kothler

1. Part 1:
Understanding Marketing Management
Otterbein College
Winter Quarter
2000

2. Chapter 1 -- Marketing in the
21st Century

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Objectives
• Course Organization
• Tasks of Marketing
• Major Concepts & Tools of Marketing
• Marketplace Orientations
• Marketing’s Responses to New
Challenges

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Course/Text Organization
• Part I - Understanding Marketing Management
• Part II - Analyzing Marketing Opportunities
• Part III - Developing Marketing Strategies
• Part IV - Shaping the Market Offering
• Part V - Managing & Delivering Marketing
Programs

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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 (p. 7)

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Product or Offering
Value and Satisfaction
Needs, Wants, and Demands
Exchange & Transactions
Relationships & Networks
Target Markets & Segmentation
Marketing Channels
Supply Chain
Competition
Marketing Environment
Core Concepts of Marketing

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Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information
Simple Marketing System

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Manufacturer
markets
Services,
money
Government
markets
Services,
money
Services
Services,
money
Taxes
Taxes,
goods
Taxes,
goods
Taxes,
goods
Money Money
Consumer
markets
Intermediary
markets
Goods, services Goods, services
Resources Resources
Resource
markets
Money Money
Structure of Flows

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Price Promotion
Cost Communication
Marketing
Mix
Product
Place
Customer
Solution
Convenience
The Four P’s vs. The Four Cs

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Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive
Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations Towards the
Marketplace

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Market
Integrated
marketing
Profits through
customer
satisfaction
Customer
needs
(b) The marketing concept
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
Starting
point Focus Means Ends
(a) The selling concept
Customer Delivered Value

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Customers
Front-line people
Middle Management
Top
Management
Traditional Organization Chart

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Customers
Front-line people
Middle management
Top
manage-
ment
Customer-Oriented Organization Chart

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a. Marketing as an
equal function
Finance
Production
Marketing Human
resources
b. Marketing as a more
important function
Finance
Human
resources
Marketing
Production
Evolving Views of Marketing’s Role

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c. Marketing as the
major function
Marketing
Production
d. The customer as the
controlling factor
Customer
Evolving Views of Marketing’s Role

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e. The customer as the controlling
function and marketing as the
integrative function
Customer
Marketing
Production
Evolving Views of Marketing’s Role

17. Next...Chapter 2
Building Customer Satisfaction,
Value, & Retention