Marketing Management Defining Marketing for the 21st Century Shaheed Benazir Bhutto University, Shaheed Benazirabad BY Javed Ahmed Shaikh Email: javedahmed@sbbusba.edu.pk Class: BBA-22 Session 1 In This Chapter, We Will Address the Following Questions • 1. Why is marketing important? • 2. What is the scope of marketing? • 3. What are some core marketing concepts? • 4. How has marketing management changed in recent years? • 5. What are the tasks necessary for successful marketing management? What is Marketing? • Marketing is an organizational function and 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 What is Marketing Management? • 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. Selling is only the tip of the iceberg “There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.” Peter Drucker What is Marketed? 1. Goods (products) 2. Services 3. Events 4. Experiences 5. Persons 6. Places 7. Properties 8. Organizations 9. Information 10. Ideas Marketing Can Promote Ideas The Basic Profit Equation Profit = The Basic Profit Equation Profit = Revenues – Costs Structure of Flows in Modern Exchange Economy A Simple Marketing System Core Concepts • Marketing Needs, wants, channels and demands • Supply Target markets, chain positioning, segmentation • Competition Offerings and brands • Marketing Value and satisfaction environment • Marketing planning This Is a Need Needs - state of felt deprivation including physical, social, and individual needs. Types of Needs • Physical: – Food, clothing, shelter, safety • Social: – Belonging, affection • Individual: – Learning, knowledge, self-expression This Is a Want Wants - form that a human need takes, as shaped by culture and individual personality. This Is Demand Wants Buying Power “Demand” Needs. Wants. Demands. Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. i.e. I am thirsty. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola. Target Markets, Positioning & Segmentation Offerings and Brands Value and Satisfaction Demand States Negative Nonexistent dislike Not Aware Declining Full Latent Irregular Overfull Unwholesome Undesirable social consequences Latent Demand Latent demand is, as the name suggests, a demand which the customer realizes later. Thus, while buying the product, he might not desire some features. But later on, he might think about those features and buy the product. The best example of latent demand are normal phones vs smart phones. Negative demand is a type of demand which is created if the product is disliked in general. The product might be beneficial but the customer does not want it. Example of negative demand is a) Dental work where people don’t want problems with their teeth and use preventive measures to avoid the same. b) Insurance, which people should have but they delay buying an insurance policy. Declining demand Declining demand is when demand for a product is declining. For example, when CD players were introduced and IPOD came in the market, the demand for walkman went down. Although there was still a demand for the product, the demand was a declining demand. A marketers job in such a case to think ways to revive the product so that the demand is not declining. Key Customer Markets Consumer Markets Business Markets Global Markets Nonprofit/ Government Markets I want it, I need it… Five Types of Needs • Stated needs • Real needs • Unstated needs • Delight needs • Secret needs Marketing Mix and the Customer Four Ps • Product • Price • Place • Promotion Four Cs • Customer solution • Customer cost • Convenience • Communication The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail 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 Company Orientations Production Product Selling Marketing Holistic Marketing Dimensions The Four P’s Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. 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 Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?
