Defining Marketing for 21

century

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What is Marketing?
marketing is about identifying and
meeting human and social needs with
profit
marketing includes all the activities
from the product manufacturing till it
been used

Core Marketing Concepts

Needs, wants and demands:
Needs are the basic human requirements
These needs become want when they are
directed to specific objects that might satisfy
the need.
Demands are wants for specific products
backed by an ability to pay.
Marketers do not develop needs they influence
wants.

 Target markets,Positioning, and

segmentation.
Marketers start by dividing the market into
segments. They identify and profile distinct
groups of buyer who might prefer distinct groups.
After identifying segment the marketer then
decides which present the greatest opportunitywhich are its target market.
The firm develops a market offering that it
positions in the minds of the target buyers as
delivering some central benefit.

 Offerings and brands:

Value proposition, a set of tangible and intangible
benefits that they offer to customer to satisfy their
needs.
A brand is an offering from a known source.

Value and satisfaction:

Value reflects the sum of the perceived tangible and
intangible benefits and costs to customers. Its primarily
a combination of quality, service and price called the
customer value triad.
Satisfaction reflects a persons judgment of a products
perceived performance in relationship to expectations.

 Marketing channels:
The marketer uses three kinds of marketing
channels.
Communication channels deliver and receive messages
from target buyers and include newspaper, magazines,
radio, television, mail, telephone, billboards, posters.
Distribution channels to display, sell, or deliver the
physical product or services to the buyer or user. Like
distributor, wholesalers, retailers and agents.
Service channels are used to carry out the transaction
with potential buyers. Service channels include
warehouses, transportation companies, banks and
insurance companies.

 Supply chain:
Its a longer channel stretching from raw
materials to components to final products that
are carried to final buyers.

Competition:
Includes all the actual and potential rival offerings
and substitutes a buyer might consider.
Close competitors: the product have almost
same features as your product has.
Distant competitors: the product which has
same basic function as your has.

 Marketing Environment:
the marketing environment consist of the task
environment and board environment.
The micro environment includes the actors that affect
the companys ability to serve its customers. The company
suppliers, marketing intermediaries, customer markets,
competitors and publics.

The board environment consist of six components

Demographic environment
Economic environment
Physical environment
Technological environment
Political - legal environment
Social-cultural environment

Company Orientation towards

market place
Evolution of marketing ideas.
The production concept:
One of the oldest concepts in business
It holds that consumer will prefer products that
are widely available and inexpensive.
Managers of production-oriented businesses
concentrate on achieving high production
efficiency, low cost and mass distribution.

 The product concept:

The product concept proposes that
consumers favor products that offer the
most quality performance, or innovative
features.
Managers in these organizations focus
on making superior products and
improving them over time.

 The selling concept:

The purpose of marketing is to sell more stuff
to more people more often for more money in
order to make more profit.
Their aim is to sell what they make rather than
make what the market wants.
This concept is practiced most aggressively
with unsought goods.

 The marketing concept:

Instead of make and sale product centered
philosophy, business shifted to customer centered
sense and respond philosophy.
The job is not to find the right customer for your
product but to find the right product for your
customer.
The marketing concept holds that the key to
achieving organizational goal is more effective
than competitors in creating, delivering and
communicating superior customer value to your
chosen target market.

 The marketing concept:

(continued)
Reactive market orientation: understanding
and meeting expressed customers needs.
Proactive marketing orientation: respond
to the customers latent needs.
Total market orientation: companies that
practice both a reactive and a proactive
marketing orientation.

 The Holistic Market concept:

It recognize that every thing matters in marketing.
There are four broad components characterizing
holistic marketing:
Relationship marketing
Integrated marketing
Internal marketing
Performance marketing
Successful companies are those that can keep their
marketing changing with the change in their
marketplace and market space breakthrough
marketing

 Relationship Marketing:
it aims to build mutually satisfying long-term relationships
with key constituents in order to earn and retain business.
The four key constituents for relationship marketing are
Customers
Employees
Marketing partners (channels, suppliers, distributors, dealers,
agencies)
Member of financial community (shareholder, investors, analysts)

The ultimate outcome of relationship marketing is a unique

company asset called marketing network. Consist of company
and its supporting stakeholders, customers, employees, suppliers,
distributors, retailers, ad agencies and others.

 Integrated Marketing:
the marketers task is to device marketing
activities and assemble fully integrated marketing
programs to create, communicate, and deliver value
to customers.
these marketing activities are classified as
marketing mix which consist of four Ps of marketing.
Product
Price (psychological, cost plus, premium pricing,
economy)
Promotion
Place

 Internal marketing:
management philosophy is to promoting the firm
and its policies to employees as if they are the
internal customers of the firm.
If a company can operate in a coordinated and
standardized way that company can provide a more
consistent experience to the customers.

 Performance Marketing:
holistic marketing incorporates performance
marketing and understanding the return to the
business from marketing activities and programs, as
well as addressing broader concerns and their legal,
ethical, social and environmental effect.
Financial Accountability: marketers are asked to
justify their investments to senior management in
financial and profitability terms.
Social Responsibility Marketing: marketers must
carefully consider their role in broader terms, and the
ethical, environmental, legal and social context of their
activities.