CH01 Marketing Management

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Defining Marketing for the New Realities

Prepared By:
Barota Chakraborty
Associate Professor
Department of Marketing
Jahangirnagar University1-1
Copyright © 2003 Prentice-Hall, Inc.
Topics to Be Covered
 In this chapter, the following topics will be
Covered:
 The Value of Marketing
 Scope of Marketing
 Marketing Entities
 Composition Demand of Marketing
 Key Customers Markets
 Core Marketing Concepts
 Company Orientations toward the Market Place
 Marketing Management Tasks
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The Value of Marketing
 Financial success often depends on marketing ability.
 Finance, operations, accounting and other business
functions will not really matter if there is not sufficient
demand for products and services, so the company can
make a profit.
 Companies need marketing to cope up with the statement-
“Change or Die”
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The Scope of Marketing
 Marketing: Typically seen as the task of creating, promoting,
and delivering goods and services to consumers and businesses.
It is also about identifying and meeting human and social needs.
 A Brief Definition:
The process by which, companies create value for customers and
build strong customer relationships in order to capture value from
customers in return.
 According to the American Marketing Association (AMA):
Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large. (Approved July 2013)
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The Scope of Marketing (Cont.)
 Social Definition of Marketing:
A social definition shows the role marketing plays in society; for
example, one marketer has said that marketing’s role is to
“deliver a higher standard of living.”
Here is a social definition that serves our purpose:“Marketing is
a societal process by which individuals and groups obtain what
they need and want through creating, offering, and freely
exchanging products and services of value with others”.
 Marketing Management:
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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The Scope of Marketing (Cont.)
 The Marketing Process:
Capture Value
Create Value for Customers from
and Build Customer Customers
Relationships in Return
Understand Design a Construct an Build Capture

the Customer- Integrated Profitable Value from
Marketplace Driven Marketing Relationship Customers
and Marketing Program that and Create to Create
Customer Strategy Delivers Customer Profits and
Needs & Superior Delight Customer
Wants Value Equity
Figure: Marketing Process
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What is Marketed (Marketing Entities)
 Places
 Goods Ex: Beautiful Bangladesh,
Ex: Lux, Sony Incredible India, Truly Asia
 Services  Properties
Ex: Bangladesh Bank, Ex: Real Estate or Stock &
Persona, Bonds Companies
Jahangirnagar University  Organizations
 Events Ex: Grameen Phone, Square
Ex: World Cup Cricket,  Information
2011 Ex: Information Provided by
 Experiences Companies
Ex: Water Kingdom, VOOT  Ideas
 Persons Ex: Smoking is Injurious to
Ex: Filmstars, Cricketers Health
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Who Markets??
Response
Attention
Purchase
Donation
Vote
Marketers Prospect
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Who Markets??
 Markets: Traditionally, a market is a physical place
where buyers and sellers are gathered to buy and sell
goods and services.
In Marketing, a market is a set of actual and
potential buyers.
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Stages of Demand
A major part of the market dislikes the product and
may even pay a price to avoid it—vaccinations,
dental work, vasectomies, and gallbladder
operations, for instance.
1. Negative The marketing task is to analyze why the market
Demand dislikes the product and whether a marketing program
consisting of product redesign, lower prices, and
more positive promotion can change beliefs and
attitudes.
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
2. No not be interested in foreign-language courses.
Demand The marketing task is to find ways to connect the
benefits of the product with people’s natural needs
and interests.
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Stages of Demand
Consumers may share a strong need that cannot be
satisfied by any existing product. Ex: Harmless
Cigarettes, Safe Neighborhoods and More Fuel
3. Latent Efficient Cars.
Demand The marketing task is to measure the size of the
potential market and develop goods and services to
satisfy the demand.
Consumers begin to buy the product less frequently

or not at all. Ex: Churches have seen membership
decline.
4. Declining
The marketing task is to analyze the causes of the
Demand decline and determine whether demand can be re-
stimulated by new target markets by changing
product features, or by effective communications.
(Creative Re-marketing)
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Stages of Demand
Consumers purchase vary on a seasonal, monthly,
weekly, daily or even hourly basis. Ex: Museums and
libraries are under visited on weekdays and
overcrowded on weekends.
5. Irregular The marketing task is to find ways to alter the pattern
Demand of demand through flexible pricing, promotion and
other incentives.
(Synchro-marketing)
Consumers are adequately buying all products put

into the marketplace.
6. Full The marketing task is to maintain the current level of
demand in the face of changing consumer references
Demand and increasing competition. The organization must
maintain or improve its quality and continually
measure consumer satisfaction.
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Stages of Demand
More consumers would like to buy the product that
can be satisfied. Ex: Overcrowded Theme Parks on
Festivals.
The marketing task requires finding ways to reduce
7. Overfull demand temporarily or permanent taking steps like-
Demand raising prices and reducing promotion and
services.
(De-marketing)
Consumers may be attracted to products that have

undesirable social consequences. Ex: cigarettes,
alcohol, hard drugs, handguns, X-rated movies
8. Unwholesome and large families.
Demand
The marketing task is to get people who like
something to give it up, using such tools as- fear
messages, price hikes and reduced availability.
(Social Marketing)
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Figure: Structure of Flows in a Modern Exchange
Economy
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Figure: A Simple Marketing System
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Key Customer Markets
 Consumer Markets,
Ex: Unilever, Sony Erricson etc
 Business Markets
Ex: PHP Group
 Global Markets
Ex: RMG Companies
 Nonprofit and Governmental Markets
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Core Marketing Concepts
 Needs, Wants, and Demands
5 Types of Needs:
- Stated Needs- inexpensive car
- Real Needs- a car with low operating cost
- Unstated Needs-good service
- Delight Needs-an onboard navigation system
- Secret Needs-savvy customer
 Target Markets, Positioning and Segmentation
 Offerings and Brands
 Value and Satisfaction
 Marketing Channels
 Supply Chain
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Marketing Concepts and Tools
 Paid, Owned & Earned Media
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The New Marketing Realities
 Impressions and Engagement
 Competition
- Brand competition
- Industry competition
- Form competition
- Generic competition
 Marketing Environment
 Task environment
 Broad environment
 Technology
 Globalization
 Social Responsibility
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Company Orientations Toward the
Marketplace
 The Production Concept

 The Product concept
 The Selling Concept
 The Marketing Concept
 The Holistic Marketing Concept
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The Production Concept
 The Oldest concept in business.
 Consumers will prefer products that are widely available
and inexpensive.
 Managers concentrate on achieving high production
efficiency, low costs and mass distribution.
 This application makes sense in developing countries,
where consumers are more interested in obtaining the
product than in its features.
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The Product Concept
 Consumers will prefer products that offer the most quality,
performance and innovative features.
 Managers focus on making superior products and
improving them over time.
 Not that much valid, as, quality is subjective in nature.
The Selling Concept

 Consumers and businesses, if left alone, will ordinarily not
buy enough of the organization’s products.
 Consumers typically show buying inertia or resistance and
must be coaxed into buying it.
 Usually, applicable for the unsought goods.
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The Marketing Concept
 The marketing concept emerged in the mid-1950s.
 It replaced the product-centered “make-and-sell”
philosophy with the customer centered “sense-and-
respond” philosophy.
 The key to achieving its organizational goals consists of the
company being more effective than competitors in creating,
delivering and communicating superior customer value to
its chosen target markets.
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Figure: Contrasts Between the Selling Concept and
the Marketing Concept
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Figure: Traditional Organizational Chart versus
Modern Customer-Oriented Company
Organization Chart
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The Holistic Marketing Concept
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Updating the Four Ps
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Updating the Four Ps
Marketing Mix Four Modern Marketing

4Ps Management
 Product Four 4Ps
 Price  People
 Promotion  Processes
 Price  Programs
 Performance
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Managing Marketing Task
 Developing Marketing Strategies and Plans
 Capturing Marketing Insights
 Connecting with Customers
 Building Strong Brands
 Creating Value
 Communicating Value
 Delivering Value
 Conducting Marketing Responsibly for Long-Term
Success
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Thank You
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r 1

Defining Marketing for the New Realities

Marketing is the activity, set of institutions, and processes for

Understand Design a Construct an Build Capture

Figure: Marketing Process

Target consumers may be unaware of or uninterested

Consumers begin to buy the product less frequently

Consumers are adequately buying all products put

Consumers may be attracted to products that have

 The Production Concept

The Selling Concept

Marketing Mix Four Modern Marketing

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