as sponsorship, Sydney’s Z00-a 10-year sponsorship
licensing agreements, and commitment, aimed at preserving endangered
advertising species.
Cause related Donating a percentage of revenue McDonald’s earmarking of $1 for Ronald
marketing to a specific cause based on the McDonald children’s charities from the sale of
revenue occurring during the every Big Mac and Pizza sold on McHappy day.
announced period of support

Corporate Making gifts of money, goods, or McDonald’s contribution to Ronald McDonald

philanthropy time to help nonprofit House charities
organizations, groups, or
individuals
Corporate Providing in kind or volunteer McDonald’s catering meals for firefighters in
community services in the community the December 1997 bushfire in Australia.
involvement
Socially Adapting and conducting business McDonald’s requirement that supplier
responsible practices that protect the increase the amount of living space for laying
business practices environment and human and hens on factory farms
animal rights
 Marketing Management Tasks
1. Develop Marketing Strategies and Plans
2. Capturing Marketing Insights
3. Connecting With Customers
4. Building Strong Brands
5. Creating Value
6. Communicating Value
7. Delivering Value
8. Conducting Marketing Responsibly for long-term
Success.
Develop Market Strategies and Plans
 Capturing Marketing Insights:
• Collecting Information and Forecasting Demand
• Conducting Marketing Research

 Connecting with Customers:

• Analyzing Consumer Markets
• Analyzing Business Markets
• Tapping into Global Markets
 Marketing Management Tasks
Building Strong Brands:
•Identifying Market Segments and Targets
•Crafting the Brand Positioning
•Creating Brand Equity
•Addressing Competition and Driving Growth
 Marketing Management Tasks
 Creating Value:
• Setting Product Strategy
• Designing and Managing Services
• Introducing New Market Offerings
• Developing Pricing Strategies and Programs
 Marketing Management Tasks
 Communicating Value:
• Designing and Managing Integrated Marketing
Communications
• Managing Mass Communications
• Managing Digital Communications
• Managing Personal Communications.
 Marketing Management Tasks
 Delivering Value:
• Designing and Managing Integrated Marketing
Channels
• Managing Retailing, Wholesaling, and Logistics

 Conducting Marketing Responsibly for Long-term

Success:
• Managing a Holistic Marketing Organization for the
Long Run.
 Discussion Question
• Assume you are marketing pens. Can you describe
how you would market under a product orientation
compared to a marketing orientation?
 The Marketing Process

Demographic- Marketing Technological-

Economic Intermediaries Natural
Environment Environment
ys g

M lan
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ar n
P
is
An rke

ke ing
Product

ti n
a
M

g
Target
Suppliers Place Price Publics
Consumers

n
ti o
ta
em ng
Ma Con

Promotion

en
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rk tro

Im ark
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M
Political- Social-
Legal Competitors Cultural
Environment Environment
107
Marketing Framework

Start with a Situational Analysis using the 5Cs

Context is the climate or the external environment:
PEST Analysis
 Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs and
wants of consumers?
 Schematic of Marketing
Process
Marketing analysis (the 5 Cs)

CUSTOMER COMPANY COMPETITIOR COLLABORATOR CONTEXT

Target Product and

Market
Market Service
Choosing Segmentation
Selection Positioning
Value
Designing
Value Marketing Mix (the 4 Ps)

Product and service Pricing

Delivering Promotion Place/channels

Value

Sustaining Value Customer acquisition Customer retention

Profit
 Schematic of Marketing
Process
Marketing analysis (the 5 Cs)
CUSTOMER COMPANY COMPETITIOR COLLABORATOR CONTEXT

Choosing Identifying Market

Competitive Crafting the Creating Brand
Value Segments and
Dynamics Brand Positioning Equity
Targets

Designing
Setting Product Developing Pricing
Value Strategy
Designing and Managing
Services Strategies and Programs

Delivering Place/Channel
Value
Communicating Promotion
Value
Customer acquisition Customer retention
Sustaining
Value
Profit