Part One:Understanding of Marketing

Part One:Understanding of Marketing

( Chapter1-Chapter4)( Chapter1-Chapter4)

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What are they doing?

What are they need?

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• What is Marketing ?

Old sense: making a sale – “telling and selling”

New sense: satisfying customer needs

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• Marketing Defined (P.5)

• A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.

• 市场营销是个人或组织通过创造、提供并同他人交换价值的产品或价值，以满足各自的需要和欲求的一种社会活动和管理过程。

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• Core marketing concepts(P.6)

Core MarketingConcepts

Needs,Wants,and Demands

Needs,Wants,and Demands

Products andServices

Products andServices

Value,Satisfaction,

Value,Satisfaction,

Markets Markets

Exchange,Transactions,

and relationships

Exchange,Transactions,

and relationships

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• Needs,Wants and Demands(P.6)

• States of felt deprivation（或缺） .

• The form taken by human needs as they are shaped by culture and individual personality.

• Human wants that are backed by buying power .

Needs Needs

WandsWands

DemandsDemands

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• Product and Service (P.6-7)

• Anything that can be offered to a market for attention,acquisition,use,or consumption that might satisfy a want or need.

• Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

Product Product

Service Service

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• Value, Satisfaction (P.9)

• The difference between the values the customer gains from owning and using a product and the cost of obtaining the product.

• The extent to which a product’s perceived performance matches a buyer’s expectations.

Customer valueCustomer value

Customer satisfactionCustomer satisfaction

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• Exchange, Transaction and Relationships

the act of obtaining a desired object from someone by offering something in return.

a trade between tow parties that involves at least tow things of agreement, and a place of agreement.

Exchange Exchange

TransactionsTransactions

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• Relationship marketing (P.9)

The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

• Market (P.10)

the set of all actual and potential buyers of a product or service.

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• A simple marketing system

Industry(a collectionof sellers)

Industry(a collectionof sellers)

Market(a collectionof buyers)

Market(a collectionof buyers)

Products-serviceProducts-service

MoneyMoney

Communication

Information

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• Main actors and forces in a modern marketing system (P.10)

SuppliersSuppliers End usermarket

End usermarket

Company(marketer)

Company(marketer)

CompetitorsCompetitors

Marketingintermediaries

Marketingintermediaries

Environment

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• Demarketing (P.11)

Marketing to reduce demand temporarily; the aim is not to destroy demand but only to reduce or shift it.

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• Marketing management philosophies (P.12-14)

Production conceptProduction concept

Product conceptProduct concept

Selling conceptSelling concept

Marketing conceptMarketing concept

Social marketing conceptSocial marketing concept

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• Production concept （生产观念） The management should only focus on impro

ving production and distribution efficiency.

• Product concept （产品观念） The organization should devote its energy to

making continuous product improvements.

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• Selling concept ( 推销观念） The consumers will not buy enough of the org

anization’s products unless the organization undertakes a large-scale selling and promotion effort.

• Marketing concept （营销观念） To achieving organization’s goals depends on

determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

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• The selling and marketing concepts contrasted(P.13)

Factory Factory

Startingpoint

Focus Means Ends

Existingproducts

Selling andpromoting

Profit throughsales volume

Market Customer

needs

IntegratedMarketing（整合营销）

Profit throughCustomer

satisfaction

The selling concept

The marketing concept

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• Societal marketing concept ( 社会营销观念）

The organization should deliver the desired satisfactions to their target market effectively and efficiently in a way that maintains or improves the consumer’s and society’s well being.

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• Societal Marketing concept （社会营销观念 P.1

4 ）

Socialmarketingconcept

Socialmarketingconcept

Society(Human welfare)

Customers(Wants satisfaction)

Company(Profits)

Three considerations underlying the Societal marketing concept

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• Bionomics marketing concept ( 生态学营销观念）

To find the market demands that firm’s resources can be match to.

“6R”:

Right time , Right place, Right product,

Right price, Right way, to Right customer

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• Marketing in “connected” millennium

(P.23)

Connecting technologies

ComputerInformation

CommunicationTransportation

Connecting technologies

ComputerInformation

CommunicationTransportation

Connections withCustomers

Connections withCustomers

Connections withWorld around us

Connections withWorld around us

Connections withMarketing partners

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• Marketing connections

Connections withCustomer

Connecting more selectively

Connecting for life

Connecting directly

Connections withCustomer

Connecting more selectively

Connecting for life

Connecting directly

Connections withMarketing partner

Connecting inside The company

Connecting with outside partners

Connections withMarketing partner

Connecting inside The company

Connecting with outside partners

Connections with the world around us

Global connections

Connections with valuesAnd responsibility

Broadened connections

Connections with the world around us

Global connections

Connections with valuesAnd responsibility

Broadened connections

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• Marketing connections in transition （ P.33)The Old Marketing

Thinking The New Marketing Thinking

Connections with customers Be sales and product centeredPractice mass marketingFocus on products and salesMake sales to customerGet new customersGrow share of marketServe any customerCommunicate through mass mediaMack standardized products

Connections with customersBe market and customer centeredTarget selected market segments or individualsFocus on customer satisfaction and valueDevelop customer relationshipsKeep old customers Grow share of customerServe profitable customer, “fire” losing onesConnect with customers directlyDevelop customized products

Connections with marketing partnersLeave customer satisfaction and value to sales and marketing Go it alone

Connections with marketing partnersEnlist all departments in the cause of customer satisfaction and valuePartner with other firm

Connection with the world around usMarket locally

Assume profit responsibility

Market for profits

Conduct commerce in marketplace

Connection with the world around usMarket locally and globally

Assume social and environmental responsibility

Market for nonprofits

Conduct e-commerce in marketplace

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• Marketing management (old define)

the analysis, planning, implementation, and control of program designed to create, build,and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

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Marketing management (new define P.11)

• The art and science of choosing target markets and building profitable relationships with them. This involves getting, keeping, and growing customers through creating, delivering and communicating superior customer value. Thus it involves managing demand, which in turn involves managing customer relationships.

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• The tasks of Marketing management (P.14)

DemandManagement

DemandManagement

BuildingProfitableCustomer

Relationships

BuildingProfitableCustomer

Relationships

MarketingManagement

Practice

MarketingManagement

Practice

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• Marketing practice stages

EntrepreneurialMarketing

原始营销

EntrepreneurialMarketing

原始营销

FormulatedMarketing

程式营销

FormulatedMarketing

程式营销

IntrepreneurialMarketing

创新营销

IntrepreneurialMarketing

创新营销

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• The company’s strategic planning (P.41)

Definingthe company

mission

Definingthe company

mission

Setting companyobjectivesand goals

Setting companyobjectivesand goals

Designingthe business

portfolio

Designingthe business

portfolio

Planning,marketingAnd other

Functional strategies

Planning,marketingAnd other

Functional strategies

Corporate leverBusiness unitProduct and

market

明确公司使命 设定公司目标 规划业务组合 制定营销计划

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• The BCG matrix (P.47)

Mar

ketin

g gr

owth

rat

e

Low

h

igh

Relative market share

High low

Star

Dog

Question mark

Cash cow

30

20

18

16

14

10

8

6

4

2

0

10x 4x 2x 1.5x 1x 0.5x 0.4x 0.3x 0.2x 0.1x

市场成长率%

66

55

44

33

22

11

11

77

88

明星类 问题类

金牛类 瘦狗类

“ 波士顿矩阵”示意图

相对市场占有率

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• Product-market expansion grit (P.48)

Existingmarkets

Existingproducts

New markets

New products

Marketpenetration

Marketdevelopment

Diversification

productdevelopment

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The marketing process (P.54)

ProfitableCustomer

relationships

Mar

ket

segm

enta

tion Target

marketing

Marketpositioning

Product

Price P

lace

Promotion

Mar

keting

anal

ysis

Marketing

planning

Mar

ketin

g

impl

emen

tatio

nMarketing

control

Marketingintermediaries

Competitors

Publcs Suppliers

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Major Force Shaping the Internet Age (P.71)

The DigitalAge

Digitalizationconnectivity

Digitalizationconnectivity

The explosion ofthe internet

The explosion ofthe internet

New types ofintermediaries

New types ofintermediaries

Customization andcustomerization

Customization andcustomerization

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• Customization( 定制化） involves taking the initiative to customize the market offering.

• Customerization ： leaving it to individual customer to design the marketing offering– allowing customer to be prosumers rather than only consumers.

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• Marketing environment (P.106)

The actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers.

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• Marketing environment (P.107)

Marketingdepartment

Micro-environment

Macro-environment

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• The microenvironment (P.107)

Company’smarketing

Company’sInternal

environmentSuppliers

Marketingintermediaries

Customers

Competitors

Publics

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• The company’s internal environment

Marketing

Topmanagement

Finance

R&D

Purchasing

Manufacturing

Accounting

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• The macro-environment （ P.111）

CompanyCompany

Microenvironment

Demographicforces Economic

forces

Naturalforces

Technologicalforces

Politicalforces

Culturalforces