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Social

Definition of

Marketing

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.

Scope of Marketing A good marketer must be able to answer the following questions:

Understanding Marketing Management

Chapter 1

What is Marketing?

Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

SUMMARY by

Marketing is an essential art and science that is engaged in a vast number of activities

by both persons and organizations. It has become an increasingly vital ingredient in the

success of a business. Good marketing is the result of careful planning and execution.

There are two sides to marketing – the formulated side and the creative side. It is

important to lay the foundation in marketing concepts, tools, frameworks and issues of

the formulated side while at the same time instil the real creativity and passion for

marketing, as we shall come to see in this chapter.

Marketing is increasingly becoming an important function in all organizations to ensure

that demand for a product or service persists along with customer retention.

The formal definition of marketing is, Marketing is an organizational function and a set

of processes for creating, communicating and delivering value to customers and for

managing customer relationship in ways that benefit the organization and its

stakeholders.

Some of the common entities that are marketed are goods, services, events,

experiences, persons, places, properties, organizations, information and ideas.

What is Marketed?

A marketer is someone who seeks a response, attention, purchase, vote, donation etc

from another party called the prospect. Marketing managers are responsible for demand

management.

Eight demand states are possible:

• Negative demand

• Nonexistent demand

• Latent demand

• Declining demand

• Irregular demand

• Full demand

• Overfull demand

• Unwholesome demand

The key customer markets are consumer markets, business markets, global markets,

non-profit and governmental markets.

Chapter 1 - Understanding Marketing Management

• Needs - state of felt deprivation for basic items such as food and clothing and

complex needs such as for belonging. i.e. I am hungry.

• Wants - form that a human need takes as shaped by culture and individual

personality i.e. I want a hamburger, French fries, and a soft drink.

• Demands - human wants backed by buying power. i.e. I have money to buy this

meal.

• Target Markets are the market segments identified by the marketer which

present the greatest opportunity.

• Value Proposition is a set of benefits that companies offer to customers to

satisfy their needs. The intangible value proposition is made physical by as

offering. A brand is an offering from a known source.

• Value reflects the sum of the perceived tangible intangible benefits and costs to

customers. Satisfaction reflects a person’s judgements of a product’s perceived

performance.

• To reach a target market a marketer uses different marketing channels like

communication channels, distribution channels and service channels.

• Supply chain is a longer channel stretching from raw materials to components

to final products that are carried to final buyers.

Who Markets?

Core Marketing Concepts:

The five key

functions of a

marketing

manager or

CMO are:

• Strengthening

the brand

• Measuring

marketing

effectiveness

• Driving new

product

development

based on

customer needs

• Gathering

meaningful

customer

insights

• Utilizing new

marketing

technology

New

Marketing

Realities:

Some of the major

societal forces that

marketers have to

deal with today are

network

information

technology,

globalization,

deregulation,

privatization,

heightened

competition,

industry

convergence,

consumer

resistance, retail

transformation and

disintermediation.

The major marketing philosophies are:

• The Production Concept

o Consumers favor products that are available and highly affordable.

o Improve production and distribution.

• Product Concept

o Consumers favor products that offer the most quality, performance, and

innovative features.

• Selling Concept

o Consumers will buy products only if the company promotes/ sells these

products.

• Marketing Concept

o Focuses on needs/ wants of target markets & delivering satisfaction better

than competitors.

• Societal Marketing Concept

o Focuses on needs/ wants of target markets & delivering superior value.

• Holistic Marketing Concept

o Based on the development, design and implementation of marketing

programs, processes and activities that recognize their breadth and

interdependencies.

• Relationship Marketing

o Aims to build mutually satisfying long-term relationships with key

constituents in order to earn and retain their business.

Chapter 1 - Understanding Marketing Management

Company orientation towards Marketplaces:

Marketing Management Tasks: The following are the most important marketing management tasks:

• Developing Marketing Strategies and Plans

• Capturing Marketing Insights

• Connecting with Customers

• Building Strong Brands

• Shaping the Marketing Offerings

• Delivering Value

• Communicating Value

• Creating Long-Term Growth