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Defining Marketing
Marketing is the delivery of customer satisfaction at a profit-it is the simplest definition. The two
fold goal of marketing are-
To attract the new customers by promising superior value and
To keep current customers by delivering satisfaction.
Marketing is an organizational function and a set of processes for creating, communicating, and
delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
Marketing Management
Marketing management is defined as the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value.
1) Negative demand: If consumer dislikes the product and may even pay a price to avoid it. For
example, vaccinations, Dentist, many people avoid seeing the dentist.
Associated marketing task: The marketing task is to analyze the reasons for this dislike and
to find out whether a marketing program consisting of product redesign, lower prices, and more
positive promotion could change the customers belief and attitude.
Marketing approach is Conversational marketing.
Negative demand can be a positive one by doing:
Try to create awareness rather than promotion.
Inform the customers about the importance of your products.
2) Non-existent demand/No demand: Customers are unaware or uninterested in these types of
product.
Example: For example demand of boat in a city, where there is no lake or river or farmers may
be not interested in new farming method, or family planning is a non-existent demand for rural
people.
Associated Marketing Task: The marketing task is to find ways to connect the benefits of the
products to the person’s natural needs and interests. The task of marketing then becomes one
of stimulating demand for that product.
Technique: The marketing technique may be called stimulating marketing.
Task: The marketing task is to measure the size of the potential market and develop effective
goods and services that would satisfy the demand.
Technique: Developmental marketing– develop a marketing mix that announces the product
and stimulates demand for trial.
4) Declining demand: When demand for a product is declining day by day. The marketer must
analyze the causes of market decline and determine whether demand can be re-stimulated by
finding new target markets, changing the products features or developing more effective
communication. The marketing task is to reverse the declining demand through creative
remarketing of the product.
For example Cosco soap, CD Players, Walkman or mechanical watches. etc.
Associated marketing approaches are-
Re-marketing
Re-branding
Re-positioning
5) Irregular demand: Demand varies on a seasonal, yearly, monthly, daily and even hourly
basis.
Example: For example, an umbrella, tourist spot, petroleum jelly, ice cream, etc.
The marketing task, called synchro marketing, is to find ways to alter the time pattern of
demand through flexible pricing, promotion and other incentives.
6) Full demand: Adequate demand for a product all over the year. Organizations face full
demand when they are satisfied with their volume of business. This is an ideal situation. For
example, medicines, soap etc.
Marketing tasks:
i. Maintain the current level of demand in the face of changing consumer preference.
ii. Maintain and improve the products quality and continuously measure consumer satisfaction.
Technique: Maintenance marketing- develop a marketing mix that reinforces and reminds
customers why they follow or are loyal to the brand.
7) Overfull demand: Excess demand of a product. That means organizations face a demand level
that is higher than they can or want to handle. For example, electricity in the summer, at the
time of Eid, the price of train and bus ticket increase because of artificial stock created by the
sellers.
Task: Reduce demand
The marketing task called Demarketing, requires finding ways to reduce the demand
temporarily or permanently. General marketing and reducing promotion and service is one way
of handling this situation.
8) Unwholesome demand: Product that have undesirable social consequence i.e., not acceptable
by the society.
Marketing channel:
To reach a target market, the marketer uses three kinds of marketing channels.
Communication channels deliver messages to and receive messages from target buyers.
They include newspapers, magazines, radio, television, mail, telephone, billboards,
posters, fliers, CDs, audiotapes, and the Internet.
Distribution channels to display or deliver the physical product or service(s) to the buyer
or user.
Service Channel-through which carry out transactions with potential buyers. For example,
Banks, Insurance etc.
Marketing Environment
The marketing environment is made up of the internal and external environment of the business.
While internal environment can be controlled, the business has very less or no control over the
external environment.
Internal Environment
The internal environment of the business includes all the forces and factors inside the organisation
which affect its marketing operations. These components can be grouped under the Five Ms of the
business, which are:
Men
Money
Marketing Management, Course-MKT-309 Prepared by Ahmed Sabbir 5|
Machinery
Materials
Markets
The internal environment is under the control of the marketer and can be changed with the
changing external environment.
External Environment
The external environment constitutes factors and forces which are external to the business and on
which the marketer has little or no control. The external environment is of two types:
Micro Environment: factors those are close to the company, suppliers, competitors,
management, distributors. Micro environment examples include customers, banks and
trade unions as they all interact with the firm.
Macro Environment: In general macro environment factors are not close to the firm.
Macro environment examples include legislation, the economy (e.g. recession, inflation,
VAT changes), and technological change such as the internet. Macro environment factors
are uncontrollable factors but still influence company strategy.
Supply Chain
The supply chain describes a longer channel stretching from raw materials to components to final
products that are carried to final buyers.
Relationship Marketing
Integrated Marketing
The marketer task is to device marketing activities and assemble fully integrated marketing
programs to create, communicate and deliver value for customers.
Marketing programs are the combination of decisions on value enhancing marketing activities
to use.
Marketing activities are related with 4P or marketing mix.
Product-
Price
Place
Promotion
Internal marketing
Internal Marketing is the task of hiring, training and motivating to able employees who want to
serve customers well.
Performance Marketing
Performance Marketing requires understanding the financial and nonfinancial returns to business
and society from marketing activities and programs.
Performance may be of two types-
Financial Accountability
Environmental and legal concern.
o Social Responsibility Marketing/ Societal marketing concept is fall under performance
marketing, build social and ethical consideration into their marketing parties.
o Focus on satisfying customer needs and wants while enhancing individual and societal well-
being.
o Consider the collective needs of society as well as customer desires and the organization’s
profits.
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