Week 1-Mktg Core Concepts

8/6/2019 Week 1-Mktg Core Concepts

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Marketing Management

Marketing Management is the art and

science of choosing target markets andgetting, keeping and growing customersthrough creating, delivering andcommunicating superior customer value.

1Marketing Management: DBA II, SemesterII - UCU MBALE CAMPUS


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Marketing Defined

Marketing is the process by which individualsand groups obtain what they need and want through creating and exchanging productsand value with others

Simply Put: Marketing is the delivery of customer satisfaction at a profit.

Go als: Attract new customers by promisingsuperior value and keep and grow currentcustomers by delivering satisfaction.

Marketing Management: DBA II, SemesterII - UCU MBALE CAMPUS

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A Simple Marketing System

Information


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INDUSTRY(collection of

sellers)

MARKET(collectionof Buyers)

Goods & Services

Money

Communication


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Difference between Sales &Marketing

Sales: Trying to get the customer to want whatthe company produces

Marketing: trying to get the company toproduce what the customer wants


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C o re C o ncepts o f Marketing

Based on:

1. Needs, Wants, Desires/ Demand2. Products, Utility, Value & Satisfaction3. Exchange, Transactions & Relationships

4. Markets, Marketing and Marketers


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C o re C o ncepts c o ntd. ..


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Needs, Wants &

Demands

Utility, Value &

Satisfaction

Products, Offering

& Brand

Exchange,Transaction &Relationships

Marketing &Marketers

Markets


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H o w d o C o nsumers ch oo se am o ngPro ducts/Services?

Value: Value gained from owning a product andcosts of obtaining the product is referred to ascustomer value

Satisfacti o n: Products perceived performancein delivering value relative to the buyer sexpectations is customer satisfaction


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H o w d o C o nsumers o btainPro ducts/Services?


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Exchanges Transacti o ns

Relati o nshipsBuilding a marketingnetwork by adding:

F inancial benefitsSocial benefitsProfitable customers


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W hat are C o nsumers Needs, W antsand Demands?

Needs: are basic human requirements E.g. Food,water, shelter, clothing e.t.c.

W ants: here needs become wants when they aredirected at specific objects that may satisfy theneed. E.g. you want to eat food but a specific kind

Demands: are wants for specific products backed byan ability to pay. E.g. many people want to buyluxurious products but only a few are able andhave the ability to pay for one


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W hat will satisfy c o nsumer needs andwants?


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PRODUCTSAnything that can be offered to a market to satisfy a need or want

SERVICESAn activity or benefit offered for sale, that is essentially intangible and does notresult in the ownership of anything

Experiences PlacesPersons

Organisations Activities Ideas


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MA RKETING PH ILOSOPH IES

There are 6 (six) competing concepts (philosophies) under whichorganisations conduct marketing activities:

1. The Production concept2. The Product concept3. The Selling concept4. The Marketing concept

5. The Customer concept6. The Societal Marketing concept


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Pro ducti o n C o ncept

Organisations using this concept often aim at achieving high production efficiency at the lowest cost and with a massdistribution

Assumpti

on:

Here companies assume that customers areprimarily interested in product availability and low prices

Concept works best in developing countries where consumersare more interested in obtaining the product than its featuresor qualityConcept is often used when the company wants to expand itsmarket


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Pro duct C o ncept

States that consumers favour those products that offer themost quality, performance and innovative features

Companies using this concept focus:- Product excellence- Spend their time and money on R&D- Trying out new products

Companies using this concept may face Market My o pia - acrooked perception of marketing and a short sightednessabout business


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Selling and Marketing C o ncepts

STA RTING POINT FOCUS MEA NS ENDS


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TH E SELLING CONCEPT

Fact o ry Existing Pr o ducts A ggressive selling & pr o m o ting Pr o fits thru salesvo l.

TH E MA RKETING CONC EPT

Market CR Needs Integrated Marketing Pr o fits thru CR Satisfacti o n


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The S o cietal Marketing C o ncept

The concept argues that the company s task is to determine the needs, wantsand interests of target markets and to deliver the desired satisfaction moreefficiently and effectively than the competitor.


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SOC IETY(H uman Welfare)

COMPA NY(Profits)

CUSTOMERS(want satisfaction)


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The Cust o mer C o ncept- CR DrivenSTA RTING POINT FOCUS MEA NS ENDS


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Individual CR CR Needs &Values One2One Mktg & valuechain profitable growth thru capturing CR Loyalty, Shares & Life time value

Documents

Week 1-Mktg Core Concepts