Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably
Adcock et al
The right product, in the right place, at the right time, and at the right price
Kotler 1980
Marketing is the human activity directed at satisfying human needs and wants through an exchange process
Kotler 1991
Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major concepts and tools of marketing. Understand the orientations exhibited by companies.
Objectives
Learn how companies and marketers are responding to new challenges.
Bigness
Diversification
Information
Science & Tech
Globalization
Product
Places Goods Services
Ideas
Information
Product
Persons Properties Experiences
Events
Organizations
Marketing Defined
Kotlers Social Definition:
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.
Marketing Defined
The AMA Managerial Definition:
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Enhancing Value
Marketers can enhance the value of an offering to the customer by:
Raising benefits. Reducing costs. Raising benefits while lowering costs. Raising benefits by more than the increase in costs. Lowering benefits by less than the reduction in costs.
Marketing Mix
The marketing program is developed to achieve the companys objectives. Marketing mix decisions include:
Product: provides customer solution. Price: represents the customers cost. Place: customer convenience is key. Promotion: communicates with customer.
Marketing Mix
Mkt Mix
Product
Price
Placement
Promotion
Marketing Mix
Product
Product Variety Quality Design
Price
List Price Discounts Allowances Payment Period
Promotion Place
Sales Promotion Advertising Sales Force Public Relations Publicity Channels Coverage Assortments Locations Inventory
Transport
Marketing Concept
Selling Concept
Societal Marketing
Both companies and marketers have been forced to respond and adjust.
Levels of Competition
Four levels of competition can be distinguished by the level of product substitutability: Brand competition Industry competition Form competition Generic competition
Levels of Competition
Brand
Industry
Competition
Form
Generic
Marketing Environment
Task Environment Broad Environment
Organizations Environment
Macro or Far Environment Near or Operating Environment Customers Partners Economic Factors
Technological Factors
Clients
Social Factors
Competitors
Task Environment
Company
Suppliers Distributors Dealers Target Customers Competitors
Demographic Environment
Population Age Mix
Population Growth
Ethnic Group
Education Status
Household Patterns
Economic Environment
Income Distribution
Subsistence Economies Raw Material Exporting Economies Industrializing Economies Industrialized Economies
Natural Environment
Shortage of Raw Materials
Increased Energy Costs
Technological Environment
Accelerating Technological Change
Innovation Opportunities
Political-Legal Environment
Legislation Regulating Business Growth of Special Interest Groups
Social-Cultural Environment
Beliefs
Values
Norms
Subculture
SWOT Analysis
Strengths (Internal)
Weaknesses (Internal)
Opportunities (External)
Threats (External)
Marketing Strategy
Segmentation Positioning Product
Management
Pricing
Distribution Marketing
Market Segmentation
Market Segment
It consist of a large identifiable group within a market with similar wants purchasing power, geographical location and buying attitudes or habits
Levels of Segmentation
Niche Marketing
Local Marketing
Individual Marketing
Clustered Preferences
Profiling Stage
Psychographics
Behavioral
Accessible
Differentiable
Actionable
Product Positioning
It is the act of designing the companys offering and image to occupy a distinctive place in the target market
Confused positioning
Doubtful positioning
Differentiation
It is the act of designing a set of meaningful differences to distinguish the companys offering from competitors offerings
Dimensions/Basis of Differentiation
Product
Services
Personnel
Channel
Image
Basis of Differentiation
Product
Image
Service Channel
Personnel
Product Differentiation
Form Features Performance
Conformance
Durability Reliability Repair ability Style & Design
Product Differentiation
Form Features
Performance
Product
Conformance
Reliability
Service Differentiation
Ordering Ease
Delivery Installation Customer Training Customer Consulting Maintenance and Repair Miscellaneous
Service Differentiation
Ordering Ease Delivery
Customer Training
Service
Customer Consultation
Warrantee/ Guarantee
Miscellaneous
4-103
Personnel Differentiation
Competence
Courtesy
Credibility
Reliability
Responsiveness
Communication
Credibility
Personnel
Reliability
Responsiveness
Communication
4-103
Channel Differentiation
Coverage
Expertise
Performance
Channel Differentiation
Channel
Coverage
Expertise
Performance
Image Differentiation
Symbols
Media
Atmosphere
Events
Image Differentiation
Image
Symbols
Media
Atmosphere
Events
Product
A product is anything that can be offered to a market to satisfy a want or need. It include goods, services, experiences, events, persons, places, properties, organizations, information and Ideas.
Maturity
Decline
Product Levels
Core Benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Product Hierarchy
Need Family
Product Family Product Class Product Line Product Type Brand Name Item
Product Classifications
Durability and Tangibility
Consumer Goods
Industrial Goods
Services
Specialty goods
Unsought goods
Product Mix
It is the set of all products and items that a particular seller offers for sale. A product mix has its
Width Length
Depth
Consistency
Line Filling
Line Modernization
Line Featuring & Line Pruning
Branding
Brand
It is a name, term, sign, symbol, design, or a combination of them, intended to identify the goods or services of one seller and to differentiate them from competitors
Values
Culture
Personality
User
Advantages of Branding
Easy Selling
Legal Protection
Customer Loyalty
Easy Market Segmentation
Image Building
Licensed Brand
Separate Family Names for all products Company Trade Name combined with Individual Product Names
Multi-brands
New Brand
Co-brands
Packaging
It includes the activities of designing and producing the container for a product
Levels of Packaging
Primary
Secondary
Shipping
Advantages of Packaging
Self Service
Consumer Affluence
Labeling
It may be a simple tag attached to the product or an elaborately designed graphic that is part of the package
Functions of Label
Identification
Grading
Description
Promotion
Service
It is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.
Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
Interactive Marketing
Delivery
Image
Service Quality
Productivity
Determinants of Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
High Standards
Monitoring Systems
Promotional Pricing
Discriminatory Pricing
Functional/Trade Discounts
Seasonal Discounts
Allowances
Promotional Pricing
Loss-Leader Pricing
Special Event Pricing Cash Rebates Low Interest Financing Longer Payment Terms Warranties and Service Contracts Psychological Discounting
Discriminatory Pricing
Customer-Segment Pricing
Product-form Pricing
Image Pricing
Location Pricing
Time Pricing
By Product Pricing
Product Bundling Pricing
Customer Reaction
Reduce Price
Increase Price and Improve Quality Increase Price Launch a Low Price Item
Public Relations
Personal Selling
Direct Marketing
Promotional Objectives
Awareness
Knowledge Liking Preference Conviction Purchase
Message Format
Message Source
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Competitive-Parity Method
Objective and Task Method
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods or services by and identified sponsor
Characteristics of Advertising
Public Presentation
Pervasiveness
Amplified Expressiveness
Impersonality
Advertising Objectives
Informative Advertising
Persuasive Advertising
Reminder Advertising
Impact
Sales Promotion
A variety of short-term incentives to encourage trail or purchase of a product or service
Invitation
Prizes
Patronage Awards
Tie-in Promotions
Cross Promotions
Dramatization
Functions of PR Department
Press Relations
Product Publicity
Corporate Communication
Lobbying
Counseling
News
Speeches
Objectives of Marketing PR
Build Awareness
Build Credibility
Stimulate the Sales Force and Dealers Hold Down Promotion Costs
Personal Selling
Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders
Response
Market
Complex
Relationship Marketing
Direct Marketing
It is an interactive marketing system that uses one or more advertising media to effect a measurable response or transaction at any time.
Up-to-date
Interactive
Ordering Ease
Better Relationships
Less Cost
Marketing Channels
A set of independent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user
Contact
Matching Negotiation Physical Distribution
Channel Level
A layer of intermediaries that performs some work in bringing the product and its ownerships closer to the final buyer
Level of Channels
Direct Marketing Channels
Indirect Marketing Channels
Types of VMS
Corporate VMS
Contractual VMS Administered VMS
Corporate VMS
A VMS that combines successive stages of production and distribution under single ownershipchannel leadership is established through common ownership
Contractual VMS
A VMS in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone
Administered VMS
A VMS that coordinates successive stages of production and distribution not through common ownership or contractual ties but through the size and power of one of the parties.
Selective Distribution
Transportation
Logistic Information Management
Marketing Research
The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services American Marketing Association
questionnaire
Attitude measurement
cognitive
component (know/believe about an act/object) affective component (feel about an act/object) co native component (behave towards an object or act)
What is MKIS?
MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions
American Marketing Association
Statistical Bank
MKIS
Display unit
Marketing Manager
Model Bank