Phillip Kevin Lane

Kotler • Keller
Marketing Management

Chapter: 01
Defining Marketing for the New Realities
Discussion Questions

• Why is marketing important?

• What is the scope of marketing?
• What are some fundamental marketing
concepts?
• How has marketing management changed
in recent years?
• What are the task necessary for successful
marketing management?
Marketing management
The art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and communicating
superior customer value.
What is/can be Marketed?
3. Events
4. Experiences
7. Properties
8. Organizations
1. Goods 9. Information
10. Ideas

5. Persons

6. Places
2. Services
Who markets?
Response
Attention
Purchase
Donation
Vote

Marketer Prospect
Why MM is Considered as Demand
Management?
1. Negative demand—Consumers dislike the product and may even
pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or
uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot
be satisfied by an existing product.
4. Declining demand—Consumers begin to buy the product less
frequently or not at all.
Why MM is Considered as Demand
Management?
5. Irregular demand—Consumer purchases vary on a seasonal,
monthly, weekly, daily, or even hourly basis.
6. Full demand—Consumers are adequately buying all products put
into the marketplace.
7. Overfull demand—More consumers would like to buy the product
than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to products
that have undesirable social consequences.
Simple Marketing System
Key Customer Markets

Business Markets
Consumer Market

Global Markets Government Market

 Key Customer Markets
Consumer Markets Companies selling mass consumer goods and services such as juices, cosmetics,
athletic shoes, and air travel establish a strong brand image by developing a superior product or service, ensuring
its availability, and backing it with engaging communications and reliable performance.
Business Markets Companies selling business goods and services often face well-informed professional
buyers skilled at evaluating competitive offerings. Advertising and Web sites can play a role, but the sales force, the
price, and the seller’s reputation may play a greater one.
Global Markets Companies in the global marketplace navigate cultural, language, legal, and political
differences while deciding which countries to enter, how to enter each (as exporter, licenser, joint venture partner,
contract manufacturer, or solo manufacturer), how to adapt product and service features to each country, how to
set prices, and how to communicate in different cultures.
Nonprofit and Governmental Markets Companies selling to nonprofit organizations with
limited purchasing power such as churches, universities, charitable organizations, and government agencies need to
price carefully. Much government purchasing requires bids; buyers often focus on practical solutions and favor the
lowest bid, other things equal
 Markets

Marketplaces
physical locations (such as retail
store) Marketspaces digital location (online
retailer)

Metamarkets: The cluster of complementary

products and services related in consumers mind,
but spread across diverse set of industries.
Core Marketing Concepts
Needs, Wants, and Demands Target Markets, Positioning,
and Segmentation

Offerings and Brands

Value and Satisfaction

Core Marketing Concepts
Marketing Channels

Supply Chain

Marketing Environment
Competition
The New Marketing Realities
Globalization Communicate
Information w/Customer
Collect
Technology Information

Major Societal New Company

Forces Capabilities

Consumer Differentiate
Information Increased Goods
Competition
 Marketing Concepts

Quality Create, deliver, and

Innovation communicate value

Production Product Selling Marketing Holistic

Mass production
Unsought goods
Mass distribution
Overcapacity
 Marketing Concepts
Under a production philosophy the company will seek to mass produce products and to distribute
them on a wide scale. The belief is that consumers prefer products that are widely available and
inexpensive.

The product concept proposes that consumers prefer products that have higher quality,
performance, or are more innovative. Often, managers focus too much on the product (a better
mousetrap) but this does not always equal success.

The selling concept argues that members of a market will not purchase enough product on their
own so companies use the “hard-sell” to increase demand. Typically used with unsought goods
such as insurance or cemetery plots, or when companies face overcapacity.

The marketing concept first emerged in the 1950’s and focuses more on the customer with a
“sense-and-respond” attitude. Companies that have embraced the marketing concept have been
shown to achieve superior performance than competitors.

The holistic concept takes a philosophy that everything matters in marketing. Figure 1.3 (next slide)
outlines the Holistic Marketing Concept.
Selling vs. Marketing Concept
Starting Focus Means Ends
Point

Selling Profits
Existing
Factory and through
Products
Promoting Volume

The Selling Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction

The Marketing Concept

Holistic Marketing Dimensions
Relationship Marketing

Build long-term relationships

Develop marketing networks

Integrated Marketing

Create, communicate, and

deliver customer value
Internal Marketing
Performance Marketing

Social Responsibility

Financial Accountability
The Four P’s of the Marketing Mix
Marketing Management Tasks

• Developing market strategies and plans

• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth
Any Question?
Thank You!!