Objectives

• Course Organization

• Tasks of Marketing

• Major Concepts & Tools of Marketing

• Marketplace Orientations

• Marketing’s Responses to New Challenges

Course/Text Organization

• Part I - Marketing Management

• Part II - Analyzing Marketing Opportunities

• Part III - Developing Marketing Strategies

• Part IV - Shaping the Market Offering

• Part V - Managing & Delivering Marketing Programs

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 (p. 7)

What is Marketed?

• Goods

• Services

• Events

• Experiences

• Persons

• Places

• Properties

• Organizations

• Information

• Ideas

Core Concepts of Marketing

Product or Offering Product or Offering

Value and Satisfaction Value and Satisfaction

Needs, Wants, and DemandsNeeds, Wants, and Demands

Exchange and Transactions Exchange and Transactions

Relationships and Networks Relationships and Networks

Target Markets & Segmentation Target Markets & Segmentation

Marketing Channels Marketing Channels

Supply Chain Supply Chain

Competition Competition

Marketing Environment Marketing Environment

The macro-environmentThe macro-environment

The micro-environmentThe micro-environmentPoliticalfactors

Economicfactors

Technologicalfactors

Socio-culturalfactors

The InternalThe Internalenvironmentenvironment

MenMoney

MachineryMaterialsMinutes

Consum

ers

Stakeholders

Sup

plie

rs

The Marketing Environment

For an exchange to occur…..

• There are 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 reject the exchange offer.• Each party believes it is appropriate or desirable

to deal with the other party.

Demand & Need States

I want...• Negative• Nonexistent• Latent• Declining• Irregular• Unwholesome• Full• Overfull

I need…• Stated needs• Real needs• Unstated needs• Delight needs• Secret needs

Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

The New Player Order The marketplace isn’t what it used to be….

• Changing technology• Globalization• Deregulation• Privatization

• Empowerment• Customization• Convergence• Disintermediation

Or?

Manufacturermarkets

Services,Services,moneymoney

Governmentmarkets

Services,Services,moneymoney

ServicesServices

Services,Services,moneymoney

TaxesTaxes

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

MoneyMoney MoneyMoney

Consumermarkets

IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services

ResourcesResources ResourcesResources

Resourcemarkets

MoneyMoney MoneyMoney

Structure of Flows

Marketing Mix - The Four Ps

MarketingMix

Product

Price Promotion

Place

& The Four Cs& The Four Cs

CustomerSolution

CustomerCost

Communication

Conven-ience

Four Ps

Product Price Promotion Place

Product variety

Quality

Design

Features

Brand Name

Packaging

Sizes

Services

Warranties

Returns

List price

Discounts

Allowances

Payment period

Credit terms

Sales promotion

Advertising

Sales force

Public relations

Direct marketing

Channels

Coverage

Assortments

Locations

Inventory

Transport

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of target markets & delivering value

better than competitors

Company Orientations Towards the Marketplace

MarketIntegratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Customer Delivered Value

Customers

Front-line people

Middle Management

TopManagement

Traditional Organization Chart

Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

Customers Cus

tom

ers

Evolving Views of Marketing’s Role

a. Marketing as anequal function

FinanceProduction

Marketing Humanresources

b. Marketing as a moreimportant function

Finance

Humanresources

Marketing

Production

Evolving Views of Marketing’s Role

c. Marketing as themajor function

Marketing

Finance

Hum

an

resources

Production

d. The customer as thecontrolling factor

Customer

Human

reso

urces

FinanceProductio

n

Marketing

Evolving Views of Marketing’s Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Hum

an

resources

Finance

Review

• Course Organization

• Tasks of Marketing

• Major Concepts & Tools of Marketing

• Marketplace Orientations

• Marketing’s Responses to New Challenges