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.

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.

Selling is only the tip of the iceberg

There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. Peter Drucker

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

Structure of Flows in a Modern Exchange Economy

A Simple Marketing System A.K.A. The Exchange Process

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.

Core Marketing Concepts

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

Value and satisfaction Marketing channels Supply chain Competition Marketing environment

Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for selfexpression. i.e. I am thirsty. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

Target markets

Examples: CVS Caremark's target women WWE: target young males

Segmentation

Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

Offering and Brand

Offering is combination of products, services, information, or experiences offered to a market to satisfy a need or want A brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers

Value and Satisfaction

Value delivery system includes all the experiences the customer will have on the way to obtaining & using the offering. Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations.

Building customer value, satisfaction, and loyalty :

Improving qualities of products Communication Identification Gathering ideas

Marketing channels

system of marketing institutions that promotes the physical flow of goods and services, along with ownership title, from producers to consumer or business user; also called a distribution channel

Marketing channels

Direct channels Ex Dell computers

Indirect channels

Marketing channels

Direct channels Ex dell computers

Indirect channels Ex grocery store

Supply chain:

Competition

Competition causes businesses to try new ways to attract customers by lowering prices, improving quality and developing new products and services.

Economists actually divide the types of monopolies into four categories:

monopoly pure competition monopolistic competition oligopoly.

Market environment
Micro environment Macro environment Meso environment

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

Company Orientations
Production Product

Selling

Marketing

Earlier approaches
ORIENTATION PROFIT DRIVER
Production method Quality of the product Selling method Needs and wants of customer

WESTERN EUROPEAN TIMEFRAME

Until 1950s Until 1960s 1950s and 1960s 1970 to present day

Production Product Selling Marketing

Contemporary approaches
Orientation Profit driver Western European timeframe
1960s to present day

Relationship marketing Building and keeping / Relationship good customer relations management Business marketing / Industrial marketing Building and keeping relationships between organizations

1980s to present day

Social marketing
Branding

Benefit to society
Brand value

1990s to present day

1980s to present day

The Four Ps

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

THANK YOU