Chapter1 Mkt302 1

Chapter 1 Industrial Age : Mass production, mass consumption, overstuffed with inventory, ads everywhere and rampant discounting Information Age : Digital revolution, mass customization, more accurate marketing communication Shifting from the old to new economy

Customers point of view Companys point of view

Marketing

Social Definition Managerial Definition The aim of marketing is to know and understand the customers so well that the product or service fits him and sell itself.

Types of entities to be marketed

Marketing Management The art and science of choosing target market and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Demand Management

Chapter1 Mkt302 2

Core marketing concepts

1. Target market and segmentation 2. Marketplace, market space and metamarket 3. Marketers and prospects 4. Needs, wants and demands 5. Product, offering and brand 6. Value and satisfaction 7. Exchange and transaction 8. Relationships and network 9. Marketing channels 10. Supply chain 11. Competition 12. Marketing environment 13. Marketing program

Company Orientation towards the marketplace

Production concept Widely available and inexpensive. Production efficiency, low cost, mass distribution. Product concept Quality, performance, innovative feature Marketing myopia Selling concept Aggressive selling and promotional effort When have overcapacity Sell what you can make rather make what market wants

Marketing concept Customer centered Superior customer value Four pillars (target market, customer needs, integrated marketing, profitability) Individual need (dell) Customer retention, more important than customer attraction

Chapter1 Mkt302 3

Customer needs : 5 types Responsive marketer Anticipated marketer Creative marketer Integrated marketing Various marketing functions Various departments External marketing Internal marketing It makes no sense to promise excellent service before the companys staff is ready to provide it. Profitability Long run profitability Reactive and proactive marketing (Total marketing orientation) Three hurdles (Organized resistance, slow learning, fast forgetting)

The customer concept One to one marketing Fig 1.10 The societal marketing concept

Humanistic and ecological marketing Cause related marketing

How business and marketing are changing

Customer expectation, intelligent Brand manufacturer Store-based retailer

Chapter1 Mkt302 4

Company responses and adjustments

Reengineering Outsourcing E commerce Benchmarking Alliance Partner-supplier Market centered Global and local Decentralization

Marketer responses and adjustments

Customer relationship marketing Customer lifetime value Customer share Target marketing Customization Customer database Integrated marketing communication Channels as partner