MARKETING MANAGEMENT

1 Defining Marketing for the 21st Century

Kotler

Keller

What is Marketing?

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.
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What is Marketing Management?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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Selling is only the tip of the iceberg

There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. Peter Drucker
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For an exchange to occur.

There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.
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What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
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Marketing Goods

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Marketing Ideas: Friends Dont Let Friends Drive Drunk This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.
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Figure 1.2 A Simple Marketing System

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Figure 1.1 Structure of Flows in a Modern Exchange Economy

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Company Orientations

Production

Product

Selling

Marketing

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Figure 1.3 Holistic Marketing Dimensions

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Figure 1.4 The Four Ps

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Marketing Mix and the Customer

Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication

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Core Concepts
Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning

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Figure 1.6 Factors Influencing Marketing Strategy

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Marketing Management Tasks

Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth

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What Motivates a Consumer to Take Action?

Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for selfexpression. i.e. I am thirsty. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

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Marketing Debate

Does Marketing Create or Satisfy Needs?

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