BASICS OF MARKETING

MANAGEMENT

MBA 649 : Marketing ManagementM Wahidul Islam

Fall 2014

LECTURE 1

KEY QUESTIONS

What is Marketing? What is Marketing Management? Marketing Management Tasks What is Marketed? What are the core concepts of marketing

management? Key Customer Markets Company Orientations How and why marketing scenario have

changed

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WHAT IS MARKETING?1-3

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 is meeting needs profitably

WHAT IS MARKETING MANAGEMENT?

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Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

MARKETING MANAGEMENT TASKS

Develop market strategies and plans

Capture marketing insightsConnect with customersBuild strong brandsShape market offeringsDeliver valueCommunicate valueCreate long-term growth

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What is Marketed

?

GoodsService

s

Events

Experiences

Persons

Places

Properties

Organizations

Information

Ideas

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CORE MARKETING CONCEPTS

Needs, wants, and demands Target markets, positioning,

segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

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CORE MARKETING CONCEPTSNEEDS, WANTS, AND DEMANDS Needs are basic human requirements Need becomes want when the

requirement is directed toward an specific object

Demand are wants for specific products Five Types of Needs

Stated needs (the customer wants an inexpensive car)

Real needs (customer wants a car with low operating cost)

Unstated needs (expects good service from the dealer)

Delight needs (would like to include a GPS) Secret needs (wants to be seen as a savvy

customer)

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Transport

Car / Bike / Bicycle

Toyota / BMW / Honda

CORE MARKETING CONCEPTSNEEDS, WANTS, AND DEMANDS: DEMAND

STATES

1-13Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

KEY CUSTOMER MARKETS1-14Consumer Markets

Business Markets

Global Markets

Nonprofit & Government Markets

KEY CUSTOMER MARKETSCONSUMER MARKETS

Companies selling Mass consumer goods and services

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KEY CUSTOMER MARKETSBUSINESS MARKETS

Company to Company B2B 1

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KEY CUSTOMER MARKETSGLOBAL MARKETS

Companies in global marketplaces must decide which countries to enter, how to enter, how to adapt product and service features to each

counties, how to price product in different countries

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KEY CUSTOMER MARKETSNONPROFIT & GOVERNMENT ORGANIZATIONS

Non-profit organizations: churches, universities, charitable organizations, Social organizations

Government agencies Very price sensitive

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COMPANY ORIENTATIONS1-19

• One of the oldest concept• Assumes that consumers prefer that are widely

available and inexpensive• Example: Lenovo group

The Production Concept

• Proposes that consumers favor products offering the most quality, performance and innovative features

• Example: Mousetrap

The Product Concept

• Assume that customers will not buy if not left alone. Practiced most aggressively for unsought products

• Example: Insurance, cemetery plots etc.

The Selling Concept

• A customer centered, sense and respond philosophy.• Find out right customers for your products• Example: Dell

The Marketing Concept

HOLISTIC MARKETING CONCEPT1-20

The Holistic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activities that recognize their breadth and interdependencies.

Long-term relationship

The whole is greater than the sum of its parts

So that all employees serve customers well

Understanding financial & non-financial returns to

business & society frommarketing activities & programs.

THE TRADITIONAL FOUR P’S

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THE MARKETPLACE ISN’T WHAT IT USED TO BE…

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Information technologyInformation technology

GlobalizationGlobalization

DeregulationDeregulation

PrivatizationPrivatization

CompetitionCompetition

ConvergenceConvergence

Consumer resistanceConsumer resistance

Retail transformationRetail transformation

NEW CONSUMER CAPABILITIES

A substantial increase in buying power A greater variety of available goods and

services A great amount of information about

practically anything Greater ease in interacting and placing

and receiving orders An ability to compare notes on products

and services An amplified voice to influence public

opinion

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THE TRADITIONAL FOUR P’S

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REFERENCES

Chapter 1 – Defining Marketing for the 21st Century Kotler, Philip, Keller, Kevin L., Koshy, Abraham

and Jha, Mithileshwar (2013-14) Marketing Management: A South Asian Perspective (14thEdition) Pearson Education Inc