Southwest Airlines

Delivering the promised

Started in 1971. Revenue: $17.9 billion.

Founders: Kelleher & King

Facebook
Connecting you happily

Started in 2004. Revenue: $7.8 billion.

Founders: Mark Zuckerberg, Eduardo Saverin, Andrew
McCollum, Dustin Moskovitz, Chris Hughes

Only the best is good enough for

customers

Designing the Right Product

What is Marketing?
Marketing is human activity
directed at satisfying needs and
wants through exchange
process.

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.

What is Marketing Management?

Marketing management is the

art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

Simple Marketing System

Communication

Industry
(a collection
of sellers)

Goods/services
Money

Information

Market
(a collection
of Buyers)

Structure of Flows
Resources
Money

Resource
markets

Services,
money
Services,
money

Manufacturer
markets

Goods, services

Taxes,
goods
Taxes

Government
markets

Taxes,
goods
Services,
money

Money

Resources
Money

Consumer
markets

Services

Taxes,
goods
Money

Intermediary
markets
Goods, services

Evolving Views of Marketings Role

Finance

Production

Marketing

Finance
Human
resources

a. Marketing as an
equal function

Production
Human
resources
Marketing

b. Marketing as a more
important function

Evolving Views of Marketings

Role
Production/
Operations
Marketing

c. Marketing as the
major function

IT

Customer

d. The customer as the

controlling factor

Evolving Views of Marketings Role

Production/
Operations

IT

Marketing
Customer

e. The customer as the controlling

function and marketing as the
integrative function

The Focus on Customers has changed over

the years:
Profitability

Loyalty
Customer satisfaction

Customer Relationship (CRM)

Company Orientations Towards

the Marketplace
Production Concept

Consumers prefer products that are

widely available and inexpensive

Product Concept

Consumers favor products that

offer the most quality, performance,
or innovative features

Selling Concept

Consumers will buy products only if

the company aggressively
promotes/sells these products

Marketing Concept

Focuses on needs/ wants of target

markets & delivering value
better than competitors

Societal marketing

Rice bran oil has a rich natural source of antioxidant "Oryzanol", a type of vitamin E
that are known to lower cholesterol levels by reducing the levels of fat molecules
triglycerides and bad cholesterol (LDL), and increasing the proportion of good
cholesterol (HDL) in the blood.

The Four Ps

Marketing
Mix

Place

Product

Customer
Solution

Price
Customer
Cost

ConvenPromotion ience
Communication

The Four Ps

DEMAND STATES & TASKS

1.

NEGATIVE DEMAND

- Conversional marketing

2. NO DEMAND
3. LATENT DEMAND

4. FALLING DEMAND

- Remarketing

5. IRREGULAR DEMAND

Synchro- marketing

6. FULL DEMAND

Maintenance Marketing

7. OVERFULL DEMAND

Developmental marketing
Stimulational Marketing

- De-marketing

8. UNWHOLESOME DEMAND - Counter marketing