Download Defining Marketing for the 21st Century

LECTURE 1
BASICS OF MARKETING
MANAGEMENT
MBA 649 : Marketing Management
M Wahidul Islam
Fall 2014
KEY QUESTIONS
What is Marketing?
 What is Marketing Management?
 Marketing Management Tasks
 What is Marketed?
 What are the core concepts of marketing
management?
 Key Customer Markets
 Company Orientations
 How and why marketing scenario have changed

1-2
WHAT IS MARKETING?
Marketing is meeting needs profitably
1-3
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?
1-4
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.
MARKETING MANAGEMENT TASKS
 Develop
market strategies and plans
 Capture marketing insights
 Connect with customers
 Build strong brands
 Shape market offerings
 Deliver value
 Communicate value
 Create long-term growth
1-5
Goods
Ideas
Services
What is
Marketed?
Experiences
Organizations
Persons
Properties
Places
1-6
Events
Information
1-7
1-8
1-9
1-10
CORE MARKETING CONCEPTS
 Needs,
1-11
wants, and demands
 Target markets, positioning, segmentation
 Offerings and brands
 Value and satisfaction
 Marketing channels
 Supply chain
 Competition
 Marketing environment
CORE MARKETING CONCEPTS
NEEDS, WANTS, AND DEMANDS
Needs are basic human requirements
 Need becomes want when the
requirement is directed toward an
specific object
 Demand are wants for specific products
 Five Types of Needs





Stated needs (the customer wants an
inexpensive car)
Real needs (customer wants a car with low
operating cost)
Unstated needs (expects good service from
the dealer)
Delight needs (would like to include a
GPS)
Secret needs (wants to be seen as a savvy
customer)
1-12

Transport
Car / Bike /
Bicycle
Toyota / BMW
/ Honda
CORE MARKETING CONCEPTS
NEEDS, WANTS, AND DEMANDS: DEMAND STATES
Nonexistent
Declining
Full
Latent
Irregular
Overfull
Unwholesome
1-13
Negative
KEY CUSTOMER MARKETS
Business
Markets
Global
Markets
Nonprofit &
Government
Markets
1-14
Consumer
Markets
KEY CUSTOMER MARKETS
CONSUMER MARKETS

Companies selling Mass consumer goods and
services
1-15
KEY CUSTOMER MARKETS
BUSINESS MARKETS
Company to Company
 B2B

1-16
KEY CUSTOMER MARKETS
GLOBAL MARKETS

Companies in global marketplaces must decide
which countries to enter,
 how to enter,
 how to adapt product and service features to each
counties,
 how to price product in different countries

1-17
KEY CUSTOMER MARKETS
NONPROFIT & GOVERNMENT ORGANIZATIONS
Non-profit organizations: churches, universities,
charitable organizations, Social organizations
 Government agencies
 Very price sensitive

1-18
COMPANY ORIENTATIONS
• One of the oldest concept
• Assumes that consumers prefer that are widely available
and inexpensive
• Example: Lenovo group
The Product
Concept
• Proposes that consumers favor products offering the most
quality, performance and innovative features
• Example: Mousetrap
1-19
The
Production
Concept
The Selling
Concept
• Assume that customers will not buy if not left alone.
Practiced most aggressively for unsought products
• Example: Insurance, cemetery plots etc.
The
Marketing
Concept
• A customer centered, sense and respond philosophy.
• Find out right customers for your products
• Example: Dell
HOLISTIC MARKETING CONCEPT
1-20
So that all employees
serve customers well
Understanding financial
& non-financial returns to
business & society from
marketing activities & programs.
The whole is greater than
the sum of its parts
Long-term relationship
The Holistic Marketing Concept is based on the development, design and
implementation of marketing programs, processes and activities that
recognize their breadth and interdependencies.
THE TRADITIONAL FOUR P’S
1-21
THE MARKETPLACE ISN’T WHAT IT USED TO BE…
Information technology
Globalization
Deregulation
Privatization
Competition
Convergence
Consumer resistance
Retail transformation
1-22
NEW CONSUMER CAPABILITIES
A
substantial increase in buying power
 A greater variety of available goods and
services
 A great amount of information about
practically anything
 Greater ease in interacting and placing and
receiving orders
 An ability to compare notes on products
and services
 An amplified voice to influence public
opinion
1-23
THE TRADITIONAL FOUR P’S
1-24
REFERENCES

Chapter 1 – Defining Marketing for the 21st
Century

Kotler, Philip, Keller, Kevin L., Koshy, Abraham and
Jha, Mithileshwar (2013-14) Marketing Management:
A South Asian Perspective (14thEdition) Pearson
Education Inc