A FRAMEWORK for MARKETING MANAGEMENT

Kotler Keller

Chapter 1Chapter 1Defining Marketing for the 21st Century

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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 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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What Is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value

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For an Exchange to Occur…

• There must be at least two parties• Each party has something that might be of value

to the other party• Each party is capable of communication and

delivery• Each party is free to accept or reject the

exchange offer• Each party believes it is appropriate or desirable

to deal with the other party

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What Is Marketed?

• Goods• Services• Events/Experiences• Persons

• Places/Properties• Organizations• Information/Ideas

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Company Orientations

• Production

• Product

• Selling

• Market

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Holistic Marketing Dimensions

Holistic marketing includes these dimensions:• Internal marketing

Ensuring that everyone in the organization embraces marketing principles.

• Socially responsible marketingExecuting marketing concepts for the well-being of society.

• Relationship marketingDeveloping enduring relationship with customers

• Integrated marketing Fully integrating marketing programs through designing marketing activities by the involvement of everyone in the organization.

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The Four Ps of the Marketing Mix

• Product

• Price

• Place

• Promotion

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Key Themes of Integrated Marketing

• Many different marketing activities are used to communicate and deliver value

• All marketing activities are coordinated to maximize their joint effects

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Marketing Mix and the 4 Cs

• Customer solution ~ Product

• Customer cost ~ Price

• Convenience ~ Place

• Communication ~ Promotion

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Marketing-Mix Strategy

• Offer mix

• Communications mix

• Distribution channels

• Target customers

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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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Societal Marketing Concept

An organization’s task is to determine the needs, wants, and interestsof target markets and to deliver

the desired satisfactionmore effectively and efficiently

than competitors in a way that preserves or enhances the

well-being of both consumer and society

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Fundamental Marketing Concepts

• Needs, wants, and demands

• Target markets, positioning, andsegmentation

• Offerings and brands• Value and satisfaction

• Marketing channels• Supply chain• Competition• Marketing

environment• Marketing planning

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Five Types of Needs

• Stated needs (an inexpensive car)

• Real needs (a car whose operating cost is low)

• Unstated needs (good service from the dealer)

• Delight needs (an onboard navigation system)

• Secret needs (Friends to see him as a smart customer)

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Factors Influencing Marketing Strategy

• Demographic/economic environment

• Technological/physical environment

• Political/legal environment

• Social/cultural environment

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Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Shaping market offerings

• Delivering value• Communicating value• Creating long-term

growth