MGT 2306

MARKETING MANAGEMENT

Lesson 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

MARKETING PHILOSOPHIES

A marketing philosophy is a foundational idea that becomes a part of all of the work that a marketing department accomplishes for a company or organization. Marketing Philosophies help determine the management of marketing. Companies approach and conduct business in different ways in order to achieve their organizational goals.

Five marketing philosophies (falsafah pemasaran)

Production Concept

Marketing concept

SocietalMarketingConept

MARKETINGCONCEPT

ProductConcept

Keymarketing

philosophies

Sellingconcept

PRODUCTION CONCEPT (TUMPUAN PADA PENGELUARAN)

Assumption:consumers want products to be available

and affordable

Marketer’s Aim improve production and distribution

efficiency

Action: Increase production capability

Keep costs stable, distribute everywhere

• BUT product may not meet needs

PRODUCT CONCEPT (TUMPUAN PADA BARANG)

Assumption:

consumers favour superior quality,

performance, and features

Marketer’s Aim:

continuous product improvement

Increase in prices to justify quality

BUT this…..

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

Marketer’s aims:

focus on company’s needs

aggressive sales and promotion

Sell as much as possible, more profits

It is 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

Marketer’s Aim:

understand customer needs

developing products to meet those

needs

Create value & customer satisfaction

Leads to:

long-term success and profits

SOCIETAL MARKETING CONCEPT(TUMPUAN PADA SYARIKAT, PELANGGAN,

BUMI)

Assumption: Marketing concept plus concern for society’s

best interests

Marketer’s 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 OF

MARKETING MIX ? (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)

WHY ANOTHER 3 ‘P’?

• 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 (tingkahlaku)

• The level of service-mindedness in the organisation

• The consistency of appearance of staff (penampilan kesetaraan)

• The accessibility of people (kemudahanmendekati seseorang)

• Customer-to-customer contacts

PROCESS

The 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 - AMBIENCE

The “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 P’S OF MR. BEAN’S MEAL