Marketing for the 21st Century
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Transcript of Marketing for the 21st Century
INTRODUCTION
DEFINING MARKETNG FOR THE 21ST CENTURY
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THE WORLD OF MARKETING
• IMPORTANCE OF MARKETING• THE SCOPE OF MARKETING• COMPONY ORIENTATION TOWARDS
THE MARKET PLACE• FUNDAMENTAL MARKETING
CONCEPTS, TRENDS AND TASKS
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IMPORTANCE OF MARKETING IN YOUR LIFE
• Marketing is a large part of your daily life. Consumers are exposed to 3,000 commercial messages a day.
• Studying marketing will make you a better-informed customer.
• Marketing probably relates -- directly or indirectly -- to your career aspirations.
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Defining MarketingAn 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
• Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. (KOTLER)
• Marketing is about managing profitable customer relationships– Attracting new customers– Retaining and growing current customers
• The process of building profitable customer relationships by creating value for customers and capturing value in return
– 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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Marketing Management
• Marketing management is the art and science of choosing target markets and building profitable relationships with them.– This definition must include answers to two
questions:• What customers will we serve?• How can we serve these customers best?
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What Can Be Marketed?
From serious goods and services to fun things– Goods and services mirror changes in popular
culture – Marketing messages may communicate myths
of a culture Product: any good, service, or idea
– Consumer goods/services– Business-to-business goods/services– Not-for-profit marketing– Idea, place, and people marketing
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Simple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
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Manufacturermarkets
Services,Services,moneymoney
Governmentmarkets
Services,Services,moneymoney
ServicesServicesServices,Services,
moneymoney
TaxesTaxes
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
MoneyMoney MoneyMoney
Consumermarkets
IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services
ResourcesResources ResourcesResourcesResourcemarketsMoneyMoney MoneyMoney
Structure of Flows
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Customers
Front-line people
Middle Management
TopManagement
Traditional Organization Chart
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Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Topmanage-
ment
Customers Custom
ers
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Evolving Views of Marketing’s Role
a. Marketing as anequal function
FinanceProduction
Marketing Humanresources
b. Marketing as a moreimportant function
Finance
Humanresources
Marketing
Production
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Evolving Views of Marketing’s Role
c. Marketing as themajor function
Marketing
Finance
Human
resources
Production
d. The customer as thecontrolling factor
Customer
Human
resource
s
FinanceProduction
Marketing
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Evolving Views of Marketing’s Role
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Human
resources Finance
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DIFFERENCES BETWEEN MARKETING AND SELLING.
• Marketing is the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. It is externally focused.
• Selling is producing a product and then trying to persuade customers to purchase it -- in effect, trying to alter consumer demand. It is internally focused.
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QUALITY IN MARKETING
• Quality has three dimensions– Meeting and striving to exceed
customers’ requirements.– The absence of variation.– Total organizational commitment.
• The best indicator of quality is customer satisfaction.
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Core Concepts of Marketing
Product or Offering Value and Satisfaction
Needs, Wants, and Demands
Exchange and Transactions Relationships and Networks
Target Markets & Segmentation
Marketing Channels Supply Chain Competition
Marketing Environment
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Understanding the Marketplace
• Needs, wants, and demands• Marketing offers: including
products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
• Need– State of felt deprivation– Example: Need food
• Wants– The form of needs as shaped
by culture and the individual– Example: Want a chicken
karahe
• Demands– Wants which are backed by
buying power
Core Concepts
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Marketing Is about Meeting Needs
• Meeting the needs of diverse stakeholders– Buyers, sellers, investors, community
residents, citizens.• Marketing concept
– Identifying consumer needs and providing products that satisfy those needs
• The modern marketplace – a mall, a mail-order catalog, a TV shopping
network, an eBay auction, or an e-commerce Web site
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Understanding the Marketplace
• Needs, wants, and demands• Marketing offers: including
products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
Core Concepts• Marketing offer
– Combination of products, services, information or experiences that satisfy a need or want
– Offer may include services, activities, people, places, information or ideas
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Understanding the Marketplace
• Needs, wants, and demands• Marketing offers: including
products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
• Value– Customers form expectations
regarding valueValue proposition includes the
whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself– The ratio of costs to benefits
• Satisfaction– A satisfied customer will buy
again and tell others about their good experience
Core Concepts
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Value and Satisfaction• Perceived Value
– The customer’s evaluation of the difference between benefits and costs.
– Customers often do not judge values and costs accurately or objectively.
Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product itselfCustomer Satisfaction– Product’s perceived performance relative to customer’s
expectations.
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Understanding the Marketplace
• Needs, wants, and demands• Marketing offers: including
products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
• Exchange– The act of obtaining a
desired object from someone by offering something in return
– One exchange is not the goal, relationships with several exchanges are the goal
– Relationships are built through delivering value and satisfaction
Core Concepts
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Understanding the Marketplace
• Needs, wants, and demands• Marketing offers: including
products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
• Market– Set of actual and potential
buyers of a product– Marketers seek buyers that
are profitable
Core Concepts
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The Evolution of Marketing
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• Production concept• Product concept
• Selling concept • Marketing concept
• Societal marketing conceptSocial marketing concept: satisfy customers’ needs and also benefit society Sustainability: meeting present needs and ensuring that future generations can meet their needs
Marketing Orientations
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Some industries and organizations remain at the production-orientation stage.
PRODUCTION ORIENTATION
PRODUCTION ORIENTATION SALES ORIENTATION
Other industries and organizations have progressed only to the sales-orientation stage.
Many industries and organizations have progressed to the marketing-orientation stage.
PRODUCTION ORIENTATION
SALESORIENTATION
MARKETING ORIENTATION
Late 1800s Early 1930s Mid-1950s 1900s
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
Company Orientations Towards the Marketplace
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Market Integratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
Factory Existingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
Customer Delivered Value
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Marketing as an Organizational Philosophy
MarketingPhilosophy
SellingPhilosophy
ProductionPhilosophy
InternalFocus
ExternalFocus
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The Four PsThe Four Ps
MarketingMix
Product
Price Promotion
Place
The Four Cs
CustomerSolution
CustomerCost
Communication
Conven-ience
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MARKETING MIX
1. PRODUCT: A good, service, idea to satisfy the consumer’s need.
2. PRICE: What is exchanged for the product.3. PROMOTION: Means of communication
between the seller and buyer.4. PLACEMENT: Means of getting the product to
the consumer.5. POSITIOINING: Developing a marketing
strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition.
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The Marketing Plan
• Transforms the marketing strategy into action.
• Includes the marketing mix and the 4P’s of marketing– Product– Price– Place– Promotion
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Building Customer Relationships• CRM – Customer relationship
management • Delighting the Customer• The overall process of building and
maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers.
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Capturing Value from Customers
• Customer Loyalty and Retention
• Share of Customer• Customer Equity
• Customer delight leads to emotional relationships and loyalty
• Customer Lifetime Value shows true worth of a customer
Key ConceptsKey Concepts
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Capturing Value from Customers
• Customer Loyalty and Retention
• Share of Customer• Customer Equity
• Share of customer’s purchase in a product category.
• Achieved through offering greater variety, cross-sell and up-sell strategies.
Key ConceptsKey Concepts
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Capturing Value from Customers
• Customer Loyalty and Retention
• Share of Customer• Customer Equity
• Share of customer’s purchase in a product category.
• Achieved through offering greater variety, cross-sell and up-sell strategies.
Key ConceptsKey Concepts
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Capturing Value from Customers
• Customer Loyalty and Retention
• Share of Customer• Customer Equity
• The combined customer lifetime values of all current and potential customers.
• Measures a firm’s performance, but in a manner that looks to the future.
• Choosing the “best” customers is key
Key ConceptsKey Concepts
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Contemporary Marketing Framework
Marketing
CV
Global
Relationship
Productivity
Customer Value
Ethics
Entrepreneurship
Technology
Slide 8
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Transaction Versus Relationship Marketing
Long-Term Focus
“We” Oriented
Short-Term Focus
“Me” Oriented
Focus on Results
Emphasize Persuading
A Contest
Manipulation
Conflict
Transaction Marketing Relationship Marketing
Focus on Profits
Emphasize Helping
A Service
Trust
Cooperation
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Go to the website of University Of Management and Technology,
Lahore Pakistan
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