Chapter 1

Industrial Age :
Mass production, mass consumption, overstuffed with inventory,
ads everywhere and rampant discounting

Information Age :
Digital revolution, mass customization, more accurate marketing
communication

Shifting from the old to new economy

Customers point of view
Companys point of view

Marketing
Social Definition

Managerial Definition

The aim of marketing is to know and understand the customers so well

that the product or service fits him and sell itself.

Types of entities to be marketed

Marketing Management
The art and science of choosing target market and getting, keeping and
growing customers through creating, delivering and communicating superior
customer value.

Demand Management

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Core marketing concepts

1. Target market and segmentation
2. Marketplace, market space and metamarket
3. Marketers and prospects
4. Needs, wants and demands
5. Product, offering and brand
6. Value and satisfaction
7. Exchange and transaction
8. Relationships and network
9. Marketing channels
10. Supply chain
11. Competition
12. Marketing environment
13. Marketing program

Company Orientation towards the marketplace

Production concept
Widely available and inexpensive.
Production efficiency, low cost, mass distribution.
Product concept
Quality, performance, innovative feature
Marketing myopia
Selling concept
Aggressive selling and promotional effort
When have overcapacity
Sell what you can make rather make what market wants
Marketing concept
Customer centered
Superior customer value
Four pillars (target market, customer needs, integrated marketing,
profitability)
Individual need (dell)
Customer retention, more important than customer attraction

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Customer needs : 5 types

Responsive marketer
Anticipated marketer
Creative marketer
Integrated marketing
Various marketing functions
Various departments
External marketing
Internal marketing
It makes no sense to promise excellent service before the companys staff
is ready to provide it.
Profitability
Long run profitability
Reactive and proactive marketing (Total marketing orientation)
Three hurdles (Organized resistance, slow learning, fast forgetting)
The customer concept
One to one marketing
Fig 1.10
The societal marketing concept
Humanistic and ecological marketing
Cause related marketing

How business and marketing are changing

Customer expectation, intelligent
Brand manufacturer
Store-based retailer

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Company responses and adjustments

Reengineering
Outsourcing
E commerce
Benchmarking
Alliance
Partner-supplier
Market centered
Global and local
Decentralization

Marketer responses and adjustments

Customer relationship marketing

Customer lifetime value
Customer share
Target marketing
Customization
Customer database
Integrated marketing communication
Channels as partner

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