Part One: Part One: Understanding of Marketing Understanding of Marketing

(( Chapter1-Chapter4) Chapter1-Chapter4)

What are they doing? What are they need?

 What is Marketing ?
Old sense: making a sale telling and selling New sense: satisfying customer needs

 Marketing Defined (P.5)

A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.

 Core marketing concepts(P.6)

Needs,Wants, Needs,Wants, and Demands and Demands

Markets Markets

Core Marketing Concepts

Products and Products and Services Services

Exchange, Exchange, Transactions, Transactions, and relationships and relationships

Value, Value, Satisfaction, Satisfaction,

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 Needs,Wants and Demands(P.6)

Needs Needs States of felt deprivation .

Wands The form taken by human needs as they Wands are shaped by culture and individual personality.
Demands Demands

Human wants that are backed by buying

power .
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 Product and Service (P.6-7)

Product Product Anything that can be offered to a market for attention,acquisition,use,or consumption that might satisfy a want or need.

Service Any activity or benefit that one party can Service offer to another that is essentially intangible and does not result in the ownership of anything.

 Value, Satisfaction

(P.9)

Customer value The difference between the Customer value values the customer gains from owning and using a product and the cost of obtaining the product.
Customer satisfaction Customersatisfaction The extent to which a products perceived performance matches a buyers expectations.

 Exchange, Transaction and Relationships

the act of obtaining a desired object from someone by offering something in return. a trade between tow parties that involves at least tow things of agreement, and a place of agreement.
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Exchange Exchange

Transactions Transactions

 Relationship marketing (P.9)

The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Market (P.10)
the set of all actual and potential buyers of a product or service.

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 A simple marketing system

Communication Industry Industry (a collection (a collection of sellers) of sellers) Products-service Products-service Money Money Information Market Market (a collection (a collection of buyers) of buyers)

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 Main actors and forces in a modern marketing system (P.10)

Company Company (marketer) (marketer) Suppliers Suppliers Competitors Competitors Environment
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Marketing Marketing intermediaries intermediaries

End user End user market market

 Demarketing (P.11)
Marketing to reduce demand temporarily; the aim is not to destroy demand but only to reduce or shift it.

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 Marketing management philosophies (P.1214) Production concept Production concept Product concept Product concept Selling concept Selling concept Marketing concept Marketing concept Social marketing concept Social marketing concept

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 Production concept
The management should only focus on improving production and distribution efficiency.

Product concept
The organization should devote its energy to making continuous product improvements.

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 Selling concept (
The consumers will not buy enough of the organizations products unless the organization undertakes a large-scale selling and promotion effort.

Marketing concept
To achieving organizations goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

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 The selling and marketing concepts contrasted(P.13)

Starting point Factory Factory Focus Existing products Means Selling and promoting Ends Profit through sales volume

The selling concept

Customer needs Integrated Marketing

Market

Profit through Customer satisfaction

The marketing concept

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 Societal marketing concept (

The organization should deliver the desired satisfactions to their target market effectively and efficiently in a way that maintains or improves the consumers and societys well being.

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 Societal Marketing concept

P.14

Society
(Human welfare)

Customers
(Wants satisfaction)

Social Social marketing marketing concept concept

Company
(Profits)

Three considerations underlying the Societal marketing concept

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 Bionomics marketing concept (

To find the market demands that firms resources can be match to. 6R: Right time , Right place, Right product, Right price, Right way, to Right customer

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 Marketing in connected millennium

(P.23)
Connections with Connections with Customers Customers Connecting technologies Connecting technologies Computer Computer Information Information Communication Communication Transportation Transportation

Connections with Marketing partners

Connections with Connections with World around us World around us

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 Marketing connections
Connections with Connections with Customer Customer
Connecting more Connecting more selectively selectively Connecting for life Connecting for life Connecting directly Connecting directly

Connections with Connections with Marketing partner Marketing partner

Connecting inside Connecting inside The company The company Connecting with Connecting with outside partners outside partners

Connections with the Connections with the world around us world around us
Global connections Global connections Connections with values Connections with values And responsibility And responsibility Broadened connections Broadened connections

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 Marketing connections in transition

The Old Marketing Thinking
Connections with customers Be sales and product centered Practice mass marketing Focus on products and sales Make sales to customer Get new customers Grow share of market Serve any customer Communicate through mass media Mack standardized products Connections with marketing partners Leave customer satisfaction and value to sales and marketing Go it alone

P.33)

The New Marketing Thinking

Connections with customers Be market and customer centered Target selected market segments or individuals Focus on customer satisfaction and value Develop customer relationships Keep old customers Grow share of customer Serve profitable customer, fire losing ones Connect with customers directly Develop customized products Connections with marketing partners Enlist all departments in the cause of customer satisfaction and value Partner with other firm

Connection with the world around Connection with the world around us us Market locally Market locally and globally Assume profit responsibility Assume social and environmental responsibility 23 Market for profits Market for nonprofits

 Marketing management (old define) the analysis, planning, implementation, and control of program designed to create, build,and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

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Marketing management (new define P.11)

The art and science of choosing target markets

and building profitable relationships with them. This involves getting, keeping, and growing customers through creating, delivering and communicating superior customer value. Thus it involves managing demand, which in turn involves managing customer relationships.
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 The tasks of Marketing management

(P.14)

Demand Demand Management Management

Building Building Profitable Profitable Customer Customer Relationships Relationships

Marketing Marketing Management Management Practice Practice

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 Marketing practice stages

Entrepreneurial Entrepreneurial Marketing Marketing

Formulated Formulated Marketing Marketing

Intrepreneurial Intrepreneurial Marketing Marketing

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 The companys strategic planning (P.41)

Business unit Product and market

Corporate lever
Defining Defining the company the company mission mission

Setting Setting company company objectives objectives and goals and goals

Designing Designing the business the business portfolio portfolio

Planning,marketing Planning,marketing And other And other Functional strategies Functional strategies

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 The BCG matrix (P.47)

Marketing growth rate

Low

high

Star

Question mark

Cash cow

Dog

High

low

Relative market share

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20
4

4 3 3 2 2

18 16 14 10 8 6 4 2 0 10x
6 6 5 5

11
1 1

7 8

4x 2x 1.5x 1x

0.5x 0.4x 0.3x 0.2x 0.1x

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 Product-market expansion grit (P.48)

Existing products Existing markets Market penetration New products product development

New markets

Market development

Diversification

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The marketing process (P.54)

Marketing intermediaries
M a an rke al tin ys g is

Competitors
M pl ark an et ni ing ng

Product

seg Mar me ket nta tio n

Profitable Customer relationships

et rg ng Ta keti ar m

Price

Place

Promotion

Suppliers

im Ma pl rke em ti en ng ta tio n

Market positioning

g tin ke l ar ro M ont c

Publcs

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Major Force Shaping the Internet Age (P.71)

Digitalization connectivity

Customization and customerization

The Digital Age

The explosion of the internet

New types of intermediaries

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 Customization( involves taking the initiative to customize the market offering. Customerization leaving it to individual customer to design the marketing offering allowing customer to be prosumers rather than only consumers.

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 Marketing environment (P.106) The actors and forces outside marketing that affect marketing managements ability to develop and maintain successful transactions with its target customers.

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 Marketing environment (P.107)

Macro-environment

Micro-environment
Marketing department

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 The microenvironment (P.107)

Companys Internal environment Companys marketing Competitors

Publics

Suppliers Marketing intermediaries

Customers

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 The companys internal environment

Top management Accounting Marketing Manufacturing Purchasing R&D Finance

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 The macro-environment
Demographic forces

P.111

Cultural forces

Microenvironment Company Company

Economic forces

Political forces Technological forces

Natural forces

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