Marketing Management – IPresentation - 2

Basic ConceptEconomic Justice For All . . . All economic life should be shaped by moral principles.

Core Marketing Concepts

Value and Satisfaction

Marketing Channels

Target Markets & Segmentation

Supply Chain

Competition

Product and Brand

Needs, Wants and Demands

Marketing Environment

The Importance of Marketing

The Importance of Marketing Personal Role: Job(s) Career(s)

- all organizations use marketing - cross-functional business functions - entrepreneurial opportunities Economic Role in Society

- marketing skills are important to meet competition (global)

Consumer Role in Society- knowledge increases societies

awareness & responsibility

Needs are basic human requirements

Wants are needs directed to specific objects/services that might satisfy the need

This is the wants for specific products

backed by an ability to pay

Human Needs, Wants & Demand

A product is any offering catered to satisfy needs and wants.

A brand is when the product is from a known source.

Product Vs. Brand

Target MarketVery rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. It is often referred to as the Market Segment.

Value and Satisfaction

Value = Benefits/Costs

Benefits = Functional Benefits + Emotional benefits

Costs = Monetary costs + Time + Energy +

Psychic costs

ExchangeGet something (product /service) by offering something in return.Eg. kind (barter) or money (value )

Exchange is a value creating process because it leaves both parties better off(win – win situation)

SOMETHING OF VALUE

SELLER BUYER A voluntary exchange processThe provision for or transfer of goods, services, or ideas in return for something of value (money, credit, labor, goods)

Marketing Builds Satisfying Exchange Relationships

Examples of Exchange

Product Money(good/service)

Politician Vote(service performance)

Social Values Behavioral(ideas) SupportMarketing Is Performed by All Organizations

Each with something of value to offer

Two or more participants with unmet needs or wants

Mutual Satisfaction of exchange expectations to build trust

EffectiveCommunication

Marketing Exchange Conditions

An Exchange mechanism

CONSUMERS

1

Marketing Exchange Functions are also Career Opportunities

Merchandise Buyer, Assortment & Quantity Warehouse StorageTransportationPricing Analyst (Valuation)

Environmental research AnalystConsumer Analyst Product ManagerPromotion activities

Transaction and Transfer

A transfer is a one way exchange without receiving anything in return.

Relationship MarketingBuilding long term

mutually satisfying

relations with customers,

suppliers, distributors in

order to retain their long

term preference and

business

Marketing Channels

Marketing channels are those which are used to reach the target segment.

Communication channelseg. Advertising, telephone enquiry system

Distribution channels – trade, direct sales

Supply Chain

The supply chain represents a Value delivery chain – from procurement of raw materials to final delivery of product to consumer.

CompetitionPotential and rival substitutes and offerings a buyer might consider.

Competition can be viewed in various perspectives – brand, industry, form, generic

Levels of Competition

Generic

Brand

Form

Industry

Competitive Set-Galaxy S5

Brand

Industry

Form

Generic

Direct substitutes

Compete for same salesvolume/money

Same end benefit

Same product or classof products