Key concepts-in-marketing m1c1

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Key concepts-in-marketing m1c1

  1. 1. KEY CONCEPTS IN MARKETING maureen castillo dyna enad carelle trisha espital ethel silva
  2. 2. WHAT IS MARKETING? <ul><li>Marketing – is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. </li></ul>
  3. 3. CORE MARKETING CONCEPTS PRODUCTS MARKETS NEEDS, WANTS & DEMANDS VALUE, SATISFACTION & QUALITY EXCHANGE, TRANSACTIONS & RELATIONSHIPS
  4. 4. NEEDS, WANTS AND DEMANDS <ul><li>Need </li></ul><ul><ul><li>States of felt deprivation. </li></ul></ul><ul><ul><li>physical, social and individual needs. </li></ul></ul><ul><li>Wants </li></ul><ul><ul><li>The form taken by human needs as they are shaped by culture and individual personality. </li></ul></ul><ul><li>Demands </li></ul><ul><ul><li>Human wants that are backed by buying power. </li></ul></ul>
  5. 5. PRODUCTS <ul><ul><li>Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas. </li></ul></ul>
  6. 6. VALUE, SATISFACTION & QUALITY <ul><li>Customer Value </li></ul><ul><ul><li>The difference between the values the customer gains from owning and using a product and the cost of obtaining the product. </li></ul></ul><ul><li>Customer Satisfaction </li></ul><ul><ul><li>The extent to which a product’s perceived performance matches a buyer’s expectations. </li></ul></ul><ul><li>Total Quality Management (TQM) </li></ul><ul><ul><li>Programs designed to constantly improve the quality of products, services, and marketing process. </li></ul></ul>
  7. 7. EXCHANGE, TRANSACTIONS & RELATIONSHIPS <ul><li>Exchange </li></ul><ul><ul><li>The act of obtaining a desired object from someone by offering something in return. </li></ul></ul><ul><li>Transaction </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>Relationship Marketing </li></ul><ul><ul><li>The process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders. </li></ul></ul>
  8. 8. MARKET <ul><ul><li>The set of all actual and potential buyers of a product or service. </li></ul></ul><ul><li>Marketplace – physical, as when one goes shopping in a store </li></ul><ul><li>Marketspace – is digital, as when one goes shopping on the internet </li></ul><ul><li>Metamarket – used to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries. </li></ul>
  9. 9. A Simple Marketing System INDUSTRY (A collection of sellers) MARKET (A collection of buyers) COMMUNICATION INFORMATION GOODS & SERVICES MONEY
  10. 10. Structure of Flows in a Modern Exchange Economy RESOURCE MARKETS CONSUMER MARKETS INTERMEDIARY MARKETS MANUFACTURER MARKETS GOVERNMENT MARKETS MONEY RESOURCES MONEY RESOURCES MONEY MONEY GOODS & SERVICES GOODS & SERVICES TAXES & GOODS SERVICES & MONEY S&M TAXES & GOODS SERVICES TAXES S&M T&G
  11. 11. MARKETING <ul><ul><li>means managing markets to bring about exchanges for the purpose of satisfying human needs and wants. </li></ul></ul><ul><ul><li>process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. </li></ul></ul>
  12. 12. Main Actors and Forces in a Modern Marketing System SUPPLIERS COMPANY (marketer) COMPETITORS MARKETING INTERMEDIARIES END USER MARKET
  13. 13. Other Key Concepts
  14. 14. Marketers and Prospects <ul><li>A marketer is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect. </li></ul>
  15. 15. Marketing Channels <ul><li>Communication channels </li></ul><ul><ul><li>Deliver and receive messages from target buyers, and include newspapers, magazines, etc… </li></ul></ul><ul><li>Distribution channels </li></ul><ul><ul><li>Used to display, sell or deliver the physical product or service(s) to the buyer or user. </li></ul></ul><ul><li>Service channels </li></ul><ul><ul><li>Used to carry out transactions with potential buyers. </li></ul></ul>
  16. 16. Supply Chain <ul><ul><li>Describes a longer channel stretching from raw materials to components to final products that are carried to final buyers. </li></ul></ul>
  17. 17. Competition <ul><ul><li>Includes all the actual and potential rival offerings and substitutes that a buyer might consider. </li></ul></ul><ul><ul><li>Four Levels: </li></ul></ul><ul><ul><li>Brand competition </li></ul></ul><ul><ul><li>Industry competition </li></ul></ul><ul><ul><li>Form competition </li></ul></ul><ul><ul><li>Generic competition </li></ul></ul>
  18. 18. Marketing Environment <ul><li>Task environment </li></ul><ul><ul><li>Includes the immediate actors involved in producing, distributing, and promoting the offering. </li></ul></ul><ul><li>Broad environment </li></ul><ul><ul><li>Consists of components which contain forces that can have a major impact on the actors in the task environment </li></ul></ul>
  19. 19. Marketing Program <ul><li>Marketing program – consists of numerous decisions on the mix of marketing tools to use </li></ul><ul><li>Marketing mix – set of marketing tools the firm uses to pursue its marketing objectives in the target market </li></ul>
  20. 20. MARKETING MANAGEMENT <ul><ul><li>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. </li></ul></ul><ul><ul><li>Involves: </li></ul></ul><ul><ul><ul><li>Demand Management </li></ul></ul></ul><ul><ul><ul><ul><li>Demarketing - Marketing to reduce demand temporarily or permanently – the aim is not to destroy demand, but only to reduce or shift it. </li></ul></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul>
  21. 21. Marketing Management Process <ul><li>Situation Analysis </li></ul><ul><ul><ul><li>Economic environment </li></ul></ul></ul><ul><ul><ul><ul><li>State of macro-economy and changes in it also bring marketing opportunities and constraints </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Examples </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Factors of high inflation and unemployment levels </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Changes in technology </li></ul></ul></ul></ul></ul>
  22. 22. Marketing Management Process <ul><li>Situation Analysis </li></ul><ul><ul><ul><li>Social environment </li></ul></ul></ul><ul><ul><ul><ul><li>Includes general cultural and social traditions, norms and attitudes </li></ul></ul></ul></ul><ul><ul><ul><ul><li>As values change, change brings the need for new products and services </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Public demand for a cleaner environment </li></ul></ul></ul></ul></ul>
  23. 23. Marketing Management Process <ul><li>Situation Analysis </li></ul><ul><ul><ul><li>Political environment </li></ul></ul></ul><ul><ul><ul><ul><li>Includes attitudes and reactions of the general public, social and business critics </li></ul></ul></ul></ul><ul><ul><ul><li>Legal environment </li></ul></ul></ul><ul><ul><ul><ul><li>Includes federal, state and local legislation directed at protecting both business competition and consumer rights. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Deregulation </li></ul></ul></ul></ul></ul>
  24. 24. Marketing Management Process <ul><li>Marketing planning </li></ul><ul><ul><ul><li>Establishing objectives </li></ul></ul></ul><ul><ul><ul><ul><li>Provides the framework for the marketing plan </li></ul></ul></ul></ul><ul><ul><ul><li>Selecting the target market </li></ul></ul></ul><ul><ul><ul><ul><li>What do customers want? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What must be done to satisfy these wants or needs? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What is the size of the market? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What is its growth profile? </li></ul></ul></ul></ul><ul><ul><ul><li>Developing the marketing mix </li></ul></ul></ul><ul><ul><ul><ul><li>Controllable variables: product, price, promotion and place (channels of distribution), must be managed to satisfy target market and achieve objectives </li></ul></ul></ul></ul>
  25. 25. Marketing Management Process <ul><li>Implementation and Control </li></ul><ul><ul><li>Implementing </li></ul></ul><ul><ul><ul><li>Putting the plan into action and performing marketing tasks according to predefined schedule </li></ul></ul></ul><ul><ul><ul><li>Marketing executives must closely monitor and coordinate implementation of the plan </li></ul></ul></ul><ul><ul><li>Controlling </li></ul></ul><ul><ul><ul><li>Results are measured </li></ul></ul></ul><ul><ul><ul><li>Results are compared with objectives </li></ul></ul></ul><ul><ul><ul><li>Decisions are made on whether the plan is achieving objectives </li></ul></ul></ul>
  26. 26. Marketing management process <ul><li>Analysis/Audit - where are we now? </li></ul><ul><li>Objectives - where do we want to be? </li></ul><ul><li>Strategies - which way is best? </li></ul><ul><li>Tactics - how do we get there? </li></ul><ul><li>Implementation - Getting there! </li></ul><ul><li>Control - Ensuring arrival </li></ul>
  27. 27. <ul><li>The marketing opportunities faced by organizations depend on the changing needs of society: </li></ul><ul><li>Consumers are becoming more sophisticated and more discerning in their expectations. </li></ul><ul><li>Globalization of the world’s marketplace has not only created new possibilities but also challenge of new competition. </li></ul><ul><ul><li>Examples </li></ul></ul>
  28. 28. Why is marketing planning necessary? <ul><li>Systematic futuristic thinking by management </li></ul><ul><li>better co-ordination of a company’s efforts </li></ul><ul><li>development of performance standards for control </li></ul><ul><li>sharpening of objectives and policies </li></ul><ul><li>better prepare for sudden developments </li></ul>
  29. 29. MARKETING MANAGEMENT PHILOSOPHIES <ul><li>five different orientation of firms towards the marketplace: </li></ul><ul><li>The PRODUCTION CONCEPT holds that consumers will prefer products that are widely available and inexpensive. </li></ul>
  30. 30. MARKETING MANAGEMENT PHILOSOPHIES <ul><li>The PRODUCT CONCEPT holds that consumers will favor those products that offer the most quality, performance, or innovative features. </li></ul>
  31. 31. MARKETING MANAGEMENT PHILOSOPHIES <ul><li>The SELLING CONCEPT holds that consumers and businesses, will ordinarily not buy enough of the organization’s products. The organization must therefore, undertake an aggressive selling and promotion effort. </li></ul>
  32. 32. MARKETING MANAGEMENT PHILOSOPHIES <ul><li>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. </li></ul>
  33. 33. MARKETING MANAGEMENT PHILOSOPHIES <ul><li>The SOCIETAL MARKETING involves the marketer paying attention not only to the needs of customers but also to the wider natural and social environment. Marketers’ concern for the natural environment involves taking into account the environmental impact of production and distribution. </li></ul>
  34. 34. PRODUCTION PRODUCT SALES MARKETING SOCIETAL
  35. 35. References <ul><li>Principles of Marketing, 7 th ed. by Philip Kotler and Gary Armstrong </li></ul><ul><li>Marketing Management, An Asian Perspective 3 rd ed. by Philip Kotler et al. </li></ul>

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