MARKETING

• Welcome!
• Instructor: Wang Yan 王艳
• Email: [email protected]
• Office: Room 1409, Sanjiang Building
• Time： Wednesday 2：00pm-3：00pm
• wechat：13952867137
• Welcome!
Textbook:
A FRAMEWORK
for
MARKETING
MANAGEMENT,
by Philip Kotler
• Welcome!
• A four-part organization covers understanding
marketing management, analyzing marketing
opportunities, making marketing decisions, and
managing and delivering marketing programs.
Readers will be able to see how marketing managers
have applied key principles in actual company
situations, making explicit the connection between
theory and implementation at leading. For anyone
interested in the field of marketing—and its
relationship with the consumer.
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 • Welcome!
• Philip Kotler (born May 27, 1931 in Chicago, Illinois)
• an American marketing author, consultant, and professor;
currently the S. C. Johnson Distinguished Professor of
International Marketing at the Kellogg School of
Management at Northwestern University. He is the author of
over 55 marketing books, including Principles of
Marketing, Kotler on Marketing: How to Create, Win, and
Dominate Markets, and Marketing 3.0: From Products to
Customers to the Human Spirit. Kotler describes strategic
marketing as serving as "the link between society's needs and
its pattern of industrial response."[1] In 2013, WOBI, during
World Marketing Forum gave the Kotler award to the best of
marketing in Mexico. This award went to Marcela Velasco,
Marketing Director at Telcel.
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Chapter 1
Defining
Marketing
for the
21st Century
 Chapter Questions

• Why is marketing important?

• What is the scope of marketing?
• What are some fundamental marketing
concepts?
• What are the tasks necessary for
successful marketing management?
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• What do you think are the
marketing activities?
• Can you name some of the
marketing activities?
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• Marketing in everyday life
 Ads on TV
 Shopping
 Junk mail
 Organizations purchase machinery from a
manufacturer’s salesperson
 …….

• Try to think: true or not

Marketing was :
 advertising.
 getting people to buying things they do not need.
 a superficial activity compared to the real work of
inventing and producing products and services.
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 What Is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders
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 One of the shortest definition
Marketing is “meeting needs profitably”

IKEA:
• What people
want?
•Good furniture;
•Low price.

• Knock-down
furniture. 1-
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 Amazon.com:
Obsessed with Creating Customer Value and Relationships

• Amazon.com’s deep-down passion for

creating customer value and relationships has
made it the world’s leading online retailer.
• Amazon has become the model for companies
that are obsessively and successfully focused on
delivering customer value.

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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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 Selling Is Only the Tip of the Iceberg

“the art of selling products”???

Design the “right” product.

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 “There will always be a need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
Peter Drucker the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
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 What Is Marketed?
Goods
Services
Events and experiences
Persons
Places
Organizations
Information
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Scale of Market Entities

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Figure 1.1 A Simple Marketing System

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A Modern Marketing System

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Company Orientations

Production Product

Selling Marketing

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 (1) Production Concept

• Assumes consumers want products that are available , highly

affordable and low prices .

• Focus on Price
• Implies management should focus on improving production
and distribution efficiency.
• Useful when:
demand exceeds supply
product cost is too high
One company want to expand the market
 (2)Product Concept
We know what
Assumes consumers want product that people want…
offer the most quality, performance, and they want our
features. product.

focus on the product, not the customer.

Implies the firm should make
continuous product improvements
Company is product oriented
 (3) Selling Concept
• Assumes consumers will not buy enough product unless there is a
strong sales and promotional effort.

• Focus on Selling Existing Products

• The salesperson as order-taker
 Characterized by product demonstrations and unsophisticated
sales techniques
 Emphasis on the product
 Product created and then sold
 Management is sales-volume oriented
 Stresses needs of the seller
 (3) Selling Concept

• Assumes consumers will not buy enough product unless there is a

strong sales and promotional effort.

• Useful for:
unsought goods
nonprofit areas
 (4)The Marketing Concept
• Assumes that achieving the organization’s goals depends on
determining and satisfying consumers more effectively and
efficiently than competitors.
• Emphasis is on customer’s needs and wants
Customer’s wants drive production
Management is profit-oriented
Planning is long-run
Stresses wants of buyers
•Issue:“An organization should seek to make a profit by serving the
needs of customer groups”
Holistic Marketing Dimensions

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 Relationship marketing

• Relationship marketing has the aim of building

long-term mutually satisfying relations with key
parties—customers, suppliers, distributors and other
marketing partners—in order to earn and retain their
long-term preference and business.
• The outcome of relationship marketing is the
building of a unique company asset called a
marketing network. 1-
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 Key Themes of Integrated
Marketing

Many different All marketing

marketing activities
activities are coordinated
used to to maximize
communicate their
and deliver value joint effects
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The Four P Components
of the Marketing Mix

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 Marketing Mix and the Customer

Four Ps Four Cs
• Product • Customer solution
• Price • Customer cost
• Place • Convenience
• Promotion • Communication

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Four Ps vs. Four Cs
• Four Ps represent the seller’s view of
marketing tools available for influencing
buyers.
• Form a buyer’s point of view, each
marketing tool is designed to deliver a
customer benefit.
• Robert Lauterborn suggested that the
sellers’ four Ps correspond to the
customers’ four Cs. 1-
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Marketing-Mix Strategy

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 Internal marketing
• Internal marketing(IM)is a process that occurs within a company or
organization whereby the functional process aligns, motivates and
empowers employees at all management levels to deliver a
satisfying customer experience.
• Over recent years internal marketing has increasingly been
integrated with employer branding, and employer brand
management, which strives to build stronger links between the
employee brand experience and customer brand experience.
According to Burkitt and Zealley, "the challenge for internal
marketing is not only to get the right messages across, but to embed
them in such a way that they both change and reinforce employee
behaviour". 1-
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 Internal Marketing

• Employees contribute to building long-term relationships with

customers
• Step 1: Select employees with positive attitudes
• Step 2: Train, motivate, and empower employees
• Step 3: Establish standards for employee performance
• Step 4: Monitor actions and reward good performance

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 Internal marketing
• Internal marketing means applying the philosophy and
practices of marketing to the people who serve the
external customer so that the best possible people can be
employed and retained and they will do the best
possible work.
• Therefore, the phrase internal marketing refers and
concerns marketing to employees.
• More specifically, internal marketing is viewing
employees as internal customers, viewing jobs as
internal products, and (just as with external marketing)
endeavoring to design these products to meet the needs
of these customers better. 1-
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 Societal Marketing Concept

An organization’s task is to determine

the needs, wants, and interests
of target markets and to deliver
the desired satisfaction
more effectively and efficiently
than competitors in a way
that preserves or enhances the
well-being of both consumer and society.1-
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 Societal Marketing Concept
• Assumes that customer
satisfaction should be Society
delivered in a way that (Human Welfare)
maintains or improves
the consumer’s and
society’s well-being.
• a customer’s Societal
wants/needs may Marketing
be at odds with Concept
what is good for
society. e.g., Consumers Company
pollution control (Wants) (Profits)
 Fundamental Marketing Concepts

• Needs, wants, and demands • Marketing channels

• Target markets, positioning, • Supply chain
segmentation • Competition
• Offerings and brands • Marketing environment
• Value and satisfaction • Marketing planning

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 Fundamental Marketing Concepts(1)

• Needs - state of felt deprivation for basic items such

as food and clothing and complex needs such as for
belonging.
• Wants - form that a human need takes as shaped by
culture and individual personality. i.e.
• Demands - human wants backed by buying power.
i.e.
• A company can define its target but fail to correctly
understand the customers’ needs. Understanding
customer needs and wants is not always simple.
Some customers have needs of which they are not fully
conscious.
They can’t use the corrective words to describe what they want.
Maybe the customers could not know the trend of economy
development.
……
 I Want It, I Need It...
Five Types of Needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

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 What Will Satisfy Consumer’s
Needs and Wants?

• Products - anything that can • Services - activities or

be offered to a market for benefits offered for sale that
attention, acquisition, use or are essentially intangible and
consumption and that might don’t result in the ownership
satisfy a need or want. of anything.
• Examples: persons, places, • Examples: banking, airlines,
organizations, activities, and haircuts, and hotels.
ideas.
Fundamental Marketing Concepts(2)

• Target Markets and Segmentation - Every

product or service contains features which a
marketer must translate into benefits for a target
market. It is these benefits the consumer
perceives to be available in a product and directly
impacts the perceived ability to meet the
consumer need(s) or want(s).
• offering - Anything offered for sale that satisfies
a need or want.
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 Fundamental Marketing Concepts(2)
• Value and Satisfaction - Value is the consumer’s estimate
of the product’s overall capacity to satisfy his or her needs
determined according to the lowest possible cost of
acquisition, ownership and use.
• Marketing Channels - Reaching the target market is
critical. To do this the marketer can use two-way
communication channels (media- newspapers through the
Internet), versus more traditional means. The marketer
also must decide on the distribution channel, trade
channels and selling channels (to effect transactions).
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 Satisfied Customers:

• Are loyal longer

• Buy more (new products & upgrades)
• Spread favorable word-of-mouth
• Are more brand loyal (less price sensitive)
• Offer feedback
• Reduce transaction costs
• Competition - Includes actual and potential rival offerings
and substitutes. A broad view of competition assists the
marketer to recognize the levels of competition, based on
substitutability: brand, industry, form and generic.
• Marketing Environment - Includes the task (immediate
actors in the production, distribution and promotional
environments) and the broad environments (demographic,
economic, natural, technological, political-legal and social-
cultural).
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Fundamental Marketing Concepts

Products
Needs, wants,
and demands

Core
Marketing
Concepts
Markets Value,
satisfaction,
and quality
Exchange, transactions,
and relationships
Factors Influencing Marketing Strategy

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 Shift in Marketing Management (1)

● Marketing does Marketing ==> Everyone does Marketing

● Organizing by Product units ==> by Customer segments
● Making everything ==> buying more G&S from outside
● using many suppliers ==> working with fewer in a
partnership
● relying on old marketing positions ==> uncovering new ones
● emphasizing tangible assets ==> intangible assets
● building brands through advertising ==> through 1-
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performance & integrated communications
 Shift in Marketing Management(2)
● attracting customer through stores & salespeople ==>making products
available online
● selling to everyone ==> being the best firm serving well-defined target
markets
● focusing on profitable transactions ==> on customer
lifetime value
● focus on gaining market share ==> on building customer share
● being local ==> being “glocal” (both global & local)
● focusing on financial scorecard ==> on marketing scorecard
● focusing on shareholders ==> on stakeholders 1-
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 Marketing Management Tasks
• Developing marketing • Shaping market offerings
strategies • Delivering value
• Capturing marketing insights • Communicating value
• Connecting with customers • Creating long-term growth
• Building strong brands

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 Assignment

• The class should be divided into five groups. (There

are five students in a group).
• A team leader should be elected.
• Email me the list before September 10th.

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• Let's say that
• Each group should set up a company and select one
product for sale.
• Assignments ——
• Next Monday each group should give a PowerPoint
presentation in ten minutes, include:
1. Introduce your company and product
2. Defining the company mission
3. Using SWOT analysis to identify internal strengths and
weaknesses, external opportunities and threats
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