A Framework for Marketing Management by Philip Kotler Prepared by Jimidene Murphey Clarendon College
Chapter 1 Objectives • What are the tasks of marketing? • What are the major concepts and tools of marketing? • What orientations do companies exhibit in the marketplace? • How are companies and marketers responding to new challenges?
Let’s Discuss Stages of Marketing Describe each of the three stages through which marketing might pass: Entrepreneurial Formulated Intrapreneurial
Goods Services Experiences Events Persons Places Properties Organizations Information Ideas Types of Things ThatAre Marketed
Just What Is Marketing? 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. - Philip Kotler Question for discussion: What is the difference between marketing and marketing management?
Core Concepts of Marketing Target markets and segmentation(click for Slide 8) Needs, wants, and demands(click for Slide 9) Product or offering(click for Slide 10) Value and satisfaction(click for Slide 11) Exchange and transactions(click for Slide 12)
More Core Conceptsof Marketing Relationships and networks(click for Slide 13) Marketing channels(click for Slide 14) Supply Chain(click for Slide 15) Competition(click for Slide 16) Marketing Environment(click for Slide 17) Click here to go to Slide 18
Quick Quiz Define These Concepts About Target Markets and Segmentation: • Market segmentation • Market offering • Global industry • Marketplace • Marketspace • Metamarket (click here to hop back to Slide 6)
Needs, Wants, and Demands • Needs describe basic human requirements such as food, air, water, clothing, and shelter, recreation, education, and entertainment. • Needs become wants when they are directed to specific objects that might satisfy the need. • Demands are wants for specific products backed by an ability to pay. (click here to hop back to Slide 6)
Let’s Discuss Product or Offering • Product is any offering that can satisfy a need or want. A brand is an offering from a known source. • Let’s think -- on a sheet of paper, in 30 seconds list all the brands you can think of (products, services, anything). (click here to hop back to Slide 6)
Quick Quiz Value and Satisfaction • What is value? • What are five things a marketer can do to increase the value of the offering? • Value is a ratio between what the customer gets and what he gives. • Raising benefits, reducing costs, raising benefits and reducing costs, raising benefits by more than the raise in costs, or lowering benefits by less than the reduction in costs. (click here to hop back to Slide 6)
Exchange and Transactions • Exchange involves obtaining a desired product from someone by offering something in return. • Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. (click here to hop back to Slide 7)
Let’s Discuss Relationships and Networks • With a neighbor, come up with five examples of relationship marketing. • What is the difference between relationship marketing and marketing network? • List several examples of stakeholders. (click here to hop back to Slide 7)
Communication channels Distribution channels Selling channels BANK Marketing Channels (click here to hop back to Slide 7)
Supply Chain • 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. (click here to hop back to Slide 7)
Let’s Discuss Competition • Think of examples of each type of competition: Brand competition Industry competition Form competition Generic competition (click here to hop back to Slide 7)
Marketing Environment • Task environment - everybody involved in producing, distributing, and promoting the offering. • Broad environment - contains forces that have major impact on actors in task environment. • Demographics • Economics • Natural environment • Technological environment • Political-legal environment • Social-cultural environment (click here to hop back to Slide 7)
Place Product Price Promotion The Four Ps The Four Cs Marketing Mix Conven- ience Customer Solution Customer Cost Communication
Company Orientations Towards the Marketplace Consumers prefer products that are widely available and inexpensive Production Concept • Consumers favor products that offer performance, most quality, or innovative features Product Concept Consumers will buy products only if company aggressively promotes/sells these products Selling Concept Focuses on needs/ wants of target markets & delivering value better than competitors Marketing Concept
Contrasts Between Selling and Marketing Concepts (a) The selling concept Factory Existing products Selling and promotion Profits through sales volume Starting point Focus Means Ends Market Customer needs Integrated marketing Profits through customer satisfaction (b) The marketing concept
Marketing Concept The Marketing Concept stands on four pillars: Integrated marketing Profitability Target market Customer needs
Let’s Discuss Societal MarketingConcept • Can you think of recent television ads that project the societal marketing concept? • Do you think societal marketing concept is used because companies feel socially responsible or because it would ultimately increase profitability?
Quick Quiz How Marketingis Changing • How have customers changed in the last few years? • What new challenges are brand manufacturers up against? • Why is the face of retailing changing? • What can companies do to counteract these challenges?