2. Chapter Outline
• The importance of Marketing
• What is Marketing?
• What is the scope of Marketing
• What are some core marketing concepts
• How has marketing management changed
in recent years
• The Holistic Marketing Concept
• Updating the Four Ps
3. The importance of Marketing
• Marketing plays a vital role in today’s
business environment.
• Other business functions such as Finance,
operations, accounting will not matter if
there is not enough demand for products
and services so the company can make a
profit.
4. The importance of Marketing
• Marketing importance goes beyond
businesses and into society as a whole.
• 1. Accept new products
• 2. Enhance existing products
• 3. Create demand for product which
creates jobs
5. The importance of Marketing
• CEOs recognize that marketing helps build
brands and a loyal customer base.
• CMOs are becoming more important to
organizations.
• Good marketing is a never-ending quest to
find new ways to satisfy customers and
beat the competition.
6. The Scope of Marketing
• Marketing is about identifying and
meeting human and social needs. It is
about meeting needs profitability.
• Marketing Management is the art and
science of choosing target markets and
getting, keeping, growing customers
through creating, delivering, and
communicating superior customer value.
7. The Scope of Marketing
• Social definition of marketing
• Managerial definition of marketing
8. What is marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas.
9. Who markets?
• Marketer is a person who seeks
a response-attention, purchase, a
vote, a donation---from another
party called a prospect.
10. Demand Management
• Marketers are responsible for demand
management.
• Marketers try to influence the level, timing,
and composition of demand to meet the
organization’s objectives.
11. Eight demand states
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand
• Marketers have to identify the cause of the
12. Markets
• Marketers use the term market to
cover various groupings of
customers.
• Sellers make up the industry and
buyers make up the market.
14. Key Customer Markets
• Consumer Markets
• Business Markets
• Global Markets
• Nonprofit and Government Markets
• Marketplaces
• Marketspaces
• Metamarkets.
15. Core Marketing Concepts
• Needs are basic human requirements such air, food,
water, clothing, and shelter. Example : I am thirsty
• Humans also have strong needs for recreation,
education, and entertainment.
• Needs become wants when they are directed to
specific objects that might satisfy the need.
Example: I want a Coca-Cola.
• Demands are wants for specific products backed by
the ability to pay. Example: I have money to buy a
Coca-Cola.
16. Types of needs
• Stated needs (The customer wants an
inexpensive car)
• Real needs (The customer wants a car
whose operating cost, not initial price is low)
• Unstated needs (The customer expects
good service from the dealer)
• Delight needs (The customer would like the
dealer to include an onboard GPS navigation
system)
• Secret needs (The customer wants friends to
see him or her as a savvy consumer)
• Customers may have needs that they are not
fully aware of.
17. Segmentation, Target Markets,
Positioning
• Marketers must divide their markets into
segments.
• Marketers then decide which market
segments present the greatest
opportunities to them and these segments
are called target markets.
18. Segmentation, Target Markets,
Positioning
• For each target market, marketers
develop a market offering (which
can be a combination of products,
services, information, and
experiences) that it positions in
the minds of target buyers as
delivering some central benefit(s).
19. Offerings and Brands
• Companies address customer needs by
putting a value proposition, a set of
benefits that satisfy those needs.
• The intangible value proposition is made
physical by an offering, which can be a
combination of products, services,
information, and experiences.
• A brand is an offering from a known
source.
20. Value and Satisfaction
• The buyer chooses the offerings he or she
perceives to deliver the most value.
• Value, the sum of the tangible and
intangible benefits and costs to the
customer.
• Value which is a key marketing concept is
primarily a combination of quality,
service, and price (qsp).
21. Value and Satisfaction
• Satisfaction reflects a person’s judgment of a
product’s perceived performance in relationship
to expectations.
• If the performance falls short of expectation, the
customer is disappointed.
• If the performance matches expectations, the
customer is satisfied.
• If the performance exceeds expectations, the
customer is delighted.
22. Marketing Channels
• Communication channels-Deliver and
receive messages from target buyers.
• Monologue(Newspapers, TV, billboards, and radio) and
Dialogue (Emails, blogs, Social media)
• Distribution channels-Display, sell, or
deliver the product or service. (Direct-Internet,
e-mail, mobile. Indirect-wholesalers, retailers)
• Service channels ( warehouses,
transportation companies, banks, and insurance
companies)
23. Supply Chain
• The supply chain is a longer channel stretching from
raw materials to components to finished products
carried to the final buyers.
• Supplier(raw material or components)
• Transportation(inbound logistics)
• Manufacturer
• Transportation (outbound logistics)
• Warehousing
• Wholesaler
• Retailer
• Final consumer
25. Marketing Environment
• Task environment (micro)-Everyone
involved in producing, distributing, and
promoting the offering (includes the
company, suppliers, distributors,
dealers, and target markets)
• Broad environment (Macro) (
demographic, economic, social-cultural,
natural, technological, and political-legal
environment)
26. The New Marketing Realties
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competitions
• Industry convergence
• Retail transformation
• Disintermediation and Reintermediation
• Consumer buying power
• Consumer information
• Consumer participation
• Consumer resistance
27. New Company Capabilities
• Marketers can use the internet as a
powerful information and sales channel.
• Marketers can collect fuller and richer
information about markets, customers,
prospects, and competitors.
• Marketers can tap into social media to
amplify their brand name.
28. New Company Capabilities
• Marketers can facilitate and speed
external communication among
customers.
• Marketers can send ads, coupons,
samples, and information to customers
who have requested them or given the
company permission to send them.
• Marketers can reach consumers on the
move with mobile marketing.
• Companies can make and sell individually
29. New Company Capabilities
• Companies can improve purchasing,
recruiting, training, and internal and
external communications.
• Companies can facilitate and speed up
internal communication among their
employees by using the Internet as a
private intranet.
• Companies can improve their cost
efficiency by skillful use of the Internet.
30. Marketing in Practice
• Companies must always be moving
forward with marketing programs,
innovating products and services, staying
in touch with customers needs and
seeking new advantages rather than
relying on past strengths.
• Companies must also integrate the
Internet into their marketing plans.
31. The new CMO
• The most important role for any CMO is to
infuse a customer perspective and
orientation in business decisions affecting
any customer touch point (where a
customer directly or indirectly interacts
with the company in some form)
• Example of a Hotel’s customer touch
points: Internet and phone reservation,
Hotel website, Hotel reception, check-in
process, room service, laundry service,
32. Marketing in the Organization
• Marketers must properly manage all
possible touch points—store layouts,
package designs, product functions,
employee training, and shipping and
logistics methods.
33. Marketing in the Organization
• Marketers must also have influence on
general management activities such as
product innovation, and new-business
development.
• Marketers must think like executives in
other departments, and executives in other
departments must think like marketers.
34. Company Orientation toward the
Marketplace
• The Production Concept-Customers prefer
products that are widely available and
inexpensive.
• The Product Concept-Consumers favor
products offering the most quality, performance,
or features.
• The Selling Concept- If consumers are left
alone, they will not buy enough of the company’s
products.
• The Marketing Concept-Find the right product
for you customer.
35. The Holistic Marketing Concept
• The holistic marketing concept is based
on the development, design, and
implementation of marketing programs,
processes, and activities that recognize
their breadth and interdependencies.
• Holistic marketing is a marketing strategy
that considers the business as a whole
and not as several different parts.
36. Relationship marketing
• Create prosperity among key
constituents.
• (customers, employees, suppliers,
distributors, shareholders, and investors)
• Focus on the most profitable customers
• Customer retention (cross-selling and up-
selling)
• Closer relationship with suppliers and
distributors
37. Integrated Marketing
• Integrated Marketing occurs when
companies integrate their marketing
activities and programs.(examples:
Integrated communication, integrated
channel strategies)
• Many different marketing activities can
create, communicate, and deliver value.
• Marketers should design and implement
any one marketing activity with all other
activities in mind.
38. Internal Marketing
• Internal Marketing is the task of hiring,
training, and motivating able employees
who want to serve the customers well.
• It ensures that everyone in the organization
embraces appropriate marketing principles,
especially top management.
• Marketing activities inside the company can
be as important if not more important than
marketing activities outside the company.
39. Internal Marketing
• Internal marketing requires
vertical alignment with senior
management and horizontal
alignment with other departments.
40. Performance marketing
• Performance marketing requires
understanding the financial and
nonfinancial returns to business and
society from marketing activities and
programs.
41. Performance marketing
• Financial Accountability
• Social Responsibility
Marketing/ Marketers must
consider the ethical,
environmental, legal, and social
context of their roles and
activities.
