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Topic 01 Contents
Definition of marketing, core concepts of Marketing, Definition of marketing management and compare the five marketing management orientations, customer relationship management and strategies, major challenges facing marketers in the new “connected” millennium
What is Marketing?
• Marketing is managing profitable customer relationships Attracting new customers Retaining and growing current
customers
• “Marketing” is NOT synonymous with “sales” or “advertising”
Definition of Marketing
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” --- Kotler
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- according to AMA
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
Many Things Can Be Marketed!
SCOPE OF MARKETING
Scope Of Marketing: Goods
Physical goods constitute the most of the country’s bulk production and marketing effort
Example:
Frozen Good, Grains, cars, Refrigerators, Shirt, pant etc.
Scope Of Marketing: ServiceServices include the work of Banks, Insurance companies, hospitals, airlines, hotels, car rental agencies, beauticians, maintenance and repair people, as well as professional working such as accountants, doctors, lawyers, software engineer, management consultant
Mixed of Goods and Services: Fast-food Restaurant
Scope Of Marketing: Experiences
A firm can create, stage and market experiences
Example:
A market for customized experiences, such as spending a week at a baseball camp playing with some retired baseball greats.
Scope Of Marketing: EVENTS
Marketers promote time based events
Example:
Olympic, company anniversary, trade show/Fair, artistic performance
Scope Of Marketing: PERSONS
Celebrity marketing is a major business. Hire agent to marketing themselves
Example:
Madonna, Michael Jackson have done a masterful job of marketing themselves
Scope Of Marketing: PLACES
Promoting places that have a past glorious history to the customers
Example:
Tourism Spots like TSC of Dhaka University, Madu’s Canteen, Ramna Batomul, Coxsbazar
Scope Of Marketing: PROPERTIES
Properties are intangible rights of ownership of either real property or financial property
Example:
Bashundhara housing, Shares of Islami Bank Bangladesh Ltd.
Scope Of Marketing: ORGANIZATIONS
Organizations actively work to build a strong, favorable image in the minds of target customers
Example:
“Biman Akashey Shantir Neer” by Bangladesh Biman
Scope Of Marketing: INFORMATION
Information can be produced and marketed by companies as product
Example:
Package Drama, Debate, Discussion on different issues
The production, packaging and distribution of information is one of our society’s major industries
CORE MARKETING CONCEPTS1. Target Market And Segmentation2. Marketplace, Market space And Metamarket3. Marketers And Prospects4. Needs, Wants And Demands5. Product, Offering And Brand6. Value And Satisfaction7. Exchange And Transactions8. Relationships And Networks9. Marketing Channels10. Supply Chain11. Competition12. Marketing Environment13. Marketing Program
Target Market And Segmentation
Target market:
A set of buyers sharing common needs or characteristics that the company decides to serve
Market segmentation:
Dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behaviors who might require separate products or marketing mix.
MARKETPLACE, MARKETSPACE AND METAMARKET
Marketplace:
Marketplace is physical as when one goes shopping in a store.
Example: bashundhara market
Marketspace:
Marketspace is digital as when one goes shopping on the internet
Example: Asian sky shop, Amazonn
A cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries
Example: automobile Metamarket consists of car manufacturers, new and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, ads industry, and internet.
Metamarket
VALUE AND SATISFACTION
Costs Psychic Costs Energy Costs Time Costs MonetaryBenefits Emotional Benefits Functional
Costs
Benefits Value
Exchange And Transactions
Exchange: process of obtaining a desired product from someone by offering something in return.
Transaction: is a trade of values between two or more parties
Example: Grameen Phone sell a Mobile to Pinki and Pinki pays TK.1500 to Grameen Phone
A barter transaction involves trading goods or services for other goods or services
Example: food for work project of BD govt.
Transaction vs. Transfer
Transaction differs from transfer.
In a transfer, Miss Jui gives a birthday card to Mr. Arif but does not receive any tangible goods in return.
Example:
Gifts, subsidies, charitable contributions
Marketing Management
• Marketing management is “the art and science of choosing target markets and building profitable relationships with them.” Creating, delivering and
communicating superior customer value is key.
Areas of Marketing Management
• Customer Management: Marketers select customers that can
be served well and profitably.
• Demand Management: Marketers must deal with different
demand states ranging from no demand to too much demand.
Marketing Management Philosophy(Company Orientations Toward the Marketplace)
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concept
Production ConceptThey philosophy that consumers will favor products that are available and inexpensive that management should therefore focus on improving production and distribution efficiency
It is used when a company wants to expand market. Suitable for developing countries where customers are more sensible to price than product features.
Example: 1) Henry Ford’s philosophy was to to perfect the production of Model T so that its cost could be reduced and more people could afford it. 2) Texas Instruments followed a philosophy of increased production and lower costs in order to bring down prices.
PRODUCT CONCEPTThe idea that the consumers will favor products that offer the most quality, performances and features and that the organization should devote its energy to making continuous product improvements.
Example: Coca-Cola focused on its soft-drink business
McDonald’s is in danger of over focusing its hamburger while many dinners turning to sandwiches, pizza, and other fast foods
Marketing ConceptPhilosophy holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.
Example: Procter & Gamble, Disney, Wal-Mart, Dell, Southwest Airlines follow it faithfully. Southwest Airlines slogan was ‘we don’t have a marketing dept. we have a customer dept.’
Selling Concept
Customers will not buy enough of the organizations products unless the organization undertakes a large scale selling and promotion effort.
Societal Marketing Concept
Organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumers and society’s well-being
Customer Relationship Management (CRM)
• CRM – Customer relationship management -- “is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.”
Holistic Marketing Concept
The Holistic marketing concept is based on the development, design and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies.
Components of Holistic Marketing Concept
• Relationship Marketing
• Integrated Marketing
• Internal Marketing
• Social Responsibility Marketing
Marketing Mix
4Ps of Marketing
1. Product
2. Price
3. Promotion
4. Place
4Cs of Marketing
1. Customer Solution
2. Customer Cost
3. Convenience
4. Communication
The Marketing Mix
Four marketing activities—product, pricing, distribution, and promotion—that a firm can control to meet the needs of customers within its target market
ProductProduct
PricingPricing
DistributionDistribution
PromotionPromotion
TargetTargetMarketMarket
Marketing Mix Variables
ProductProduct
PricingPricing
DistributioDistributionn
PromotionPromotion
Goods, services, or ideas that satisfy customer needs
Decisions and actions that establish pricing objectives and policies and set product prices
The ready, convenient, and timely availability of products
Activities that inform customers about the organization and its products
Marketing EnvironmentThe competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
Marketing Management Tasks
1. Developing Marketing Strategies and Plans
2. Capturing Marketing insights
3. Connecting with customers
4. Building strong Brands
5. Shaping the Market Offerings
6. Delivering the Value
7. Communicating Value
8. Creating Long-Term Growth
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