2. Marketing
Telling and selling
or
Satisfying needs profitably
or
Managing profitable customer relationship
or
Creating, communicating and delivering value
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3. What is marketing?
The systematic planning, implementation and control of a
mix of business activities intended to bring together buyers
and sellers for the mutually advantageous exchange or
transfer of products. (Dictionary of 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. (Kotler and Keller)
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4. What is marketing?
Marketing is the activity, set of institutions and
processes for creating, communicating, delivering
and exchanging offerings that have value for the
customers, clients, partners and society at large.
(American Marketing Association)
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5. Marketing Management
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering
and communicating superior customer value.
Philip Kotler and Kevin Lane Keller
6. Importance of Marketing
Financial success depends on marketing
No demand - no business
Marketing decisions tough
– What to design
– What prices to offer
– Where to sell
– How much to spend on advertising…
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7. What is marketed?
Physical goods
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas
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8. Who markets?
Marketers and Prospects
A marketer is someone who seeks a response –
attention, a purchase, a vote, a donation – from
another party called prospect
If two parties are seeking to sell something to each
other, we call them both marketers.
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9. Core Marketing Concepts
Needs, wants, demand
Target market, positioning and segmentation
Offerings and brand
Value and satisfaction
Market
Exchange
Product
Marketing channels
Media
Supply chain
Competition
Marketing environment
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10. Needs, wants and demand
Needs – states of felt deprivation
Wants – specific satisfiers of needs shaped
by culture, economic condition as well as
individual personality
Demand – human wants that are backed by
willingness, buying power and authority to
purchase.
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11. Segmentation, Targeting &
Positioning
Market Segmentation: Dividing a market into distinct
groups with distinct needs characteristics or behaviors who
might require separate products or marketing mixes.
Target Marketing: The Process of evaluating each market
segment’s attractiveness and selecting one or more
segments to enter.
Positioning: Arranging for a product to occupy a clear,
distinctive and desirable place relative to competing
products in the minds of target customers.
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12. Marketing offer and brand
Marketing offer: Some combination of products,
services, information or experiences offered to a
market to satisfy customer.
Brand : Any word, sign, symbol etc. for
identification and differentiation of product. It
includes brand name, brand mark and trade mark.
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13. Value and Satisfaction
Value – relationship between benefit and cost
Satisfaction – Comparison between customer’s
expectation and product performance
Expectation = performance
Expectation < performance
Expectation > Performance
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14. Market
Is place a market?
A market is the set of actual and potential buyers
of a product
Marketers are keenly interesting in markets
Marketer’s task is managing markets to bring
about profitable exchange relationship
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15. Exchange
Exchange is the act of obtaining a desired product
from someone by offering something in return
Transaction is marketer’s unit of measurement
A transaction consists of a trade of values between
two parties.
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16. Product
Anything offered by the marketer for customer’s
satisfaction
There are five levels of products
Core product
Actual product
Augmented product
Expected product
Potential product
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17. Marketing Channel
Communication channel – Radio, TV, newspaper,
magazine etc
Distribution channel – Agent, wholesaler, retailer
etc.
Service channel – transport co., warehouse, bank
and insurance co. etc.
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18. Supply Chain
Supply chain is a longer channel stretching
from raw materials to components to final
products that are carried to final buyers.
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19. Competition
Competition includes all the actual and
potential rivals offerings and substitutes a
buyer might consider.
Competition may be:
price competition or non-price competition
brand competition
Monopoly, monopolistic or perfect competition
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20. Marketing Environment
The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
It includes: Micro environment and macro
environment
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21. The New Marketing Realities
Technology
Globalization
Social Responsibility
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23. Company orientation towards
the market place
Production concept
Product concept
Selling concept
New marketing concept
Customer concept
Societal marketing concept
Holistic concept
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25. Traditional Four Ps
Product
Place
Price
Promotion
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26. Modern Marketing Management
four Ps (The new four Ps)
People
Process
Programs
Performance
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27. Marketing Management
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering
and communicating superior customer value.
Philip Kotler and Kevin Lane Keller
28. Marketing Management Task
Developing marketing strategies and plans
Capture marketing insights & performance
Connect with customers
Build strong brands
Shape the market offering
Deliver value
Communicate value
Create successful long-term growth
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29. Customer Perceived Value (CPV)
CPV is the difference between the prospective
customer’s evaluation of all the benefits and costs
of an offering and the perceived alternatives.
30.
31. Total Customer Benefits
Total customer benefit is the perceived monetary
value of the bundle of economic, functional, and
psychological benefits customers expect from a
given market offering because of the product,
service, people or image.
32. Total Customer Cost
Total customer cost is the perceived bundle of
costs customers expect to incur in evaluating,
obtaining, using, and disposing of the given
marketing offering, including monetary, time,
energy and psychological costs.