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Chapter 1 Understanding Marketing The future is not ahead of us. It has already happened. Philip Kotler.

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Presentation on theme: "Chapter 1 Understanding Marketing The future is not ahead of us. It has already happened. Philip Kotler."— Presentation transcript:

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2 Chapter 1 Understanding Marketing The future is not ahead of us. It has already happened. Philip Kotler

3 2 The learning objectives: What is Market? What is Marketing and marketing management? Marketing core Concepts Marketing management philosophies

4 1. Market Market means that customers who have purchased or want to purchase a certain product or service.

5 Market = population+ Purchasing Power + Purchasing Need Examples: How to understand the market of purified water what is the market of Nike?how to understand the Nike s market?

6 Market Consumer Market Business Market Global Market Nonprofit and Government Markets

7 Consumer Market The aim of buying is to consume for their own or somebody who has something to do with in consumer market.

8 Business Market Business buyers buy goods for their utility in enabling them to make or resell a product to others for the purpose of making profits.

9 Global Market Companies selling their goods and services in the global marketplace face additional decisions and challenges.

10 Nonprofit and Government Markets Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies.

11 Simple Marketing System Industry (a collection of sellers) Market (a collection of Buyers) Goods/services Money Communication Information

12 2.Defining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. - Philip Kotler

13 Marketing Is the process of planning and executing the conception,pricing,promotion,and distribution of ideas,goods,services to create exchanges that satisfy individual and organizational goals.

14 The Scope of Marketing Goods Services Experience Events Persons Places Properties Organizations Information Ideas

15 Target Market and Segmentation the relationship between the industry and market Marketplace & Marketspace five basic markets

16 Marketplace and Marketspace Marketplace is physical, as when one goes shopping in a store, Marketspace is digital, as when someone shopping on the internet.

17 Five Basic Market (figure 1.2 P9) Manufacturer markets Resource markets Government markets Intermediary markets Consumer markets

18 Manufacturer markets Services,money Government markets Services,money Services Services,money Taxes Taxes,goods Taxes,goods Taxes,goods MoneyMoney Consumer markets Intermediary markets Goods, services ResourcesResources Resource markets MoneyMoney Structure of Flows

19 The Four Ps Marketing Mix Product Price Promotion Place The Four Cs Customer Solution Customer Cost Communication Conven- ience

20 Market Integrated marketing Profits through customer satisfaction Customer needs (b) The marketing concept Factory Existing products Selling and promotion Profits through sales volume Starting point FocusMeansEnds (a) The selling concept Customer Delivered Value

21 Customers Front-line people Middle Management Top Management Traditional Organization Chart

22 Customer-Oriented Organization Chart Customers Front-line people Middle management Top manage- ment Customers

23 Evolving Views of Marketing s Role a. Marketing as an equal function Finance Production Marketing Human resources b. Marketing as a more important function Finance Human resources Marketing Production

24 Evolving Views of Marketing s Role c. Marketing as the major function Marketing Finance Human resources Production d. The customer as the controlling factor Customer Human resources Finance Production Marketing

25 Evolving Views of Marketing s Role e. The customer as the controlling function and marketing as the integrative function Customer Marketing Production Human resources Finance

26 Marketing management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organization objectives

27 3.Core Concepts of Marketing Product or Offering Value and Satisfaction Needs, Wants, and Demands Exchange and Transactions Relationships and Networks Target Markets & Segmentation Marketing Channels Supply Chain Competition Marketing Environment

28 Needs, Want, and Demands Needs describe basic human requirements. Want are shaped by one s society. Demands are wants for specific products backed by ability to pay. examples

29 Demand States and Marketing Tasks No demand Latent demand Declining demand Irregular demand full demand Overfull demand Unwholesome demand

30 Value and satisfaction Benefits functional benefits emotional benefits Costs Monetary costs Time costs Energy costs Psychic costs

31 Value and satisfaction benefits Value = costs

32 Discussion How to increase the value ? How to compare the value?

33 Exchange and transaction Exchange is the act of obtaining a desired object from someone by offering something in return. transaction is a trade between two parties that involves at least two things of value, agreed- upon conditions a time of agreement, and a place of agreement.

34 Relationship marketing The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

35 Product and service Product---Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfying a want or need. It includes physical objectives, services, persons, places, organizations and ideas. Service--- any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

36 Case Study Page 41: Priceline.com: Changing Business in the New Millennium

37 How to understand the case? How to understand the questions? How to analyze the questions? The key question? What s your idea?

38 4.marketing philosophies The production concept The product concept The selling concept The marketing concept The societal marketing concept

39 Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Company Orientations Towards the Marketplace

40 Customers Front-line people Middle Management Top Management Traditional Organization Chart

41 Customer-Oriented Organization Chart Customers Front-line people Middle management Top manage- ment Customers

42 Evolving Views of Marketing s Role a. Marketing as an equal function Finance Production Marketing Human resources b. Marketing as a more important function Finance Human resources Marketing Production

43 Evolving Views of Marketing s Role c. Marketing as the major function Marketing Finance Human resources Production d. The customer as the controlling factor Customer Human resources Finance Production Marketing

44 Evolving Views of Marketing s Role e. The customer as the controlling function and marketing as the integrative function Customer Marketing Production Human resources Finance

45 The production concept the production concept holds that consumers will prefers products that are widely available and inexpensive.

46 The product concept The product concept holds that consumers will favor those products that offer the most quality,performance,or innovative features.

47 The selling concept The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization s products. The organization must, therefore, undertake an aggressive selling and promotion effort

48 The marketing concept The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating,delivering,and communicating customer value to its chosen target markets

49 The societal marketing concept The societal marketing concept holds that the organization s task is to determine the needs, wants,and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer s and the society s well-being.

50 Discussion What s your opinion about the 5 five concepts? Do you think the production concept is outdate

51 Case Discussion Reading Discussion


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