Marketing Management

By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

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SUMMARY by

Chapter

Understanding Marketing Management

Marketing is an essential art and science that is engaged in a vast number of activities by both persons and organizations. It has become an increasingly vital ingredient in the success of a business. Good marketing is the result of careful planning and execution. There are two sides to marketing the formulated side and the creative side. It is important to lay the foundation in marketing concepts, tools, frameworks and issues of the formulated side while at the same time instil the real creativity and passion for marketing, as we shall come to see in this chapter.

Social Definition of Marketing

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.

Marketing is increasingly becoming an important function in all organizations to ensure that demand for a product or service persists along with customer retention.

Scope of Marketing
A good marketer must be able to answer the following questions:

What is Marketing?
The formal definition of marketing is, Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders.

What is Marketed?
Some of the common entities that are marketed are goods, services, events, experiences, persons, places, properties, organizations, information and ideas.

Chapter 1 - Understanding Marketing Management Who Markets?

A marketer is someone who seeks a response, attention, purchase, vote, donation etc

The five key functions of a marketing manager or CMO are:

Strengthening the brand Measuring marketing effectiveness Driving new product development based on customer needs Gathering meaningful customer insights Utilizing new marketing technology

from another party called the prospect. Marketing managers are responsible for demand management. Eight demand states are possible: Negative demand Nonexistent demand Latent demand Declining demand Irregular demand Full demand Overfull demand Unwholesome demand

The key customer markets are consumer markets, business markets, global markets, non-profit and governmental markets.

Core Marketing Concepts:

Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. Wants - form that a human need takes as shaped by culture and individual personality i.e. I want a hamburger, French fries, and a soft drink. Demands - human wants backed by buying power. i.e. I have money to buy this meal. Target Markets are the market segments identified by the marketer which present the greatest opportunity. Value Proposition is a set of benefits that companies offer to customers to satisfy their needs. The intangible value proposition is made physical by as offering. A brand is an offering from a known source. Value reflects the sum of the perceived tangible intangible benefits and costs to customers. Satisfaction reflects a persons judgements of a products perceived performance. To reach a target market a marketer uses different marketing channels like communication channels, distribution channels and service channels. Supply chain is a longer channel stretching from raw materials to components to final products that are carried to final buyers.

Chapter 1 - Understanding Marketing Management Company orientation towards Marketplaces:

The major marketing philosophies are: The Production Concept o o Consumers favor products that are available and highly affordable. Improve production and distribution. Consumers favor products that offer the most quality, performance, and innovative features. Selling Concept o Consumers will buy products only if the company promotes/ sells these products. Marketing Concept o Focuses on needs/ wants of target markets & delivering satisfaction better than competitors. Societal Marketing Concept o o Focuses on needs/ wants of target markets & delivering superior value. Based on the development, design and implementation of marketing programs, processes and activities that recognize their breadth and interdependencies. Relationship Marketing o Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. Holistic Marketing Concept

New Marketing Realities:

Some of the major societal forces that marketers have to deal with today are network information technology, globalization, deregulation, privatization, heightened competition, industry convergence, consumer resistance, retail transformation and disintermediation.

Product Concept o

Marketing Management Tasks:

The following are the most important marketing management tasks: Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Shaping the Marketing Offerings Delivering Value Communicating Value Creating Long-Term Growth