1. Marketing Management Module 1
Mark Lieberman
Foundations of Business Practice 2

2. Marketing Defined
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

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

4. Target Markets and Segmentation:
Market segmentation
Market offering
Global industry
Marketplace
Marketspace
Metamarket

5. Needs, Wants, and Demands
Needs describe basic human requirements such as food, air, water, clothing, and shelter, recreation, education, and entertainment.
Needs become wants when they are directed to specific objects that might satisfy the need.
Demands are wants for specific products backed by an ability to pay.

6. Product or Offering
Product is any offering that can satisfy a need or want. A brand is an offering from a known source.
Let’s think -- on a sheet of paper, in 30 seconds list all the brands you can think of (products, services, anything).

7. Value and Satisfaction
What is value?
What are five things a marketer can do to increase the value of the offering?
Value is a ratio between what the customer gets and what he gives.
Raising benefits, reducing costs, raising benefits and reducing costs, raising benefits by more than the raise in costs, or lowering benefits by less than the reduction in costs.

8. Exchange and Transactions
Exchange involves obtaining a desired product from someone by offering something in return.
Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

9. Relationships and Networks
Relationship Marketing aims to build long term mutually satisfying relations with key parties
What is the difference between relationship marketing and marketing network?

10. Marketing Channels Communication channels Distribution channels
Selling channels
BANK

11. Supply Chain
A supply chain stretches from raw materials to components to final products that are carried to final buyers.
Each company captures only a certain percentage of the total value generated by the supply chain

12. Competition Brand competition Industry competition Form competition
Generic
competition

13. Marketing Environment
Task environment - everybody involved in producing, distributing, and promoting the offering.
Broad environment - contains forces that have major impact on actors in task environment.
Demographics
Economics
Natural environment
Technological environment
Political-legal environment
Social-cultural environment

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

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

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

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

18. Break

19. Evaluating and Controlling the Marketing Process
Annual-plan control
Set goals
Monitor performance
Determine deviations
Take corrective action
Profitability control
Identify expenses
Measure expense
Prepare profit/loss

20. Evaluating and Controlling the Marketing Process
Efficiency control
Improve marketing efficiency
Strategic control
Review for effectiveness
Conduct marketing audit
Rates performance
Reviews for ethics and social responsibility