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Marketing ManagementTRANSCRIPT
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28/02/2015
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1
Defining Marketing
for the 21st Century
1
Chapter Questions
Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?
Copyright 2012 Pearson Education 1-2
THE MARKET REVOLUTION:
CRASH COURSE US HISTORY #12
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3
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AMAs Official Definition of Marketing and How It Has Changed Over Time
AMERICAN MARKETING ASSOCIATIONS DEFINITION
FOCUS OF DEFINITION
Marketing is the performance of business
activities that direct the flow of goods, and services from producers to consumers.
AMA 1935
1. The managerial function of
coordinating demand and supply
2. Production of goods and services
3. Marketing is a business activity
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. AMA 1985
1. Marketing as a managerial function
2. Purpose of marketing is objective satisfying exchanges
3. Marketing is both an individual and organizational function
Marketing is an organizational function and
a set of processes for creating, communicating and delivering value to
customers and for managing customer relationship in ways that benefit the
organization and its stakeholders (2004)
1. Marketing is once again an
organizational function, not an individual function
2. Marketings purpose is to create value
3. The importance of managing
relationships with all stakeholders
Marketing is the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large. (Approved July 2013)
1. The activity, set of institutions, and
process
2. Marketings purpose is to create value
3. Not only organizational function but it is themselves involved institutions
THE HISTORY OF
ADVERTISING IN 60 SECONDS
History of Marketing
Production era - 1850s - 1920s
production creates its own demand -Pillsbury
major concern of business was production
good products sell themselves
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History of Marketing
Sales Era - 1920s - 1960s
Firms could produce more than their
customers could buy
Competition became significant
We must hire salespeople to sell it just as we hire accountants to keep our books
History of Marketing
Marketing Concept Era - 1960s - 1990s
We are in the business of satisfying needs and wants of the consumer Pillsbury
Satisfy the needs of consumers - product
lines expand
Achieve the organizations goals (more
sales) and a happy (faithful) consumer
History of Marketing
Market Orientation Era - 1980s
Total quality management
Continuously collect information on
customers needs and competitors
capabilities
Share the information across departments
Use the information to create customer
value (promote customer retention)
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The Three Stages of a New Marketing Paradigm
from Marketing Moves, Philip Kotler, Dipak C. Jain, Suvit Maesincee
NameStarting
PointFocus Means Ends
Selling concept
Factory ProductsSelling and
promoting
Profits through
sales volume
Marketing concept
Customers varying needs
Appropriate
offerings and marketing
mixes
Market
segmentation, targeting, and
positioning
Profits through
customer satisfaction
Holistic marketing
concept
Individual
customer requirements
Customer
value, companys core competencies, and
collaborative network
Database
management and value chain
integration linking
collaborators
Profitable
growth through capturing
customer share, customer
loyalty, and customer
lifetime value
What is Marketing?
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 is NOT synonymous with sales or advertising
What is Marketing?
The American Marketing Association:
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large
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 is NOT synonymous with sales or advertising
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What is Marketing Management?
Kotler and Keller:
Marketing management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value
What is Marketed?
Copyright 2012 Pearson Education 1-14
Goods
Services
Events
Experiences
Persons
What is Marketed?
Copyright 2012 Pearson Education 1-15
Places
Properties
Organizations
Information
Ideas
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Copyright 2012 Pearson Education 1-16
Demand States
Negative
Nonexistent
Latent
Declining
Irregular
Unwholesome
Full
Overfull
Figure 1.1 Structure of Flows in
Modern Exchange Economy
Copyright 2012 Pearson Education 1-17
Figure 1.2
A Simple Marketing System
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Copyright 2012 Pearson Education 1-19
Key Customer Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
Core Concepts
Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning
Copyright 2012 Pearson Education 1-20
Types of Needs
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Stated
Real
Unstated
Delight
Secret
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Target Markets,
Positioning & Segmentation
Copyright 2012 Pearson Education 1-22
Offerings and Brands
Copyright 2012 Pearson Education 1-23
Value and Satisfaction
Copyright 2012 Pearson Education 1-24
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Marketing Channels
Copyright 2012 Pearson Education 1-25
Communication
Distribution
Service
Marketing Environment
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Demographic Economic
Socio-cultural
NaturalTechnological
Political-legal
Major Societal Forces
Network information
technology
Globalization
Deregulation
Privatization
Heightened competition
Industry convergence
Retail transformation
Disintermediation
Consumer buying power
Consumer participation
Consumer resistance
Copyright 2012 Pearson Education 1-27
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Company Orientations
Copyright 2012 Pearson Education 1-28
Production
Product
Selling
Marketing
Holistic Marketing
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Relationship Marketing
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Customers
Employees
Marketing Partners
Financial Community
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Integrated Marketing
Copyright 2012 Pearson Education 1-31
Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
Copyright 2012 Pearson Education 1-32
Performance Marketing
Copyright 2012 Pearson Education 1-33
Financial
Accountability
Social Responsibility
Marketing
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Types of
Corporate Social Initiatives
Corporate social marketing
Cause marketing
Cause-related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
Copyright 2012 Pearson Education 1-34
The Marketing Mix
Copyright 2012 Pearson Education 1-35
Marketing-Mix Strategy
CompanyProducts
ServicesPrices
Offering mix
Advertising
Sales
promotion
Events and
experience
Public
relations
Direct
marketing
Personal
selling
Distribution
channels
Target
customers
Communication mix
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The New Four Ps
Copyright 2012 Pearson Education 1-37
Processes
People
Programs
Performance
Marketing Management Tasks
Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
Copyright 2012 Pearson Education 1-38
For Review
Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?
Copyright 2012 Pearson Education 1-39