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Marketing Management (Chapter 1)
Marketing Management (Chapter 1)
13 edition
th
1
Defining Marketing
for the 21st Century
The American Marketing Association’s definition:
Marketing is an
organizational
function and a set of
processes for creating,
communicating,
and delivering value
to customers and for
managing customer
relationships in ways
that benefit the
organization and its
stakeholders.
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.
The basic 3 Pillars of Marketing
MARKETING
Satisfaction
Retention
Value
What is Customer’s Satisfaction ?
_ =
What is Customer’s Satisfaction ?
If P < E Dissatisfied
If P = E Satisfied
Periodic Surveys
Customer Loss Rate
Mystery Shopper
Competitors’ Performance
What is Customer Retention ?
Customer Retention is
Retention the activity that a selling
organization undertakes in order to reduce customer
defections and keeping them with the organization for
a long possible time.
• It is more than giving the customer what they expect, it’s
about exceeding their expectations so that they become
loyal advocates for the organization and its products.
Need and Types of Need
Stated Needs – the customer wants an inexpensive car.
Real Needs – the customer wants a car whose
operating cost, nor its initial price is low.
Unstated Needs – the customer expects
good service from the dealer.
Delight Needs – the customer would
like the dealer to include an onboard
navigation system.
Secret Needs – the customer wants friends
to see him/her as a savvy customer.
Demand and Demand States
Negative Demand
Nonexistent Demand
Irregular Demand
Latent Demand Full Demand
Declining Demand Overfull Demand
Unwholesome
Demand
Demand and Demand States
Negative Demand
Dema
A major part of the market dislikes the
product and may even pay a price to
avoid it - Vaccinations, Dental work,
Blood donations and Operations, for
instance.
Latent Demand
Declining Demand
Consumers begin to buy the products
less frequently or not at all. Every
organization faces declining demand
for one or more of its products or
services. E.g. Type writer compared to
Computer.
Overfull Demand
More consumers would like to buy
the product that can be satisfied.
Some organization face a demand
level that is higher than they can or
want to handle. Eg. Utilities services
in Bangladesh.
Unwholesome Demand
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
Key Customer Markets…
Consumer Markets
Consumer market are those who
purchases products for their
personal consumption and
household use.
Marketing Concept
The Selling and Marketing Concepts
Contrasted...
Societal Marketing
Concept
Company (Marketing) Orientations…
The Holistic Marketing concept is based on the
development, design & implementation of
marketing programs, processes & activities
that recognizes that “everything matters” in
marketing – and that a broad, integrated
perspective is often necessary.
4 broad components characterizing holistic
marketing: Relationship marketing, Integrated marketing,
Internal marketing & performance marketing or Socially
responsible marketing.
Holistic Marketing Concept…
Senior
Marketing Management Channels Communications
Dept.
Internal Integrated Products &
Marketing Marketing Services
Holistic
Marketing
Other Depts.
Holistic Marketing
Concept
How Business and
Marketing are changing?
Information Customer Empowerment
Technology
Customization
Globalization
Heightened Competition
Deregulation
Industry Convergence
Privatization
Disintermediation
END of CHAPTER - 1