Marketing management 01
Transcript of Marketing management 01
MARKETING MANAGEMENT
Ms. Kiran SharmaK.J.Somaiya Institute of Management Studies and Research
QUESTIONS TO BE ANSWERED….
Importance of marketing Scope of marketing Company orientations towards marketplace Fundamental marketing concepts Changes in Marketing Management
WHAT IS MARKETING?
Marketing is an organizational function
and a set of processes for creating, communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
Marketing Defined: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”
•Marketing is about managing profitable customer relationships•Attracting new customers•Retaining and growing current customers
WHAT IS 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.
Selling is only the tip of the iceberg
“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be
needed is to make the product or service available.”
Peter Drucker
What is Marketed?
GoodsGoods
ServicesServices
Events & ExperiencesEvents & Experiences
PersonsPersons
Places & PropertiesPlaces & Properties
OrganizationsOrganizations
InformationInformation
IdeasIdeas
DEMAND STATES
Negative Demand – dislike the product, may even pay a price to avoid it
Nonexistent Demand – Unaware or uninterested in the product
Latent Demand – Share a strong need cannot be satisfied by any existing product.
Declining demand – Buy the product less frequently or not at all.
Irregular demand – Purchases vary on a seasonal, weekly, daily or even hourly basis.
Full demand – Buy all products put into the marketplace Overfull demand – larger number of consumers would like
to buy the product than can be satisfied. Unwholesome demand – Attracted to products that have
undesirable social consequences
Structure of Flows in a Modern Exchange Economy
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
Simple Marketing System
Core Marketing Concepts
Understanding the Marketplace
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
•Need– State of felt deprivation– Example: Need food
•Wants– The form of needs as
shaped by culture and the individual
– Example: Want a Big Mac
•Demands– Wants which are backed by
buying power
Core Concepts
Understanding the Marketplace
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
Core Concepts •Marketing offer– Combination of
products, services, information or experiences that satisfy a need or want
– Offer may include services, activities, people, places, information or ideas
Understanding the 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
– Marketers must deliver value to consumers
•Satisfaction– A satisfied customer will buy
again and tell others about their good experience
Core Concepts
Value and Satisfaction
•Perceived Value– The customer’s evaluation of the difference
between benefits and costs.– Customers often do not judge values and costs
accurately or objectively.
•Customer Satisfaction– Product’s perceived performance relative to
customer’s expectations.
Understanding the 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 offering something in return
– One exchange is not the goal, relationships with several exchanges are the goal
– Relationships are built through delivering value and satisfaction
Core Concepts
For an exchange to occur….
• There are at least two parties.
• Each party has something that might be of value to the other party.
• Each party is capable of communication and delivery.
• Each party is free to reject the exchange offer.
• Each party believes it is appropriate or desirable to deal with the other party.
Understanding the Marketplace
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
•Market– Set of actual and potential
buyers of a product– Marketers seek buyers that
are profitable
Core Concepts
A MARKET
People or
Organizations
People or
Organizations
Moneyto
Spend
Moneyto
Spend
Willingnessto
Spend
Willingnessto
Spend
Needsto
Satisfy
Needsto
Satisfy
MarketMarket
I want it, I need it…..
5 Types of Needs
• Stated needs• Real needs• Unstated needs• Delight needs• Secret needs
The marketplace isn’t what it used to be…
Changing technologyChanging technology
GlobalizationGlobalization
DeregulationDeregulation
PrivatizationPrivatization
CustomizationCustomization
Consumer resistanceConsumer resistance
CompetitionCompetition
NEW CONSUMER CAPABILITIES
Substantial Increase in Buying power Greater variety of available goods and
services Greater amount of information about
practically anything Greater ease in interacting and placing and
receiving orders Ability to compare notes on products and
services A voice to influence peer and public opinions
Company Orientations
Production
Selling Marketing
Product
Production Concept
Product Concept
Selling Concept
Marketing Concept
Marketing Management Philosophies
•Widely available and expensive•High production efficiency•Low cost•Mass distribution
Best quality performanceInnovative featuresNew innovative products from time to time
‘Unsought goods’ – Buyers normally do not buy these products
‘Customer Centered’ – Focus not on finding the right customers for the products but finding the right products for the customers.
HOLISTIC MARKETING CONCEPT
Based on development, design and implementation of marketing programs, processes and activities.
Recognizes that “everything matters”.
Holistic Marketing Dimensions
The Selling and Marketing Concepts Contrasted
Marketing Mix and the Customer
Four Ps• Product• Price• Place• Promotion
Four Cs• Customer solution• Customer cost• Convenience• Communication
The Four P’s
The Four Ps
MarketingMix
Product
Price Promotion
Place
The Four CsThe Four Cs
CustomerSolution
CustomerCost
Communication
Conven-ience
Marketing-Mix Strategy
Marketing Management Tasks
• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value• Communicating
value• Creating long-term
growth