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Needs, wants,

and demands

Products

Value andSatisfaction

Exchange, transactions,

and relationships

Market Core

Marketing

concepts

Core marketing concepts

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Esteem needs(self-esteem, recognition, status)

Social needs(sense of belonging, love)

Safety needs(security, protection)

Physiological needs(hunger, thirst)

Self-Actualization

Needs(self- developmentAnd realization)

Maslows hierarchy of

needs

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Fisherman Hunter

Potter Farmer

Fisherman Hunter

Potter Farmer

Fisherman Hunter

Potter Farmer

Merchant

Self - sufficiency Decentralized exchange Centralized exchange

Evolution towards centralized exchange.

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MARKETING MANAGEMENT

Most people think of marketing management as finding enough customers for the companys

current output, but this is too limited a view. The organization has a desired level ofdemand for its products. At any point in time, there may be no demand, adequatedemand, irregular demand, or too much demand, and marketing management isconcerned not only with finding and increasing demand, but also with changing or evenreducing it. Thus marketing management seeks to affect the level, timing and nature of

demand in a way that helps the organization achieve its objectives. Simply put, marketingmanagement is demand management. Marketing managers in different organizationsmight face any of the following states of demand. The marketing task is to managedemand states effectively.

Negative demand

A large part of the market dislikes the product and may even pay to avoid it.Examples are vaccinations, dental work, cancer screening and seat belts.

Marketers must analyse why the market dislikes the product, and whether productredesign, lower prices or more positive promotion can change the consumer attitudes.

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No demand

Target consumers may be uninterested in the product.

Thus farmers may not care about a new farming method and consumers may not be

interested in three-wheeled electric cars.The marketer must find ways to connect the products benefits with the markets needs

and interests.

Latent demand

Consumers have a want that is not satisfied by any existing product or service.

There is strong latent demand for nonharmful cigarettes, safer neighborhoods,biodegradable packages and more fuel-efficient cars.

The marketing task is to measure the size of the potential market and develop effectivegoods and services that will satisfy the demand.

Falling demand

Sooner or later, every organization faces falling demand for one of its products.Churches have seen their membership decline and dairy farmers have seen con-sumption of full-cream milk fall.

The marketer must find the cause of market decline and restimulate demand by findingnew markets, changing product features or creating more effective communications.

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Irregular demand

Demand varies on a seasonal, daily or even hourly basis, causing problems of idle or

overworked capacity.In mass transit, much equipment is idle during slow travel hours and too little is available

during peak hours. Museums are under visited during weekdays and overcrowded duringweekends.Marketers must find ways to change the time pattern of demand through flexible pricing,promotion and other incentives.

Full demand

The organization has just the amount of demand it wants and can handle.The marketer works to maintain the current level of demand in the face of changingconsumer preferences and increasing competition. The organization maintains qualityand continually measures consumer satisfaction to make sure it is doing a good job.

Overfull demand

Demand is higher than the company can or wants to handle.For example, many motorways carry more traffic than they are built for and Disney Worldis overcrowded in the summertime. Utilities, bus companies, restaurants and otherbusinesses often face overfull demand at peak times.The marketing task, called demarketing, is to find ways to reduce the demandtemporarily or permanently. Demarketing involves actions such as raising prices andreducing promotion and service. Demarketing does not aim to destroy demand, but

selectively to reduce it.

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Control

Measure results

Evaluate results

Take corrective

action

Implementation

Carry out the

plans

Planning

Develop strategic

plans

Develop marketing

plans

Analysis

The relationship between analysis, planning, implementation and control.

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What do we want

To achieve?

What is

Happening?

Why is it

Happening?

What should we

Do about it?

Set goals

Measure

performance

Evaluate

performance

Take corrective

action

The control process.

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Means Ends

The marketing concept

The selling concept

Customer

needs

The selling and marketing concepts contrasted.

Integrated

marketing

MarketProfits through

Customersatisfaction

FactoryExistingproducts

Sellingand

promoting

Profits throughsales volume

FocusStartingPoint

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Needrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Postpurchasebehavior

Buyer decision process.

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Marketingstimuli

ProductPrice

PlacePromotion

Otherstimuli

EconomicTechnological

PoliticalCultural

BuyerCharacteristics

Buyerdecision

process

Buyers black box Buyers responses

Product choiceBrand choice

Dealer choicePurchase timingPurchase amount

Model of buyer behavior.

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Buyer

Psychological

Motivation

Perception

Learning

Beliefs andattitudes

Personal

SocialCultural

Culture

Subculture

Social class

Reference groups

Family

Roles and status

Age and life-cycle stage

OccupationEconomic

circumstances

Lifestyle

Personality andself-concept

Factors influencing behavior.

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Targetmarket

Product

Place Price

Promotion

Demographic- economicenvironment

Politico-

legal environment

Socio-

Cultural environment

Techno-naturalenvironment

Influences on marketing strategy.

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Marketing mix

Target market

Product Promotion Price Place

VarietyQualityDesignFeatures

Brand namePackagingServicesWarranties

AdvertisingPromotionsPersonal sellingPublicity

List priceDiscountsAllowancesPayment period

Credit terms

ChannelsCoverageAssortmentsLocations

InventoryTransport

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0

Sales

Profits

Sales andProfits ($)

Productdevelop-

ment

stage

Introduction Growth Maturity Decline

Time

Losses-investment

Developing the Marketing Mix

Sales and profits over the products life from inception to demise.