Complete Notes Marketing Session 1 2

8/8/2019 Complete Notes Marketing Session 1 2

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Defining Marketing for the TwentyDefining Marketing for the Twenty--FirstFirst

CenturyCentury


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IMPORTANCE OF MARKETING

Backbone of any organization


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The New Economy

Consumer benefits from the digitalrevolution include:

Increased buying power.

Greater variety of goods and services.

Increased information.

Enhanced shopping convenience.

Greater opportunities to compare product

information with others.


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The New Economy

Firm benefits from the digital

revolution include:New promotional medium.

Access to richer research data.

Enhanced employee and customercommunication.

Ability to customize promotions.


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What Can Be Marketed?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas


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Marketing Defined

Kotlers social definition:

Marketing is a societal process bywhich individuals and groups

obtain what they need and want

through creating, offering, and

freely exchanging products and

services of value with others.


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Marketing Defined

The AMA managerial definition:

Marketing is the process ofplanning and executing the

conception, pricing, promotion,and distribution of ideas, goods,

and services to create exchangesthat satisfy individual andorganizational objectives.


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Core Marketing Concepts

Target markets andmarket segmentation

Marketplace, market-space, metamarkets

Marketers & prospects

Needs, wants, demands

Product offering andbrand

Value and satisfaction

Exchange andtransactions

Relationship andnetworks

Marketing channels

Supply chain

Competition

Marketing environment

Marketing program


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Target markets & segmentation

Differences in needs, behavior,demographics or psychographics

are used to identifysegments.

The segment served by the firm is

called the target market.The market offering is customized

to the needs of the target market.


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Figure 1-1: A Simple Marketing System


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Shopping can take place in a:

Marketplace (physical entity)

Marketspace (virtual entity)

Metamarkets refer to complementarygoods and services that are related

in the minds of consumers. Marketers seek responses from

prospects.


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Needs describe basic humanrequirements such as food, air, water,

clothing, shelter, recreation, education,and entertainment.

Needs become wants when they aredirected to specific objects that might

satisfy the need. (Fast food)

Demands are wants for specificproducts backed by an ability to pay.


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Aproductis any offering that cansatisfy a need or want, while a brand

is a specific offering from a knownsource.

When offerings delivervalue and

satisfaction to the buyer, they aresuccessful.


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Marketers can enhance the value ofan offering to the customer by:

Raising benefits.

Reducing costs.

Raising benefits while lowering costs.

Raising benefits by more than theincrease in costs.

Lowering benefits by less than thereduction in costs.


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Exchange involves obtaining a desiredproduct from someone by offeringsomething in return. Five conditionsmust be satisfied for exchange to occur.

Transactions involve at least two things

of value, agreed-upon conditions, a timeof agreement, and a place of agreement.


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Relationship marketingaims to

build long-term mutually satisfyingrelations with key parties, whichultimately results in marketingnetworkbetween the company andits supporting stakeholders.


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Marketing Channels

Communication

channels

Distribution

channels Service channels

Deliver messages toand receive

messages fromtarget buyers.

Includes traditionalmedia, non-verbalcommunication, andstore atmospherics.


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Marketing Channels

Communication

channels

Distribution


Display or deliverthe physical

products orservices to thebuyer / user.


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Marketing Channels

Communication

channels

Distribution


Carry outtransactions with

potential buyersby facilitating thetransaction.


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A supply chain stretches from rawmaterials to components to final

products that are carried to finalbuyers.

Each company captures only a

certain percentage of the total valuegenerated by the supply chain.


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Core Marketing Tools

Forces Impacting the Task Environment

SocioSocio--cultural Environmentcultural Environment

Technological EnvironmentTechnological Environment

LegalLegal--Political EnvironmentPolitical Environment

Natural EnvironmentNatural Environment

DemographicsDemographics

EconomicsEconomics


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Figure 1-3:

The Four P Components

of theM

arketingM

ix


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Company Orientations

Societal Marketing Concept

The orientation of the firm typically guidesmarketing efforts

Marketing Concept Customer Concept

Product Concept Selling Concept

Production Concept


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The Marketing Concept

Achieving organizational goals requiresthat company be more effective than

competitors in creating, delivering, andcommunicating customer value.

Four pillars of the marketing concept:

Target market

Customer needs

Integrated marketing

Profitability


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HOLISTIC MARKETINGCONCEPT

Relationship Marketing

Integrated Marketing Internal Marketing

Socially Responsible Marketing


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Changes in the Marketplace

Globalization, technologicaladvances, and deregulation have

created many challenges: Customers

Brand manufacturers

Store-based retailers Both companies and marketers have

been forced to respond and adjust.


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Discussion

Does Marketing Create or SatisfyNeeds?


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CASELET : COCA-COLA

Each day, people in 200 countriesaround the world drink some 1.2

billion 8-ounce servings of the cola.

Coca-Cola which got its start in 1883,has successfully kept its brand

relevant for over 100 years.

Revenues in 2003 topped $21 billion.


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CASELET: COCA- COLA

COCA- COLA also expandedoverseas.

DuringWorld- War II, when thearmies shipped the Cokes to

soldiers in Europe and Asia,Coke cemented its image as theAll-American Beverage


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CASELET:COCA-COLA

But over a period of time, Cokerealized it needs to give a localflavour to the brand in eachcountry.

Coca- Cola gets two third of itsrevenues from outside theUnited States.


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CASELET- COCA COLA

Coke is not present in onlyMyanmar, Cuba and Syria.

Coca- Cola remains the topmostin brand value.


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CASELET: COCA-COLA

What have been the key successfactors for Coca- Cola?

Where is Coca- Cola vulnerable?What should they watch out for?

What recommendations would youmake to their senior marketingexecutives going forward?Whatshould they be sure to do with theirmarketing?

Complete Notes Marketing Session 1 2

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