MARKET
MARKETING CONCEPTS
MARKETING MANAGEMENT - DEFINITION
• Art and science of choosing target markets
and getting, keeping and growing
customers through creating, delivering and
communicating superior customer value.
- Philip Kotler
Core Marketing Concepts
Target Markets and Segmentation:
‘Market segmentation
Target segments
Market Positioning
Markets:
Need markets (the diet seeking market)
Product markets (the shoe market)
Demographic markets (the youth market)
Geographic market (the French market)
Other markets like voter markets, donor markets and labour markets.
Marketplace v/s marketspace – physical v/s digital
Marketers and prospects:
Marketer : seeking response in the form of attention, purchase,
vote and donation.
The response is sought from prospect.
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Needs, Wants and Demand
• Needs :
– basic human requirements. (food, air, water, education,
entertainment etc.)
– Needs become wants when they are directed to specific objects
that might satisfy the need.
• Need for food ---> Want for a Hamburger
• Demands
– wants for specific products backed by willingness and ability to
pay.
• Marketers
– do not create needs.
– along with other social influencers influence wants.
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Product or offering
• Any offering that can satisfy a need or want.
• Major typed of basic offerings:
– Goods, services, experiences, events, persons,
places, properties, organizations, information and
ideas.
• A brand is an offering from a known source.
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 Value, satisfaction & Quality Quality

• Value • Perception of benefits against cost

• what customer gets (benefits) and what he
gives (cost).
– Benefits :
• functional and emotional benefits.
– Costs :
• monetary costs, time costs, energy costs and
psychic cost.

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Value and satisfaction Exchange and transactions:

• Exchange :
• Value of customer offering can be – a way in which a person can obtain a product.
increased by:
– obtaining a desired product from someone by
– Raise benefits offering something in return.
– Reduce costs
– Raise benefits AND reduce costs
– Raise benefits by MORE THAN the raise in
costs

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Satisfaction Exchange and transactions:

• For exchange potential to exist five conditions
• Equal, Above and Below must be satisfied:
• Cognitive Dissonance – 1. At least two parties

– 2. Each party has something that might be of some

value to the other party.

– 3. Each party is capable of communication and delivery

– 4. Each party is free to accept or reject offer

– 5. Each party believes that it is appropriate or desirable

to deal with the other party.
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 Exchange and transactions: Relationships and networks:

• Exchange is : • A marketing network consist of companies

– value-creating process. and its supporting stakeholders
– a process rather than an event. (customers, employees, suppliers,
distributors, retailers, ad agencies,
university scientists and others).
• A transaction is a trade of values between
two or more parties.
– Monetary transaction
– Barter transaction

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Exchange and transactions: Marketing Concepts - Summary

• Market
• Need, Want & Demand
• Dimensions of a transaction:
• Product
• Value, Satisfaction & Perceived Quality
• At least two things of value Agreed upon • Exchange & Transactions
conditions • Relationship & Networks

– A time of agreement
– Place of agreement

• Transaction marketing – Relationship marketing

b/w customers, suppliers, and distributors

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Relationships and networks: Marketing Environment

• Transaction marketing : a part of relationship • consists of the :

marketing.

– task environment &

• Relationship marketing
– broad environment
– has the aim of : building long term mutually satisfying
relations with key parties – customers, suppliers, and
distributors – in order to earn and maintain their long
term preference and business.
– builds strong economic, social and technical ties
among the parties.

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 Marketing Environment Broad (Macro) Environment
• Task Environment :
ECONOMIC ENVIRONMENT
– immediate actors involved in producing, distributing,
and promoting the offering • Income Distribution and Changes in
– main actors : company, suppliers, distributors, Purchasing Power
dealers, & target customers.
• Changing Consumer Spending Patterns
• supplier group are material suppliers and service
suppliers (marketing agencies, advertising agencies,
banking and insurance companies, transportation and
telecommunication companies).

• distributors and dealers group are agents, brokers,

manufacturer representatives, and others who facilitate
finding and selling to consumers.
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Marketing Environment Broad (Macro) Environment

• Broad Environment NATURAL ENVIRONMENT
– consists of six components:
• demographic environment (density, location,age, sex, race, occupation) • Shortages of Raw Materials
• economic environment, • Increased Cost of Energy
• natural environment, • increased Pollution
• technological environment,
• Government Intervention in Natural Resource
• political-legal environment, and Management
• social-cultural environment.

– contain forces that can have a major impact on actors in the

task environment.

– Market actors must pay close attention to the trends and the
developments in these environments and then make timely
adjustments to their marketing strategies.
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Broad (Macro) Environment Broad (Macro) Environment

DEMOGRAPHIC ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT
• Population Size and Growth Trend
• Changing Age Structure of a Population • Fast Pace of Technological Change
• The, Changing Family • High R&D Budgets
• Rising Number of Educated People • Concentration on Minor Improvements
• Increasing Diversity • Increased Regulation

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 Broad (Macro) Environment
POLITICAL ENVIRONMENT
• Legislation regulating business
• Growth of public interest groups
• Increased emphasis on ethics and socially
responsible actions

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Broad (Macro) Environment

CULTURAL ENVIRONMENT
• Persistence of Cultural Values
• Shifts in. Secondary Cultural Values
• people's views of themselves.
• people's views of others
• people's views of organizations
• people's views of society.
• people's views of nature

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