Professional Documents
Culture Documents
CH 1 Overview of Market Management
CH 1 Overview of Market Management
Why marketing?
Concepts and components of marketing mix
What is Marketed?
Marketing and its core concepts
What is marketing?
Formally or informally, people and organizations engage in a
vast number of activities.
Good marketing has become vital for success.
Good marketing is no accident, but a result of careful
planning and execution using state-of-the-art and techniques.
8
Marketers act as the customers’ voice within the firm
and marketers are responsible for many more decisions
than just advertising or sales:
Analyze industries to identify emerging trends.
It is The art and science of choosing target markets and getting, keeping,
and growing customers through creating, delivering, and
communicating superior customer value.
- Communicating Value
- Creating Long-term Growth
Core Concepts of Marketing
Customer,
Customer, Needs,
Needs, Wants,
Wants, and
and Demands,
Demands, Market
Market
Product
Product or
or Offering
Offering
Value,
Value, Satisfaction
Satisfaction and
and Quality
Quality
Exchange
Exchange and
and Transactions
Transactions
Relationship
Relationship Marketing
Marketing
Who is a Customer?
A customer is anyone who is in the market looking at
a product or service for attention, acquisition, use or
consumption that satisfies a want or a need.
Market
= population+ Purchasing Power + Purchasing Need
Examples:
- How to understand the market of purified water?
Values:
• Customer value is the difference between the
values the customer gains from owning and using a
product and the costs of obtaining the products.
Quality:
• Customer satisfaction is closely linked to quality.
• Quality has a direct impact on product performance.
• Quality can be defined as “freedom from defects”.
• TQM programs designed to constantly improve the quality
of products, services, and marketing processes..
21
Exchange, Transactions, and Relationships
Exchange :
The act of obtaining a desired object from someone by offering
something in return.
Transaction :
When an agreement is reached, we say that a transaction takes
place. A transaction is a trade of values between two or more
parties: A gives X to B and receives Y in return.
A transaction is a contract or agreement between two parties
where a good or service is exchanged in return for a monetary
value whereas an exchange is a swap of a good or a service
between two parties.
Relationship marketing :
The process of creating, maintaining, and enhancing strong,
value–laden relationships with customers and other
stakeholders. 22
Product and service
Product---Anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfying a want or
need.
It includes physical objects, services, persons,
places, organizations and ideas.
Business Market
Business buyers buy goods for their utility in
enabling them to make or resell a product to
others for the purpose of making profits.
Global Market
Companies selling their goods and services in the
global marketplace face additional decisions and
challenges.
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information
Marketing Demand its Tasks
1. Negative demand
If a major part of the market dislikes the product and may even pay a
price to avoid it.
The marketing task is to analyze why the market dislikes the product
and whether a marketing program consisting of product redesign,
lower prices, and more positive promotion can change beliefs and
attitudes.
2. No demand
Target consumers may be unaware of or uninterested in the product.
Farmers may not be interested in a new farming method, and college
students may not be interested in foreign-language courses.
The marketing task is to find ways to connect the benefits of the
product with the person's natural needs and interests.
3. Latent demand
Many consumers may share a strong need that cannot be satisfied by
any existing product.
There is a strong latent demand for harmless cigarettes, safer
neighborhoods, and more fuel-efficient cars.
The marketing tasks are to measure the size of the potential market
and develop goods and services to satisfy the demand.
4. Declining demand
Every organization, sooner or later, faces declining demand for one
or more of its products.
Consumers begin to buy the product less frequently or not at all.
Churches have seen membership decline; private colleges have
seen applications fall.
The marketing task is to reverse declining demand through creative
remarketing.
5. Irregular demand
Many organizations face demand that varies on a
seasonal, daily, or even hourly basis, causing problems of
idle or overworked capacity.
The marketing task, called synchromarketing, is to
find ways to alter the pattern of demand through flexible
pricing, promotion, and other incentives.
6. Full demand
Consumers are adequately buying all products put
into the marketplace.
The marketing task is to maintain the current level of
demand in the face of changing consumer preferences
and increasing competition.
7. Overfull demand
Some organizations face a demand level that is higher than
they can or want to handle.
The marketing task, called demarketing, requires finding ways to reduce
demand temporarily or permanently.
8. Unwholesome demand
Unwholesome products will attract organized efforts
to discourage their consumption.
Consumers may be attracted to products that have undesirable social
consequences.
Starting
point Focus Means Ends
Society
(Human welfare)
Societal
marketing
concept
Consumers Company
(Want satisfaction) (Profits)
37
The societal marketing concept holds that
the organization’s task is to determine
the needs, wants, and interests of target
markets and to deliver the desired
satisfaction more effectively and
efficiently than competitors in a way that
preserves or enhances the consumer’s
and the society’s well-being.
Reasons
Marketing is a fundamental human activity.
- is the lifeblood of any practice.
Marketing impact the economy, allocation of resources for value
adding activities.
Marketing management is essential to organizational success.
Marketing can contribute to societal well-being.
It’s about people (consumers).
Marketing is important to your direct sales business.
Criticisms of Marketing
Marketing communications are not always honest
“They can sometimes play on people’s emotions
and fears and can cause them to buy things they
really don’t need.”
The Four Cs
Marketing
Mix
Place
Product
Convenience
Customer
Solution
Price Promotion
Customer Communication
Cost
The four components of the marketing mix
The Scope of Marketing Mgt
What are the different entities that can be marketed?
Goods- Physical goods constitute the bulk of most countries'
production and marketing effort.
Services- As economies advance, a growing proportion of their
activities is focused on the production of services. The U.S. economy
today consists of a 70-30 services-to-goods mix.
Experience- By orchestrating several services and goods, a firm can
create, stage, and market experiences.
So does the Hard Rock Cafe, where customers can enjoy a meal or see a
band in a live concert.
Events- Marketers promote time-based events, such as the Olympics,
trade shows, sports events, and artistic performances.
RAPID GLOBALIZATION
48
THANK YOU
FOR YOUR
ATTENTION!!!
49