Marketing Management: Chapter One

MARKETING MANAGEMENT

Chapter One Shabir Ahmad Saleem

What is Marketing?

Marketing is the 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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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.

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Exchange Core concept of marketing The process of obtaining a desired product from someone by offering something in return

For an exchange to occur…..  

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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. 1-4

What is Marketed?  

Goods: mobile, TV, car, food products Services: Work of: airline, hotels, maintenance, lawyer, software programmer

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Events: Trade shows, artistic performance, sporting events Experiences: By orchestrating several services and goods Persons: Show TV of Celebrities, their attendance in parties Places: Cities, states, regions, and whole nations compete actively to attract tourists

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Properties: marketing securities and other copy right properties Organizations: Universities, museums, and performing arts

organizations use marketing to boost their public images and to compete for audiences and funds.  Information: what schools and universities produce and distribute at a price to parents, students, and communities.

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What is Marketed? 

Ideas

Products and services are platforms for delivering some idea or benefit

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Who Markets? 

Marketers or Prospects?

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A marketer is some one who seeks response from another party, called the prospect

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Marketers are responsible for demand management as stimulating demand for a company's products Prospects are responsible for supply management

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Demand States 

Negative demand-

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2. Nonexistent demand -

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3. Latent demand -

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4. Declining demand -

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5. Irregular demand

Consumers dislike the product and may even pay a price to avoid it. Consumers may be unaware or uninterested in the product. Consumers may share a strong need that cannot be satisfied by an existing product. Consumers begin to buy the product less frequently or not at all - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

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Demand States 

6. Full demand -

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7. Overfull demand -

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8. Unwholesome demand -

Consumers are adequately buying all products put into the marketplace. More consumers would like to buy the product than can be satisfied. Consumers may be attracted to products that have undesirable social consequences.

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Markets  Market is a collection of buyers and sellers

who transact over a particular product or product class (e.g., the housing market or grain market)

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Key Customer Markets 

Consumer markets:

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Business markets:

Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image. Companies selling business goods and services to business buyers and business buyers buy goods in order to make or resell a product to others at a profit.

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Key Customer Markets 

Global markets:

Companies selling goods and services in the global marketplace Wall climbing on a Coke ad to attract attention (and customers) at the first China International Beverage Festival in Beijing in 2003.

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Nonprofit/Government markets Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies

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Company Orientations Toward the Marketplace 

Production Concept: It holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.

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Product Concept : It holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products and improving them over time.

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Company Orientations Toward the Marketplace Selling Concept :

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It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products. The organization must, therefore, undertake an aggressive selling and promotion effort.

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Marketing Concept : It holds that achieving organizational goals depends on determining the needs and wants of target markets and creating, delivering and communicating the desired satisfactions more effectively and efficiently than competitors do.

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Marketing Mix and the Customer The set of controllable tactical marketing tools product, price, place and promotion - that the firm blends to produce the response it wants in the target market.

Four Ps  Product  Price  Place  Promotion 1-15

Four Cs  Customer solution  Customer cost  Convenience  Communication

Core Concepts 

Needs- basic human requirements: food, air, water, clothing, and shelter to survive.

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Wants –

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Demands –

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needs directed to specific object

wants backed by ability to pay

Core Concepts 

Types of needs

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Stated needs: (the customer wants an inexpensive car). Real needs: (the customer wants a car whose operating

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cost, not its initial price, is low).

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Unstated needs:

(the customer expects good service

from the dealer).

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Delight needs: (the customer would like the dealer to include an onboard navigation system).

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Secret needs:

(the customer wants to be seen by friends as a savvy consumer).

Core Concepts 

Target markets: 

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A set of buyers sharing common needs or characteristics that the company decides to serve.

Positioning 

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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers. E.g. Volvo develops its cars for buyers in term of safety.

Core Concepts 

Segmentation: 

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Offerings: 

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A set of benefits that the companies offer to the customers to satisfy their needs

Brands: 

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The process of dividing a potential market into different subsets of consumers and selecting one or two segments as a target market to reached with different marketing max.

A brand is an offering from a known source. E.g. McDonald's carries

Core Concepts 

Marketing channels:

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To reach a target market, the marketer uses three kinds of marketing channels.

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Communication channels deliver and receive messages from target buyers, and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet.

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The marketer uses distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user. They include distributors, wholesalers, retailers, and agents.

Core Concepts 

Marketing channels: 

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The marketer also uses service channels to carry out transactions with potential buyers. Service channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions.

Core Concepts 

Supply chain: 

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describes a longer channel stretching from raw materials to components to final products that are carried to final buyers.

Competition 

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Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider.