Marketing Defined

Kotlers social definition:

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.

Marketing Defined
The AMA managerial 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 objectives.

Core Marketing Concepts

Target markets & segmentation
Differences in needs, behavior, demographics or psychographics are used to identify segments. The segment served by the firm is called the target market.

Core Marketing Concepts

Shopping can take place in a:
Marketplace (physical entity, Lowes) Marketspace (virtual entity, Amazon)

Metamarkets refer to complementary goods and services that are related in the minds of consumers.

Core Marketing Concepts: Learning the ABCs

Needs A state of felt deprivation.

Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment. Wants Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)
Demands Human Wants or need backed by buying power Marketing Offers Some combination of products, services, information or experiences offered to satisfy needs & wants

Core Marketing Concepts: Learning the ABCs

Customer Value Difference between the value a customer gains by using a product & cost of the product

Customer Satisfaction How well the products performance lives up to a customers expectations

Core Marketing Concepts: Learning the ABCs

Product Anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need.Product can be goods and services A Product is any offering that can satisfy a need or want Goods and Services Goods are tangible, services are intangible Quality The totality of features and characteristics of a product that bear on its ability to satisfy customer needs. In the narrowest sense, quality is simply Freedom from Defects.

Exchange : Is the core concept of marketing; is the process of obtaining a desired product from someone by offering something in return. -Exchange is a value creating process because it normally leaves both parties better off. Transaction : is a trade of values between 2 or more parties - When an agreement is reached , we say transaction takes place.

The Scope of Marketing Places Properties Organizations Goods Services Experiences Information Ideas Events Persons

The Difference Between Marketing and Selling

Marketing is the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. It is externally focused.

Selling is producing a product and then trying to persuade customers to purchase it -- in effect, trying to alter consumer demand. It is internally focused.

THE MARKETING ENVIRONMENT

The Marketing Environment

The actors & forces outside marketing that affect marketing managements ability to build & maintain successful relationships with customers.

The Macroenvironment
The macroenvironment includes larger societal forces that affect the microenvironment demographic, economic, natural, technological, political & cultural forces.

Forces in the Macroenvironment

Natural Technological

Economic

Political

Demographic

Cultural

Demographic Change

The study of human population in terms of size , location, age, gender, race, occupation, and other statistics Refers to the changing nature of the population Most obvious change is the aging population Smaller families; more single-person Economic Change households consider the effect on consumers of: smaller, non-traditional households recession (business cycle) more part-time employment changes in interest rates more dual-income households inflation changing patterns of immigration; ethnic unemployment mix And other economic parameters must consider the implications of these changes

Social and Cultural Change The way in which we lead our lives is also changing: lifestyles and values greater emphasis on quality of life changing gender roles different attitudes toward physical activity, exercise, and diet among certain segments increased emphasis on quality and value. Cultural Environment Institutions and other forces that effect societies basic values, perceptions, preferences and behaviors

Technological Change Aadvancing technology creates new forms of competition and communications; fax, ATM s, CD- ROM, cellular, Internet Also creates new industries to be supplied Also has important effects on how people spend their time: working and shopping from home, voice mail, surfing the Net Think about the fact that today technology is accepted by consumers, expected by them, transparent to them, and often disposable

Natural Environment

Political and Legal Change Laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society Government and laws affect marketing at many levels legislation often has implications for marketing.

Natural resources that are needed as inputs by marketers or that are affected by marketing activities. Recent Trends Shortage of raw material Increased pollution Increased government intervention

The Microenvironment
The microenvironment includes actors close to the company the company itself, suppliers, marketing intermediaries, customer markets, competitors & publics.

The Microenvironment

External to the firm, but part of its marketing system because of its close relationship its market ; the people or organizations whose wants and needs the firm intends to satisfy its suppliers ; the other firms upon whom the firm relies to provide quality products and services so that it can serve its customers marketing intermediaries ; other firms that represent the channel of distribution for the firm s products and services

Actors in the Microenvironment

The Company Suppliers

Marketing Intermediaries
Competitors

Customers

Publics

The company
Top management Finance Research & development Accounting Purchasing

Suppliers
These are the sources and resources who gives the backup or the raw materials to the business .

Marketing Intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers, they include resellers, physical distribution firms, marketing service agencies, and financial intermediaries

Competitors
The firms or the compnies who are in the same business or relevent business as the business run by the company so they are called the competitors for the firm or for the company

Publics
Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives.

Marketing Information System

Philospohy of marketing 1. Customer oriented policies 2. Integrated Marketing Approach 3. Customer Satisfaction 4. Achievemnets of orgnaizational goals a) Business point of view b) Social point of view