The document provides an overview of marketing concepts including:
1. The marketing concept holds that companies should focus on determining customer needs and delivering superior value compared to competitors.
2. Marketing involves creating, communicating, delivering and exchanging offerings with customers to achieve organizational goals.
3. Core marketing concepts include understanding customer needs/wants, segmentation, products/services, value, exchange, relationships and environmental factors.
2. The learning objectives:
•What is Market?
•What is Marketing and marketing management?
•Marketing core Concepts
•Marketing management philosophies
2
3. 1. Market
Market means that customers who have
purchased or want to purchase a certain
product or service.
4. Market
= population+ Purchasing Power
+ Purchasing Need
Examples:
How to understand the market of purified
water
what is the market of Nike?how to
understand the Nike’s market?
5. Market
• Consumer Market
• Business Market
• Global Market
• Nonprofit and Government Markets
6. Consumer Market
The aim of buying is to consume for their
own or somebody who has something to
do with in consumer market.
7. Business Market
Business buyers buy goods for their
utility in enabling them to make or resell
a product to others for the purpose of
making profits.
8. Global Market
Companies selling their goods and services in
the global marketplace face additional
decisions and challenges.
9. Nonprofit and Government
Markets
Companies selling their goods to nonprofit
organizations such as churches, universities,
charitable organizations, or government
agencies.
10. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information
11. 2.Defining Marketing
Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating, offering,
and freely exchanging products and services
of value with others.
- Philip Kotler
12. Marketing
Is the process of planning and executing
the conception,pricing,promotion,and
distribution of ideas,goods,services to
create exchanges that satisfy individual
and organizational goals.
13. The Scope of Marketing
Goods Services
Experience Events
Persons Places
Properties Organizations
Information Ideas
14. Target Market and Segmentation
• the relationship between the industry and market
•Marketplace & Marketspace
• five basic markets
15. Marketplace and Marketspace
•Marketplace is physical, as when one goes
shopping in a store,
•Marketspace is digital, as when someone
shopping on the internet.
18. The Four Ps
The Four Cs
Marketing
Mix
Place
Product
Customer Conven-
Solution Price Promotion ience
Customer Communication
Cost
19. Customer Delivered Value
Starting
point Focus Means Ends
Existing Selling and Profits through
Factory products promotion sales volume
(a) The selling concept
Customer Integrated Profits through
Market needs marketing customer
satisfaction
(b) The marketing concept
21. Customer-Oriented Organization
Chart
Customers
Front-line people
Middle management
s
C
er
us
om
t
Top
om
t
us
manage-
er
C
s
ment
22. Evolving Views of Marketing’s Role
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
a. Marketing as an b. Marketing as a more
equal function important function
23. Evolving Views of Marketing’s Role
Production on
cti
Fi
du
n
o
an
Pr
ce
Marketing Customer
re
Hu ur
ce M
so
ur an
n ar
s
ma ces
na
ce
ke
so m
F i t in
re Hu
n
g
c. Marketing as the d. The customer as the
major function controlling factor
24. Evolving Views of Marketing’s Role
Production
Marketing
Customer
re
Hu ur
so
ce
ma ces
an
n
Fin
e. The customer as the controlling
function and marketing as the
integrative function
25. Marketing management
The analysis, planning, implementation, and
control of programs designed to create, build,
and maintain beneficial exchanges with target
buyers for the purpose of achieving organization
objectives
26. 3.Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
27. Products
Needs, wants, and
and demands Services
Core
Marketing
Concepts
Markets
Value, satisfaction,
and quality
Exchange, transactions,
and relationships
28. Needs, Want, and Demands
•Needs describe basic human
requirements.
•Want are shaped by one’s society.
•Demands are wants for specific
products backed by ability to pay.
•examples
29. Needs - state of felt deprivation for basic items such
as food and clothing and complex needs such as for
belonging. 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.
30. Demand States and Marketing Tasks
• No demand
• Latent demand
• Declining demand
• Irregular demand
• full demand
• Overfull demand
• Unwholesome demand
31. How do Consumers Obtain
Products and Services?
• Exchanges - act of obtaining a desired object from
someone by offering something in return.
• Transactions - trade of values between parties.
Usually involves money and a response.
• Relationships - building long-term relationships wit
consumers, distributors, dealers, and suppliers.
32. Value and satisfaction
Benefits
• functional benefits
• emotional benefits
Costs
•Monetary costs
•Time costs
•Energy costs
•Psychic costs
34. Exchange and transaction
“Exchange” is the act of obtaining a desired
object from someone by offering something in
return.
“transaction” is a trade between two parties that
involves at least two things of value, agreed-
upon conditions a time of agreement, and a
place of agreement.
35. Relationship marketing
The process of creating, maintaining, and
enhancing strong, value-laden relationships with
customers and other stakeholders.
36. Product and service
Product---Anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfying a want or
need. It includes physical objectives, services,
persons, places, organizations and ideas.
Service--- any activity or benefit that one party
can offer to another that is essentially intangible
and does not result in the ownership of anything.
38. Company Orientations Towards the
Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive
Consumers favor products that
Product Concept offer the most quality, performance,
or innovative features
Consumers will buy products only if
Selling Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
Marketing Concept markets & delivering value
better than competitors
40. Customer-Oriented Organization
Chart
Customers
Front-line people
Middle management
s
C
er
us
om
t
Top
om
t
us
manage-
er
C
s
ment
41.
42. Marketing Management
Marketing Management
Implementing programs to create exchanges
with target buyers to achieve organizational
goals
Demand Management
Finding and increasing demand, also
changing or reducing demand
Profitable Customer Relationships
Attracting new customers and
retaining current customers
43. Evolving Views of Marketing’s Role
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
a. Marketing as an b. Marketing as a more
equal function important function
44. Evolving Views of Marketing’s Role
Production on
cti
Fi
du
n
o
an
Pr
ce
Marketing Customer
re
Hu ur
ce M
so
ur an
n ar
s
ma ces
na
ce
ke
so m
F i t in
re Hu
n
g
c. Marketing as the d. The customer as the
major function controlling factor
45. Evolving Views of Marketing’s Role
Production
Marketing
Customer
re
Hu ur
so
ce
ma ces
an
n
Fin
e. The customer as the controlling
function and marketing as the
integrative function
46. The production concept
the production concept holds that
consumers will prefers products that
are widely available and inexpensive.
47. The product concept
The product concept holds that consumers will
favor those products that offer the most
quality,performance,or innovative features.
48. The selling concept
The selling concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization’s products. The
organization must, therefore, undertake an
aggressive selling and promotion effort
49. The marketing concept
The marketing concept holds that the key to
achieving its organizational goals consists of
the company being more effective than
competitors in creating,delivering,and
communicating customer value to its chosen
target markets
50. The societal marketing concept
The societal marketing concept holds that
the organization’s task is to determine the
needs, wants,and interests of target
markets and to deliver the desired
satisfaction more effectively and efficiently
than competitors in a way that preserves or
enhances the consumer’s and the society’s
well-being.
51. Society
(Human Welfare)
Societal
Marketing
Concept
Consumers Company
(Wants) (Profits)
52. New Marketing Challenges
New
Marketing
Landscape
& Nonprofit
Information Marketing
Technology
Emerging
Ethical
Concerns
Challenges Globalizatio
n
Changing
World
Economy
53. Marketing’s Future
“It (marketing) encompasses the entire business.
It is the whole business seen from the point of
view of the final result, that is, from the
customer’s point of view.”
• Peter Drucker
Marketing has become the job of everyone.
53
Hinweis der Redaktion
The Marketing Management Process The marketing concept suggests that businesses must actively manage an on-going relationship with customers. Key concepts of this perspective include: Marketing Management . The text defines marketing management as “the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.” Discussion Note: You might point out to students the influential role played by Professor Kotler in the development of marketing management, in both business and academic settings. Demand Management . Matching supply and demand can be a difficult balancing act. Traditional views of marketing were simplistic: build demand. Now marketers recognize the need to manage demand so that infrastructure resources are not overburdened. Discussion Note: It might help to compare demand management with Just-in-Time Inventory or Supply management. JIT lowers costs by not requiring extra capacity to hold things -- supplies or inventory -- before they are needed. By matching consumer demand to the systems designed to meet needs and wants, overall costs of marketing, and hence, the price of products, is reduced. Building Customer Relationships . Growing markets traditionally mean a plentiful supply of new customers. But as consumers become more sophisticated and as market growth slows, maintaining existing customers is the key to long term marketing success. As pointed out in the text, a continuing customer relationship means years of revenues for a company, not one time only sales. Further, existing customers are less expensive to promote to as they have already processed a great deal of product-specific information. Marketing Management This CTR corresponds to the material on pp. 11 - 12.
Societal Marketing Concept This CTR corresponds to Figure 1-5 on p. 16 and relates to the material on pp. 16-17. The Societal Marketing Concept holds that the organization should determine the needs, wants, and interests of target markets. In delivering the desired satisfactions more effectively and efficiently than the competition, the company should also maintain or improve both the consumer’s and society’s well being. Discussion Note: You may wish to consider extra-textual class discussion identifying the pros and cons of the societal marketing concept. Pros: Reasons for adopting the societal marketing concept include: 1. Public expectations. Social expectations of business have increased. 2. Long-run profits. Socially responsible marketing may lead to more secure long-run profits. 3. Ethical obligation. Business should recognize that responsible actions are right for their own sake. 4. Public image. A good public image helps firms gain more customers, better employees, access to money markets, and other benefits. 5. Better environment. Involvement by business can help solve difficult social problems, creating a better quality of life and a more desirable community in which to attract and hold skilled employees. 7. Balance of responsibility and power. Marketers have a large amount of power in society that requires an equally large amount of responsibility. 8. Stockholder interests. Socially responsible companies are considered less risky and safer investments 9. Possession of resources. Business has the financial resources, technical experts, and managerial talent to provide to support public causes. Cons: Reasons for not adopting the societal marketing concept include: 1. Violation of profit maximization. 2. Dilution of purpose. The pursuit of social goals dilutes business’s primary purpose. 3. Costs. Many socially responsible activities don’t pay their way. 4. Too much power. Business is already one of the most powerful institutions in society. 5. Lack of skills. Marketers may be poorly qualified to deal with social issues. 6. Lack of accountability. There are no direct lines of social accountability from the business sector to the public. 7. Lack of broad public support. Even favorable attitudes are general and lack consensus on specific actions marketers should take on social issues. The Societal Marketing Concept
New Marketing Challenges This CTR relates to the material on pp. 17-24. Teaching Tip: Challenge students to see marketing as an exciting and creative field needing new ideas and new solutions to emerging business opportunities. Growth of Nonprofit Marketing. More and more charitable firms and businesses that hold nonprofit status, like colleges and hospitals, are adopting a marketing orientation toward serving their constituencies. Globalization. Technological and economic developments continue to shrink the distances between countries. Computer and communications technology make possible truly global businesses that buy, sell, manufacturer, market, and service customers easily across international borders. Rising affluence creates new markets. Similarly, more European and Asian companies now compete successfully in the US. market. Changing World Economy. Even as new markets open to rising affluence in such countries as the “newly industrialized” pacific rim, poverty in many areas and slowed economies in previously industrial nations has already changed the world economy. Americans increasingly maintain living standards only by having two incomes per household. Value is hunted for by penny-wise consumers. Ethics and Responsibility . The greed of the 1980s and other problems has spurred a new interest in ethical conduct in business. Many consumers feel business in general has more of an obligation to those who generate profits -- the consumer! New Landscape and Information Technology . The new marketing landscape is a dynamic, fast-paced, and evolving function of all these changes and opportunities. More than ever, there is no static formula for success. Only strategies that incorporate and implement constant improvement in product quality and higher delivered customer value stand any chance of long-term success. Information and the internet have created a technology boom.