1

Defining Marketing
for the 21st Century

Principles of Marketing
 Chapter Discussion Topic

• Basic concept of Marketing

• Marketing defined, A simple model of marketing
process, customer needs, wants, & demands
• Marketing offer, Customer value & satisfaction,
Exchange & relationship, Elements of modern
marketing system, De-marketing
• Marketing management, Marketing management
orientation
• Preparing an Integrated Marketing Plan & Program
What is Marketing?
 What is Marketed?

• Goods (tangible) • Services (intangible)

 What is Marketed?

• Events (time based—trade shows)

 What is Marketed?

• Experiences (Fantasy kingdom)

 What is Marketed?

• Persons (Artists, Musicians, • Places (Cities, States, Regions,

CEO, Physicians) Nations)
 What is Marketed?

• Properties (Intangible rights of • Organizations (Universities,

ownership of real estate or Museums, Performing Arts
financial properties) Organization)
 What is Marketed?
• Information • Ideas (Family Planning by N.G.O.,
Revlon sell hope)
(Books, Schools, Magazines)
 Who markets?

Marketer Prospect

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 25

 Core Concepts

▪ Needs, wants, and ▪ Marketing channels

demands ▪ Supply chain
▪ Target markets, ▪ Competition
positioning, ▪ Marketing
segmentation environment
▪ Offerings and ▪ Marketing planning
brands
▪ Value and
satisfaction
• Needs - state of felt deprivation for basic items such as food and
clothing and complex needs such as for belonging.

i.e. I am thirsty

• Wants - form that a human need takes as shaped by culture and

individual personality.

i.e. I want a Coca-Cola (BD).

I want a Vodka or Beer (USA).

• Demands - human wants backed by buying power.

i.e. I have money to buy a Coca-Cola (Demand).

I have not enough money to buy a Coca-Cola (Desire).
 Wants
The form of
needs as shaped
Need by culture and
State of felt deprivation the individual

Demands
Wants which are backed
by buying power

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 25

 Target Markets,
Positioning & Segmentation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 25
 Value and satisfaction

VALUE = Benefits / Costs =

(Functional benefits + Emotional benefits) /

(Monetary costs + Time costs + Energy costs +
Psychic costs)
Value Customer Satisfaction

1 Benefits > Costs Delighted

2 Benefits < Costs Dissatisfied

3 Benefits = Costs Satisfied

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 Marketing Channels

Communication (Inform)

Distribution (Deliver)

Service
 Marketing Environment
Demographic
Economic
(The study of
(Southeast
human
Asia, Middle-
population e.g.
east, Europe)
age, gender)

Socio-cultural
Political-legal

Technological Natural
 Who Purchases Products and Services?

Actual
Buyers

MARKET – is the set of actual

and potential buyers
of a product
Potential
Buyers
 Figure 1.1
Structure of Flows in Modern Exchange Economy
 Figure 1.2
A Simple Marketing System
 Key Customer Markets

• Consumer markets (personal consumption)

• Business markets (resale or used to produce
other products or services)
• Global markets (international)
• Nonprofit/Government markets (Churches,
Universities, Charitable Organizations,
Government Agencies)
 Key Customer Markets
Global Markets

Consumer Market

Business Markets Government Market

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 25
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 25
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 25
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 25
 Demand States

• Negative (dislike product • Irregular (purchases vary on

and may even pay a price a seasonal, monthly, weekly,
to avoid it) daily, or even hourly basis)

• Nonexistent (unaware of • Unwholesome (product

that have undesirable social
or uninterested in the consequences)
product)
• Full (adequately buying all
• Latent (need that cannot products put into the
be satisfied by existing marketplace)
product) • Overfull (more consumers
• Declining (buy the would like to buy the product
product less frequently or that can be satisfied)
not at all)
 DEMAND STATES
1. Negative (dislike product and may even pay a price to avoid it)
Ex- Vaccination, dental work.

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 The task of marketing manager:

❖To analyze why the market dislikes the product

❖whether a marketing program consisting of

product redesign, fewer prices, & more
positive promotion can change beliefs &
attitudes
2. Nonexistent (unaware of or uninterested in the product)

Ex- Farmers may not aware or interested about new farming method.

The task of marketing manager:

❖ To find ways to connect the benefits of the products with
people’s natural needs & interest
3. Latent (need that cannot be satisfied by existing product)
Ex- Harmless cigarettes, more fuel efficient car.

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 The task of marketing manager:

❖ To measure the size of the potential

market and develop goods and services
to satisfy the demand.
4. Declining (buy the product less frequently or not at all)
Ex- Churches have seen membership decline.

The task of marketing manager:

❖ To analyze the causes of the decline

❖ To determine whether demand can be restimulated by new targets by

changing products features, or by more effective communication.

❖ To reverse declining demand through creative remarketing.

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5. Irregular
(purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis)

Ex- Air conditioning in summer, Cinema Theater.

 The task of marketing manager:
❖ Synchromarketing : The task of converting the
irregular demand into regular demand.

❖To find ways to alter the pattern of demand

through flexible pricing, promotion & other
incentives.
6. Unwholesome (product that have undesirable social consequences)

Ex- Hard drugs, Large families, Handguns, Night Club at BD.

.
 The task of marketing manager:
❖ Fear messages
7. Full (adequately buying all products put into the
marketplace)

The task of marketing manager:

❖To maintain the current level of demand in the face of

changing consumer preferences & increasing
competition.
8. Overfull (more consumers would like to buy the
product that can be satisfied)
Ex- ICC World Cup Cricket 2011 Ticket or
BD VS India Cricket Series ODI Tickets

The task of marketing manager:

❖ Demarketing
 I want it, I need it…
(wants an inexpensive car)

5 Types of Needs
• Stated needs (inexpensive)
• Real needs (low operating cost)
• Unstated needs (good service)
• Delight needs (extras)
• Secret needs (savvy consumer)
 Marketing Concepts

Quality Create, deliver, and

Innovation communicate value

Production Product Selling Marketing Holistic

Mass production
Unsought goods
Mass distribution
Overcapacity

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 42 of 25

 Marketing Management Philosophies

• Consumers favor products that are

Production Concept available and highly affordable
•Improve production and distribution

•Consumers favor products that offer

Product Concept the most quality, performance, and
innovative features

•Consumers will buy products only if

Selling Concept the company promotes/ sells these
product aggressively

•Focuses on needs/ wants of target

Marketing Concept markets & delivering satisfaction
better than competitors

•Focuses on needs/ wants of target

Holistic Marketing Concept markets & delivering superior value
•Society’s well-being
 1. Production Concept

• Consumers will prefer products that are widely available and

inexpensive…….
 2. Product Concept

• Consumers favor products that offer the most quality,

performance, and innovative features..
 3. Selling Concept

Consumers will buy products only if the company

promotes/ sells these product aggressively……..
 4. Marketing Concept

• Focuses on needs/ wants of target markets & delivering

satisfaction better than competitors……………..
 5. Holistic Marketing Concept

The holistic marketing concept is based on the development,

design, and implementation of marketing programs,
processes, and activities that recognize their breadth and
interdependencies. (“Everything matters”)
Yes like it is….
Societal Marketing
Holistic Marketing Dimensions
 5.1. Internal Marketing

Internal marketing is the task of

hiring, training, and motivating
employees who want to serve
customers well.
 5.2. Integrated Marketing
❖Many different marketing activities are
employed to communicate and deliver
value.

❖All marketing activities are coordinated

to maximize their joint effects.
The Four P’s
Marketing-Mix Strategy
 5.3. Performance Marketing

❖The performance marketing concept

holds that the organization desired
satisfactions more effectively and
efficiently than competitors in a way that
preserves or enhances the consumer’s
and the society’ well being.
❖Performance marketing requires understanding the
financial and nonfinancial returns to business and
society from marketing activities and programs.
 5.4. Relationship Marketing

❖Relationship marketing has the aim of

building mutually satisfying long-term
relationships with key Parties- customers,
suppliers, distributors, and other marketing
partners- in order to earn and retain their
business.
 Marketing Mix and the Customer

Four Ps Four Cs Four As

• Product • Customer solution • Acceptability
• Price • Customer cost • Affordability
• Place • Convenience • Availability
• Promotion • Communication • Awareness

Producer/Seller Customer/Buyer Both

The New Four Ps

People

Processes

Programs

Performance
 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.
 New Marketing Challenges

New
Marketing
Landscape &
Information Nonprofit
Technology
Marketing

Emerging
Ethical
Concerns Challenges Globalization

Changing
World
Economy
Questions and
Answers
THANKS