Chapter 1
Understanding Marketing
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he learning objectives:
What is Market?
What is Marketing and marketing management?
Marketing core Concepts
Marketing management philosophies
m
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
he 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.
¢imple Marketing ¢ystem
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m.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.
he ¢cope of Marketing
Goods ¢ervices
Experience Events
Persons Places
Properties Organizations
Information Ideas
arget Market and ¢egmentation
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.
ãive Basic Market
(figure 1.m P9)
Manufacturer markets
Resource markets
Government markets
Intermediary markets
Consumer markets
¢tructure of ãlows
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Customer Delivered Value
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Customer-Oriented Organization
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Evolving Views of Marketing°s Role
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Marketing management
he 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
.Core Concepts of Marketing
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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 ¢tates and Marketing asks
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
ime 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
èExchange is the act of obtaining a desired
object from someone by offering something in
return.
ètransaction 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.
Relationship marketing
he process of creating, maintaining, and
enhancing strong, value-laden relationships with
customers and other stakeholders.
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.
¢ervice--- any activity or benefit that one party
can offer to another that is essentially intangible
and does not result in the ownership of anything.
Case ¢tudy
Page 41: Priceline.com: Changing Business in
the New Millennium
How to understand the case?
How to understand the questions?
How to analyze the questions? he key question?
What°s your idea?
4.marketing philosophies
he production concept
he product concept
he selling concept
he marketing concept
he societal marketing concept
Company Orientations owards the
Marketplace
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he production concept
the production concept holds that
consumers will prefers products that
are widely available and inexpensive.
he product concept
he product concept holds that consumers will
favor those products that offer the most
quality,performance,or innovative features.
he selling concept
he selling concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization°s products. he
organization must, therefore, undertake an
aggressive selling and promotion effort
he marketing concept
he marketing concept holds that the key to
achieving its organizational goals consists of
the company being more effective than
competitors in creating,delivering,and
communicating customer value to its chosen
target markets
he societal marketing concept
he societal marketing concept holds that
the organization°s task is to determine the
needs, wants,and interests of target
markets and to deliver the desired
satisfaction more effectively and efficiently
than competitors in a way that preserves or
enhances the consumer°s and the society°s
well-being.
Discussion
What°s your opinion about the 5 five concepts?
Do you think the production concept is outdate
Case Discussion
Reading
Discussion
