Marketing /it's not mine

7/27/2019 Marketing /it's not mine

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Marketing Management

Chapter 1


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What is Marketing?Marketing is the delivery of customersatisfaction at a profit.


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Marketing, more than any other business function,deals with customers.

Creating customer value and satisfaction are at the

very heart of modern marketing thinking andpractice.

Some people believe that only large businessorganizations operating in highly developed

economies use marketing, but sound marketing iscritical to the success of every organization whetherlarge or small, for profit or non profit, domestic or

global.


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Marketing 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 of

distribution, 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.


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To explain marketing definition, weexamine the following important terms :

Needs, wants, and demands

Products and services

Value, satisfaction and quality

Exchange, transactions, and relationships Markets


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Needs, 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 expression

Wants:

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 for

their 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.


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Products and ServicesProduct: Anything that can be offered to a market to satisfy a

need 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 include

services, which are activities or benefits offered forsale that are essentially intangible and do not resultin the ownership of anything.


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Values, Satisfaction, and QualityValues:

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.


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Exchange, Transactions,

and RelationshipsExchange :

The act of obtaining a desired object from someoneby offering something in return

Transaction :

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 enhancing

strong, value laden relationships with customers

and other stakeholders


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MarketsThe set of all actual and potential buyers of aproduct or service

A simple marketing system

Industry

(a collection

of sellers)

Market (a

collection of

buyers)

Communication

Products / Services

Money

Information


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Suppliers

Competitors

Company

(marketer)

Marketing

intermediaries End user market

Main actors and forces in a modern marketing system


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Marketing ManagementThe analysis, planning, implementation,and control of programs designed to

create, build, and maintain beneficialexchanges with target buyers for thepurpose of achieving organizational

objectives.


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Marketing Management Involves: Demand Management : The organization has a

desired level of demand for its products. At any pointin time, There may be no demand, adequate

demand, 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.


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MARKETING MANAGEMENT PHILOSOPHIES The role that marketing plays within a company

varies 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


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Production ConceptThe philosophy that consumers willfavour products that are available and

highly affordable and that managementshould therefore focus on improvingproduction and distribution efficiency.


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Product ConceptThe philosophy that consumers willfavour products that offer the most

quality, performance, and innovativefeatures.


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Selling ConceptThe idea that consumers will not buyenough of the organizations products

unless the organization undertakes alarge scale selling and promotion

effort.


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Marketing ConceptThe marketing management philosophythat holds that achieving organizational

goals depends on determining theneeds and wants of target markets anddelivering the desired satisfactions more

effectively and efficiently thancompetitors do.


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Societal Marketing ConceptThe idea that the organization shoulddetermine the needs, wants, and

interests of target markets and deliverthe desired satisfactions moreeffectively and efficiently than

competitors in a way that maintains orimproves the consumers and societyswell being.


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Factory Existing

products

Selling

and

promoting

Profits through

sales volume

Starting

pointFocus Means Ends

The selling concept

Market Customerneeds

Integratedmarketing

Profits throughcustomer

satisfaction

The marketing concept

The selling and Marketing Concepts Contrasted


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Three Considerations Underlying The Societal

Marketing

Societal

marketing

concept

Society(Human welfare)

Company(Profits)

Consumers(Want satisfaction)


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MARKETING CHALLENGES

INTO THE NEW CENTURY GROWTH OF NON-PROFIT MARKETING

THE INFORMANTION TECHNOLOGY BOOM

RAPID GLOBALIZATION THE CHANGING WORLD ECONOMY

THE CALL FOR MORE ETHICS AND SOCIAL

RESPONSIBILITY


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THE 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.

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Marketing /it's not mine