PART 1 UNDERSTANDING MARKETING MANAGEMENT Dr.Pusanisa Thechatakerng thesunny@rocketmail.com © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-1 Chapter 1 Defining Marketing for the 21st Century © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-2 About ME Dr.Pusanisa thechatakerng Education Professional Ph.D, Unversitat Autónoma Family Business, de Barcelona, Spain wood craving factory & export Master, Unversitat Silverware retail, whole Autónoma de Barcelona, sale Spain Computer franchise (CNEX) MBA, Maejo University, 3 Construction supplies company BS, University of Windy equestrian club the Thai Chamber of Commerce Thechatakerng, P. 2010 1-3 About ME II Working Place Area •Ph.D. Maejo University • Advance Marketing •Business Research •Director of MBA •MBA Program •International Business •International Marketing thesunny@rocketmail.com •Marketing •Research for Business •Entrepreneurship •Family Business4 www.bablog.mju.ac.th/pusa •Seminar of Marketing, nisa Entrepreneur & Management Thechatakerng, P. 2010 1-4 In this chapter, we address the following 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? © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-5 Asian brands prominently advertised in New York’s Time Square © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-6 The Importance of Marketing © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-7 The Importance of Marketing Financial success depends on marketing No demand - no business Marketing decisions tough – What to design – What prices to offer – Where to sell – How much to spend on advertising… © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-8 Scope of Marketing – What is Marketing? Marketing An organizational function & processes to create, communicate & deliver value to customers & manage customer relationships to benefit organization & stakeholders © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-9 Scope of Marketing – What is Marketing? Blackberry BBM I phone “Aim of marketing know & understand customer so well product fits him & sells itself…” Eg: When Sony designed PlayStation Swamped with orders – WHY? “Right” product – marketing © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-10 “WE COULD HAVE LEFT WELL ENOUGH ALONE. BUT THAT WOULD HARDLY BE VERY CHARACTERISTIC. NOW WOULD IT?” Lexus ads & campaign slogan ―The Passionate Pursuit of Perfection‖ express its marketing philosophy: Only the best is Asian good enough for its customers © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Perspective 1-11 Scope of Marketing What is Marketed? experiences persons goods events services 10 entities places ideas information properties organizations © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-12 The Singapore Zoological Gardens offers varied experiences - host wedding reception - jungle breakfast with an orang utan Asian © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Perspective 1-13 Billboard ads from Tourism Thailand Promote Thailand where one can find happiness through shopping, outdoor activities & sightseeing © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-14 Scope of Marketing – Who Markets? MARKETERS AND PROSPECTS A marketer seeks response from prospect If 2 parties seek to sell something to each other, both are marketers © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-15 A traditional dry goods & fruit market in Hanoi targeting local residents © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-16 Scope of Marketing – Who Markets? KEY CUSTOMER MARKETS Consumer Markets Sell mass consumer goods & services Business Markets Sell business goods & services Global Markets Sell goods & services in global market Non-profit & Governmental Markets Sell goods to nonprofit organizations © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-17 Global marketing Wall climbing on Coke ad attract attention & customers at 1st China International Beverage Festival in Beijing © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-18 Customer empowerment NAM HEONG Traditional Malaysian coffee shop On banner www.oldtownwhitecafe.com © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-19 Company Orientations Toward the Marketplace - The Production Concept Consumers prefer products - widely available & inexpensive Production oriented businesses – Production efficiency, low costs & mass distribution Huge cheap labor Market expansion © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-20 Company Orientations Toward the Marketplace - The Selling Concept Consumers do not buy enough products, if left alone “Purpose of marketing - sell more - to more people - more often - for more money to make more profit” Goods buyers don’t normally buy Sell what is made not what market wants Hard selling - high risks © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-21 Company Orientations Toward the Marketplace - The Marketing Concept Customer-centered “Sense-&-respond” philosophy Right products for customers Not right customers for products Better than competitors - create, deliver & communicate superior value to target markets © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-22 Company Orientations Toward the Marketplace - The Marketing Concept Selling - needs of seller Marketing - needs of buyer Selling - convert product to cash Marketing - satisfy buyer with product © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-23 Company Orientations Toward the Marketplace - The Holistic Marketing Concept Holistic marketing Develop, design & implement marketing programs, processes & activities that recognize breadth & interdependencies Holistic marketing recognizes that ―everything matters‖ © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-24 Figure 1.3 Holistic Marketing Dimensions Asian © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Perspective 1-25 To reduce pollution: Bharat Petroleum India – get drivers use Pollution Under Control grade petrol - HOW? Compare hazards of vehicle pollution with smoking 1-26 Asian © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Perspective Fundamental Marketing Concepts, Trends & Tasks – Core Concepts TARGET MARKETS, POSITIONING, AND SEGMENTATION Divide market into segments Greatest opportunity - target markets Target market Market offering positioned in minds of target buyers as beneficial © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-27 Positioning: A Volvo ad focuses on the company’s central benefit: Safety © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-28 Fundamental Marketing Concepts, Trends & Tasks – Core Concepts MARKETING CHANNELS To reach target market, 3 kinds of marketing channels: Communication channels Distribution channels Service channels © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-29 Fundamental Marketing Concepts, Trends & Tasks – Core Concepts MARKETING PLANNING The marketing planning process Analyze marketing opportunities Select target markets Design marketing strategies Develop marketing programs & Manage marketing effort © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-30 Strategic planning process Strategic plan -Organization mission -Org. objectives -Org.strategies -Org. portfolio plan © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing plan -Situation analysis (swot) -Mkting Obj. -STP -Mkting mix -Product strategy -Promotion -Price -Distribution Marketing Management An Asian Perspective MIS & Mkting research Implementation & control 1-31 Figure 1.6 Factors Influencing Company Marketing Strategy © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-32 Fundamental Marketing Concepts, Trends & Tasks – Marketing Management Tasks Develop marketing strategies & plans Capture marketing insights & performance Connect with customers Build strong brands Shape the market offering Deliver value Communicate value Create successful long-term growth © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-33 Final discussion Marketing Debate — Does Marketing Create or Satisfy Needs? Marketing has often been defined in terms of satisfying customers’ needs and wants. Critics, however, maintain that marketing does much more than that and creates needs and wants that did not exist before. According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really do not need. Take a position: Marketing shapes consumer needs and wants versus Marketing merely reflects the needs and wants of consumers. © Kotler, Keller, Ang, Leong & Tan,, 4th Edition Marketing Management An Asian Perspective 1-34