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Kotler Keller - Marketing Management 15th edition, Chapter 01

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Kotler Keller - Marketing Management 15th edition, Chapter 01

  1. 1. Chapter. 1 Defining Marketing for the New Realities Korean Institute of Marketing Education http://www.marketingkorea.org
  2. 2. Finance, operations, accounting, and other business functions won’t really matter without sufficient demand for products and services so the firm can make a profit. 1.The Value of Marketing
  3. 3. CEOs recognize the role of marketing in building strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm. 1.The Value of Marketing 1) Marketing Decision Making
  4. 4. Skillful marketing is a never-ending pursuit, but some businesses are adapting and thriving in these changing times. • BMW • Corning 1.The Value of Marketing 2) Winning Marketing
  5. 5. Marketing is about identifying and meeting human and social needs. “meeting needs profitably.” 2.The Scope of Marketing 1) What is Marketing?
  6. 6. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. American Marketing Association 2.The Scope of Marketing 1) What is Marketing?
  7. 7. 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. 2.The Scope of Marketing 1) What is Marketing?
  8. 8. * Social Definition 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. 2.The Scope of Marketing 1) What is Marketing?
  9. 9. * Managerial Definition Managers sometimes think: • Marketing is the art of selling products But: • Selling is not the most important part of marketing • Selling is only the tip of the marketing iceberg 2.The Scope of Marketing 1) What is Marketing?
  11. 11. A marketer is someone who seeks a response— attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETERS AND PROSPECTS
  12. 12. Eight Demand States • Negative demand • Nonexistent demand • Latent demand • Declining demand • Irregular demand • Full demand • Overfull demand • Unwholesome demand 2.The Scope of Marketing 3) Who Markets? ◈ MARKETERS AND PROSPECTS
  13. 13. • Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. • Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class • Marketers use the term market to cover various groupings of customers. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETS
  14. 14. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETS
  15. 15. • Consumer Markets • Business Markets • Global Markets • Nonprofit and Governmental Markets 2.The Scope of Marketing 3) Who Markets? ◈ KEY CUSTOMER MARKETS
  16. 16. 3. Core Marketing Concepts Impression and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Needs,Wants, Demands Target Markets, Positioning, and Segmentation Offerings and Brands Marketing Channels Paid, Owned, Earned Media
  17. 17. 3. Core Marketing Concepts 1) Needs,Wants, and Demands Needs Wants Demands
  18. 18. 3. Core Marketing Concepts 1) Needs,Wants, and Demands Five types of needs • Stated needs • Real needs • Unstated needs • Delight needs • Secret needs
  19. 19. • Target markets • Market offering • Positions 3. Core Marketing Concepts 2) Target Markets, Positioning, and Segmentation
  20. 20. • Value proposition: a set of benefits that satisfy those needs. • Brand 3. Core Marketing Concepts 3) Offerings and Brands
  21. 21. Three kinds of marketing channels • Communication channels • Distribution channels • Service channels 3. Core Marketing Concepts 4) Marketing Channels
  22. 22. • Paid media • Owned media • Earned media 3. Core Marketing Concepts 5) Paid, Owned, and Earned Media
  23. 23. 3. Core Marketing Concepts 6) Impression and Engagement Three “screen” to reach consumers: • TV, Internet, Mobile • Impressions occur when consumers view a communication • Engagement is the extent of a customer’s attention and active involvement with a communication.
  24. 24. • Value, a central marketing concept, is primarily a combination of quality, service, and price • Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations 3. Core Marketing Concepts 7) Value and Satisfaction
  25. 25. • The supply chain is a longer channel stretching from raw materials to components to finished products carried to final buyers. 3. Core Marketing Concepts 8) Supply Chain
  26. 26. • Competition includes all the actual and potential rival offerings and substitutes a buyer might consider. 3. Core Marketing Concepts 9) Competition
  27. 27. • Task environment • Broad environment 3. Core Marketing Concepts 10) Marketing Environment
  28. 28. 4.The New Marketing Realities Technology Globalization Social Responsibility
  29. 29. • Can use the internet as a powerful information and purchasing aid • Can search, communicate, and purchase on the move • Can tap into social media to share opinions and express loyalty • Can actively interact with companies • Can reject marketing they find inappropriate 5. Dramatically Changed Marketplace 1) New Consumer Capability
  30. 30. 5. Dramatically Changed Marketplace 2) New Company Capability • Can use the Internet as a powerful information and sales channel, including for individually differentiated goods • Can collect fuller and richer information about markets, customers, prospects, and competitors • Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information • Can improve purchasing, recruiting, and internal and external communications • Can improve cost efficiency
  31. 31. • Retail transformation • Disintermediation 5. Dramatically Changed Marketplace 3) Changing Channels
  32. 32. • Private labels • Mega-brands • Deregulation • Privatization 5. Dramatically Changed Marketplace 4) Heighten Competition
  33. 33. 6. Marketing in Practice Marketing Balance Marketing Accountability Marketing in the Organization
  34. 34. 7. Company Orientation to the Marketplace Production Concept Product Concept Selling Concept Marketing Concept Holistic Marketing Concept
  35. 35. 7. Company Orientation to the Marketplace
  36. 36. 8. Updating the Four Ps
  37. 37. 8. Updating the Four Ps
  38. 38. 9. Marketing Management Tasks New Company Capability New Consumer Capability Globalization Social Responsibility The New Marketing Realities Integrated Marketing Internal Marketing Performance Marketing Relationship Marketing Technology Four Fundamental Pillars of Holistic Marketing Three Major Market Forces Two Key Market Outcomes
  39. 39. 9. Marketing Management Tasks Building Strong Brands Communicating Value Considering Marketing Responsibly for Long-term Success Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Creating Value Delivering Value