2. Learning Objectives
Why is marketing important?
What is the scope of marketing?
What are some of the fundamental marketing concepts?
How has marketing management changed? Philip Kotler: Marketing –
YouTube.
What are the tasks necessary for successful marketing
management?
3. Value of Marketing
Financial success often depends on marketing ability
Successful marketing builds demand for products and services,
which, in turn, creates jobs
Marketing builds strong brands and a loyal customer base,
intangible assets that contribute heavily to the value of a firm
4. Scope of Marketing
Marketing is about identifying and meeting human and social needs
A M A’s formal definition: 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
10. Core Marketing Concepts (1 of 10)
Needs: the basic
human
requirements such
as for air, food,
water, clothing, and
shelter
Wants: specific
objects that might
satisfy the need
Demands: wants
for specific
products backed by
an ability to pay
11. Class Exercise
•What products or services do you consider essential for your
well-being (needs)?
•What items or experiences do you desire, even if they are not
necessary for survival (wants)?
•Are there specific products or services you are willing to pay a
premium for, given the right circumstances (demands)?
13. Class Exercise
Reflect on their own experiences as customers and identify instances
where you have encountered stated, real, unstated, delight, or secret
needs in their interactions with products or services.
15. Class Exercises
Imagine you are launching a new fitness
app. Identify different market segments
for your app (e.g., fitness enthusiasts,
beginners, seniors) and develop
strategies to target each segment
effectively.
Choose a product (e.g., smartphones,
shoes, coffee machines) and identify the
target market for that product. Describe
the demographics, psychographics, and
behaviors of the target audience.
16. Core Marketing Concepts (3 of 10)
Value proposition:
a set of benefits
that satisfy those
needs
Offerings: a
combination of
products, services,
information, and
experiences
Brands: an offering
from a known
source
18. Marketing Channels
Marketing Channels: Marketing channels refer to the various pathways through which
products or services move from the producer to the final consumer. They involve a series of
intermediaries that facilitate the exchange process. Here are some examples of marketing
channels:
•Direct Selling: A manufacturer selling its products directly to consumers without involving
intermediaries. For instance, a local bakery selling fresh bread and pastries directly to
customers from its own retail store.
•Retailers: A manufacturer selling products to retailers who, in turn, sell the products to end
consumers. For example, a clothing brand selling its merchandise to department stores or
specialty boutiques.
•E-commerce: A manufacturer or retailer selling products online through their own e-commerce
website or third-party platforms like Amazon or eBay.
•Wholesalers: A company selling products in bulk to wholesalers who then distribute them to
retailers. This is common in industries like electronics, where wholesalers supply products to
multiple retailers.
19. Core Marketing Concepts (5 of 10)
Paid media: T V, magazine and
display ads, paid search, and
sponsorships
Owned media: a company or brand
brochure, web site, blog, facebook
page, or twitter account
Earned media: word of mouth,
buzz, or viral marketing
20. Core Marketing Concepts
(6 of 10)
Impressions: occur when consumers view
a communication
Engagement: the extent of a customer’s
attention and active involvement with a
communication
21. Core Marketing Concepts (7 of 10)
Value: a combination of quality, service,
and price (qsp: the customer value
triad)
Satisfaction: a person’s judgment of a
product’s perceived performance in
relationship to expectations
22. Core Marketing Concepts (8 of 10)
Supply chain: a channel stretching from raw materials
to components to finished products carried to final
buyers
Figure : 3.0 The Supply Chain for Coffee
24. A Dramatically Changed
Marketplace (1 of 6)
New consumer capabilities
–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
25. Class Exercise
Scenario: Imagine you are a marketing consultant working for a
tech startup that has developed a new fitness wearable device
(e.g., a smartwatch with health monitoring features). Your task
is to develop a comprehensive marketing strategy to launch
and promote this product.
Discuss how the new consumer capabilities mentioned earlier
(internet usage, mobile purchasing, social media engagement)
can influence the marketing strategy for the fitness wearable.
Explain how these capabilities create new opportunities for
reaching and engaging the target market.
26. A Dramatically Changed
Marketplace (2 of 6)
New consumer capabilities
–Can actively interact with companies
–Can reject marketing they find
inappropriate
27. Class Exercise 3
Scenario: Assume the role of marketing managers for a socially responsible and eco-
friendly company that sells sustainable lifestyle products (e.g., reusable water bottles,
eco-friendly clothing, or biodegradable home goods). The company's mission is to
promote sustainable living and encourage responsible consumption.
Target Market Identification: Define the target market for the sustainable lifestyle products.
Consider demographics, values, and interests to better understand the audience's preferences
and pain points.
Engagement Channels: Identify digital and offline channels that enable active consumer
interaction with the company. This could include social media platforms, email marketing,
interactive events, customer feedback forms, and more.
Personalization and Customization: Explore ways to personalize marketing messages based on
customer preferences and interests. Discuss the potential benefits and challenges of
personalized marketing while maintaining consumer privacy.
28. A Dramatically Changed
Marketplace (3 of 6)
New company capabilities
–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
29. Class Exercise
Scenario: act as a marketing team for a fictional company that
specializes in customizable home decor products. The company
allows customers to design and personalize furniture, wall art,
and home accessories according to their preferences.
Internet and Sales Channel Integration: Explain how the company
can use the internet as a powerful information and sales channel.
Identify digital platforms such as e-commerce websites, mobile
apps, and social media channels where customers can design,
visualize, and purchase personalized home decor items.
Data Collection and Customer Insights: Discuss the importance of
data collection in understanding markets, customers, prospects,
and competitors. Determine the types of data the company
should collect and analyze to enhance its marketing efforts.
Personalization and Customization: Explore how the company can
offer individually differentiated goods and services through
personalization and customization options. Discuss the
technology and tools needed to provide a seamless and user-
friendly customization experience.
30. A Dramatically
Changed
Marketplace (4
of 6)
New company
capabilities
–Can improve
purchasing,
recruiting,
training, and
internal and
external
communications
–Can improve cost
efficiency
32. Examples
Direct-to-
Consumer (D2C)
Brands: By
eliminating
middlemen, D2C
brands can have
more control over
their branding,
customer
experience, and
pricing.
E-commerce Platforms: Online
marketplaces like Amazon,
eBay, and
Subscription Services:
Subscription-based businesses,
such as meal kit delivery
services, beauty boxes, and
streaming platforms, have
disrupted traditional retail
models
Digital Publishing and
Content Delivery:. With
the rise of e-books,
online magazines, and
digital content, authors
and content creators can
bypass traditional
publishers and distribute
their work directly to
readers through
platforms like Kindle
Direct Publishing or their
own websites.
3D Printing and
Customization:
Advancements in 3D
printing technology
have allowed some
manufacturers to
offer personalized and
customized products
directly to consumers.
Virtual
Marketplaces
and Social
Commerce:
Virtual reality
(VR) and
augmented
reality (AR)
technologies
43. Figure 6 The Evolution of
Marketing Management
Marketing Mix Four Ps
Product
Place
Promotion
Price
Modern Marketing
Management Four Ps
People
Processes
Programs
Performance
44. Marketing Management
Tasks (1 of 2)
Developing market strategies and plans
Capturing marketing insights
Connecting with customers
Building strong brands
45. Marketing Management Tasks (2 of 2)
Creating value Delivering value Communicating
value
Creating successful
long-term growth
