MARKETING MANAGEMENT

12th edition
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Defining Marketing
for the 21st Century

Kotler Keller
Chapter Questions

 Why is marketing important?

 What is the scope of marketing?
 What are some of the fundamental
marketing concepts?
 What are the tasks necessary for
successful marketing management?

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Marketing and Management
 Marketing
Marketing is the process by which companies create
values for customers and build strong customer
relationships in order to capture value from customers
in return.

 Management
Management is a set of activities (including planning
and decision making, organizing, leading, and
controlling) directed at an organization’s resources
(human, financial, physical, and information), with
the aim of achieving organizational goals.
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• 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.

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The Importance of Marketing

• Marketing is meeting customer needs profitably.

So, the marketers’ job is to –

- understand consumer needs

- develop products that provide superior value

- Price, distribute, and promote the products

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I want it, I need it…..

5 Types of Needs
 Stated needs (inexpensive car)
 Real needs (low operating cost)
 Unstated needs (good service)
 Delight needs (navigation feature)
 Secret needs (center of attention)

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The Scope of Marketing

• To understand the scope of marketing, students

of marketing need to understand –
- what marketing is
- how it works
- what is marketed
- who does the marketing

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How Marketing Works

Four alternative ways to obtain a product

 One can self produce the product
 One can use force to get a product
 One can beg
 One can offer a product in exchange for
something
So, exchange is the process of obtaining a
desired product from someone by offering
something in return.
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For an exchange to occur…..
 There are at least two parties.
 Each party has something that might be of value
to the other party.
 Each party is capable of communication and
delivery.
 Each party is free to reject the exchange offer.
 Each party believes it is appropriate or desirable
to deal with the other party.

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What is Marketed?

 Goods (Salt)  Places (made-in)

 Services (Consulting)  Properties (Real-estate)
 Events (Olympics)  Organizations (Schools)
 Experiences (Disneyland)  Information (AC Nielsen)
 Persons (Physicians)  Ideas (Social Marketing)

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Who Markets?
 A marketer is someone who seeks a response from
another party called the prospect.
Demand States
 Negative (operation)
 Nonexistent (new method)
 Latent (harmless cigarettes)
 Declining (product life-cycle;
remarketing)
 Irregular (seasonal)
 Full (maintaining)
 Overfull (demarketing)
 Unwholesome (drug
abuse)
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Markets
 Traditionally, a market was a physical place where
buyers and sellers gathered to buy and sell goods.
 In economics, a market is a collection of buyers and
sellers.
 In marketing, a market is the set of actual and
potential buyers of a product. For example, the need
markets, product markets, demographic markets,
geographic markets

Key Customer Markets

 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

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Company Orientations
 Production: Consumers will prefer products that are widely
available and inexpensive.
 Product: Consumers will favor those products that offer the
most quality, performance, or innovative features.
 Selling: Consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and
promotion effort.
 Marketing: Achieving organizational goals depends on
knowing the needs and wants of target markets and
delivering the desired satisfaction better than competitors do.
 Holistic Marketing: Four components are – relationship
marketing, integrated marketing, internal marketing, and
social responsible marketing.

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Marketing Mix and the Customer
 Marketing mix is the set of controllable tools
that the firm blends to produce the response
it wants in the target market.

Four Ps Four Cs
 Product  Customer solution

 Price  Customer cost

 Place  Convenience

 Promotion  Communication

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Factors Influencing Company Marketing Strategy

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