philip kotler chapter 1
DESCRIPTION
This is a presentation containing key aspects explained in the first chapter of Philip Kotler - Marketing ManagementTRANSCRIPT
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CHAPTER 1 :
DEFINING MARKETING FOR THE 21st CENTURY
Nataraj Pangal | Shreya Rana
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DEF
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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
Social Definition
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
AMA Definition
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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.
Kotler Definition
WH
AT IS
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D? GOODS
SERVICESEVENTSEXPERIENCES
PERSONS
PLACES
PROPERTIES
ORGANIZATIONS
INFORMATION
IDEAS
DEM
AND
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TES
• Dental Work• VaccinationNegative Demand
• Foreign Language CoursesNo Demand
• Harmless Cigarettes• Fuel-Efficient CarsLatent Demand
• ChurchesDeclining Demand
• Hotels• Mass-TransitIrregular Demand
• Changing Preference• Increasing CompetitionFull Demand
• DemarketingOverfull Demand
• Cigarettes• AlcoholUnwholesome Demand
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PTS Marketplace
Physical
Store
Marketspace
Digital
Internet
Metamarket
Cluster of complementary
products
Spread across a diverse set of
industries
Automobile
www.marutitruevalue.com
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Needs, Wants and Demands• Needs – Basic Human Requirements• Wants – Directed at specific objects• Demands – Backed by ability to pay
Target Markets, Positioning & Segmentation
Offerings and Brands• Offering – Value Proposition made Tangible• Brand – Offering from a known source
Value & Satisfaction• Value – Benefits / Cost• Customer Value Triad – Quality, Service and Price• Satisfaction – Product’s perceived performance
Marketing Channel• Communication Channel – Deliver & Receive message• Distribution Channel – Display, sell & Deliver• Service Channel – Carry out transactions
• Oldest Concept• Consumers will prefer products that are widely available &
Inexpensive• Concentrate on achieving high production efficiency, low
costs and mass distribution• Eg: - Lenovo and Haier in China
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ON The Production Concept
• Consumers favor products that offer most quality, performance and innovative features.
• Make superior products and improve them over time.• Caught in a “love-affair” with their product.
The Product Concept
• Consumers, if left alone, wont buy enough of the organization’s products.
• Must undertake an aggressive selling and promotion effort.• Practiced most aggressively with unsought goods.• Eg:- Insurance & Encyclopedias.• Aim is to sell what they make rather than make what the
market wants.
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The Selling Concept
• Customer Centered instead of Product Centered.• Not to find right customers for your products, but to find
right products for your customers.• Eg:- Dell• Reactive Market Orientation – Understanding and meeting
customers’ expressed needs• Proactive Market Orientation - Understanding and meeting
customers’ latent needs• Total Market Orientation
The Marketing Concept
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Holistic Marketing Concept
Internal Marketing
Performance Marketing
Relationship Marketing
Integrated Marketing
CustomersChannel
PartnersSales RevenueBrand & Customer Equity
EthicsEnvironment
Legal
Commodity
Communications
Products & Services
ChannelsMarketing Dept
Senior Mgmt
Other Depts
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TAS
KSDeveloping Marketing Strategies & Plan
Capturing Marketing Insights
Connecting with Customers
Building strong brands
Shaping the market offering
Delivering Value
Communicating Value
Creating Long-Term Growth