Marketing deals with identifying and meeting human and social needs through exchange and transactions between two or more parties. Marketers are involved in marketing 10 types of entities including goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. Traditionally, a market was a physical place where buyers and sellers gathered, but now it also includes digital marketspaces and metamarkets that combine related products across industries. Effective marketing requires understanding needs, wants, and demands; segmenting and positioning the market; developing and communicating value to customers; and using strategic planning to achieve organizational goals.

1. DEFINING MARKETING FOR THE 21ST CENTURY CHAPTER I

2. What Is Marketing ? Definition of Marketing Marketing deals with identifying and meeting human and social needs. Exchange and Transaction Exchange, which is the core concept of marketing, is the process of obtaining a desired products from someone by offering something in return. For exchange potential to exist, five conditions must be satisfied: 1.there are at least two parties. 2.each party has something that might be of value to other party. 3.each party is capable of communication and delivery. 4.each party is free to accept or reject the exchange offer. 5.each party believes it is appropiate or desirable to deal with the other party. A transaction is a trade of value between two or more parties. A transaction differs from a transfer.

3. What Is Marketed ? Marketing people are involved in marketing 10 types of entities: Goods Physical goods constitute the bulk of most countries production and marketing effort. Services As economies advance, a growing proportion of their activities is focused on the production of services. Events Marketers promote time-based events, such as major trade shows, artistics performances, and company anniversaries. Experiences By orchestrating several services and goods, a firm can create, stage, and market experience. PersonsCelebrity marketing is a major business. Place Cities, states, regions, and whole nations compete actively to attract tourist, factories, company headquarters, and new residents. Properties Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). OrganizationsOrganizations actively work to build a strong, favourable, and unique image in the minds of their targets publics. Information Information can be produced and marketed as a product. IdeasEvery market offering includes a basic idea. Who Markets ? A marketers is someone who seeks a response (attention, purchase, a vote, a donation) from another party, called the prospects.if two parties are seeking to sell something to each other, we can call them both marketers. Eight demand states are possible: 1. Negative demand 2. Nonexistentsdemand 3. Latent demand 4. Declining demand 5. Irregular demand 6. Full demand. 7. Overfull demand 8. Unwholesome demand Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over particular product or product class ( the housing market or grain market).

4. Key Customer Markets 1.Consumer Market. 2.Business Markets. 3.Global Markets. 4.Nonprofit and Governmental Markets. Marketplaces, Marketspace, and Metamarkets ¨ The marketplace is physical, as when you shop in a store ¨ Marketspace is digital, as when you shop on the internet. ¨ Mohan Sawney has proposed the concept of a metamarket 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. How Business and Marketing Are Changing · 1.Changing Technology. 2.Globalization. 3.Deregulation. 4.Privatization. 5.Customer empowerment. 6.Customization. . 7.Heightened competition convergence. 8.Retailers transformation 9.disintermediation

5. Company Orientations Toward the Marketplace The production concept is one of the oldest concept in bussines. It hold that consumers will prefer product that are widely available and inexpensive. The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. The selling concept holds that consumers and bussines and practiced most aggressively with unsought goods, goods that buyers normally do not think of buying. The marketing concept holds that key to achieving organizationalgoals and consist of the company being more effective than competitors in creating, n delivering The Holistic marketing concept is based on the development, design, and implementation of marketing program, process, and activities that recognizes their breadth and interdependencies,

6. The Holistic Marketing Relationship marketing has the aim of building mutually satisfying long-term relationship with key parties customers, supplier, distributor and other marketing partner. Integrated marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Social responsibility marketing

7. Fundamental Marketing Concept, Trends, and Tasks NEEDS, WANTS, DEMAND Needs are the basic humam requirements. These needs become wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific product backed by an ability to pay.

8. ….. Target Market, Positioning and Segmentation Offering,the Intangible value proportion. Brand is offering from A known source. Value, reflect the Percieved tangible & intangible benefit & Cost toCustomers. Satisfaction, reflect a person’s comparative judgements resulting from product percieved performance in relation to experience.

9. ……. Marketing Channels’ Communication channels Distribution channels Service channel Supply Chain Competition Marketing Environment Task environment Broad environment Marketing planning

11. Choose the Value Cust. Segmentation / Market selection or focus / Value potsitioning Provide the Value Product dev. / service dev. / pricing / sourcing&making / distributing&servicing Communicate the Value Sales force / sales promotion / advertising Tactical marketing STRATEGIC MARKETING ILLUSTRATION (b) Value creation & delivery sequence The value delivery process begins before there is a product and continues while it is being developed and after it becomes available.

12. Japanese Have 5 Zero Concepts Zero customer feedback time Zero Purchasing time Zero defects Zero Product Improvement time Zero Setup time

13. Firm Infrastructure Human Resource Management Technology Development Procurement The Generic Value ChainMichael Porter of Harvard has purpose the VALUE CHAIN As a tool for identifiying ways to create more customer value A C T I V I T I E S S U P P O R T Outbound Logistics Marketing and Sales Margin Operations Service Inbound Logistics Primary Activities

14. CORE COMPETENCIES Distinctive capabilities tend to refer to areas of special tehnical and production expertise. CORE COMPETENC I ES Illustration DISTINCTIVE CAPABILITIES Netflix rent as many DVDs as you want and watch movies instantly on your PC for one low price C HA RACTERI S T I C OF Netflix has distinctive capabilities that promise to keep the company on top even as competitors like Blockbuster and Walware company masquerading as DVD rental service COMPETITIVE ADVANTAGE Distinctive capabilities tend to describe excellence in broader bussiness process.

15. Existing products New products 1. Market penetration strategy 3. Product development strategy Existing markets 2. Market development strategy New markets Ansoff’s Product-Market Expansion Grid Diversification strategy

16. Business Unit Strategic Planning The Business mission, each business unit needs to define its specific mission within the broader company mission. External & internal environment Marketing opportunity is an area of buyer need and interest in which there is a high probability that a company can profitably satisfy that need. . It involves monitoring the external and internal marketing environment.

17. Strategic formulation Overall cost leadership Differentiation Focus Firms pursuing the same strategy directed to the same target market constitute a strategic group. Strategic Alliances, companies are also discovering that they need strategic partners if they hope to be effective.Four major categories: Product or service alliances Promotional alliances Logistics alliances Pricing collaborations

18. Market Opportunity analysis, to determine the attractiveness and probability of success Environmental threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit. Goal formulation, process to develop specific goals for the planning period. The business unit sets manages by objectives (MBO) system to work, must meet four criteria: They must be arranged hierarchically Objectives should be stated quantitatively Goal should be realistic Objectives must be consistent

19. Feedback and control As it implements its strategy, a firm needs to track the results and monitor new developments. Product planning a marketing plan is a writen document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. Contents of the Marketing Plan Δ Executives summary and table of contents Δ Situation analysis Δ Marketing strategy Δ Financial projections Δ Implementation controls