B ASICS OF M ARKETING M ANAGEMENT MBA 649 : Marketing Management M Wahidul Islam Fall 2014 LECTURE 1

K EY Q UESTIONS What is Marketing? What is Marketing Management? Marketing Management Tasks What is Marketed? What are the core concepts of marketing management? Key Customer Markets Company Orientations How and why marketing scenario have changed 1-2

W HAT IS M ARKETING ? 1-3 Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing is meeting needs profitably

W HAT IS M ARKETING M ANAGEMENT ? 1-4 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.

M ARKETING M ANAGEMENT T ASKS Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth 1-5

1-6 What is Marketed? GoodsServicesEvents Experiences PersonsPlaces Properties Organizations Information Ideas

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C ORE M ARKETING C ONCEPTS Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment 1-11

C ORE M ARKETING C ONCEPTS N EEDS, WANTS, AND DEMANDS Needs are basic human requirements Need becomes want when the requirement is directed toward an specific object Demand are wants for specific products Five Types of Needs Stated needs (the customer wants an inexpensive car) Real needs (customer wants a car with low operating cost) Unstated needs (expects good service from the dealer) Delight needs (would like to include a GPS) Secret needs (wants to be seen as a savvy customer) 1-12 Transport Car / Bike / Bicycle Toyota / BMW / Honda

C ORE M ARKETING C ONCEPTS N EEDS, WANTS, AND DEMANDS : D EMAND S TATES 1-13 Nonexistent Latent Declining Irregular Full Unwholesome Overfull Negative

K EY C USTOMER M ARKETS 1-14 Consumer Markets Business Markets Global Markets Nonprofit & Government Markets

K EY C USTOMER M ARKETS C ONSUMER M ARKETS Companies selling Mass consumer goods and services 1-15

K EY C USTOMER M ARKETS B USINESS M ARKETS Company to Company B2B 1-16

K EY C USTOMER M ARKETS G LOBAL M ARKETS Companies in global marketplaces must decide which countries to enter, how to enter, how to adapt product and service features to each counties, how to price product in different countries 1-17

K EY C USTOMER M ARKETS N ONPROFIT & G OVERNMENT O RGANIZATIONS Non-profit organizations: churches, universities, charitable organizations, Social organizations Government agencies Very price sensitive 1-18

C OMPANY O RIENTATIONS 1-19 One of the oldest concept Assumes that consumers prefer that are widely available and inexpensive Example: Lenovo group The Production Concept Proposes that consumers favor products offering the most quality, performance and innovative features Example: Mousetrap The Product Concept Assume that customers will not buy if not left alone. Practiced most aggressively for unsought products Example: Insurance, cemetery plots etc. The Selling Concept A customer centered, sense and respond philosophy. Find out right customers for your products Example: Dell The Marketing Concept

H OLISTIC M ARKETING C ONCEPT 1-20 The Holistic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activities that recognize their breadth and interdependencies. Long-term relationship The whole is greater than the sum of its parts So that all employees serve customers well Understanding financial & non-financial returns to business & society from marketing activities & programs.

T HE T RADITIONAL F OUR P’ S 1-21

T HE MARKETPLACE ISN ’ T WHAT IT USED TO BE … 1-22 Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation

N EW C ONSUMER C APABILITIES 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 1-23

T HE T RADITIONAL F OUR P’ S 1-24

R EFERENCES Chapter 1 – Defining Marketing for the 21 st Century Kotler, Philip, Keller, Kevin L., Koshy, Abraham and Jha, Mithileshwar ( ) Marketing Management: A South Asian Perspective (14 th Edition) Pearson Education Inc