You are on page 1of 26

What is Marketing?

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.
1-1

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.
1-2

Importance of marketing and Scope

Scope
What

is marketing What is marketed Who Markets

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.

1-4

What is Marketed?

Goods Services Events Experiences Persons

Places Properties Organizations Information Ideas

1-5

Demand States

Negative Nonexistent Latent Declining

Irregular Unwholesome Full Overfull

1-6

Company Orientations
Production Concept The production concept holds that consumers will prefer products that are widely available and inexpensive. Product Concept

The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
1-7

Selling Concept

The selling concept holds that consumers and businesses, will ordinarily not buy enough of the organizations products, therefore, the organization must undertake aggressive selling and promotion effort.

1-8

Marketing Concept

The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets.

1-9

Holistic Marketing Concept


Holistic marketing can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognizes the breath and interdependencies of their efforts. Holistic marketing recognizes that everything matters with marketingthe consumer, employees, other companies, competition, as well as society as a whole.

1-10

Four broad themes characterizing holistic marketing. Relationship Marketing


Relationship

marketing has the aim of building mutually satisfying long-term relationships with key partiescustomers, suppliers, distributors, and other marketing partners. Relationship marketing builds strong economic, technical, and social ties among the parties.

1-11

Cont..
The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network.

A marketing network consists of the company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationships.

1-12

Integrated Marketing
The

marketers task is to devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers. The 4Ps of marketing: product, price, place, and promotion.

1-13

Marketing Mix and the Customer


Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication

1-14

Cont..
Two

key themes of integrated marketing are: Many different marketing activities are employed to communicate and deliver value. All marketing activities are coordinated to maximize their joint efforts.

1-15

Internal Marketing
Holistic

marketing incorporates internal marketing, ensuring that everyone in the organization embraces appropriate marketing principles. Internal marketing must take place on two levels:

1-16

Cont..
At

one level, the various marketing functions (sales force, advertising, customer services, product management, and marketing research) must work together. Secondly, marketing must be embraced by the other departmentsthey must think customer. Marketing is not a department so much as a company orientation.

1-17

Social Responsible Marketing

Holistic marketing incorporates social responsibility marketing and understanding broader concerns, and the ethical, environmental, legal, and social context of marketing activities and programs.

1-18

FUNDAMENTAL MARKETING CONCEPTS, TRENDS, AND TASKS

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction

Marketing channels Supply chain Competition Marketing environment Marketing planning

1-19

Offerings and Brands


Companies

put forth a value proposition, a set of benefits they offer to customers to satisfy their needs.

The intangible value proposition is made physical by an offering that can be a combination of products, services, information, and experiences

1-20

Value and Satisfaction


The

offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings based on which is perceived to deliver the most value.

1-21

Cont..
Value reflects the perceived tangible benefits and costs to customers. Value can be a combination of quality, service, and prices called the customer value triad. Value is a central marketing concept. Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value. Satisfaction reflects a persons comparative judgment resulting from a products perceived performance (or outcome) in relation to his or her expectations

1-22

Marketing Channels (three kinds of marketing channels)


Communication

channels deliver and receive messages from target buyers. Distribution channels to display, sell, or deliver the physical product or service(s). Service channels to carry out transactions with potential buyers (warehouses, transportation companies, banks).

1-23

Supply Chain
Describes

a longer channel stretching from raw materials to finished goods.

1-24

Cont..

Competition
Includes

all the actual and potential rival offering and substitutes that a buyer might consider.

1-25

Marketing Management Tasks

Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands

Shaping market offerings Delivering value Communicating value Creating long-term growth

1-26