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Part I : Understanding
       Marketing
    Defining Marketing Today
The Importance of Marketing

• Financial success often depends on marketing
  ability due to sufficient demand for products and
  services so the companies can make a profit
• Newly empowered customers and new
  competitors make the companies rethink their
  business models : Change or Die
• Therefore, the right decisions on new products,
  prices, promotion mix budget, and sales force
  from short term sales to long term relationship
  (satisfy their stockholders)
The Scope of Marketing
• Marketing is typically seen as the task of creating,
  promoting, and delivering goods and services to
  stakeholders
• Exchange, which is the core concept of marketing, is the
  process of obtaining a desired product from someone by
  offering something in return
• To make successful exchanges, marketers analyze what
  each party expects from the transaction
• When an agreement is reached, we say that a
  transaction takes place. A transaction is the agreement
  to trade the values between two or more party
• What is marketed? (10 types of entities): goods,
  services, experiences, events, persons, places,
  properties, organizations, information, and ideas.
Company Orientation toward the
            marketplace (i)
•  What philosophy should guide a company’s
   marketing efforts? Six competing concepts:
a. The Production Concept: consumers will prefer
   products that are widely available and
   inexpensive. Thus, mass production and mass
   distribution are a must
b. The Product Concept: consumer will favor
   those products that offer the most quality,
   performance or innovative features
c. The Selling Concept: the organization must
   undertake an aggressive selling and promotion
   efforts
Company Orientation toward the
             marketplace (ii)
d. The Marketing Concept: company being more
  effective than competitors in creating, delivering,
  and communicating superior customer value
  (customer orientation)
• The job is not to find the right customers for your
  products, but the right products for your
  customers. That is by understanding and
  meeting customers’ expressed needs
• The result is all functions must work together
  and must “think customer” so that company can
  respond, serve, and satisfy the customers
Contrast Between the Sales Concept and
           Marketing Concept
          Starting Focus     Means      Ends
          Point

Sales     Factory Products   Selling & Profits through
Concept                      Promoting sales volume



Marketing Target   Customer Integrated Profits through
Concept market     needs    Marketing customer
                                       satisfaction
Company Orientation toward the
            marketplace (iii)
e.The Holistic Marketing Concept is based on the
  development, design, and implementation of
  marketing programs, process, and activities that
  recognizes integrated perspective for companies
  to operate and compete in a new marketing
  environment.
  Four components of Holistic marketing are:
  relationship marketing, integrated marketing,
  internal marketing, and social responsibility
  marketing
Holistic Marketing Dimension
                                                           Products &
            Senior           Other                         Services
Marketing
            Management       Department
Depatment                                    Communications             Channels

              Internal                                    Integrated
              Marketing                                    Marketing


                                  Holistic Marketing


              Socially                                   Relationship
            Responsible                                   Marketing
             Marketing

Ethics                             Community      Customers Channel     Partners
         Environment      Legal
Fundamental Marketing Concepts (i)
• Needs (basic human requirements), Wants (specific
  object that might satisfy the need) and Demands
  (specific products backed by ability to pay)
• Target markets, positioning and segmentation
• Offering (a set of benefits) and Brand (product
  association and identity)
• Value (reflects perceived benefits and costs to
  customers) and Satisfaction (product performances
  versus his expectations)
• Marketing Channels: Communication Channel ex.
  Internet; Distribution Channel ex. Wholesaler; Service
  Channel ex. Banks, Insurance or other specialists job
Fundamental Marketing Concepts (ii)
• Supply chain: longer channel from raw material to final
  products that are carried to final buyers. It represents the
  value delivery system starts from procurement, research and
  development, production, and marketing channels bringing
  products to customers.
• Competition: as rivals offering and substitute that a buyer
  might consider.
• Marketing environment: consists of task environment (such as
  company with integrated marketing, suppliers, distributors,
  target customers, and competitors) and broad environment
  (such as political, technological, cultural and demographics
  environment)
• The Marketing environment will influence the Company
  Marketing Strategy: determine initially the target customer,
  offering marketing mix 4, supported by Marketing information
  system, in order to interact with task environment in the scope
  of broad environment
Marketing Management Trends

•  Marketers are fundamentally rethinking their
   philosophies, concepts,and tools:
a. From organizing by product units to organizing
   by customer segment
b. From emphasizing tangible assets to
   emphasizing intangible assets, ex brand,
   customer base, relationship marketing
c. From focusing on profitable transaction to
   focusing on customer lifetime value (customer
   retention)
Marketing Management Task

• Capturing marketing insights: marketers
  need marketing information system to
  monitor task environment and broad
  environment
• Communicating value: about the brand
  they sell
• Creating long term growth by initiating
  new product development and global
  opportunities and challenges

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Aaa marketing today

  • 1. Part I : Understanding Marketing Defining Marketing Today
  • 2. The Importance of Marketing • Financial success often depends on marketing ability due to sufficient demand for products and services so the companies can make a profit • Newly empowered customers and new competitors make the companies rethink their business models : Change or Die • Therefore, the right decisions on new products, prices, promotion mix budget, and sales force from short term sales to long term relationship (satisfy their stockholders)
  • 3. The Scope of Marketing • Marketing is typically seen as the task of creating, promoting, and delivering goods and services to stakeholders • Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return • To make successful exchanges, marketers analyze what each party expects from the transaction • When an agreement is reached, we say that a transaction takes place. A transaction is the agreement to trade the values between two or more party • What is marketed? (10 types of entities): goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
  • 4. Company Orientation toward the marketplace (i) • What philosophy should guide a company’s marketing efforts? Six competing concepts: a. The Production Concept: consumers will prefer products that are widely available and inexpensive. Thus, mass production and mass distribution are a must b. The Product Concept: consumer will favor those products that offer the most quality, performance or innovative features c. The Selling Concept: the organization must undertake an aggressive selling and promotion efforts
  • 5. Company Orientation toward the marketplace (ii) d. The Marketing Concept: company being more effective than competitors in creating, delivering, and communicating superior customer value (customer orientation) • The job is not to find the right customers for your products, but the right products for your customers. That is by understanding and meeting customers’ expressed needs • The result is all functions must work together and must “think customer” so that company can respond, serve, and satisfy the customers
  • 6. Contrast Between the Sales Concept and Marketing Concept Starting Focus Means Ends Point Sales Factory Products Selling & Profits through Concept Promoting sales volume Marketing Target Customer Integrated Profits through Concept market needs Marketing customer satisfaction
  • 7. Company Orientation toward the marketplace (iii) e.The Holistic Marketing Concept is based on the development, design, and implementation of marketing programs, process, and activities that recognizes integrated perspective for companies to operate and compete in a new marketing environment. Four components of Holistic marketing are: relationship marketing, integrated marketing, internal marketing, and social responsibility marketing
  • 8. Holistic Marketing Dimension Products & Senior Other Services Marketing Management Department Depatment Communications Channels Internal Integrated Marketing Marketing Holistic Marketing Socially Relationship Responsible Marketing Marketing Ethics Community Customers Channel Partners Environment Legal
  • 9. Fundamental Marketing Concepts (i) • Needs (basic human requirements), Wants (specific object that might satisfy the need) and Demands (specific products backed by ability to pay) • Target markets, positioning and segmentation • Offering (a set of benefits) and Brand (product association and identity) • Value (reflects perceived benefits and costs to customers) and Satisfaction (product performances versus his expectations) • Marketing Channels: Communication Channel ex. Internet; Distribution Channel ex. Wholesaler; Service Channel ex. Banks, Insurance or other specialists job
  • 10. Fundamental Marketing Concepts (ii) • Supply chain: longer channel from raw material to final products that are carried to final buyers. It represents the value delivery system starts from procurement, research and development, production, and marketing channels bringing products to customers. • Competition: as rivals offering and substitute that a buyer might consider. • Marketing environment: consists of task environment (such as company with integrated marketing, suppliers, distributors, target customers, and competitors) and broad environment (such as political, technological, cultural and demographics environment) • The Marketing environment will influence the Company Marketing Strategy: determine initially the target customer, offering marketing mix 4, supported by Marketing information system, in order to interact with task environment in the scope of broad environment
  • 11. Marketing Management Trends • Marketers are fundamentally rethinking their philosophies, concepts,and tools: a. From organizing by product units to organizing by customer segment b. From emphasizing tangible assets to emphasizing intangible assets, ex brand, customer base, relationship marketing c. From focusing on profitable transaction to focusing on customer lifetime value (customer retention)
  • 12. Marketing Management Task • Capturing marketing insights: marketers need marketing information system to monitor task environment and broad environment • Communicating value: about the brand they sell • Creating long term growth by initiating new product development and global opportunities and challenges