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Marketing Management 1st Chapter

This document defines key marketing concepts and discusses how the modern marketplace has changed. It outlines that marketing involves identifying customer needs and satisfying them profitably. A market is where buyers and sellers interact, and anything can be marketed from goods and services to ideas. The core concepts of marketing revolve around understanding needs, wants, and demand. New technologies and globalization have empowered consumers while also giving companies new capabilities. Holistic marketing now considers the whole business and how departments collaborate through relationship marketing, integrated marketing, internal marketing, and performance marketing.

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Rowshon Tabassom
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79 views6 pages

Marketing Management 1st Chapter

This document defines key marketing concepts and discusses how the modern marketplace has changed. It outlines that marketing involves identifying customer needs and satisfying them profitably. A market is where buyers and sellers interact, and anything can be marketed from goods and services to ideas. The core concepts of marketing revolve around understanding needs, wants, and demand. New technologies and globalization have empowered consumers while also giving companies new capabilities. Holistic marketing now considers the whole business and how departments collaborate through relationship marketing, integrated marketing, internal marketing, and performance marketing.

Uploaded by

Rowshon Tabassom
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Defining Marketing for the New Realities

Chapter: 01

❖ Definition of Marketing
Marketing means studying the market place, finding out what customers want, and then creating and
delivering those products at the right price. Or in other words we can say that ‘marketing is the
management process responsible for identifying, anticipating and satisfying customer requirements
profitably’.
Marketing is the process of getting potential clients or customers interested in your products and
services. The keyword in this definition is "process"; marketing involves researching, promoting,
selling, and distributing your products or services.

❖ What is Market?
Market is a place or geographical area where buyers and sellers meet and enter into transactions
involving transfer of ownership of goods and services

❖ What is Marketed?
1.Goods - Physical products, consumer products, consumer durables, etc.
2. Services - Transport, repair & maintenance, legal, financial consultancy, hotel, specialized skills,
professionals, 3. Events - Trade shows, sports, world cups, vintage car rally, fashion shows, artistic
performance, annual functions, event management, etc.
4. Experiences - Theatres, opera, Disney-world, trekking, mountaineering, ocean cruise, cinema, music
concerts, etc.
5. Persons - Celebrity marketing, film stars, politicians, artists, performers, advertisers, and now also
CEOs of companies.
6.Places- Cities, states, countries for tourism, leisure & place for industrialization, real estate agents &
business.
7. Properties - Ownership of tangible properties like real estate, house, apartment, farm house, precious
metals and intangible properties like financial portfolio of various securities, stocks, bonds.
8. Organization - Building up identity, image, reputation, and brand value in the minds of consumers.
9. Information - It can be produced, packaged & marketed as a product - text books, encyclopaedias,
magazines & journals on literature, science, technology, medicine info, available thru internet
10. Ideas - The concept regarding a utility, business opportunity, advertising / marketing ideas,
scientific & technical, social, financial, psychological etc.
❖ Core Marketing Concept
Needs
Needs are the basic requirements which human beings require for existence. These mainly consist of
air, water, food, clothing and shelter. Along with these needs, some other needs which are required to
be satisfied are education, medical care, entertainment, and recreation.
Example: I physically need water to survive.
Types of Needs:
• Stated Needs: I want a car
• Real Needs: I want a car for going to work with low operating costs
• Unstated Needs: I want good after-sale service from the dealer
• Delight Needs: I want the dealer to include some gifts with the car
• Secret Needs: I want a car for the status symbol

Wants
The wants are a step ahead of needs and are largely dependent on the human needs. A need becomes
a want when a need is directed to a specified object. Wants are designed according to the taste and
preferences of the society.
Example: I want clean, safe and good tasting water to survive.
Demand
A demand is generated when a customer is willing to buy a particular product and has an ability to pay
for it.
Example: I create a demand for MUM water since it is renowned countrywide.
Types of Demand:
• Negative Demand: Products/ services that people dislike and merely don't want.
Example: Insurance
• Non-existent Demand: Products/ services that people don't know or uninterested in.
Example: Foreign language courses.
• Latent Demand: Demands that people realize later.
Example: Ferrari, Mac, iphone latest versions.
• Declining Demand: Demands that people have less interested in than before.
Example: Batton phone or Feature phone.
• Irregular Demand: Products/ services which usage are based on time.
Example: Umbrella.
• Unwholesome Demand: Products/ services that have bad effect.
Example: Cigarettes.
• Full Demand: Products/ services that have the supply meeting its demands.
Example: Medicine, rice etc.
• Overfull Demand: Products/ services that the demand is more than the supply.
Example: Gold.
❖ Marketers & Prospects
When one party is more actively seeking an exchange than the other party, we call the first party a
marketer & the second party a prospect. A marketer is someone seeking one or more prospects who
might engage in an exchange of values.
A prospect is someone whom the marketer identifies as potentially willing & able to engage in an
exchange of values

❖ A Dramatically Changed Marketplace


New Consumer Capabilities:
• Can use the Internet as a powerful information and purchasing aid.
• Can search, communicate, and purchase on the move.
• Can tap into social media to share opinions and express loyalty.
• Can actively interact with companies.
• Can reject marketing they find inappropriate.

New Company Capabilities:


• Can use the Internet as a powerful information and sales channel, including for individually
differentiated goods.
• Can collect fuller and richer information about markets, customers, prospects, and competitors.
and efficiently via social
• Can reach customers quickly media and mobile marketing.
• Can improve purchasing, recruiting, training, and internal and external communications.
• Can improve cost efficiency.

Changing Channels:
• Retail Transformation: Stores with coffee bars, demonstration and performances.
• Disintermediation- Brick to Click retailers, Amazon etc.

Heightened Competition:
• Private labels
• Mega brands
• Deregulation
• Privatization
❖ Marketing in Practice
• Marketing balance
• Marketing accountability
• Marketing in the organization

❖ Company Orientation Toward the Marketplace


• Production
• Product
• Selling
• Marketing
• Holistic marketing concept
The production concept:
It holds that consumers prefer products that are widely available and inexpensive. Managers of
production-oriented businesses concentrate on achieving high production efficiency low costs, and
mass distribution.
The product concept:
The product concept proposes that consumers will prefer products that have better quality,
performance and features as opposed to a normal product. The concept is truly applicable in some
niches such as electronics and mobile handsets.
The marketing concept:
The job is to find not the right customers for your products, but the right products for your customers.
The marketing concept holds that the key to achieving organizational goals is being more effective
than competitors in creating, delivering, and communicating superior customer value to your target
markets.
The holistic marketing concept:
Holistic marketing refers to a marketing strategy that considers the whole of a business. And all the
different marketing channels as a system. Under this approach, a business with different departments
comes together. As a result, departments collaborate in interconnected marketing activities.
Four components characterizing holistic marketing:
Relationship marketing, integrated marketing, interna marketing, and performance marketing. Four
components characterizing holistic marketing: relationship marketing, integrated marketing, interna
marketing, and performance marketing.

The Selling Concept:


The selling concept holds the idea- “consumers will not buy enough of the firm's products unless it
undertakes a large-scale selling and promotion effort.”
❖ The Four Ps
Product includes use, design, packaging, quality, features, colors & size options.
Price depends on packaging (including sizes), discounts, timing, location, shipping & other offer
related elements.
Place includes retail, digital, phone, chat, fax & multi-channel options.
Promotion consists of content, communications & messaging to persuade audience to buy.

❖ The New Marketing Realities

➢ Three Major Market Forces


Technology: Massive amounts of information and data about almost everything are now available to
customers and marketers. The old credo "Information Is Power" is giving way to the new idea that
“Sharing Information is Power.”
Globalization: The world has become a smaller place. Globalization has made the countries
increasingly multicultural and changes innovation and product development as companies take ideas
and lessons from one country and supply them to another.
Social Responsibility: The private sector is taking some responsibility for improving living conditions
and firms all over the world have elevated the role of Corporate Social Responsibility.

➢ Two Key Market Outcomes


New Consumer Capabilities:
• Can use the Internet as a powerful information and purchasing aid.
• Can search, communicate, and purchase on the move.
• Can tap into social media to share opinions and express loyalty.
• Can actively interact with companies.
• Can reject marketing they find inappropriate.

New Company Capabilities:


• Can use the Internet as a powerful information and sales channel, including for individually
differentiated goods.
• Can collect fuller and richer information about markets, customers, prospects, and competitors.
and efficiently via social
• Can reach customers quickly media and mobile marketing.
• Can improve purchasing, recruiting, training, and internal and external communications.
• Can improve cost efficiency.
➢ Four Fundamental Pillars of Holistic Marketing
Holistic Marketing:
By words holistic we mean that everything is considered. Such as by holistic marketing we refer to a
marketing strategy that considers the whole of a business. Under this a business with different
departments come together. As a result, department collaborates in interconnected marketing activities.
There are four components of holistic marketing. These are:
Internal Marketing: Marketing between all the department in an organization.
Relationship Marketing: Building a better relationship with internal customers as well as end
customers is beneficial for holistic marketing.
Integrated Marketing: Products, services and marketing should work hand in hand towards the
growth of the organization.
Performance Marketing: Driving the sales and revenue growth of an organization holistically by
reducing costs and increasing sales.

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