Part One:

Understanding of Marketing

( Chapter1-Chapter4)
What are they doing?

What are their need?

2
• What is Marketing ?

Old sense: making a sale – “telling and selling”

New sense: satisfying customer needs

3
• Marketing Defined

• A social and managerial process whereby

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

4
• Core marketing concepts
Needs,Wants,
and Demands

Markets Core Products and

Services
Marketing
Concepts

Exchange, Value,
Transactions, Satisfaction,
and relationships

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• Needs,Wants and Demands

• States of felt deprivation

Needs
• The form taken by human needs as they
are shaped by culture and individual personality.
Wands

• Human wants that are backed by buying

Demands
power .

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• Product and Service

•Product Anything that can be offered to a market

for attention,acquisition,use,or consumption that
might satisfy a want or need.

•Service Any activity or benefit that one party

can offer to another that is essentially intangible
and does not result in the ownership of anything.

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• Value, Satisfaction

• 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.

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• Exchange, Transaction and Relationships

Exchange the act of obtaining a desired

object from someone by offering something in
return.

Transactions
a trade between tow parties that
involves at least tow things of agreement, and a
place of agreement.

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• 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.

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• A simple marketing system

Communication

Industry Products-service Market

(a collection (a collection
of sellers) Money of buyers)

Information

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• Main actors and forces in a modern marketing
system

Company
(marketer)
Marketing End user
Suppliers intermediaries market

Competitors

Environment

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• Demarketing

Marketing to reduce demand temporarily; the

aim is not to destroy demand but only to reduce or shift
it.

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• Marketing management philosophies

Production concept

Product concept

Selling concept
Marketing concept

Social marketing concept

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• Production concept
The management should only focus on
improving production and distribution efficiency.

• Product concept
The organization should devote its energy to
making continuous product improvements.

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• Selling concept ）
The consumers will not buy enough of the
organization’s products unless the organization
undertakes a large-scale selling and promotion
effort.
• Marketing concept
To achieving organization’s goals depends on
determining the needs and wants of target markets
and delivering the desired satisfactions more
effectively and efficiently than competitors do.

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• The selling and marketing concepts contrasted(P.13)
Starting
Focus Means Ends
point

Existing Selling and Profit through

Factory products promoting sales volume

The selling concept

Integrated Profit through

Customer
Market Marketing Customer
needs
（整合营销） satisfaction

The marketing concept

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• Societal marketing concept

The organization should deliver the desired

satisfactions to their target market effectively and
efficiently in a way that maintains or improves the
consumer’s and society’s well being.

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• Societal Marketing concept

Society
(Human welfare)

Social
marketing
Customers concept Company
(Wants satisfaction) (Profits)

Three considerations underlying the Societal marketing concept

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• Bionomics marketing concept

To find the market demands that firm’s

resources can be match to.

“6R”:
Right time , Right place, Right product,
Right price, Right way, to Right customer

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• Marketing in “connected” millennium

Connections with
Customers
Connecting technologies

Computer
Information Connections with
Communication Marketing partners
Transportation

Connections with
World around us

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• Marketing connections

Connections with Connections with Connections with the

Customer Marketing partner world around us

Connecting more Connecting inside Global connections

selectively The company
Connections with values
Connecting for life Connecting with And responsibility
outside partners
Connecting directly Broadened connections

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• Marketing connections in transition
The Old Marketing Thinking The New Marketing Thinking
Connections with customers Connections with customers
Be sales and product centered Be market and customer centered
Practice mass marketing Target selected market segments or individuals
Focus on products and sales Focus on customer satisfaction and value
Make sales to customer Develop customer relationships
Get new customers Keep old customers
Grow share of market Grow share of customer
Serve any customer Serve profitable customer, “fire” losing ones
Communicate through mass media Connect with customers directly
Mack standardized products Develop customized products
Connections with marketing partners Connections with marketing partners
Leave customer satisfaction and value to Enlist all departments in the cause of customer
sales and marketing satisfaction and value
Go it alone Partner with other firm

Connection with the world around us Connection with the world around us
Market locally Market locally and globally
Assume profit responsibility Assume social and environmental responsibility
Market for profits Market for nonprofits
Conduct commerce in marketplace Conduct e-commerce in marketplace 23
• Marketing management (old define)

the analysis, planning, implementation,

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

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Marketing management (new define P.11)

• The art and science of choosing target markets

and building profitable relationships with
them. This involves getting, keeping, and
growing customers through creating,
delivering and communicating superior
customer value. Thus it involves managing
demand, which in turn involves managing
customer relationships.
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• The tasks of Marketing management (P.14)

Building
Demand Profitable Marketing
Management Customer Management
Relationships Practice

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• Marketing practice stages

Entrepreneurial Formulated Intrepreneurial

Marketing Marketing Marketing

原始营销 程式营销 创新营销

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• The company’s strategic planning

Business unit
Corporate lever Product and
market

Setting
Defining Designing Planning,marketing
company
the company the business And other
objectives Functional strategies
mission portfolio
and goals

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• The BCG matrix

Star Question mark

Cash cow Dog

High low
Relative market share

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• Product-market expansion grit
Existing New
products products

Existing Market product

markets penetration development

New Market
Diversification
markets development

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The marketing process
Marketing Competitors
intermediaries

Product

Profitable
Place

Customer
relationships

Market
positioning

Promotion

Suppliers Publcs 31
Major Force Shaping the Internet Age

Digitalization
connectivity

Customization and The Digital The explosion of

customerization Age the internet

New types of
intermediaries

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• Customization involves taking the initiative to
customize the market offering.

• Customerization ：leaving it to individual

customer to design the marketing offering–
allowing customer to be prosumers rather than
only consumers.

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• Marketing environment

The actors and forces outside marketing

that affect marketing management’s ability
to develop and maintain successful
transactions with its target customers.

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• Marketing environment

Macro-environment

Micro-environment

Marketing
department

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• The microenvironment

Company’s
Internal
environment
Publics Suppliers
Company’s
marketing
Marketing
Competitors intermediaries
Customers

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• The company’s internal environment

Top
management
Accounting Finance

Marketing
Manufacturing R&D

Purchasing

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• The macro-environment

Demographic
forces
Cultural Economic
forces forces
Microenvironment

Company

Political Natural
forces forces

Technological
forces
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