Marketing Management Module 1 Mark Lieberman Foundations of Business Practice 2

Marketing Defined 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

Needs, Wants, and Demands Core Concepts of Marketing Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment

Target Markets and Segmentation: Market segmentation Market offering Global industry Marketplace Marketspace Metamarket

Needs, Wants, and Demands Needs describe basic human requirements such as food, air, water, clothing, and shelter, recreation, education, and entertainment. Needs become wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific products backed by an ability to pay.

Product or Offering Product is any offering that can satisfy a need or want. A brand is an offering from a known source. Let’s think -- on a sheet of paper, in 30 seconds list all the brands you can think of (products, services, anything).

Value and Satisfaction What is value? What are five things a marketer can do to increase the value of the offering? Value is a ratio between what the customer gets and what he gives. Raising benefits, reducing costs, raising benefits and reducing costs, raising benefits by more than the raise in costs, or lowering benefits by less than the reduction in costs.

Exchange and Transactions Exchange involves obtaining a desired product from someone by offering something in return. Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

Relationships and Networks Relationship Marketing aims to build long term mutually satisfying relations with key parties What is the difference between relationship marketing and marketing network?

Marketing Channels Communication channels Distribution channels Selling channels BANK

Supply Chain A supply chain stretches from raw materials to components to final products that are carried to final buyers. Each company captures only a certain percentage of the total value generated by the supply chain

Competition Brand competition Industry competition Form competition Generic competition

Marketing Environment Task environment - everybody involved in producing, distributing, and promoting the offering. Broad environment - contains forces that have major impact on actors in task environment. Demographics Economics Natural environment Technological environment Political-legal environment Social-cultural environment

Simple Marketing System Communication Industry (a collection of sellers) Market of Buyers) Goods/services Money Information

The Four Ps The Four Cs Marketing Mix Product Place Promotion Price Conven- ience Customer Solution Customer Cost Communication

Company Orientations Towards the Marketplace Consumers prefer products that are widely available and inexpensive Production Concept Consumers favor products that offer the most quality, performance, or innovative features Product Concept Consumers will buy products only if the company aggressively promotes/sells these products Selling Concept Focuses on needs/ wants of target markets & delivering value better than competitors Marketing Concept

(a) The selling concept (b) The marketing concept Customer Delivered Value Factory Existing products Selling and promotion Profits through sales volume Starting point Focus Means Ends (a) The selling concept Market Integrated marketing Profits through customer satisfaction Customer needs (b) The marketing concept

Break

Evaluating and Controlling the Marketing Process Annual-plan control Set goals Monitor performance Determine deviations Take corrective action Profitability control Identify expenses Measure expense Prepare profit/loss

Evaluating and Controlling the Marketing Process Efficiency control Improve marketing efficiency Strategic control Review for effectiveness Conduct marketing audit Rates performance Reviews for ethics and social responsibility