ams chapter 1 new

8/9/2019 AMS Chapter 1 New

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Defining Marketing

for the 21st Century

LECTURE


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Chapter Questions

Why is marketing important?

What is the scope of marketing?

What are some fundamental marketing

concepts?

How has marketing management changed?

What are the tasks necessary for successful

marketing management?


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What is Marketing?

Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships

in ways that benefit the

organization and its stakeholders.(American Marketing Association Formal Definition)


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What is Marketing?

Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships

in ways that benefit the

organization and its stakeholders.(American Marketing Association Formal Definition)


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What is Marketing Management?

Marketing management is the

art and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.


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What is Marketed?

Goods

Services

Events and experiences Persons

Places and properties

Organizations

Information Ideas


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Demand States

Negative Demand Consumers dislike the

product e.g. Vaccination, Dental work

Nonexistent Demand Consumers may be unaware

of the product e.g. Foreign Languagecourse

Latent Demand Consumers may share a

strong need that cant be

satisfied with existing producte.g. Harm less cigarettes, Fuel Efficient cars

Declining Demand Consumers begins to buy the

product less frequently e.g.churches, Govt. Schools

Irregular Demand Consumers purchases vary on a

seasonal, monthly, weekly, daily

or hourly e.g. Museums on week days,Travelling Peak Off Peak time

Unwholesome Demand Consumers attracted to

products that have undesirable

social consequences e.g. Cigarettes,Alcohol, Drugs

Full Demand Consumers are adequately

buying all products.

Overfull Demand

More consumers would like tobuy than can be satisfied.


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Key Customer Markets

Consumer markets

Business markets

Global markets

Nonprofit/Government markets


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Functions of CMOs

Strengthening the brands.

Measuring marketing effectiveness.

Driving new product development based on

customer needs.

Gathering meaningful customer insights.

Utilizing new marketing technology.


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Core Marketing Concepts

Needs, wants, anddemands

Target markets,

positioning,

segmentation Offerings and brands

Value and

satisfaction

Customer value TriadQuality, Service & Price (QSP)

Marketing channels Communication Channels e.g.

Newspapers, Magazines Radio., Television, Mail,

Telephone, Billboards, Posters, Fliers, CDs, Audio

Tapes & Internet

Distribution Channels e.g. Distributors,Wholesalers, Retailers, & Agents

Supply chain

Competition

Marketing environment

Task Environment e.g. Company,Suppliers, Distributors, Dealers & Target

Customers

Broad Environment e.g. Demographic,PESTL

Marketing planning


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The New Marketing Realities

Network information technology

Globalization

Deregulation

Privatization

Heightened competition

Industry convergence

Consumer resistance

Retail transformation

Disintermediation

Major Societal Forces


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New Consumer Capabilities

A substantial increase in buying power

A greater variety of available goods andservices.

A great amount of information aboutpractically anything.

Greater ease in interacting and placing andreceiving orders.

An ability to compare notes on products andservices.

An amplified voice to influence public opinion.


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Company Orientations Toward The

Market Place

The Production Concept Consumers will prefer products that are widely available &

inexpensive e.g. Lenovo, Haier etc.

The Product Concept

Consumer favor products that offer the most quality,performance, or innovative features e.g. Rolex etc.

The Selling Concept Consumers & businesses, if left alone, wont buy enough of

the organizations products e.g. Insurance, Encyclopedias etc.

The Marketing Concept Emerged in mid 1950s Customer-Centered Sense &

Respond e.g. Dell Computer etc.


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Marketing Mix and the Customer

Four Ps

Product Product Variety/Quality/ Design/

Features/Brand Name/ Packaging/

Sizes/Services/Warranties/Returns

Price List Price/Discounts/Allowances/

Payment Period/Credit Terms

Place Channels/Coverage/Assortments/

Locations/Inventory/Transport

Promotion Sales Promotion/Advertising/Sales

Force/Public relations/ Direct

Marketing

Four Cs

Customer solution

Customer cost

Convenience

Communication


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The Holistic Marketing Concept

Relationship Marketing Relationship marketing is a strategy designed to foster

customer loyalty, interaction and long-term engagement.

Integrated Marketing Communication

Integrated marketing communication (IMC) is a process

for planning, executing and monitoring the brand

messages that create customer relationship.

Internal Marketing Internal marketing is the task of hiring, training, and

motivating able employees who want to serve customers

well.


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The Holistic Marketing Concept

Performance Marketing

Financial Accountability

Social Responsibility

Marketing

Corporate Social Initiatives

Corporate social

marketing Cause marketing

Corporate philanthropy

Corporate community

involvement

Socially responsible

business practices


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"Unless you try to do something beyond what you havealready mastered, you will never grow."

- Ronald E. Osborn

The End


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