Marketing Management

MGT 2306Lesson 2

Lesson 2 Objectives

• Be able to describe the stages in the evolution of marketing philosophy

• List explain the elements in a marketing mix

• Learn and be able to discuss why the extended marketing mix was added

Five marketing philosophies (falsafah pemasaran)

Societalmarketingconcept

Production concept

Productconcept

MARKETINGCONCEPT

Marketingconcept

Keymarketing

philosophies

Sellingconcept

Production concept (tumpuan pada pengeluaran)

• Assumption:– consumers want products to be

available and affordable

• Aim:– improve production and distribution

efficiency

• Appropriate if:– demand > supply– product costs are too high

• BUT product may not meet needs

Product concept (tumpuan pada barang)

• Assumption: – consumers favour superior quality,

performance, and features• Aim:

– continuous product improvement• BUT

– can lead to high prices– may not be what customers need

or want– ignores other aspects of marketing

i.e. price and promotion

Selling concept (tumpuan pada aktiviti jualan)

• Assumption: – consumers need to be sold

• Focus:– selling and promotion– firm’s needs and existing products

• Appropriate for:– unsought goods and non-profit

organisations• BUT

– post-purchase dissatisfaction may lead to lack of repeat purchase

– short-term success

Marketing concept (tumpuan pada kepuasan serta janaan nilai bagi pengguna/pelanggan)

• Aim:– identify and satisfy target

markets needs• Focus:

– customer needs and developing products to meet those needs

• Leads to:– long-term success and

profits

Societal marketing concept(tumpuan pada syarikat, pelanggan, bumi)

• marketing concept plus concern for society’s best interests

• Aim:– maintain and improve both the consumer’s and

society’s well being• Three considerations

– company profits (keuntungan syarikat)– customer satisfaction (kepuasan pelanggan)– and society’s well being (kesejahteraan

masyarakat)

What happens to products that are tested on animals?

• Societal marketing abhors the use of animals for testing as it is a cruel and unethical method.

• Therefore, to gain customer trust, support and loyalty, companies actually choose to develop and market their products in a way they think would satisfy the “conscience” (suara hati) of the 21st century consumer

The Marketing Mix (campuran pemasaran)

The Tools of Marketing Management

The Marketing Mix (Offer)

• These are the tools of marketing management employed by marketers. They are areas where marketing managers need to make decisions. These decisions affect the nature of the offering or package of benefits that the organisation offers to customers.

• The tools are commonly known as the 4P’s or 7P’s.

What are the tools? (alat-alat)

• Product• Price• Promotion• Place (Distribution)• People• Process• Physical evidence

4Ps& 7Ps

Product• Quality (Mutu)• Features (Ciri)• Options (Pilihan)• Style (Gaya)• Brand name (Jenama)• Packaging (Bungkusan)• Sizes (Saiz)• Services (khidmat)• Warranties (Jaminan)• Returns (Pulangan)

Price

The value that is put on the exchange process

• List price (senarai harga)

• Discount (Diskaun)• Allowances (Elaun)• Payment period

(tempoh bayaran)• Credit terms (syarat

kredit)

Promotion (Communication)

• Advertising (pengiklanan)

• Personal selling (jualan peribadi)

• Sales promotion (promosi jualan)

• Public relations (perhubungan awam)

• Direct Marketing (pemasaran langsung)

Place (Distribution)

• Channels (saluran)

• Coverage (liputan)

• Locations (kawasan)

• Inventory (stok)

• Transport (pengangkutan)

The Seven P’s

• Booms and Bitner extended the traditional 4P (McCarthy) framework to seven to reflect a predominantly service economy (UK= 74% of GDP).

• Extended mix:– People– Process– Physical evidence

People• The attitudes of staff (sikap)• Training of staff (latihan)• Internal relations • The observable behaviour of staff (tingkah

laku)• The level of service-mindedness in the

organisation• The consistency of appearance of staff

(penampilan kesetaraan)• The accessibility of people (kemudahan

mendekati seseorang)• Customer-to-customer contacts

ProcessThe manner in which the service is delivered

• Degree of customer contact

(tahap perhubungan pelanggan)• Quality control standards• Quality assurance (jaminan kualiti)• Payment methods

(degree of convenience)• Queuing systems for customers• Waiting times (masa menunggu)

Physical Evidence - ambienceThe “environment” or atmosphere in which the service is delivered

• Buildings (bangunan)• Furnishings/décor (hiasan)• Layout (susun atur)• Goods associated with the service e.g. carrier

bags, tickets, brochures• All the above can help shape customers’

perceptions of the service

The 7 Ps of Mr Bean’s meal

Questions

• Name Mr Bean’s purchased product• Name the place Mr Bean is having his product• Who delivered the product?• Was the product expensive?