Marketing Management Chapter 01

What is Marketing ? Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in a way that benefit the organization and its stakeholders. (The American Marketing Association)

What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What is Marketed ??

Structure of Flows in a Modern Exchange Economy

Core Marking Concepts Needs: Basic human requirement. e.g. food, water, air, shelter, clothing etc. Wants: needs that directed to specific object that might satisfy the need. e.g. Fuchka, Chicken curry, burger etc Demands: wants for specific products backed by an ability to pay. e.g. Fish n chips from Fish N Co, Craving for Move n Pick ice cream etc.

Target Market, Positioning & Segmentation Segmentation: Dividing the market into several segments. Target Market: after identifying market segments, the marketers decides which segment presents the greatest opportunity – are target market. Positioning: Making an image in consumers mind about the product.

Value and satisfaction Marketing channels Supply chain Competition Marketing environment

5 stages of Need Stated Needs: The customer wants an inexpensive car. Real Needs: The customer wants a car whose operation cost, not initial price, is low. Unstated Needs: The customer expects good service from the dealer Delight Needs: The customer would like the dealer to include on onboard GPS navigation system Secret Needs: The customer wants friends to see him or her a savvy consumer

The New Marketing Realities Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation Information technology

New Consumer Capabilities A substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion

Companies Orientation Toward the Marketplace

The Production Concept This concept is the oldest of the concepts in business.  It holds that consumers will prefer products that are widely available and inexpensive.  Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution.  They assume that consumers are primarily interested in product availability and low prices.  This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.

The Product Concept This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features.  Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance.  However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs.  Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door. 

The Selling Concept This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products.  The organization must, therefore, undertake an aggressive selling and promotion effort.  This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying.  It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity.  Their aim is to sell what they make rather than make what the market wants.

The Marketing Concept This is a business philosophy that challenges the above three business orientations.  Its central tenets crystallized in the 1950s.  It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars:  target market, customer needs, integrated marketing and profitability.

The Holistic Marketing Concept

Internal Marketing An element of holistic marketing, is the task of hiring, training and motivating able employees who want to serve customers well.

Integrated Marketing The marketer devices marketing activity and assembles marketing programs to create, communicate and deliver value or the customers.

Performance Marketing Financial Marketing Social Responsibility Marketing

The Four P’s

Marketing Management Tasks Develop Market Strategies and Plans Assessing Marketing Opportunities and Customer Value Choosing Value Designing Value Delivering Value Communicating Value Communicate value Sustaining Growth and Value