Welcome To Chapter One: An Overview of Marketing Management

Chapter Objective After completing the chapter, the MBA students will able understand: Marketing and its core concepts, Marketing management and its tasks, Different philosophies of marketing management, Importance of marketing and marketing management, Concepts and components of marketing mix and Scope of marketing (what is marketed)

What Is Marketing? Marketing: is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Marketing can defined as meeting customers’ needs and wants profitably. Marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices.

Marketing……………… According to AMA: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. If you read the definition closely, you see that there are four activities: Creating: The process of collaborating with suppliers and customers to create offerings that have value. Communicating: Broadly, describing those offerings, as well as learning from customers. Delivering: Getting those offerings to the consumer in a way that optimizes value. Exchanging: Trading value for those offerings.

Marketing……….

Core concepts of marketing States of deprivation Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Needs Form that needs take as they are shaped by culture and individual personality Wants Wants backed by buying power Demands 1. Customer Needs, Wants, and Demands

Target Markets, Positioning, and Segmentation Marketing Offerings and Brands Offerings: The combinations of products, services, information or experiences offered to a market to satisfy a need or want” A brand: is an offering from a known source Value and Satisfaction Value: Value, a central marketing concept, is primarily a combination of quality, service, and price (qsp), called the customer value triad. Satisfaction: reflects a person’s judgment of a product’s perceived performance in relationship to expectations. core concepts of marketing ……..

Marketing Channels To reach a target market, the marketer uses three kinds of marketing channels. a)Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, firms communicate through the look of their retail stores and Web sites and other media. Marketers are increasingly adding dialogue channels such as , blogs, and toll-free numbers to familiar monologue channels such as ads. b)Distribution channels: is the channel used to display, sell, or deliver the physical product or service(s) to the buyer or user. These channels may be direct via the Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries. Service channel: to carry out transactions with potential buyers, the marketer also uses service channels that include warehouses, transportation companies, banks, and insurance companies. Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and service channels for their offerings.

Supply Chain The supply chain is a longer channel stretching from raw materials components to finished products carried to final buyers. Competition Competition includes all the actual and potential rival offerings and substitutes a buyer might consider. Marketing Environment The marketing environment consists of the task environment and the broad environment. The task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers. The broad environment consists of six components: demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political-legal environment.

1.2 Marketing Management Tasks With the holistic marketing philosophy as a backdrop, we can identify a specific set of tasks that make up successful marketing management and marketing leadership. These are: Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Delivering Value Communicating Value Creating Successful Long-Term Growth

1.3 Different Philosophies of Marketing Management

1.4 Importance of marketing management In general, marketing management has the following importance for business organizations: a)marketing promotes product awareness to the public b)marketing helps boost product sales c)marketing builds company reputation d)marketing helps in transfer, exchange and movement of goods: e)marketing is helpful in raising and maintaining the standard of living of the community: f)marketing creates employment: g)marketing as a source of income and revenue: h)marketing acts as a source of new ideas: i)marketing is helpful in development of an economy etc ……

1.5 Concepts and Components of Marketing Mix Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. As shown in Figure 1.2, McCarthy classified these tools into four broad groups that he called the four Ps of marketing: 1) product, 2) price, 3) place, and 4) promotion. Marketing-mix decisions must be made to influence the trade channels as well as the final consumers.  Winning companies are those that meet customer needs economically and conveniently and with effective communication.

Marketing Mix……….

1.6 What is Marketed (Scope of Marketing)? Goods Services Events Experiences Persons Places Properties- Organizations Information Ideas

The End of Chapter One