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Kotler fmm ce_ppt_ch01

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Unit i marketing management
Unit i marketing management
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  1. 1. A FRAMEWORK for MARKETING MANAGEMENT Chapter 1 Defining Marketing for the 21st Century Kotler Keller Cunningham
  2. 2. Chapter Questions • Why is marketing important? • What is the scope of marketing? • What are some fundamental marketing concepts? • What are the tasks necessary for successful marketing management? 1-2 © Copyright 2008 Pearson Education Canada
  3. 3. Profile: Canadian Marketing Excellence KRAFT CANADA INC. •Kraft Canada Inc. continues to operate in a highly complex market •Customers have more choice but less time for shopping and preparing meals •Retailers are ramping up the use of own-brands •Using a newly developed consumer database, Kraft adopted a set of customer relationship management (CRM) initiatives, with the key aim being: “To help Kraft grow into a service provider that helps consumers shop more efficiently, prepare quick meals simply.” 1-3 © Copyright 2008 Pearson Education Canada
  4. 4. Profile: Canadian Marketing Excellence KRAFT CANADA INC. Kraft’s Strategy: • “Family. Food. Simple.” The Results: • Kraft is now on the Marketing Magazine’s annual top ten list of “Marketers that Mattered.” • Customer satisfaction is high, with thousands calling its 1-800 helpline for cooking tips • Kraft’s What’s Cooking magazine is the largest circulating magazine in Canada • Kraft also partnered with Food TV and created the number one cooking show in Quebec • By combining marketing insight and leading edge technologies, Kraft has developed unmatched consumer relationships 1-4 © Copyright 2008 Pearson Education Canada
  5. 5. 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. 1-5 © Copyright 2008 Pearson Education Canada
  6. 6. 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. 1-6 © Copyright 2008 Pearson Education Canada
  7. 7. The Importance of Marketing •Financial success often depends on good marketing •Many companies have not understood this completely, including •Nortel, Bombardier, Sears, Kodak, Xerox •Today’s market leaders, including Wal-Mart, Nike, and Research In Motion (RIM), know they can’t afford to relax •Short term (transactional marketing) versus long term (relationship marketing) •Creation of Chief Marketing Officer (CMO) position 1-7 © Copyright 2008 Pearson Education Canada
  8. 8. Big Rock Brewery •Big Rock Brewery recognizes that meeting customer needs is an infinite quest •In 2005 the company found it necessary to differentiate itself in Alberta’s crowded premium beer market: •Using a combination of retro labels (originally used 20 years ago) and the rolling out of the largest-ever multimedia campaign to promote its Grasshopper brand, Big Rock was able to secure a foothold as the beer of choice for many Albertans 1-8 © Copyright 2008 Pearson Education Canada
  9. 9. 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 1-9 © Copyright 2008 Pearson Education Canada
  10. 10. For an Exchange to Occur….. • There must be 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 accept or reject the exchange offer • Each party believes it is appropriate or desirable to deal with the other party 1-10 © Copyright 2008 Pearson Education Canada
  11. 11. Are Both Forms of Exchange? Transactions Transfers 1-11 © Copyright 2008 Pearson Education Canada
  12. 12. What Is Marketed? Goods Goods 87% of Canadian Exports (2005) Services Services 69% of Canadian GDP (2005) Events and experiences Events and experiences Persons Persons Places and properties Places and properties Organizations Organizations Information Information Ideas Ideas 1-12 © Copyright 2008 Pearson Education Canada
  13. 13. Figure 1.1 A Simple Marketing System 1-13 © Copyright 2008 Pearson Education Canada
  14. 14. Company Orientations Production Product Selling Marketing 1-14 © Copyright 2008 Pearson Education Canada
  15. 15. Figure 1.2 Holistic Marketing Dimensions 1-15 © Copyright 2008 Pearson Education Canada
  16. 16. Figure 1.3 The Four P Components of the Marketing Mix 1-16 © Copyright 2008 Pearson Education Canada
  17. 17. Key Themes of Integrated Marketing Many different All marketing marketing activities activities coordinated used to to maximize communicate their and deliver value joint effects 1-17 © Copyright 2008 Pearson Education Canada
  18. 18. Figure 1.4 Marketing-Mix Strategy 1-18 © Copyright 2008 Pearson Education Canada
  19. 19. Internal Marketing • Employees contribute to building long- term relationships with customers • Step 1: Select employees with positive attitudes • Step 2: Train, motivate, and empower employees • Step 3: Establish standards for employee performance • Step 4: Monitor actions and reward good performance 1-19 © Copyright 2008 Pearson Education Canada
  20. 20. Internal Marketing at Scotiabank • Positioned as a “Client Centred” bank • Plan put into action to align Scotiabank around customer centricity; •Key use was made of internal incentive programs that rewarded staff for spending time with clients •Peer to peer awards program and “Team Voice”, which let employees communicate directly with senior management 1-20 © Copyright 2008 Pearson Education Canada
  21. 21. Societal Marketing Concept An 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 well-being of both consumer and society. 1-21 © Copyright 2008 Pearson Education Canada
  22. 22. Fundamental Marketing Concepts • Needs, wants, and • Marketing channels demands • Supply chain • Target markets, • Competition positioning, • Marketing segmentation environment • Offerings and brands • Marketing planning • Value and satisfaction 1-22 © Copyright 2008 Pearson Education Canada
  23. 23. I Want It, I Need It... Five Types of Needs • Stated needs • Real needs • Unstated needs • Delight needs • Secret needs 1-23 © Copyright 2008 Pearson Education Canada
  24. 24. Figure 1.5 Factors Influencing Marketing Strategy 1-24 © Copyright 2008 Pearson Education Canada
  25. 25. Marketing Management Tasks • Developing • Shaping market marketing strategies offerings • Capturing marketing • Delivering value insights • Communicating • Connecting with value customers • Creating long-term • Building strong growth brands 1-25 © Copyright 2008 Pearson Education Canada
  26. 26. For Discussion How are demographic changes in the Canadian population affecting marketers? 1-26 © Copyright 2008 Pearson Education Canada

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