- 1. 1Marketing ManagementChapter 1
2. 2What is Marketing?Marketing is the delivery of customersatisfaction at a profit. 3. 3The Goal of Marketing is:To attract new customer by promisingsuperior value, and to keep currentcustomers by delivering satisfaction. 4. Marketing, more than any other business function,4deals with customers. Creating customer value and satisfaction are at thevery heart of modern marketing thinking andpractice. Some people believe that only large businessorganizations operating in highly developedeconomies use marketing, but sound marketing iscritical to the success of every organization whetherlarge or small, for profit or non profit, domestic orglobal. 5. 5Marketing Defined Many people think of marketing only as selling and advertising. Selling and advertising are only the tip of the marketing ice-berg. Marketing is one of three key core functions that are central to allorganizations. Marketers act as the customers voice within the firm and marketersare responsible for many more decisions than just advertising or sales: Analyse industries to identify emerging trends. Determine which national and international markets to enter orexit. Conduct research to understand consumer behavior. Design integrated marketing mixes products, prices, channels ofdistribution, and promotion programs.Marketing is a social and managerial process by which individuals andgroups obtain what they need and want through creating andexchanging products and value with others. 6. To explain marketing definition, weexamine the following important terms :6 Needs, wants, and demands Products and services Value, satisfaction and quality Exchange, transactions, and relationships Markets 7. 7Needs, Wants, and DemandsNeeds: The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. Human have many complex needs: Physical needs for food, clothing, warmth, and safety Social needs or belonging and affection Individual needs for knowledge and self expressionWants: Want are the form taken by human needs as they are shaped by culture andindividual personality. People have almost unlimited wants but limited resources. They want to choose products that provide the most value and satisfaction fortheir money.Demands: When backed by buying power, wants become demands. Consumers view products as bundles of benefits and choose products that givethem the best bundle for their money. 8. 8Products and ServicesProduct: Anything that can be offered to a market to satisfy aneed or want. The concept of product is not limited to physicalobjects anything capable of satisfying a need canbe called a product.Services: In addition to tangible goods, products also includeservices, which are activities or benefits offered forsale that are essentially intangible and do not resultin the ownership of anything. 9. Values, Satisfaction, and Quality9Values: Customer value is the difference between the values the customer gains fromowning and using a product and the costs of obtaining the products. Customers often do not judge product value and costs accurately or objectively.They act on perceived value.Satisfaction: Customer satisfaction depends on a products perceived performance indelivering value relative to a buyers expectation. If the products performance falls short of the customers expectations, thebuyer is dissatisfied.Quality: Customer satisfaction is closely linked to quality. Quality has a direct impact on product performance. Quality can be defined as freedom from defects. TQM programs designed to constantly improve the quality of products, services,and marketing processes. 10. Exchange, Transactions,10and RelationshipsExchange : The act of obtaining a desired object from someoneby offering something in returnTransaction : A trade between two parties that involves at leasttwo things of value, agreed upon conditions a timeof agreement, and a place of agreement.Relationship marketing : The process of creating, maintaining, and enhancingstrong, value laden relationships with customersand other stakeholders 11. 11MarketsThe set of all actual and potential buyers of aproduct or serviceIndustry(a collectionof sellers)Market (acollection ofA simple marketing systembuyers)CommunicationProducts / ServicesMoneyInformation 12. 12Main actors and forces in a modern marketing systemSuppliersCompetitorsCompany(marketer)Marketingintermediaries End user market 13. 13Marketing ManagementThe analysis, planning, implementation,and control of programs designed tocreate, build, and maintain beneficialexchanges with target buyers for thepurpose of achieving organizationalobjectives. 14. 14Marketing Management Involves: Demand Management : The organization has adesired level of demand for its products. At any pointin time, There may be no demand, adequatedemand, irregular demand, or too much demand,and marketing management must find ways to dealwith these different demand states. Building Profitable Customer Relationships :Beyond designing strategies to attract new customersand create transactions with them, companies noware striving to retain current customers and buildlasting customer relationships. 15. MARKETING MANAGEMENT PHILOSOPHIES15 The role that marketing plays within a companyvaries according to the overall strategy andphilosophy of each firm. There are five alternative concepts under whichorganizations conduct their marketing activities: Production concept Product concept Selling concept Marketing concept Societal marketing concepts 16. 16Production ConceptThe philosophy that consumers willfavour products that are available andhighly affordable and that managementshould therefore focus on improvingproduction and distribution efficiency. 17. 17Product ConceptThe philosophy that consumers willfavour products that offer the mostquality, performance, and innovativefeatures. 18. 18Selling ConceptThe idea that consumers will not buyenough of the organizations productsunless the organization undertakes alarge scale selling and promotioneffort. 19. 19Marketing ConceptThe marketing management philosophythat holds that achieving organizationalgoals depends on determining theneeds and wants of target markets anddelivering the desired satisfactions moreeffectively and efficiently thancompetitors do. 20. 20Societal Marketing ConceptThe idea that the organization shoulddetermine the needs, wants, andinterests of target markets and deliverthe desired satisfactions moreeffectively and efficiently thancompetitors in a way that maintains orimproves the consumers and societyswell being. 21. 21The selling and Marketing Concepts ContrastedFactory ExistingproductsSellingandpromotingProfits throughsales volumeStartingpointFocus Means EndsThe selling conceptMarket CustomerneedsIntegratedmarketingProfits throughcustomersatisfactionThe marketing concept 22. Three Considerations Underlying The Societal22MarketingSociety(Human welfare)SocietalmarketingconceptCompany(Profits)Consumers(Want satisfaction) 23. MARKETING CHALLENGESINTO THE NEW CENTURY23 GROWTH OF NON-PROFIT MARKETING THE INFORMANTION TECHNOLOGY BOOM RAPID GLOBALIZATION THE CHANGING WORLD ECONOMY THE CALL FOR MORE ETHICS AND SOCIALRESPONSIBILITY 24. 24THE NEW MARKETING LANDSCAPEThe past decade taught business firmseverywhere a humbling lesson. Domesticcompanies learned that they can no longerignore global markets and competitors.Successful firms in mature industries learnedthat they cannot overlook emerging markets,technologies, and management approaches.Companies of every sort learned that theycannot remain inwardly focused, ignoring theneeds of customers and their environment.