Objectives
• Course Organization
• Tasks of Marketing
• Major Concepts & Tools of Marketing
• Marketplace Orientations
• Marketing’s Responses to New
Challenges
Course/Text Organization
• Part I - Marketing Management
• Part II - Analyzing Marketing Opportunities
• Part III - Developing Marketing Strategies
• Part IV - Shaping the Market Offering
• Part V - Managing & Delivering Marketing
Programs
Defining Marketing
Marketing is a societal process
by which individuals and
groups obtain what they need
and want through creating,
offering, and freely
exchanging products and
services of value with others.
- Philip Kotler (p. 7)
What is Marketed?
• Goods
• Places
• Services
• Properties
• Events
• Organizations
• Experiences
• Information
• Persons
• Ideas
Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
The Marketing Environment
The macro-environment
The micro-environment
Political
factors
The Internal
environment
Economic
factors
Men
Money
Machinery
Materials
Minutes
Stakeholders
Technological
factors
Socio-cultural
factors
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.
Demand & Need States
I want...
I need…
•
•
•
•
•
•
•
•
•
•
•
•
•
Negative
Nonexistent
Latent
Declining
Irregular
Unwholesome
Full
Overfull
Stated needs
Real needs
Unstated needs
Delight needs
Secret needs
Simple Marketing System
Communication
Industry
(a collection
of sellers)
Goods/services
Money
Information
Market
(a collection
of Buyers)
The New Player Order
The marketplace isn’t what it used to be….
•
•
•
•
•
•
•
•
Changing technology
Globalization
Deregulation
Privatization
Or?
Empowerment
Customization
Convergence
Disintermediation
Structure of Flows
Resources
Resources
Resource
markets
Money
Services,
money
Taxes,
goods
Services,
money
Manufacturer
markets
Money
Taxes
Government
markets
Taxes,
goods
Services
Services,
money
Taxes,
goods
Money
Goods, services
Consumer
markets
Money
Intermediary
markets
Goods, services
Marketing Mix - The Four Ps
& The Four Cs
Marketing
Mix
Place
Product
Customer
Solution
Price
Customer
Cost
ConvenPromotion ience
Communication
Four Ps
Product
Product variety
Quality
Design
Features
Brand Name
Packaging
Sizes
Services
Warranties
Returns
Price
List price
Discounts
Allowances
Payment
period
Credit terms
Promotion
Sales
promotion
Advertising
Sales force
Public
relations
Direct
marketing
Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
Company Orientations Towards
the Marketplace
Production Concept
Consumers prefer products that are
widely available and inexpensive
Product Concept
Consumers favor products that
offer the most quality, performance,
or innovative features
Selling Concept
Consumers will buy products only if
the company aggressively
promotes/sells these products
Marketing Concept
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Customer Delivered Value
Starting
point
Focus
Means
Ends
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
(a) The selling concept
Market
Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
(b) The marketing concept
Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers
Customer-Oriented
Organization Chart
Customers
Front-line people
Middle management
Top
management
Evolving Views of Marketing’s
Role
Finance
Production
Marketing
Finance
Human
resources
a. Marketing as an
equal function
Production
Human
resources
Marketing
b. Marketing as a more
important function
Evolving Views of Marketing’s
Role
Production
Marketing
c. Marketing as the
major function
Customer
d. The customer as the
controlling factor
Evolving Views of Marketing’s
Role
Production
Marketing
Customer
e. The customer as the controlling
function and marketing as the
integrative function
Review
• Course Organization
• Tasks of Marketing
• Major Concepts & Tools of Marketing
• Marketplace Orientations
• Marketing’s Responses to New
Challenges