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01. Defining Marketing for the 21st Century Week 1

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?