MS 3:

Marketing
Management
and
Accountancy

Course Outline
Unit I. An overview of Marketing
Management

1. Marketing Management defined

2. 3 C’s of Marketing
3. Tasks and philosophies of Marketing Management
4. Core concepts of marketing
Unit II. The Business Environment

1. Broad Environment
2. Task Environment
3. Analysis of the factors affecting business
Unit III. Organizing the Marketing
Effort

1. The corporate environment for marketing planning

2. Organizational corporate strategy
Unit IV. Analyzing Consumer
Demand

1. Consumer generic needs and behaviour

2. Looking into consumer demand
3. Understanding buyer behaviour
Unit V. Product Strategy

1. Product decisions
2. Product strategy
3. Understanding the product life cycle concepts
4. Succeeding in product management
Unit VI. Price and Pricing Strategy

1. Analyzing the pricing environment

2. Pricing decisions
3. Pricing and pricing policies
4. Pricing for profits
Unit VII. Channels of Distribution

1. Determination of channel strategy

2. Marketing channel decisions
3. Developing channels of distribution
Unit VIII. Advertising and
Promotional Strategies

1. Integrated Marketing Communications (IMC) Decisions

2. Integrated Marketing Communications (IMC) Program
3. Sales promotion decisions
4. Promoting the product
Book References:

– Baquillas, Jonalyn (2017). Principles of Marketing. Makati City : Diwa Learning

Systems Inc.
– Jeong, L., Garcia Jr., Leonardo. (2016). International Marketing. South Triangle,
Quezon City: C & E Publishing Inc.
– Kotler, K., Armstrong, K. (2016). Principles of Marketing. Boston: Pearson.
– Lacobucci, Dawn (2015). Marketing management. New Tech Park, Singapore:
Cengage Learning.
– Perreault, W., Cannon, J., McCarthy, J. (2017). Essentials of marketing : a
marketing strategy planning approach. New York, NY. : McGraw-Hill Education
Ebook:
MS 3;
Marketing
Management
and
Accountancy

Midterms
Unit 1; An overview of
Marketing Management

Marketing Management and Accountancy

Meeting Needs
Profitably
Marketing
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
- American Marketing Association
Marketing

Marketing is a social process by which individuals

and groups obtain what they need and want
through creating and exchanging products and
value with others.
(Social Definition)
Marketing

The essence of Marketing is a transaction - an

exchange- intended to satisfy human needs and
wants.
 Marketing Management

– the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value.
Marketing is not just “the art of selling products”.
The strategic
3 c’s
Customer
Company
competition
 1. Production Concept
2. Product concept
5 concepts 3. Selling concept
4. Marketing concept
5. Societal marketing concept
Selling
concept vs.
Marketing
concept
Societal
marketing
concept
Core Marketing
Concepts
➢ Target Markets and Market ➢ Value And Satisfaction
Segmentation ➢ Exchange and Transactions
➢ Marketplace, Market-space ➢ Relationship and Networks
and Metamarkets
➢ Marketing Channels
➢ Marketers and Prospects
➢ Supply Chain
➢ Needs, Wants and
Demands ➢ Competition

➢ Product Offering and Brand ➢ Marketing Environment

Marketplace, Market-space and
Metamarkets

– Marketplace is physical entity

– Marketspace is digital / virtual entity
– Metamarket is a cluster of complementary products and
services closely related in the minds of consumers, but
spread across a diverse set of industries.
Needs, Wants and Demands

– Needs are the basic human requirements

– Wants are directed to specific objects that might satisfy
the need.
*A U.S. consumer needs food but may want a Philly
cheesesteak and an iced tea.
– Demands are wants for specific products backed by an
ability to pay
Value and Satisfaction

– Marketers can enhance the value of an offering to the

customer by:
– Raising benefits.
– Reducing costs.
– Raising benefits while lowering costs.
– Raising benefits by more than the increase in costs.
– Lowering benefits by less than the reduction in costs.
Exchange and Transaction

– Exchange involves obtaining a desired product from

someone by offering something in return. Five
conditions must be satisfied for exchange to occur.
– Transaction involves at least two things of value, agreed-
upon conditions, a time of agreement, and a place of
agreement.
Relationship and Network

– Relationship marketing aims to build long-term mutually

satisfying relations with key parties, which ultimately
results in marketing network between the company and
its supporting stakeholders.
Marketing Channels

– Communication channels - Deliver messages to and receive

messages from target buyers. Includes traditional media,
non-verbal communication, and store atmospherics.
– Distribution channels - Display or deliver the physical
products or services to the buyer / user.
– Service channels - Carry out transactions with potential
buyers by facilitating the transaction.
Supply Chain

– A supply chain stretches from raw materials to

components to final products that are carried to final
buyers.
Competition

– Competition includes all the actual and potential rival

offerings and substitutes a buyer might consider.
– Four levels of competition
1. Brand competition
2. Industry competition
3. Form competition
4. Generic competition
The Marketing Environment

– The task environment includes the actors engaged in

producing, distributing, and promoting the offering.
– The broad environment consists of six components:
demographic environment, economic environment, social-
cultural environment, natural environment, technological
environment, and political-legal environment.
Unit II; The Business
Environment

Marketing Management and Accountancy

The Broad Environment

The Demographic Environment - population, including the size and growth rate of
population in cities, regions, and nations; age distribution and ethnic mix; educational
levels; household patterns; and regional characteristics and movements.
1. WORLDWIDE POPULATION GROWTH
2. POPULATION AGE MIX
preschool children, school-age children, teens, young adults age 20 to 40, middle-aged adults 40 to 65,
and older adults 65 and older
3. ETHNIC AND OTHER MARKETS
4. EDUCATIONAL GROUPS
illiterates, high school dropouts, high school diplomas, college degrees, and professional degrees.
5. HOUSEHOLD PATTERNS
The Broad Environment

The Economic Environment - The available purchasing power in an economy

depends on current income, prices, savings, debt, and credit availability
1. CONSUMER PSYCHOLOGY
2. INCOME DISTRIBUTION
(1) very low incomes;(2) mostly low incomes;(3) very low,very high incomes; (4)low,medium,high
incomes; and (5) mostly medium incomes

3. INCOME, SAVINGS, DEBT, AND CREDIT

The Broad Environment

The Sociocultural Environment - we absorb, almost unconsciously, a world view that

defines our relationships to ourselves, others, organizations, society, nature, and the
universe.
1. Views of ourselves
2. Views of others
3. Views of organizations
4. Views of society
Preservers, makers, takers, changers, seekers, escapers
5. Views of nature
6. Views of the universe
The Broad Environment

The Sociocultural Environment - we absorb, almost unconsciously, a world view

that defines our relationships to ourselves, others, organizations, society, nature,
and the universe.
1. HIGH PERSISTENCE OF CORE CULTURAL VALUES
1. Core values -passed from parents to children and reinforced by social institutions—
schools, churches, businesses, and governments.
2. Secondary beliefs - more open to change.
2. EXISTENCE OF SUBCULTURES
1. Subcultures-groups with shared values, beliefs, preferences, and behaviors
emerging from their special life experiences or circumstances
The Broad Environment

The Natural Environment - “green”parties have pressed for public action to reduce
industrial pollution. Trends in the natural environment for marketers to be aware of
include the shortage of raw materials,especially water; the increased cost of energy;
increased pollution levels; and the changing role of governments.
– Nearly a quarter of the carbon dioxide that makes up about 80 percent of all greenhouse
gases comes from electrical power plants
– Transportation is second only to electricity generation as a contributor to global warming,
accounting for roughly a fifth of carbon emissions.
– A person cooking over an open wood or kerosene fire inhales the equivalent of two packs
of cigarettes a day
**Corporate environmentalism recognizes the need to integrate environmental issues into the
firm’s strategic plans
The Broad Environment
The Broad Environment

The Technological Environment - It is the essence of market capitalism to be

dynamic and tolerate the creative destructiveness of technology as the price of
progress.
– ACCELERATING PACE OF CHANGE
– UNLIMITED OPPORTUNITIES FOR INNOVATION
– VARYING R&D BUDGETS
– INCREASED REGULATION OF TECHNOLOGICAL CHANGE
The Broad Environment

The Political-Legal Environment - consists of laws, government agencies, and

pressure groups that influence various organizations and individuals
– INCREASE IN BUSINESS LEGISLATION
– GROWTH OF SPECIAL-INTEREST GROUPS
The consumerist movement organized citizens and government to strengthen the rights and
powers of buyers in relationship to sellers
 customers

The Task
Public suppliers Environment
Components

Marketing
competitors
Intermediaries
Customers

– Customers are the

actual buyer of our goods
and services.

– The company must

study its customer
markets closely sinceeach
market has its own special
characteristics.
 • individuals and households that buy
Consumer
goods and services for personal
Market
consumption

• buy goods and services for further

Business
processing or for use in their
Market
production process Customers
Reseller • buy goods and services in order to
Market resell them at a profit

• agencies that buy goods and services

Government
in order to produce public services or
Market
transfer them to those that need them
International
• buyers of all types in foreign countries
Market
Suppliers

– Suppliers are firms and individuals

that provide the resources needed
by the company.

– They are an important link in the

company’s
– overall customer“value delivery
system.”
 Suppliers

Right
Timely Price Quality
Product
Competitors

– Conducting competitor analysis is

critical for success of thefirm

– A marketer must
– monitor itscompetitors’
offerings to create strategic
advantage
 Reseller

Marketing
Distribution Intermediaries
Marketing Marketing intermediaries are firms
intermediaries that help the company to
promote, sell, and distribute its
Financial goods to final buyers.

Marketing
Service
Reseller
• They are those who hold and sell company’s
product.
• Wholesaler and retailer.

Physical Distribution Firm

• They help the company to stock and move
goods from their points of origin to their
destinations.
• Transportation and warehousing.
Marketing ServiceAgencies

• Theyhelp the company target and promote its products.

• Advertising agencies. Mediaagency, marketing research
firms,etc.

– Financial Intermediaries
• Theyhelp finance transactions and insure
– against risks.
• Banks, credit companies, insurancecompany, ect.
Public

– Apublic is any group that has an

actual or potential Financial

– Interest in or impact on an
Media Citizen
organization’s ability to achieve its
objectives. Public
– Acompany should prepare a Groups
marketing plan for all of their Local Internal

majorpublics.
General
 Financial

Media Citizen

Public
Groups
Local Internal

General
External Environment;
Opportunities
A marketing opportunity is an area of buyer need and interest that a company has
a high probability of profitably satisfying.
– offer something that is in short supply. This requires little marketing talent, as
the need is fairly obvious.
– supply an existing product or service in a new or superior way. How? The
problem detection method asks consumers for their suggestions, the ideal
method has them imagine an ideal version of the product or service, and the
consumption chain method asks them to chart their steps in acquiring, using,
and disposing of a product
– totally new product or service
External Environment; Threats

– An environmental threat is a challenge posed by an unfavorable trend or

development that, in the absence of defensive marketing action, would lead to
lower sales or profit
Internal Environment; Strength
and Weakness
– it should limit itself to those opportunities for which it possesses the required
strengths, or consider those that might require it to find or develop new
strengths
Unit III. Organizing the
Marketing Effort

Marketing Management and Accountancy

The Marketing Plan

– The marketing plan identifies the marketing objectives and explains how
marketing activities will help the organization achieve its broader goals and
objectives.
– The marketing plan describes how the company will use the marketing mix—
product, promotion, place, and price—to achieve its marketing objectives
effectively within the competitive market environment.
– The marketing plan also focuses the company’s resources on reaching target
customers and driving them to act.
 Strategic Management Process

Environmental Strategy Strategy Strategy

Scanning Formulation Implementation Evaluation
Competitive Advantage

A company is said to have a competitive advantage over its rival when its
profitability is greater than the average for all firms in its industry.
– Continually adapting to changes in external trends and events
– Continuously improve internal capabilities, competencies and resources
– Effective formulation, implementation and evaluation of strategies
Sustained Competitive Advantage
maintain above average profitability for a number of years
Strategy

A set of actions that managers take to increase their company’s

competitive advantage. These are large scale, future oriented plans for interacting
with the competitive environment to achieve company objectives

A goal directed actions a firm intends to take in its quest to gain and
sustain competitive advantage.
Unit IV. Analyzing
Consumer Demand

Marketing Management and Accountancy

Reasons Why We Purchase
from Austria, C., Castañeda, L. (2018) Professional salesmanship.

1. Basic needs 6. Emotional emptiness

2. Convenience 7. Lower prices
3. Replacement 8. Great value
4. Scarcity 9. Name recognition
5. Prestige or 10.Fad or innovation
aspirational purchase
Reasons Why We Purchase
from Austria, C., Castañeda, L. (2018) Professional salesmanship.

11.Compulsory purchases 16.Reciprocity or guilt

12.Ego 17.Event
13.Niche identity 18.Empathy
14.Peer pressure 19.Addiction
15.The “girl scout cookie 20.Fear
effect” 21.Indulgence
 Consumer Behavior

Cultural Social Personal

Age & Life Cycle
Culture Reference Groups
Occupation
Economic Situation
Subcultures Family
Lifestyle
Personality and Self
Social Class Roles and Status
Concept
Stanford’s Jennifer Aaker
researched brand personalities and
identified the following traits:
– 1. Sincerity (down-to-earth,honest,wholesome,and cheerful)
– 2. Excitement (daring,spirited,imaginative,and up-to-date)
– 3. Competence (reliable,intelligent,and successful)
– 4. Sophistication (upper-class and charming)
– 5. Ruggedness (outdoorsy and tough)
Consumer Behavior

Psychological
Motivation
Perception
SELECTIVE ATTENTION

– Attention is the allocation of processing capacity to some stimulus.

– 1. People are more likely to notice stimuli that relate to a current need.
– 2. People are more likely to notice stimuli they anticipate.
– 3. People are more likely to notice stimuli whose deviations are large in relationship
to the normal size of the stimuli.
SELECTIVE DISTORTION

– Even noticed stimuli don’t always come across in the way the senders intended.
Selective distortion is the tendency to interpret information in a way that fits
our preconceptions.
SELECTIVE RETENTION

– Most of us don’t remember much of the information to which we’re exposed,

but we do retain information that supports our attitudes and beliefs
Consumer Behavior

Psychological
Motivation
Perception
Learning
Emotions
Memory
 The Buyer Decision Process

Need Information Evaluation of Purchase Postpurchase

Recognition Search Alternatives Decisions Behavior