Key concepts-in-marketing m1c1

KEY CONCEPTS IN MARKETING

maureen castillodyna enadcarelle trisha espitalethel silva

WHAT IS MARKETING?

Marketing – is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

PRODUCTS

MARKETS

NEEDS, WANTS& DEMANDS

VALUE, SATISFACTION& QUALITY

EXCHANGE, TRANSACTIONS& RELATIONSHIPS

NEEDS, WANTS AND DEMANDS Need

States of felt deprivation. physical, social and individual needs.

Wants The form taken by human needs as they are

shaped by culture and individual personality. Demands

Human wants that are backed by buying power.

PRODUCTS

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas.

VALUE, SATISFACTION & QUALITY Customer Value

The difference between the values the customer gains from owning and using a product and the cost of obtaining the product.

Customer Satisfaction The extent to which a product’s perceived performance

matches a buyer’s expectations. Total Quality Management (TQM)

Programs designed to constantly improve the quality of products, services, and marketing process.

EXCHANGE, TRANSACTIONS & RELATIONSHIPS Exchange

The act of obtaining a desired object from someone by offering something in return.

Transaction A trade between two parties that involves at least two

things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

Relationship Marketing The process of creating, maintaining and enhancing strong,

value-laden relationships with customers and other stakeholders.

MARKET

The set of all actual and potential buyers of a product or service.

Marketplace – physical, as when one goes shopping in a store

Marketspace – is digital, as when one goes shopping on the internet

Metamarket – used to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.

A Simple Marketing SystemA Simple Marketing System

INDUSTRYINDUSTRY(A collection(A collectionof sellers)of sellers)

MARKETMARKET(A collection(A collectionof buyers)of buyers)

COMMUNICATIONCOMMUNICATION

INFORMATIONINFORMATION

GOODS & SERVICESGOODS & SERVICES

MONEYMONEY

Structure of Flows in a Modern Exchange Economy

RESOURCERESOURCEMARKETSMARKETS

CONSUMERCONSUMERMARKETSMARKETS

INTERMEDIARYINTERMEDIARYMARKETSMARKETS

MANUFACTURERMANUFACTURERMARKETSMARKETS

GOVERNMENTGOVERNMENTMARKETSMARKETS

MONEYMONEY

RESOURCESRESOURCES

MONEYMONEY

RESOURCESRESOURCES

MONEYMONEY MONEYMONEY

GOODS & SERVICESGOODS & SERVICES GOODS & SERVICESGOODS & SERVICES

TAXES &TAXES &GOODSGOODS

SERVICESSERVICES& MONEY & MONEY

S&MS&M

TAXES &TAXES &GOODSGOODS

SERVICESSERVICES

TAXESTAXES

S&MS&M T&GT&G

MARKETING

means managing markets to bring about exchanges for the purpose of satisfying human needs and wants.

process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Main Actors and Forces in a Modern Marketing System

SUPPLIERS

COMPANY

(marketer)

COMPETITORS

MARKETING

INTERMEDIARIES

END USER

MARKET

Other Key Concepts

Marketers and Prospects

A marketer is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect.

Marketing Channels

Communication channels Deliver and receive messages from target buyers,

and include newspapers, magazines, etc… Distribution channels

Used to display, sell or deliver the physical product or service(s) to the buyer or user.

Service channels Used to carry out transactions with potential

buyers.

Supply Chain

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

Competition

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

Four Levels: Brand competition Industry competition Form competition Generic competition

Marketing Environment

Task environment Includes the immediate actors involved in

producing, distributing, and promoting the offering. Broad environment

Consists of components which contain forces that can have a major impact on the actors in the task environment

Marketing Program

Marketing program – consists of numerous decisions on the mix of marketing tools to use

Marketing mix – set of marketing tools the firm uses to pursue its marketing objectives in the target market

MARKETING MANAGEMENT The analysis, planning, implementation, and

control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

Involves: Demand Management

Demarketing - Marketing to reduce demand temporarily or permanently – the aim is not to destroy demand, but only to reduce or shift it.

Customer Relationship Management

Marketing Management Process Situation Analysis

Economic environment State of macro-economy and changes in it also bring

marketing opportunities and constraints Examples

Factors of high inflation and unemployment levels Changes in technology


Social environment Includes general cultural and social traditions, norms and

attitudes As values change, change brings the need for new

products and services Public demand for a cleaner environment


Political environment Includes attitudes and reactions of the general public,

social and business critics

Legal environment Includes federal, state and local legislation directed at

protecting both business competition and consumer rights. Deregulation

Marketing Management Process Marketing planning

Establishing objectives Provides the framework for the marketing plan

Selecting the target market What do customers want? What must be done to satisfy these wants or needs? What is the size of the market? What is its growth profile?

Developing the marketing mix Controllable variables: product, price, promotion and place

(channels of distribution), must be managed to satisfy target market and achieve objectives

Marketing Management Process Implementation and Control

Implementing Putting the plan into action and performing marketing tasks

according to predefined schedule Marketing executives must closely monitor and coordinate

implementation of the plan

Controlling Results are measured Results are compared with objectives Decisions are made on whether the plan is achieving

objectives

Marketing management process Analysis/Audit - where are we now? Objectives - where do we want to

be? Strategies - which way is best? Tactics - how do we get there? Implementation - Getting there! Control - Ensuring arrival

The marketing opportunities faced by The marketing opportunities faced by organizations depend on the changing needs of organizations depend on the changing needs of society:society:

• Consumers are becoming more sophisticated Consumers are becoming more sophisticated and more discerning in their expectations.and more discerning in their expectations.

• Globalization of the world’s marketplace has not Globalization of the world’s marketplace has not only created new possibilities but also challenge only created new possibilities but also challenge of new competition.of new competition.

• Examples Examples

Why is marketing planning necessary? Systematic futuristic thinking by management better co-ordination of a company’s efforts development of performance standards for

control sharpening of objectives and policies better prepare for sudden developments

MARKETING MARKETING MANAGEMENT MANAGEMENT PHILOSOPHIESPHILOSOPHIES

fivefive different orientation of firms towards the different orientation of firms towards the marketplace:marketplace:

The The PRODUCTION CONCEPTPRODUCTION CONCEPT holds that holds that consumers will prefer products that are widely consumers will prefer products that are widely available and inexpensive.available and inexpensive.


The The PRODUCT CONCEPTPRODUCT CONCEPT holds that consumers holds that consumers will favor those products that offer the most quality, will favor those products that offer the most quality, performance, or innovative features.performance, or innovative features.

MARKETING MARKETING MANAGEMENT MANAGEMENT PHILOSOPHIESPHILOSOPHIES The The SELLING CONCEPTSELLING CONCEPT holds that consumers and holds that consumers and businesses, will ordinarily not buy enough of the businesses, will ordinarily not buy enough of the organization’s products. The organization must organization’s products. The organization must therefore, undertake an aggressive selling and therefore, undertake an aggressive selling and promotion effort.promotion effort.


The The MARKETING CONCEPTMARKETING CONCEPT holds that the key to holds that the key to achieving its organizational goals consists of the achieving its organizational goals consists of the company being more effective than competitors in company being more effective than competitors in creating, delivering,creating, delivering, andand communicating customer communicating customer value to its chosen target markets.value to its chosen target markets.


The The SOCIETAL MARKETINGSOCIETAL MARKETING involves the marketer involves the marketer paying attention not only to the needs of customers paying attention not only to the needs of customers but also to the wider natural and social but also to the wider natural and social environment. Marketers’ concern for the natural environment. Marketers’ concern for the natural environment involves taking into account the environment involves taking into account the environmental impact of production and distribution. environmental impact of production and distribution.

PRODUCTIONPRODUCTION PRODUCTPRODUCT SALESSALES MARKETINGMARKETING SOCIETALSOCIETAL

References

Principles of Marketing, 7th ed. by Philip Kotler and Gary Armstrong

Marketing Management, An Asian Perspective 3rd ed. by Philip Kotler et al.

Business

Key concepts-in-marketing m1c1