1 Customers vs. Consumers Customers BUY the product.
Consumers USE the product.
What is a Market? All potential customers who share common needs and wants, and who have the ability and willingness to buy the product, are considered a market. Market = Population+ Purchasing Power + Purchasing Need Customers Front-line people Middle Management Top Management Traditional Organization Chart Customer-Oriented Organization Chart Customers
Front-line people
Middle management
s C
er us
m t
Top om
to us manage- er
C s
ment What is Marketing? Marketing is the delivery of customer satisfaction at a profit. It is about identifying and meeting human and social needs. It is the action or business of promoting and selling products or services.
6 What is Marketing Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Marketing management is the art
and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior Why is Marketing Important? Shifting Business Paradigms
Buyers markets
Sellers markets Evolving Views of Marketings Role
Finance Production Production Finance Human resources Marketing Human resources Marketing
a. Marketing as an b. Marketing as a more
equal function important function Evolving Views of Marketings Role Production on cti
Fi u
na o d r
n P
ce Marketing Customer re Hu ur
ce M so
ur an n ar
s ma ces
ce ke
so m in tin F
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c. Marketing as the d. The customer as the
major function controlling factor Evolving Views of Marketings Role Production
Marketing Customer
e. The customer as the controlling
function and marketing as the integrative function Good Marketing Good marketing is no accident but a result of careful planning and execution using state-of- a.rt tools and techniques. The Goal of Marketing is: To attract new customer by promising superior value, and to keep current customers by delivering satisfaction.
13 Sales vs. Marketing Sales Marketing Emphasis is on the product Emphasis on consumer needs wants Company Manufactures the Company first determines product first customers needs and wants and then decides out how todeliver a product to satisfy these wants Management is sales volume Management is profit oriented oriented Stresses needs of seller Stresses needs and wants of buyers Views business as a good Views business as consumer producing process producing process satisfying process Cost determines Price Consumer determine price, price determines cost Selling views customer as a Marketing views the customer last link in business last link in business as the very purpose of the business What is Marketed? Goods Goods
Services Services
Events Events & & Experiences Experiences
Persons Persons
Places Places & & Properties Properties
Organizations Organizations
Ideas Ideas
1-15 Who Markets? Demand States
Negative Nonexistent Latent
Declining Irregular
Full Overfull Unwholesome
1-18 Structure of Flows in a Modern Exchange Economy
1-19 A Simple Marketing System
1-20 Key Customer Markets Consumer Markets Global Markets
Needs, Needs, Wants, Wants, and and Demands Demands
Offering Offering and and Brands Brands
Value Value and and Satisfaction Satisfaction
Exchange Exchange and and Transactions Transactions
Relationships Relationships and and Networks Networks
Marketing Marketing Channels Channels
Supply Supply Chain Chain
Competition Competition
Marketing Marketing Environment Environment Marketing Philosophies Company Orientations
Production Product Concept Concept
Selling Marketing Concept Concept
1-24 1- Production philosophy; it holds that consumers will favor products that are available and highly affordable. Managers of production-oriented business concentrate on achieving high production efficiency, low cost and mass distribution. 2- Product philosophy; holds that consumers will favor a products that offer the most in quality, performance, and innovative features. In this case the company should focus on the continuous improving. 3- Selling philosophy; Holds that the customer will not buy enough of the firms products unless it under-takes a large-scale selling and promotion effort. 4- Marketing philosophy; Holds that achieving organizational goals depends on knowing the needs and wants of target markets and deliver value to compete in the marketplace. The job is not to find the right customers for your product, but the right products for your customers. Holistic Marketing Dimensions
1-28 Marketing Management Tasks Develop market strategies and plans Assessing Market Opportunities and Customer Value Choosing Value Designing Value Delivering Value Communicating value Sustaining growth and value
