MARKETING MANAGEMENT - DEFINITION

MARKETING CONCEPTS

• Art and science of choosing target markets

and getting, keeping and growing
customers through creating, delivering and
communicating superior customer value.

- Philip Kotler

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Core Marketing Concepts MARKET

Target Markets and Segmentation:
‘Market segmentation
Target segments
Market Positioning

Markets:
 Need markets (the diet seeking market)
 Product markets (the shoe market)
 Demographic markets (the youth market)
 Geographic market (the French market)
 Other markets like voter markets, donor markets and labour markets.
 Marketplace v/s marketspace – physical v/s digital

Marketers and prospects:

 Marketer : seeking response in the form of attention, purchase,
vote and donation.
 The response is sought from prospect.

Needs, Wants and Demand Product or offering

• Needs : • Any offering that can satisfy a need or want.
– basic human requirements. (food, air, water, education,
entertainment etc.)
• Major typed of basic offerings:
– Needs become wants when they are directed to specific objects – Goods, services, experiences, events, persons,
that might satisfy the need. places, properties, organizations, information and
ideas.
• Need for water ---> Want for softdrink • A brand is an offering from a known source.
• Demands
– wants for specific products backed by willingness and ability to
pay.
• Marketers
– do not create needs.
– along with other social influencers influence wants.
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 Value, satisfaction & Quality Value and satisfaction

• Value • Value of customer offering can be

• what customer gets (benefits) and what he increased by:
gives (cost). – Raise benefits
– Benefits : – Reduce costs
• functional and emotional benefits. – Raise benefits AND reduce costs
– Costs : – Raise benefits by MORE THAN the raise in
• monetary costs, time costs, energy costs and costs
psychic cost.

Satisfaction Quality

• Equal, Above and Below • Perception of benefits against cost

• Cognitive Dissonance

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Exchange and transactions: Exchange and transactions:

• Exchange : • For exchange potential to exist five conditions
must be satisfied:
– a way in which a person can obtain a product.
– obtaining a desired product from someone by – 1. At least two parties
offering something in return.
– 2. Each party has something that might be of some
value to the other party.

– 3. Each party is capable of communication and delivery

– 4. Each party is free to accept or reject offer

– 5. Each party believes that it is appropriate or desirable

to deal with the other party.
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 Exchange and transactions: Exchange and transactions:

• Exchange is : • Dimensions of a transaction:

– value-creating process.
– a process rather than an event. • At least two things of value Agreed upon
conditions
– A time of agreement
• A transaction is a trade of values between – Place of agreement
two or more parties.
– Monetary transaction • Transaction marketing – Relationship marketing
– Barter transaction b/w customers, suppliers, and distributors

Relationships and networks: Relationships and networks:

• Transaction marketing : a part of relationship • A marketing network consist of companies

marketing. and its supporting stakeholders
(customers, employees, suppliers,
• Relationship marketing distributors, retailers, ad agencies,
– has the aim of : building long term mutually satisfying university scientists and others).
relations with key parties – customers, suppliers, and
distributors – in order to earn and maintain their long
term preference and business.
– builds strong economic, social and technical ties
among the parties.

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Marketing Concepts - Summary Marketing Environment

• Market
• Need, Want & Demand
• Product
• consists of the :
• Value, Satisfaction & Perceived Quality
• Exchange & Transactions
• Relationship & Networks
– task environment &
– broad environment

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 Marketing Environment Marketing Environment
• Task Environment : • Broad Environment :
– immediate actors involved in producing, – consists of six components:
distributing, and promoting the offering • demographic environment (density, location,age, sex, race, occupation)
• economic environment,
– main actors : company, suppliers, distributors, • natural environment,
dealers, & target customers. • technological environment,
• political-legal environment, and
• supplier group are material suppliers and service • social-cultural environment.
suppliers (marketing agencies, advertising agencies,
banking and insurance companies, transportation and – contain forces that can have a major impact on actors in
telecommunication companies). the task environment.

• distributors and dealers group are agents, brokers, – Market actors must pay close attention to the trends and
manufacturer representatives, and others who facilitate the developments in these environments and then make
finding and selling to consumers. timely adjustments to their marketing strategies.
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Broad (Macro) Environment Broad (Macro) Environment

DEMOGRAPHIC ENVIRONMENT
ECONOMIC ENVIRONMENT
• Population Size and Growth Trend
• Changing Age Structure of a Population
• Income Distribution and Changes in
• The, Changing Family Purchasing Power
• Rising Number of Educated People • Changing Consumer Spending Patterns
• Increasing Diversity

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Broad (Macro) Environment Broad (Macro) Environment

NATURAL ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT
• Shortages of Raw Materials • Fast Pace of Technological Change
• Increased Cost of Energy
• High R&D Budgets
• increased Pollution
• Government Intervention in Natural Resource • Concentration on Minor Improvements
Management • Increased Regulation

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 Broad (Macro) Environment Broad (Macro) Environment
POLITICAL ENVIRONMENT CULTURAL ENVIRONMENT
• Legislation regulating business • Persistence of Cultural Values
• Growth of public interest groups • Shifts in. Secondary Cultural Values
• people's views of themselves.
• Increased emphasis on ethics and socially • people's views of others
responsible actions • people's views of organizations
• people's views of society.
• people's views of nature

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