Marketing for the 21st Century 4239
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Transcript of Marketing for the 21st Century 4239
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INTRODUCTION
DEFINING MARKETNG FOR
THE 21ST
CENTURY
DEFINING MARKETNG FOR
THE 21ST
CENTURY
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THE WORLD OF MARKETINGTHE WORLD OF MARKETING
IMPORTANCE OF MARKETING
THE SCOPE OF MARKETING
COMPONY ORIENTATION TOWARDSTHE MARKET PLACE
FUNDAMENTAL MARKETING
CONCEPTS, TRENDS AND TASKS
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IMPORTANCE OF MARKETING IN
YOUR LIFE
IMPORTANCE OF MARKETING IN
YOUR LIFE Mar ketingis a largepart of yourdaily
life. Consumers areexposedto 3,000
commercial messages a day. Studyingmarketingwill make you a
better-informed customer.
Mar ketingprobably relates -- directly orindirectly -- to your career aspirations.
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Defining MarketingDefining Marketing
An organizational function and a set ofprocesses for creating,communicating, anddeliveringvalueto customers and formanaging customer relationshipsinwaysthat benefittheorganization anditsstakeholders
Mar ketingis a societal process by whichindividuals andgroups
obtainwhatthey need andwantthrough creating, offering, and freelyexchangingproducts andservices ofvaluewith others. (KOTLER)
Mar ketingis aboutmanagingprofitable customer relationships
Attractingnew customers
Retaining andgrowing current customers
Theprocess of buildingprofitable customer relationships by creatingvalue for customers and capturingvaluein return
An organizational function and a set ofprocesses for creating,communicating, anddeliveringvalueto customers and formanagingcustomer relationshipsinwaysthat benefitthe organization anditsstakeholders.
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Marketing ManagementMarketing Management
Mar ketingmanagement isthe art and
science of choosingtargetmarkets and
buildingprofitable relationshipswiththem. Thisdefinitionmustinclude answersto twoquestions:
What customerswill weserve?
How canweservethese customers best?
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What Can Be Marketed?What Can Be Marketed?
Fromseriousgoods andservicesto funthings
Goods andservicesmirror changesinpopular
culture
Marketingmessagesmay communicatemythsof a culture
Product: any good, service, oridea
Consumergoods/services
Business-to-businessgoods/services
Not-for-profitmarketing
Idea, place, andpeoplemarketing
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Simple Marketing SystemSimple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information
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Manufacturermarkets
Services,Services,moneymoney
Governmentmarkets
Services,Services,moneymoney
ServicesServices
Services,Services,moneymoney
TaxesTaxes
Taxes,Taxes,goodsgoods
Taxes,Taxes,
goodsgoods
Taxes,Taxes,goodsgoods
MoneyMoney MoneyMoney
Consumermarkets
Intermediary
marketsGoods, servicesGoods, services
Goods, servicesGoods, services
ResourcesResources ResourcesResourcesResourcemarkets
MoneyMoney MoneyMoney
Structure of FlowsStructure of Flows
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Customers
Front-line people
Middle Management
Top
Management
Traditional Organization ChartTraditional Organization Chart
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Customer-Oriented Organization ChartCustomer-Oriented Organization Chart
Customers
Front-line people
Middle management
Top
manage-
ment
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Evolving Views of Marketings RoleEvolving Views of Marketings Role
a. Marketing as an
equal function
FinanceProduction
Marketing Humanresources
b. Marketing as a more
important function
Finance
Humanresources
Marketing
Production
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Evolving Views of Marketings RoleEvolving Views of Marketings Role
c. Marketing as the
major function
Marketing
Production
d. The customer as the
controlling factor
Customer
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Evolving Views of Marketings RoleEvolving Views of Marketings Role
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
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DIFFERENCES BETWEEN MARKETING
AND SELLING.
DIFFERENCES BETWEEN MARKETING
AND SELLING.
Mar ketingistheprocess ofdetermining
customerwants andthendeveloping a
productto satisfy thatneed andstill yield asatisfactory profit. Itisexternally focused.
Sellingisproducing a product andthentrying
to persuade customersto purchaseit -- in
effect, tryingto alter consumerdemand. Itisinternally focused.
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QUALITY IN MARKETINGQUALITY IN MARKETING
Quality has three dimensions
Meeting and striving to exceed
customers requirements.
The absence of variation.
Total organizational commitment.
The best indicator of quality is
customer satisfaction.
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Core Concepts of MarketingCore Concepts of Marketing
Product or OfferingProduct or Offering
Value and SatisfactionValue and Satisfaction
Needs, Wants, and DemandsNeeds, Wants, and Demands
Exchange and TransactionsExchange and Transactions
Relationships and NetworksRelationships and Networks
Target Markets & SegmentationTarget Markets & Segmentation
Marketing ChannelsMarketing Channels
Supply ChainSupply Chain
CompetitionCompetition
Marketing EnvironmentMarketing Environment
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Understandingthe MarketplaceUnderstandingthe Marketplace
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Need
State of feltdeprivation
Example: Need food
Wants
The form ofneeds as
shaped by culture andthe
individual
Example: Want a chickenkarahe
Demands
Wantswhich are backed by
buyingpower
Core Concepts
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Marketing Is about Meeting NeedsMarketing Is about Meeting Needs
Meetingtheneeds ofdiversestakeholders
Buyers, sellers, investors, community
residents, citizens.
Mar keting concept
Identifying consumerneeds andproviding
productsthatsatisfy thoseneeds
Themodernmarketplace a mall, a mail-order catalog, a TV shopping
network, aneBay auction, or ane-
commerce Web site
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Understandingthe MarketplaceUnderstandingthe Marketplace
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Core Concepts Mar keting offer
Combination of
products, services,
information or
experiencesthatsatisfy
a need orwant
Offermay include
services, activities,
people, places,information orideas
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Understandingthe MarketplaceUnderstandingthe Marketplace
Needs, wants, and
demands Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Value
Customers form
expectations regarding
value
Valuepropositionincludesthe
whole bundle of benefitsthe
firmpromisesto deliver, not just
the benefits oftheproductitself
The ratio of coststo benefits
Satisfaction
A satisfied customerwill buy
again andtell others about
theirgoodexperience
Core Concepts
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Value and SatisfactionValue and Satisfaction
Perceived Value
The customersevaluation ofthedifference
between benefits and costs.
Customers oftendo not judgevalues andcosts accurately or objectively.
Valuepropositionincludesthewhole bundle of
benefitsthe firmpromisesto deliver, not just
the benefits oftheproductitself
Customer Satisfaction
Productsperceivedperformance relativeto
customersexpectations.
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Understandingthe MarketplaceUnderstandingthe Marketplace
Needs, wants, and
demands Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Exchange
The act of obtaining a
desired object from
someone by offeringsomethingin return
Oneexchangeisnotthe
goal, relationshipswith
several exchanges arethe
goal Relationships are built
throughdeliveringvalue and
satisfaction
Core Concepts
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Understandingthe MarketplaceUnderstandingthe Marketplace
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Mar ket
Set of actual andpotential
buyers of a product
Marketersseek buyersthat
areprofitable
Core Concepts
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The Evolution of
Marketing
The Evolution of
Marketing
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Production concept
Product concept
Selling concept
Marketing concept
Societal marketing conceptSocial marketing concept: satisfy customersneeds and also benefitsocietySustainability:meetingpresentneeds andensuringthat futuregenerations can
meettheirneeds
Marketing OrientationsMarketing Orientations
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Some industries and organizations remain at the
production-orientation stage.
PRODUCTION ORIENTATION
PROD
UCTION ORIENTATION SALES ORIENTATION
Other industries and organizations have progressed only to the
sales-orientation stage.
Many industries and organizations have progressed to the
marketing-orientation stage.
PROD
UCTIONORIENTATION SALESORIENTATION MARKETINGORIENTATION
Late 1800s Early 1930s Mid-1950s 1900s
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Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that arewidely available and inexpensive
Consumers favor products thatoffer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressivelypromotes/sells these products
Focuses on needs/ wants of targetmarkets & delivering value
better than competitors
Company Orientations Towardsthe
Marketplace
Company Orientations Towardsthe
Marketplace
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MarketIntegratedmarketing
Profits throughcustomer
satisfaction
Customerneeds
(b) The marketing concept
Factory Existingproducts Selling andpromotion Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
Customer Delivered ValueCustomer Delivered Value
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Marketing as an
Organizational Philosophy
Marketing as an
Organizational Philosophy
MarketingPhilosophy
SellingPhilosophy
ProductionPhilosophy
InternalFocus
ExternalFocus
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The Four PsThe Four PsThe Four PsThe Four Ps
Marketing
Mix
Product
Price Promotion
Place
The Four CsThe Four Cs
Customer
Solution
Customer
Cost
Communication
Conven-ience
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MARKETING MIXMARKETING MIX
1. PRODUCT: A good, service, idea to satisfy theconsumersneed.
2. PRICE: Whatisexchanged fortheproduct.
3. PROMOTION: Means of communicationbetweentheseller and buyer.
4. PLACEMENT: Means ofgettingtheproducttothe consumer.
5. POSITIOINING: Developing a marketing
strategy aimed atinfluencinghow a particularmarketsegmentperceives a good orserviceincomparisonto the competition.
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The Marketing PlanThe Marketing Plan
Transformsthemarketingstrategy into
action.
Includesthemarketingmix andthe4Psofmarketing
Product
Price
Place
Promotion
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Building Customer RelationshipsBuilding Customer Relationships
CRM Customer relationshipmanagement
Delightingthe Customer
The overall process of building andmaintainingprofitable customerrelationships by deliveringsuperior
customervalue andsatisfaction. Itdealswith all aspects of acquiring, keeping andgrowing customers.
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Capturing Value from CustomersCapturing Value from Customers
Customer Loyaltyand Retention
Share of
Customer
Customer Equity
Customerdelight
leadsto emotional
relationships andloyalty
Customer Lifetime
Valueshowstrueworth of a customer
Key ConceptsKey Concepts
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Capturing Value from CustomersCapturing Value from Customers
Customer Loyaltyand Retention
Share ofCustomer
Customer Equity
Share of customers
purchasein a
product category. Achievedthrough
offeringgreater
variety, cross-sellandup-sell
strategies.
Key ConceptsKey Concepts
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Capturing Value from CustomersCapturing Value from Customers
Customer Loyaltyand Retention
Share ofCustomer
Customer Equity
Share of customers
purchasein a
product category. Achievedthrough
offeringgreater
variety, cross-sellandup-sell
strategies.
Key ConceptsKey Concepts
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Capturing Value from CustomersCapturing Value from Customers
Customer Loyaltyand Retention
Share ofCustomer
Customer Equity
The combined customer
lifetimevalues of all
current andpotential
customers.
Measures a firms
performance, butin a
mannerthat looksto the
future. Choosingthe best
customersiskey
Key ConceptsKey Concepts
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Contemporary Marketing FrameworkContemporary Marketing Framework
Marketing
C
V
Global
Relationship
Productivity
Customer Value
Ethics
Entrepreneurship
Technology
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Transaction VersusRelationship Marketing
Transaction VersusRelationship Marketing
Long-Term Focus
We Oriented
Short-Term Focus
Me Oriented
Focus on Results
Emphasize Persuading
A Contest
Manipulation
Conflict
Transaction Marketing Relationship Marketing
Focus on Profits
Emphasize Helping
A Service
Trust
Cooperation
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GO TO THE WEBSITE OF UNIVERSITYOF MANAGEMENT AND TECHNOLOGY,
LAHORE PAKISTAN
www.umt.edu.pk