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Prof.

Zakir Hossain PhD


Marketing Management
e r
p t
h a
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Defining Marketing for the 21st


Discussion Questions
1. Why is marketing important?
2. What are the scopes of
marketing?
3. What are some fundamental
marketing concepts?
4. How has marketing management
changed in recent years?
5. What are the task necessary for
successful marketing
management?
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One of the key factors in Barack
Obamas victory in the 2008 U.S
presidential election was a well-
designed
and well-executed marketing
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One of the key factors in Barack
Obamas victory in the 2008 U.S.
presidential election was a well-
designed
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Defining Marketing for the 21st
Century
1. Formally or informally, people and
organizations engage in a vast number of
activities we could call marketing.
2. Good marketing has become increasingly
vital for success.
3. Good marketing is no accident, but a
result of careful planning and execution using
state-of-the-art tools and techniques.
4.The
Good marketing
election of Barackis constantly
Obama as theevolving
44th and
President
changingof the United States was
attributed ,in part, to the adoption of new
marketing practices.

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Obama for America
1. Campaign was combinationof a charismatic
politician, a powerful message of hope, and a
thoroughly integrated modern marketing
program.
2. That marketing plan needed to accomplish two
very different goals:
1. expand the electorate via broader messages while targeting
very specific audiences.
2. Multimedia tactics combined offline and online media, as well
as free and paid media.
(Research has shown that the more voters learned
about Obama, the more they identified with him, the
campaign added long-form videos to traditional print,
broadcast, and outdoor ads.)

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Election Marketing Strategy of Obama
1. The Obama teamaided by its agency GMMBalso put
the Internet at the heart of the campaign, letting it serve
as the central nervous system for PR, advertising,
advance work, fund-raising, and organizing in all 50 states.
2. About $500 million (most in sums of less than $100) was
raised online from 3 million donors; 35,000 groups
organized through the Web site, My.BarackObama.com
3. Social media like Facebook, Meetup, YouTube, and Twitter
were crucial
4. 1,800 videos posted to YouTube; the creation of Facebooks
most popular page; and, of course, the election of the next
President of the United States.
5. Obamas most powerful digital tool was a
massive 13.5 millionname e-mail list.
6. (Example in country contest: Dr. Iqbals FB Campaign in
Bangladesh)

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Marketing creates demand for a
product, which in turn drives revenue.
Greater demand creates the need for
companies to hire new workers, while
revenue (top line) contributes to a
companys bottom line (profits),
which allow the company to be more
fully engaged in socially responsible
activities.

Jobs

Givin
Profits
g
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ed
fi n
e Marketing is about identifying and meeting human
D
and social needs. One of the shortest good definitions
of marketing is meeting needs profitably.
eBayss auction clearinghouse & IKEAs Knockdown
Furniture
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offers that have value for customers, clients,
partners,
and society at large. (American Marketing Associations
Definition)

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ed
fin
e
D 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.

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What is Marketed?
Persons Experiences
Events
Properties
Organizations
Information
Ideas

Goods

Services Places
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What is Marketed?

Experiences include a trip to Disney World,


Fantasy baseball camp, a cruise.
Events can include trade shows, the Olympics,
Super Bowl, etc.
Properties include real estate as well as stocks
and bonds.
Organizations use marketing to connect with
their target market.
Information is marketed by universities,
textbook publishers, newspapers, etc.
Ideas include Friends dont let friends drive
drunk

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Who markets?

Respon
se
Attention
Purchase
Donation
Vote

Marketer Prospect
Marketers are individuals, groups, associations, companies, etc. that seek
a response, such as attention, a purchase, donation, vote, etc., from
another party which is called the prospect.
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Types of Demand

Unwholeso Declining
me

Nonexistent
Latent
Irregular Full
Negativ Overfull
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Types of Demand:

Negative consumers dislike a product and may pay to avoid,


such as with dental work
Nonexistent consumers are unaware of or uninterested in the
product or service
Latent There is no product on the market that can satisfy
consumer needs
Declining Consumers purchase a product less and less
frequently, or not at all. For example, the sale of albums (vinyl and
CDs) are declining significantly.
Irregular A products demand varies by time, such as on a
seasonal basis.
Full Consumers are buying all the products that enter into the
market.
Overfull There are more buyers than product available.
Unwholesome Consumers are attracted to products that have
undesirable social consequences, such as cigarettes or gambling.

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Markets

MARKETS Traditionally, a market is a physical place where buyers


and sellers gathered to buy and sell goods.
Economists describe a market as a collection of buyers and sellers
who transact over a particular product or product class (such as the
housing market or the grain market).
There are five basics Markets (Figure 1.1)
Manufacturers go to resource markets (raw material markets, labor
markets, money markets), buy resources and turn them into goods
and services, and sell finished products to intermediaries, who sell
them to consumers.
Consumers sell their labor and receive money with which they pay for
goods and services. The government collects tax revenues to buy
goods from resource, manufacturer, and intermediary markets and
uses these goods and services to provide public services. Each
nations economy, and the global economy, consists of interacting
sets of markets linked through exchange processes.

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re
u
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F 1
g .1 Markets

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Simple Marketing System

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Key Customer Markets
Global Markets

Consumer
Market

Business Markets Government Market


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Markets

Marketplaces Metamarkets Marketspace


Marketplace The cluster of s
Digital location (online reta
physical locations complementary
(such as retail products and services
store) related in consumers
mind, but spread
across diverse set of
industries.

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Core Marketing Concepts
Needs, Wants, and Demands Target Markets, Positioning, and
Segmentation

Not everyone likes the same cereal,


restaurant, college, or movie.
Needs are basic human Therefore, marketers start by
requirement plus are needs, e.g. dividing
entertainment, education the market into segments.
Needs become want when After identifying market segments,
specific the marketer decides which present
Objects satisfy the need the greatest opportunities
which are its target markets.
Demands are wants for specific
project The firm develops a market offering
that it positions in the minds of the
backed by an ability to pay target buyers as delivering some
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Core Marketing Concepts
Value, a central marketing concept,
Companies address customer needs
is primarily a combination of
by putting forth a value
quality, service, and price (qsp),
proposition, a set of benefits
called the customer value . Value
that satisfy
perceptions increase with quality
those needs. The intangible value
and service but decrease with
proposition is made physical by an
price.
offering, which can be a
combination of products, services,
Satisfaction reflects a persons
information, and experiences.
judgment of a products perceived
performance in relationship to
A brand is anand
Offerings offering from a known
expectations. If the performance
source. e.g McDonalds
Brands falls short of expectations, the
customer is disappointed. If it
matches expectations, the
customer is satisfied. If it exceeds
them, the customer is delighted.

Value and
Satisfaction
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Core Marketing Concepts
Marketing
Channels

Supply Chain

The marketer uses three The supply chain is a longer


kinds of marketing channels. channel stretching from raw
i.Communications Channel materials to components to
ii.Distribution Channel finished products carried to final
iii.Service Channel buyers.

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Core Marketing Concepts
The marketing environment consists of
the task environment and the broad Competition includes
environment. The task environment all the actual and
includes the actors engaged in potential rival
producing, distributing, and promoting
offerings and
the offering. These are the company,
suppliers, distributors, dealers, and
substitutes a buyer
target customers. might consider.
The broad environment consists of six
components: demographic environment,
economic environment, social-cultural
environnent, Natural environnent,
technological environnent, and political-
legal environment.

Marketing
Environment Competition
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The New Marketing Realities
Globalizati Communica
Informatio on te
n Collect w/Customer
Technolog Information
y

Consumer
Informatio Increased Differentiat
n Competitio e Goods
n

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The New Marketing Realities, 12 Keys
Network information technology. The digital revolution has
created an Information Age that promises to lead to more accurate
levels of production, more targeted communications, and more relevant
pricing.
Globalization. Technological advances in transportation,
shipping, and communication have made it easier for companies to
market in, and consumers to buy from, almost any country in the world.
International travel has continued to grow as more people work and play in
other countries.
Deregulation. Many countries have deregulated industries to
create greater competition
and growth opportunities. In the United States, laws restricting financial
services,
telecommunications, and electric utilities have all been loosened in the
spirit of greater
competition.
Privatization. Many countries have converted public companies
to private ownership and
management to increase their efficiency, such as the massive telecom
company Telefnica CTC in Chile and the international airline British
Airways in the United Kingdom.
Heightened
Copyright competition.
2012 Pearson Education, Intense
Inc. Publishing as Prentice Hall competition among domestic
Slide 27 of 25
The New Marketing Realities, 12 Keys

Industry convergence. Industry boundaries are blurring as companies


recognize new opportunities at the intersection of two or more industries. The
computing and consumer electronics industries are converging, for example, as Apple,
Sony, and Samsung release a stream of entertainment devices from MP3 players to
plasma TVs and camcorders. Digital technology fuels this massive convergence.
Retail transformation. Store-based retailers face competition from catalog
houses; direct mail firms; newspaper, magazine, and TV direct-to-customer ads; home
shopping TV; and e-commerce. In response, entrepreneurial retailers are building
entertainment into
Disintermediation. The amazing success of early dot-coms such as AOL,
Amazon.com, Yahoo!, eBay, E*TRADE, and others created disintermediation in the
delivery of products and services by intervening in the traditional flow of goods through
distribution channels.
Consumer buying power. In part, due to disintermediation via the Internet,
consumers have substantially increased their buying power. From the home, office, or
mobile phone, they can compare product prices and features and order goods online
from anywhere in the world 24 hours a day, 7 days a week, bypassing limited local
offerings and realizing significant price savings.
Consumer information. Consumers can collect information in as much breadth
and depth as they want about practically anything. They can access online
encyclopedias, dictionaries, medical information, movie ratings, consumer reports,
newspapers, and other information sources in many languages from anywhere in the
world.
Consumer participation. Consumers have found an amplified voice to
influence peer and public opinion. In recognition, companies are inviting them to
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Who is Responsible for
Marketing?
Entire
Organization
Marketing
Department

Chief Marketing
Officer
(CMO)

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CMOs Innate & Learned Qualities
One survey asked 200 senior-level marketing executives
which innate and learned qualities were most important;

Innate Qualities
Risk taker
Willingness to make decisions
Problem-solving ability
Change agent
Results-oriented

Learned Qualities
Global experience
Multichannel expertise
Cross-industry experience
Digital focus
Operational knowledge

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Marketing Concepts

Quality Create, deliver,


Innovation and communicate
value
Production Product Selling Marketing Holistic
Mass
Unsought
production
goods
Mass
Overcapacity
distribution

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Marketing Concept
The five distinct marketing concepts are:
Production, Product, Selling, Marketing, and Holistic.

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 1950s 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.

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Holistic Marketing
Dimensions

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Relationship Marketing

Develop marketing
Build long-term networks
relationships
Relationship marketing seeks to build mutually beneficial, long-term
relationship with key constituents in order to earn and retain their
business. The four key constituents are: customers, employees,
partners, and member of the financial community. Attracting a
new customer can cost five times as much as retaining existing
customers so building long-term relationships makes financial sense for
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Integrated Marketing

Create,
communicate, and
deliver customer
value
Integrated marketing holds that all
activities undertaken by the company
should create, communicate, and
deliver value. Further, all new
activities should take into
consideration all other marketing
activities.

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Internal Marketing

Internal marketing is the task of hiring, training, and


motivating able employees to serve customers well. You
cant promise excellent service if you cant deliver
excellent service.

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Performance Marketing

Marketers must understand both the


financial and nonfinancial returns to a
business and society from marketing
programs and activities.

Social Responsibility
Financial accountability involves the justification
of marketing expenditures in terms of financial
returns. But they must also think about the
ethical, environmental, legal, and social aspects
of their activities.

Financial
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The ten Deadly Sins of Marketing :

1. The company is not sufficiently market focused and


customer driven.
2. The company does not fully understand its target
customers.
3. The company needs to better define and monitor its
competitors.
4. The company has not properly managed its
relationships with its stakeholders.
5. The company is not good at finding new opportunities.
6. The companys marketing plans and planning process
are deficient.
7. The companys product and service policies need
tightening.
8. The companys brand-building and communications
skills are weak.
9. The company is not well organized to carry on
effective and efficient marketing.
10.
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Education, Inc. Publishing Prenticemade
Hall maximum use of Slide 38 of 25
The Ten Commandments of
1. Marketing
The company segments the market, chooses the best segments,
and develops a strong position in each chosen segment.
2. The company maps its customers needs, perceptions,
preferences, and behavior and motivates its stakeholders to
obsess about serving and satisfying the customers.
3. The company knows its major competitors and their strengths
and weaknesses.
4. The company builds partners out of its stakeholders and
generously rewards them.
5. The company develops systems for identifying opportunities,
ranking them, and choosing the best ones.
6. The company manages a marketing planning system that leads
to insightful long-term and short-term plans.
7. The company exercises strong control over its product and
service mix.
8. The company builds strong brands by using the most cost-
effective communication and promotion tools.
9. The company builds marketing leadership and a team spirit
among its various departments.
10.The company constantly adds technology that gives it a
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The Four Ps of the
Marketing Mix

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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

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Class Task: Group 1

Yahoo! Read and answer


Fill your name, NSU ID, email, cell &
group (HRSL, 360, IBT, ZF Corp)

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