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24 views42 pages

Chapter 1

Uploaded by

zoyababar7799
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 1

Understanding Marketing

The future is not ahead


of us. It has already
happened.
Philip Kotler
The learning objectives:

•What is Market?
•What is Marketing and marketing management?
•Marketing core Concepts
•Marketing management philosophies

2
1. Market

Market means that customers who have


purchased or want to purchase a certain
product or service.
Market
= population+ Purchasing Power
+ Purchasing Need

Examples:
How to understand the market of purified
water
what is the market of Nike?how to
understand the Nike’s market?
Market

• Consumer Market
• Business Market
• Global Market
• Nonprofit and Government Markets
Consumer Market

The aim of buying is to consume for their


own or somebody who has something to
do with in consumer market.
Business Market

Business buyers buy goods for their


utility in enabling them to make or resell
a product to others for the purpose of
making profits.
Global Market

Companies selling their goods and services in


the global marketplace face additional
decisions and challenges.
Nonprofit and Government
Markets

Companies selling their goods to nonprofit


organizations such as churches, universities,
charitable organizations, or government
agencies.
Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
2.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
Marketing

Is the process of planning and executing


the conception,pricing,promotion,and
distribution of ideas,goods,services to
create exchanges that satisfy individual
and organizational goals.
Product and service

Product---Anything that can be offered to a


market for attention, acquisition, use or
consumption that might satisfying a want or
need. It includes physical objectives, services,
persons, places, organizations and ideas.
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.
The Scope of Marketing

Goods Services
Experience Events
Persons Places
Properties Organizations
Information Ideas
Target Market and Segmentation

• the relationship between the industry and market


•Marketplace & Marketspace
• five basic markets
Marketplace and Marketspace

•Marketplace is physical, as when one goes


shopping in a store,
•Marketspace is digital, as when someone
shopping on the internet.
Five Basic Market
(figure 1.2 P9)

•Manufacturer markets
•Resource markets
•Government markets
•Intermediary markets
•Consumer markets
Structure of Flows
Resources Resources
Money Resource Money
markets
Services, Taxes,
money goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services
Customer Delivered Value
Starting
point Focus Means Ends

Existing Selling and Profits through


Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through


Market needs marketing 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

s
Cu

er
st

om
om

Top

st
er

manage-

Cu
s

ment
Evolving Views of Marketing’s Role
Production

Marketing

Customer
re
Hu ur
so

e
ma ces

nc
a
n

i n
F

e. The customer as the controlling


function and marketing as the
integrative function
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 organization
objectives
3.Core Concepts of Marketing
Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange and
and Transactions
Transactions
Relationships
Relationships and
and Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment
Needs, Want, and Demands

•Needs describe basic human


requirements.
•Want are shaped by one’s society.
•Demands are wants for specific
products backed by ability to pay.
•examples
Demand States and Marketing Tasks

• No demand
• Latent demand
• Declining demand
• Irregular demand
• full demand
• Overfull demand
• Unwholesome demand
Value and satisfaction

Benefits
• functional benefits
• emotional benefits
Costs
•Monetary costs
•Time costs
•Energy costs
•Psychic costs
Value and satisfaction

benefits
Value = -----------------
costs
Discussion

How to increase the value ?


How to compare the value?
Exchange and transaction

“Exchange” is the act of obtaining a desired


object from someone by offering something in
return.
“transaction” is 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.
4.marketing philosophies

The production concept


The product concept
The selling concept
The marketing concept
The societal marketing concept
Company Orientations Towards the
Marketplace
Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive

Consumers favor products that


Product
Product Concept
Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if


Selling
Selling Concept
Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target


Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
1 .3
r e
ig u
F Holistic Marketing Dimensions
Relationship Marketing

Build long-term
relationships

Develop marketing
networks
Integrated Marketing

Create, communicate, and


deliver customer value
Internal Marketing
Performance Marketing

Social Responsibility

Financial Accountability
Case Study

Will discuss later


How to understand the case?
How to understand the questions?
How to analyze the questions? The key question?
What’s your idea?
1 .4
r e
ig u
F The Four P’s of the Marketing Mix
Marketing Management Tasks

Developing market strategies and plans


Capturing marketing insights
Connecting with customers
Building strong brands
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth

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