Presentation on theme: "Chapter 1 Understanding Marketing"— Presentation transcript:
1 Chapter 1 Understanding Marketing The future is not ahead of us. It has already happened.Philip Kotler
2 The learning objectives: What is Market?What is Marketing and marketing management?Marketing core ConceptsMarketing management philosophies
3 1. MarketMarket means that customers who have purchased or want to purchase a certain product or service.
4 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?
5 Market Consumer Market Business Market Global Market Nonprofit and Government Markets
6 Consumer MarketThe aim of buying is to consume for their own or somebody who has something to do with in consumer market.
7 Business MarketBusiness buyers buy goods for their utility in enabling them to make or resell a product to others for the purpose of making profits.
8 Global MarketCompanies selling their goods and services in the global marketplace face additional decisions and challenges.
9 Nonprofit and Government Markets Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies.
10 Simple Marketing System CommunicationIndustry(a collectionof sellers)Marketof Buyers)Goods/servicesMoneyInformation
11 2.Defining MarketingMarketing 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
12 MarketingIs 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.
13 The Scope of Marketing Goods Services Experience Events Persons Places Properties OrganizationsInformation Ideas
14 Target Market and Segmentation the relationship between the industry and marketMarketplace & Marketspacefive basic markets
15 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 Structure of Flows Resource markets Government markets Manufacturer ResourcesResourcemarketsMoneyTaxesTaxes,goodsServices,moneyGovernmentmarketsServicesManufacturermarketsConsumermarketsIntermediaryGoods, servicesMoney
18 The Four Ps The Four Cs Marketing Mix Product Place Promotion Price Conven-ienceCustomerSolutionCustomerCostCommunication
19 Customer Delivered Value FactoryExistingproductsSelling andpromotionProfits throughsales volumeStartingpointFocusMeansEnds(a) The selling conceptMarketIntegratedmarketingProfits throughcustomersatisfactionCustomerneeds(b) The marketing concept
20 Traditional Organization Chart TopManagementMiddle ManagementFront-line peopleCustomers
22 Evolving Views of Marketing’s Role b. Marketing as a moreimportant functionFinanceHumanresourcesMarketingProductiona. Marketing as anequal functionFinanceProductionMarketingHumanresources
23 Evolving Views of Marketing’s Role c. Marketing as themajor functionMarketingFinanceresourcesHumanProductiond. The customer as thecontrolling factorCustomerHumanresourcesFinanceProductionMarketing
24 Evolving Views of Marketing’s Role e. The customer as the controllingfunction and marketing as theintegrative functionCustomerMarketingProductionresourcesHumanFinance
25 Marketing managementThe 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
26 3.Core Concepts of Marketing Target Markets & SegmentationNeeds, Wants, and DemandsProduct or OfferingValue and SatisfactionExchange and TransactionsRelationships and NetworksMarketing ChannelsSupply ChainCompetitionMarketing Environment
27 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
28 Demand States and Marketing Tasks No demandLatent demandDeclining demandIrregular demandfull demandOverfull demandUnwholesome demand
29 Value and satisfaction Benefitsfunctional benefitsemotional benefitsCostsMonetary costsTime costsEnergy costsPsychic costs
31 DiscussionHow to increase the value ?How to compare the value?
32 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.
33 Relationship marketing The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
34 Product and serviceProduct---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.
35 Case StudyPage 41: Priceline.com: Changing Business in the New Millennium
36 How to understand the case? How to understand the questions?How to analyze the questions? The key question?What’s your idea?
37 4.marketing philosophies The production conceptThe product conceptThe selling conceptThe marketing conceptThe societal marketing concept
38 Company Orientations Towards the Marketplace Consumers prefer products that arewidely available and inexpensiveProduction ConceptConsumers favor products thatoffer the most quality, performance,or innovative featuresProduct ConceptConsumers will buy products only ifthe company aggressivelypromotes/sells these productsSelling ConceptFocuses on needs/ wants of targetmarkets & delivering valuebetter than competitorsMarketing Concept
39 Traditional Organization Chart TopManagementMiddle ManagementFront-line peopleCustomers
41 Evolving Views of Marketing’s Role b. Marketing as a moreimportant functionFinanceHumanresourcesMarketingProductiona. Marketing as anequal functionFinanceProductionMarketingHumanresources
42 Evolving Views of Marketing’s Role c. Marketing as themajor functionMarketingFinanceresourcesHumanProductiond. The customer as thecontrolling factorCustomerHumanresourcesFinanceProductionMarketing
43 Evolving Views of Marketing’s Role e. The customer as the controllingfunction and marketing as theintegrative functionCustomerMarketingProductionresourcesHumanFinance
44 The production concept the production concept holds that consumers will prefers products that are widely available and inexpensive.
45 The product conceptThe product concept holds that consumers will favor those products that offer the most quality,performance,or innovative features.
46 The selling conceptThe 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
47 The marketing conceptThe 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
48 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.
49 Discussion What’s your opinion about the 5 five concepts? Do you think the production concept is outdate