Marketing Managements- Asc1 Chapter 1

Front 1

What is Marketing?

Back 1

Marketing is an organizational function and a set of processes for creating,communicating, and delivering value to customers and for managingcustomer relationships in ways that benefit the organization and its stakeholders.

Front 2

Whatis Marketing Management?

Back 2

Marketing management is theart and science of choosing target markets and getting, keeping, and growing customers throughcreating, delivering, and communicatingsuperior customer value.

Front 3

Whatis Marketed?

Back 3

•Goods•Services•Events•Experiences •Persons•Places•Properties•Organizations •Information•Ideas

Front 4

Demand States

Back 4

1. Negative demand—Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product.
4. Declining demand—Consumers begin to buy the product less frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
6. Full demand—Consumers are adequately buying all products put into the marketplace.7. Overfull demand—More consumers would like to buy the product than can be satisfied.8. Unwholesome demand—Consumers may be attracted to products that have undesirable social consequences.

Front 5

KeyCustomer Markets

Back 5

Consumer markets, Business markets, Global markets, Nonprofit/Government markets

Front 6

Types of Needs

Back 6

Stated, Unstated, Real, Delight, Secret

Front 7

Marketing Environment

Back 7

Includes the task enviroment

&

Broad Enviroment

Front 8

MajorSocietal Forces in New Marketing

Back 8

1. Network information technology

2. Globalization

3.Deregulation

4. Privatization

5. Heightened competition

6. Industry convergence

7. Retail transformation

8. Disintermediation

9. Consumer buying power

10. Consumer participation

11. Consumer resistance

Front 9

Company orientations

Back 9

Production

Product

Selling

Marketing

Front 10

Relationship Marketing

Back 10

Customers ->Emplyees->Marketing Partners-> Financial Community

Front 11

Internal Marketing

Back 11

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

It ensures that everyone in the organization embraces appropriate marketing principles, especially senior management.

Internal marketing requires vertical alignment with senior management and horizontal alignment with other departments, so everyone understands, appreciates, and supports the marketing effort.

Front 12

Performance Marketing

Back 12

Financial Accountability

&

Social Responsibility Marketing

Front 13

Typesof Corporate Social Initiatives

Back 13

Corporate social marketing

Cause marketing

Cause-related marketing

Corporate philanthropy

Corporate community involvement

Socially responsible business practices

Front 14

The Marketing Mix

Back 14

Product

Price

Promotion

Place

Front 15

The 4 P's

Back 15

Are the updated P's from the marketing mix.

People
Processes
Programs
Performance

Front 16

Marketing Management Tasks

Back 16

Develop market strategies and plans

Capture marketing insights

Connect with customers

Build strong brands

Shape market offerings

Deliver value

Communicate value

Create long-term growth

Front 17

Core Concepts

Back 17

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands

Value and satisfaction

Marketing channels

Supply chain

Competition

Marketing environment

Marketing planning

Front 18

Why is marketing important?

Back 18

The heart of your business success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales.To a greater extent marketing is the means by which the public may learn about a product that benefits them as well.

Front 19

What is the scope of marketing?

Back 19

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Front 20

Markets And Prospects

Back 20

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.

Front 21

Marketplace

Back 21

Physcial Market

Front 22

Marketspace

Back 22

Digital Marketplace

Front 23

Metamarket

Back 23

cluster of complementary products and services closely related in the minds of consumers, but spread across a diverse set of industries

Example: The automobile metamarket consists of automobile manufacturers, new and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet.

Front 24

Needs

&Wants

Back 24

Needs are the basic human requirements such as for air, food, water, clothing, and shelter.

Humans also have strong needs for recreation, education, and entertainment. These needs become wants- AKA. You NEED food, but you WANT curry. Wants are shaped by society

Front 25

Demands

Back 25

Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it.

Front 26

5 types of Needs

Back 26

1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial price, is low.)3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)

Front 27

Target Markets
Positioning
& Segmentation

Back 27

marketers start by dividing the market into segments. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers.

After identifying market segments, the marketer decides which present the greatest opportunities—which are its target markets.

the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefit.

Front 28

Offerings and Brands

Back 28

An offering is a physical value proposition which can be a combination of products, services, information and experiences that physically address customer need.

A brand is an offering from a known source

EX: McDonald’= hamburgers, Kid friendly, golden arches

Front 29

value proposition

Back 29

the whole cluster of benefits the company promises to deliver.

Front 30

Value and Satisfaction

Back 30

value, the sum of the tangible and intangible benefits and costs.

Value perceptions increase with quality and service but decrease with price.

Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations

Front 31

customer value triad

Back 31

quality, service, and price (qsp)

Front 32

Communication channels

Back 32

newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet.

Front 33

distribution channels

Back 33

direct via the Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries.

Front 34

service channels

Back 34

warehouses, transportation companies, banks, and insurance companies.

Front 35

Supply Chain

Back 35

The supply chain is a longer channel stretching from raw materials to components to finished products carried to final buyers.

Each company captures only a certain percentage of the total value generated by the supply chain’s value delivery system. When a company acquires competitors or expands upstream or downstream, its aim is to capture a higher percentage of supply chain value.

Front 36

Competition

Back 36

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

Front 37

Task enviroment

Back 37

Part of the marketing Enviroment

The task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers.

In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunications companies.

Distributors and dealers include agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers.

Front 38

broad environment

Back 38

six components: demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political-legal environment.

Front 39

Disintermediation

Back 39

reduction in the use of intermediaries between producers and consumers (websites and digital media have especially expanded this)

Front 40

reintermediation

Back 40

What traditional companies do to fight disintermediaion. AkA.. Brick and mortar stores become brick and click stores.

Front 41

marketing planning

Back 41

consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort.

In practice, however, in the highly competitive marketplaces that are more often the norm, marketing planning is more fluid and is continually refreshed.

Front 42

To create a strong marketing organization

Back 42

marketers must think like executives in other departments, and executives in other departments must think more like marketers

Front 43

The Production Concept

Back 43

consumers prefer products that are widely available and inexpensive

Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution

This orientation makes sense in developing countries such as China or when marketers want to expand the market

Front 44

The Selling Concept

Back 44

consumers and businesses, if left alone, won’t buy enough of the organization’s products. It is practiced most aggressively with unsought goods—goods buyers don’t normally think of buying such as insurance and cemetery plots—and when firms with overcapacity aim to sell what they make, rather than make what the market wants.

Front 45

The Marketing Concept

Back 45

customer-centered, sense-and-respond philosophy. The job is to find not the right customers for your products, but the right products for your customers.

Front 46

The Holistic Marketing Concept

Back 46

Holistic marketing acknowledges that everything matters in marketing—and that a broad, integrated perspective is often necessary.Holistic marketing thus recognizes and reconciles the scope and complexities of marketing activities.

four broad components characterizing holistic marketing: relationship marketing, integrated marketing, internal marketing, and performance marketing

Front 47

Relationship Marketing

Back 47

aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business

Front 48

Four key constituents for relationship marketing are

Back 48

customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts)

Front 49

Integrated Marketing

Back 49

occurs when the marketer devises marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts.”

Two key themes are that

(1) many different marketing activities can create, communicate, and deliver value

(2) marketers should design and implement any one marketing activity with all other activities in mind.

Front 50

integrated communication strategy

Back 50

communication options that reinforce and complement each other. A marketer might selectively employ television, radio, and print advertising, public relations and events, and PR and Web site communications so each contributes on its own as well as improving the effectiveness of the others. Each must also deliver a consistent brand message at every contact.

Front 51

Performance Marketing

Back 51

requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.