The Chartered Institute of Marketing
‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’
Kotler 1980 says
Marketing is the human activity directed at satisfying human needs and wants through an exchange process’
Kotler 1991
‘Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others’
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major concepts and tools of marketing.
Understand the orientations exhibited by companies.
Learn how companies and marketers are responding to new challenges.
The New Economy:
Consumer benefits from the digital revolution include:
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product information with others.
Firm benefits from the digital revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer communication.
Ability to customize promotions.
Marketing Defined:
Kotler’s 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.”
The AMA Managerial Definition:
“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.”
Core Marketing Concepts
Target markets and market segmentation
Marketplace, market-space, metamarkets
Marketers & prospects
Needs, wants, demands
Product offering and brand
Value and satisfaction
Exchange and transactions
Relationship and networks
Marketing channels
Supply chain
Competition
Marketing environment
Marketing program
Target markets & segmentation
Differences in needs, behavior, demographics or psychographics are used to identify segments.
The segment served by the firm is called the target market.
The market offering is customized to the needs of the target market.
Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment.
Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)
Demands are wants for specific products backed by an ability to pay.
A Product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source.
When offerings deliver value and satisfaction to the buyer, they are successful.
Marketers can enhance the value of an offering to the customer by:
Raising benefits.
Reducing costs.
Raising benefits while lowering costs.
Raising benefits by more than the increase in costs.
Lowering benefits by less than the reduction in costs.
Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur.
Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.
A supply chain stretches from raw materials to components to final products that are carried to final buyers.
Each company captures only a certain percentage of the total value generated by the supply chain.
‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’
Kotler 1980 says
Marketing is the human activity directed at satisfying human needs and wants through an exchange process’
Kotler 1991
‘Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others’
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major concepts and tools of marketing.
Understand the orientations exhibited by companies.
Learn how companies and marketers are responding to new challenges.
The New Economy:
Consumer benefits from the digital revolution include:
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product information with others.
Firm benefits from the digital revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer communication.
Ability to customize promotions.
Marketing Defined:
Kotler’s 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.”
The AMA Managerial Definition:
“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.”
Core Marketing Concepts
Target markets and market segmentation
Marketplace, market-space, metamarkets
Marketers & prospects
Needs, wants, demands
Product offering and brand
Value and satisfaction
Exchange and transactions
Relationship and networks
Marketing channels
Supply chain
Competition
Marketing environment
Marketing program
Target markets & segmentation
Differences in needs, behavior, demographics or psychographics are used to identify segments.
The segment served by the firm is called the target market.
The market offering is customized to the needs of the target market.
Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment.
Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)
Demands are wants for specific products backed by an ability to pay.
A Product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source.
When offerings deliver value and satisfaction to the buyer, they are successful.
Marketers can enhance the value of an offering to the customer by:
Raising benefits.
Reducing costs.
Raising benefits while lowering costs.
Raising benefits by more than the increase in costs.
Lowering benefits by less than the reduction in costs.
Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur.
Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.
A supply chain stretches from raw materials to components to final products that are carried to final buyers.
Each company captures only a certain percentage of the total value generated by the supply chain.
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