Marketing identifying and meeting human and social needs

societal process individuals and groups obtain what they need and want
Marketing Management art and science of choosing target markets
goods, services, events, experiences, persons ,places,
Marketed
properties, organizations, information, and ideas
The GOODS Physical goods constitute the bulk of most countries’ production and marketing efforts
The SERVICES work of airlines, hotels, car rental firms, barbers and beauticians etc.
The EVENTS time-based events, such as major trade shows, artistic performances, and company anniversaries
The EXPERIENCE orchestrating several services and goods
The PERSONS Artists, musicians, CEOs, physicians, high-profile lawyers and financiers
The PLACES Cities, states, regions, and whole nations compete to attract tourists, residents, factories
The PROPERTIES intangible rights of ownership
The ORGANIZATIONS work to build a strong, favorable, and unique image
The INFORMATION production, packaging, and distribution of information
The IDEAS Every market offering includes a basic idea
MARKETERS AND PROSPECTS Who Markets?
Marketer someone who seeks a response
Prospect attention, a purchase, a vote, a donation—from another party
Eight demand
1. Negative demand Consumers dislike the product
2. Nonexistent demand Consumers may be unaware
3. Latent demand Consumers may share a strong need
4. Declining demand Consumers begin to buy the product less frequently
5. Irregular demand Consumer purchases vary on a seasonal, monthly, weekly, daily
6. Full demand Consumers are adequately buying all products
7. Overfull demand More consumers would like to buy the product than can be satisfied
8. Unwholesome demand may be attracted to products that have undesirable social consequences
Market physical place where buyers and sellers gathered to buy and sell goods

KEY CUSTOMER MARKETS

Consumer Markets Companies selling mass consumer goods and services
Business Markets Companies selling business goods and services
Global Markets must decide which countries to enter; how to enter each
Nonprofit and Governmental limited purchasing power such as churches, universities, charitable organizations, and government
Markets agencies
MARKETPLACE physical, such as a store you shop in
MARKETSPACE digital, as when you shop on the Internet
METAMARKET result of marketers packaging a system
Core Marketing Concepts
Needs basic human requirements such as for air, food, water, clothing, and shelter
Wants needs become wants when directed to specific objects that satisfy the need
Demands
1. Stated needs
2. Real needs
3. Unstated needs
4. Delight needs
5. Secret needs
Value Proposition
Intangible Value Proposition
Brand
Customer Value Triad
Satisfaction
1.Communication channel
2.Distribution channel
3.Service channel
Supply Chain
Competition
Marketing Environment
Task Environment
Broad Environment
1.Network information
technology
2.Globalization
3.Deregulation
4Privatization
5..Heightened competition
6.Industry convergence
7.Retail transformation
8.Disintermediation
9.Consumer buying power
10.Consumer information
11.Consumer participation
12.Consumer resistance
1.Risk taker
2.Willingness to make
decisions
3.Problem-solving ability
4.Change agent
5.Results-oriented
1.Global experience
2.Multichannel expertise
3.Cross-industry experience
4.Digital focus
5.Operational knowledge
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept
holistic marketing
wants for specific products backed by an ability to pay
Five Types of Needs
customer wants an inexpensive car
customer wants a car whose operating cost, not initial price, is low
customer expects good service from the dealer
customer would like the dealer to include onboard GPS navigation system
customer wants friends to see him or her as a savvy consumer
set of benefits that satisfy those needs
made physical by an offering
offering from a known source
combination of quality, service, and price (qsp)
reflects a person’s judgment of a product’s perceived performance
3 Marketing Channels
deliver and receive messages from target buyers and include newspapers, magazines
display, sell, or deliver the physical product or service
warehouses, transportation companies, banks, and insurance companies
longer channel stretching from raw materials to components
actual and potential rival offerings and substitutes
task environment and the broad environment
actors engaged in producing, distributing, and promoting the offering
six components: demographic environment, economic environment, social-cultural environment,
natural environment, technological environment, and political-legal environment
12 Key to Major Societal Forces
digital revolution has created an Information Age
Technological advances made it easier for companies to market in
create greater competition and growth opportunities
converted public companies to private ownership
Intense competition among domestic and foreign brands
Industry boundaries are blurring
Store-based retailers face competition from catalog houses
amazing success of early dot-coms
Internet, consumers have substantially increased their buying power
Consumers can collect information in as much breadth and depth
Consumers have found an amplified voice to influence peer and public opinion
Many customers today feel there are fewer real product differences
5 Innate Qualities
5 Learned Qualities
one of the oldest concepts in business; consumers prefer
products that are widely available and inexpensive
consumers favor products offering the most quality
consumers and businesses, if left alone, won’t buy enough of the organization’s products
achieving organizational goals is being more effective
s based on the development, design, and implementation of marketing programs
integrating the value exploration, value creation, and value delivery activities
Relationship Marketing
Marketing Network
Integrated Marketing
Internal Marketing
Performance Marketing
aims to build mutually satisfying long-term relationships
ultimate outcome of relationship marketing is a unique company asset
marketer devises marketing activities and assembles marketing programs
element of holistic marketing, is the task of hiring, training, and motivating able employees
understanding the financial and nonfinancial returns

FINANCIAL ACCOUNTABILITY Marketers are increasingly asked to justify their investments in financial and profitability terms
SOCIAL RESPONSIBILITY
MARKETING effects of marketing extend beyond the company and the customer to society as a whole
Chapter II
Value Chain tool for identifying ways to create more customer value
(1) inbound logistics
(2) operations
(3) outbound logistics
(4) marketing
(5) service 5 Primary Activities Value Chain
(1) procurement
(2) technology development
(3) human resource Mgmt
(4) firm infrastructure
Core business processes
1.market-sensing process gathering and acting
2.new-offering realization
process researching, developing, and launching
3.customer acquisition process defining target markets
4.customer relationship mgmt
process building deeper understanding, relationships, and offerings
5. fulfillment management
process receiving and approving orders
Core Competencies companies owned and controlled most of the resources that entered their businesses
3 Key management of Holistic Marketing
1. Value exploration How a company identifies new value opportunities
2. Value creation How a company efficiently creates more promising new value offerings
3. Value delivery How a company uses its capabilities and infrastructure to deliver
Marketing Plan central instrument for directing and coordinating the marketing effort
written document that summarizes what the marketer has learned
Strategic Marketing plan lays out the target markets and the firm’s value proposition
Tactical Marketing plan specifies the marketing tactics, including product features, promotion
Defining Competitive Territory and Boundaries in Mission Statements
1.Industry Some companies operate in only one industry
2.Products and applications Firms define the range of products and applications they will supply
3.Competence firm identifies the range of technological and other core competencies
3.Market segment type of market or customers a company will serve
4.Vertical vertical sphere is the number of channel levels
5.Geographical range of regions, countries, or country groups
Market definitions describe the business as a customersatisfying process
Target market definition focus on selling a product or service to a current market
Strategic market definition focuses on the potential market
INTENSIVE GROWTH first course of action should be a review of opportunities for improving existing businesses
INTEGRATIVE GROWTH business can increase sales and profits through backward
DIVERSIFICATION GROWTH makes sense when good opportunities exist outside the present businesses
Corporate culture shared experiences, stories, beliefs, and norms that characterize an organization
Business Mission business unit needs to define its specific mission
Marketing Innovation Imaginative ideas on strategy exist in many places within a company
SWOT Analysis overall evaluation of a company’s strengths, weaknesses, opportunities, and threats
Marketing Opportunity
Environmental threat
Goal Formulation
Strategic Formulation
1.Overall cost leadership
2.Differentiation
3.Focus
strategic group
STRATEGIC ALLIANCES
1. Product or service alliances
2. Promotional alliances
3. Logistics alliance
4. Pricing collaborations
1.strategy
2.structure
3.systems
4.Style
5.Skills
6.Staff
7.Shared Values
1.Executive summary and table
of contents
2.Situation analysis
3.Marketing strategy
4.Financial projections
5.Implementation controls
Role of Research
marketing information system
(MIS)
area of buyer need and interest
challenge posed by an unfavorable trend or development
Once the company has performed a SWOT analysis, it can proceed to goal formulation
Goals indicate what a business unit wants to achieve; strategy is a game plan for getting there
3 PORTER’S GENERIC STRATEGIES
Firms work to achieve the lowest production and distribution costs
business concentrates on achieving superior performance
business focuses on one or more narrow market segments
firms directing the same strategy to the same target market
Even giant companies—AT&T, Philips, and Nokia—often cannot achieve leadership
4 major categories STRATEGIC ALLIANCES
One company licenses another to produce its product
One company agrees to carry a promotion for another company’s product or service
One company offers logistical services for another company’s product
One or more companies join in a special pricing collaboration
7 Elements McKinsey & Company, strategy
3 “hardware” of success - 4 Below "Software" of Success
company employees share a common way of thinking
employees have the skills needed to carry out the company’s strategy
company has hired able people, trained them wel
s employees share the same guiding values
5 marketing Plan
marketing plan should open with a table of contents
relevant background data on sales, costs, the market
marketing manager defines the mission, marketing and financial objectives
sales forecast, an expense forecast, and a break-even analysis
outlines the controls for monitoring and adjusting implementation of the plan
To develop innovative products, successful strategies
consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to marketing decision makers