Post on 06-Apr-2018
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KEY CONCEPTS IN
MARKETING
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WHAT IS MARKETING?
Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others.
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PRODUCTS
MARKETS
NEEDS, WANTS
& DEMANDS
VALUE, SATISFACTION
& QUALITY
EXCHANGE, TRANSACTIONS
& RELATIONSHIPS
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NEEDS, WANTS AND DEMANDS
Need
States of felt deprivation.
physical, social and individual needs.
Wants
The form taken by human needs as they are
shaped by culture and individual personality.
Demands Human wants that are backed by buying power.
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PRODUCTS
Anything that can be offered to a market for
attention, acquisition, use, or consumption that
might satisfy a want or need. It includes physical
objects, services, persons, places, organizations,and ideas.
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VALUE, SATISFACTION &
QUALITY CustomerValue
The difference between the values the customer gains from
owning and using a product and the cost of obtaining the
product. CustomerSatisfaction
The extent to which a products perceived performance
matches a buyers expectations.
Total QualityManagement (TQM) Programs designed to constantly improve the quality of
products, services, and marketing process.
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EXCHANGE, TRANSACTIONS &
RELATIONSH
IPS Exchange
The act of obtaining a desired object from someone by
offering something in return.
Transaction A trade between two parties that involves at least two
things of value, agreed-upon conditions, a time of
agreement, and a place of agreement.
RelationshipMarketing The process of creating, maintaining and enhancing strong,
value-laden relationships with customers and other
stakeholders.
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MARKET
The set of all actual and potential buyers of a product orservice.
Marketplace physical, as when one goesshopping in a store
Marketspace is digital, as when one goesshopping on the internet
Metamarket used to describe a cluster of
complementary products and services that areclosely related in the minds of consumers but arespread across a diverse set of industries.
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A Simple Marketing SystemA Simple Marketing System
INDUSTRYINDUSTRY
(Acollection(Acollection
ofsellers)ofsellers)
MARKETMARKET
(Acollection(Acollection
ofbuyers)ofbuyers)
COMMUNICATIONCOMMUNICATION
INFORMATIONINFORMATION
GOODS & SERVICESGOODS & SERVICES
MONEYMONEY
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Structure of Flows in a Modern Exchange
Economy
RESOURCERESOURCE
MARKETSMARKETS
CONSUMERCONSUMER
MARKETSMARKETS
INTERMEDIARYINTERMEDIARY
MARKETSMARKETS
MANUFACTURERMANUFACTURER
MARKETSMARKETS
GOVERNMENTGOVERNMENT
MARKETSMARKETS
MONEYMONEY
RESOURCESRESOURCES
MONEYMONEY
RESOURCESRESOURCES
MONEYMONEYMONEYMONEY
GOODS & SERVICESGOODS & SERVICES GOODS & SERVICESGOODS & SERVICES
TAXES &TAXES &
GOODSGOODS
SERVICESSERVICES
& MONEY& MONEY
S&MS&M
TAXES &TAXES &
GOODSGOODS
SERVICESSERVICES
TAXESTAXES
S&MS&M T>&G
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MARKETING
means managing markets to bring about
exchanges for the purpose of satisfying human
needs and wants.
process by which individuals and groups obtainwhat they need and want through creating and
exchanging products and value with others.
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Main Actors and Forces in a Modern
Marketing System
S
UP
P
L
I
E
RS
COMPANY
(marketer)
COMPETITORS
MARKETING
INTERMEDIARIES
END
USER
MARKET
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Other Key Concepts
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Marketers and Prospects
Amarketeris someone seeking a response
(attention, a purchase, a vote, a donation)
from another party, called the prospect.
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Marketing Channels
Communicationchannels Deliver and receive messages from target buyers,
and include newspapers, magazines, etc
Distributionchannels Used to display, sell or deliver the physical
product or service(s) to the buyer or user.
Servicechannels
Used to carry out transactions with potentialbuyers.
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Supply Chain
Describes a longer channel stretching from raw
materials to components to final products that are
carried to final buyers.
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Competition
Includes all the actual and potential rival offerings
and substitutes that a buyer might consider.
FourLevels:
Brand competition
Industry competition
Form competition
Generic competition
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Marketing Environment
Taskenvironment Includes the immediate actors involved in
producing, distributing, and promoting the offering.
Broadenvironment
Consists of components which contain forces that
can have a major impact on the actors in the task
environment
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Marketing Program
Marketingprogram consists of numerous
decisions on the mix of marketing tools to use
Marketingmix set of marketing tools the
firm uses to pursue its marketing objectives in
the target market
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MARKETING MANAGEMENT
The analysis, planning, implementation, andcontrol of programs designed to create, build, and
maintain beneficial exchanges with target buyers
for the purpose of achieving organizational
objectives. Involves:
Demand Management
Demarketing - Marketing to reduce demand temporarily or
permanently the aim is not to destroy demand, but only to
reduce or shift it.
Customer Relationship Management
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Marketing Management Process
Situation Analysis Economic environment
State of macro-economy and changes in it also bring
marketing opportunities and constraints Examples
Factors of high inflation and unemployment levels
Changes in technology
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Marketing Management Process
Situation Analysis Social environment
Includes general cultural and social traditions, norms and
attitudes As values change, change brings the need for new
products and services
Public demand for a cleaner environment
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Marketing Management Process
Situation Analysis Political environment
Includes attitudes and reactions of the general public,
social and business critics
Legal environment
Includes federal, state and local legislation directed at
protecting both business competition and consumer rights.
Deregulation
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Marketing Management Process
Marketing planning Establishing objectives
Provides the framework for the marketing plan
Selecting the target market What do customers want?
What must be done to satisfy these wants or needs?
What is the size of the market?
What is its growth profile?
Developing the marketing mix
Controllable variables: product, price, promotion and place
(channels of distribution), must be managed to satisfy target
market and achieve objectives
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Marketing Management Process
Implementation and Control
Implementing
Putting the plan into action and performing marketing tasks
according to predefined schedule Marketing executives must closely monitor and coordinate
implementation of the plan
Controlling
Results are measured
Results are compared with objectives
Decisions are made on whether the plan is achieving
objectives
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Marketing management process
Analysis/Audit - where are we now?
Objectives - where do we want to
be? Strategies - which way is best?
Tactics - how do we get there?
Implementation - Getting there!
Control - Ensuring arrival
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The marketing opportunities faced byThe marketing opportunities faced by
organizations depend on the changing needs oforganizations depend on the changing needs ofsociety:society:
Consumers are becoming more sophisticatedConsumers are becoming more sophisticated
and more discerning in their expectations.and more discerning in their expectations.
Globalization of the worlds marketplace has notGlobalization of the worlds marketplace has not
only created new possibilities but also challengeonly created new possibilities but also challenge
of new competition.of new competition.
ExamplesExamples
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Why is marketing planning necessary?
Systematic futuristic thinking by management
better co-ordination of a companys efforts
development of performance standards forcontrol
sharpening of objectives and policies
better prepare for sudden developments
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MARKETING MANAGEMENTMARKETING MANAGEMENT
PHILOSOPHIESPHILOSOPHIES
fivefive different orientation of firms towards thedifferent orientation of firms towards the
marketplace:marketplace:
TheThe PRODUCTION CONCEPTPRODUCTION CONCEPTholds thatholds that
consumers will prefer products that are widelyconsumers will prefer products that are widely
available and inexpensive.available and inexpensive.
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MARKETING MANAGEMENTMARKETING MANAGEMENT
PHILOSOPHIESPHILOSOPHIES
TheThe PRODUCT CONCEPTPRODUCT CONCEPTholds that consumersholds that consumers
will favor those products that offer the most quality,will favor those products that offer the most quality,
performance, or innovative features.performance, or innovative features.
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MARKETING MANAGEMENTMARKETING MANAGEMENT
PHILOSOPHIESPHILOSOPHIESTheThe SELLING CONCEPTSELLING CONCEPTholds that consumers andholds that consumers and
businesses, will ordinarily not buy enough of thebusinesses, will ordinarily not buy enough of the
organizations products. The organization mustorganizations products. The organization must
therefore, undertake an aggressive selling andtherefore, undertake an aggressive selling and
promotion effort.promotion effort.
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MARKETING MANAGEMENTMARKETING MANAGEMENT
PHILOSOPHIESPHILOSOPHIES
TheThe MARKETING CONCEPTMARKETING CONCEPTholds that the key toholds that the key to
achieving its organizational goals consists of theachieving its organizational goals consists of the
company being more effective than competitors incompany being more effective than competitors in
creating, delivering,creating, delivering, andand communicating customercommunicating customer
value to its chosen target markets.value to its chosen target markets.
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MARKETING MANAGEMENTMARKETING MANAGEMENT
PHILOSOPHIESPHILOSOPHIES
TheThe SOCIETAL MARKETINGSOCIETAL MARKETING involves the marketerinvolves the marketer
paying attention not only to the needs of customerspaying attention not only to the needs of customers
but also to the wider natural and socialbut also to the wider natural and social
environment. Marketers concern for the naturalenvironment. Marketers concern for the naturalenvironment involves taking into account theenvironment involves taking into account the
environmental impact of production and distribution.environmental impact of production and distribution.
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PRODUCTIONPRODUCTION PRODUCTPRODUCT SALESSALES MARKETINGMARKETING SOCIETALSOCIETAL
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References
Principles ofMarketing, 7th ed. by Philip
Kotler and Gary Armstrong
MarketingManagement,AnAsian
Perspective 3rded.by Philip Kotler et al.