Key Marketing Concepts

8/3/2019 Key Marketing Concepts

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KEY CONCEPTS IN

MARKETING


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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.


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PRODUCTS

MARKETS

NEEDS, WANTS

& DEMANDS

VALUE, SATISFACTION

& QUALITY

EXCHANGE, TRANSACTIONS

& RELATIONSHIPS


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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.


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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.


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VALUE, SATISFACTION &

QUALITY CustomerValue

The difference between the values the customer gains from

owning and using a product and the cost of obtaining the

product. CustomerSatisfaction

The extent to which a products perceived performance

matches a buyers expectations.

Total QualityManagement (TQM) Programs designed to constantly improve the quality of

products, services, and marketing process.


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EXCHANGE, TRANSACTIONS &

RELATIONSH

IPS 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.

RelationshipMarketing The process of creating, maintaining and enhancing strong,

value-laden relationships with customers and other

stakeholders.


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MARKET

The set of all actual and potential buyers of a product orservice.

Marketplace physical, as when one goesshopping in a store

Marketspace is digital, as when one goesshopping on the internet

Metamarket used to describe a cluster of

complementary products and services that areclosely related in the minds of consumers but arespread across a diverse set of industries.


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A Simple Marketing SystemA Simple Marketing System

INDUSTRYINDUSTRY

(Acollection(Acollection

ofsellers)ofsellers)

MARKETMARKET

(Acollection(Acollection

ofbuyers)ofbuyers)

COMMUNICATIONCOMMUNICATION

INFORMATIONINFORMATION

GOODS & SERVICESGOODS & SERVICES

MONEYMONEY


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Structure of Flows in a Modern Exchange

Economy

RESOURCERESOURCE

MARKETSMARKETS

CONSUMERCONSUMER

MARKETSMARKETS

INTERMEDIARYINTERMEDIARY

MARKETSMARKETS

MANUFACTURERMANUFACTURER

MARKETSMARKETS

GOVERNMENTGOVERNMENT

MARKETSMARKETS

MONEYMONEY

RESOURCESRESOURCES

MONEYMONEY

RESOURCESRESOURCES

MONEYMONEYMONEYMONEY

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


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MARKETING

means managing markets to bring about

exchanges for the purpose of satisfying human

needs and wants.

process by which individuals and groups obtainwhat they need and want through creating and

exchanging products and value with others.


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Main Actors and Forces in a Modern

Marketing System

S

UP

P

L

I

E

RS

COMPANY

(marketer)

COMPETITORS

MARKETING

INTERMEDIARIES

END

USER

MARKET


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Other Key Concepts


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Marketers and Prospects

Amarketeris someone seeking a response

(attention, a purchase, a vote, a donation)

from another party, called the prospect.


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Marketing Channels

Communicationchannels Deliver and receive messages from target buyers,

and include newspapers, magazines, etc

Distributionchannels Used to display, sell or deliver the physical

product or service(s) to the buyer or user.

Servicechannels

Used to carry out transactions with potentialbuyers.


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Supply Chain

Describes a longer channel stretching from raw

materials to components to final products that are

carried to final buyers.


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Competition

Includes all the actual and potential rival offerings

and substitutes that a buyer might consider.

FourLevels:

Brand competition

Industry competition

Form competition

Generic competition


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Marketing Environment

Taskenvironment Includes the immediate actors involved in

producing, distributing, and promoting the offering.

Broadenvironment

Consists of components which contain forces that

can have a major impact on the actors in the task

environment


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Marketing Program

Marketingprogram consists of numerous

decisions on the mix of marketing tools to use

Marketingmix set of marketing tools the

firm uses to pursue its marketing objectives in

the target market


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MARKETING MANAGEMENT

The analysis, planning, implementation, andcontrol 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


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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


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Situation Analysis 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


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Situation Analysis 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


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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


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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


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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


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The marketing opportunities faced byThe marketing opportunities faced by

organizations depend on the changing needs oforganizations depend on the changing needs ofsociety:society:

Consumers are becoming more sophisticatedConsumers are becoming more sophisticated

and more discerning in their expectations.and more discerning in their expectations.

Globalization of the worlds marketplace has notGlobalization of the worlds marketplace has not

only created new possibilities but also challengeonly created new possibilities but also challenge

of new competition.of new competition.

ExamplesExamples


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Why is marketing planning necessary?

Systematic futuristic thinking by management

better co-ordination of a companys efforts

development of performance standards forcontrol

sharpening of objectives and policies

better prepare for sudden developments


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MARKETING MANAGEMENTMARKETING MANAGEMENT

PHILOSOPHIESPHILOSOPHIES

fivefive different orientation of firms towards thedifferent orientation of firms towards the

marketplace:marketplace:

TheThe PRODUCTION CONCEPTPRODUCTION CONCEPTholds thatholds that

consumers will prefer products that are widelyconsumers will prefer products that are widely

available and inexpensive.available and inexpensive.


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TheThe PRODUCT CONCEPTPRODUCT CONCEPTholds that consumersholds 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.


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PHILOSOPHIESPHILOSOPHIESTheThe SELLING CONCEPTSELLING CONCEPTholds that consumers andholds that consumers and

businesses, will ordinarily not buy enough of thebusinesses, will ordinarily not buy enough of the

organizations products. The organization mustorganizations products. The organization must

therefore, undertake an aggressive selling andtherefore, undertake an aggressive selling and

promotion effort.promotion effort.


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TheThe MARKETING CONCEPTMARKETING CONCEPTholds that the key toholds that the key to

achieving its organizational goals consists of theachieving its organizational goals consists of the

company being more effective than competitors incompany being more effective than competitors in

creating, delivering,creating, delivering, andand communicating customercommunicating customer

value to its chosen target markets.value to its chosen target markets.


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TheThe SOCIETAL MARKETINGSOCIETAL MARKETING involves the marketerinvolves the marketer

paying attention not only to the needs of customerspaying attention not only to the needs of customers

but also to the wider natural and socialbut also to the wider natural and social

environment. Marketers concern for the naturalenvironment. Marketers concern for the naturalenvironment involves taking into account theenvironment involves taking into account the

environmental impact of production and distribution.environmental impact of production and distribution.


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PRODUCTIONPRODUCTION PRODUCTPRODUCT SALESSALES MARKETINGMARKETING SOCIETALSOCIETAL


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References

Principles ofMarketing, 7th ed. by Philip

Kotler and Gary Armstrong

MarketingManagement,AnAsian

Perspective 3rded.by Philip Kotler et al.

Documents

Key Marketing Concepts