MARKETING MANAGEMENT

1 Defining

Marketing for the

21st Century

Kotler Keller

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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 theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, 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?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

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Marketing Goods

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Marketing Ideas: Friends Don’t 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

Selling Marketing

Product

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Figure 1.3 Holistic Marketing Dimensions

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Figure 1.4 The Four P’s

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Marketing Mix and the Customer

Four P’s• Product• Price• Place• Promotion

Four C’s• 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 Consumerto Take Action?What Motivates a Consumerto Take Action?

• Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. 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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