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Chapter 1Chapter 1
Defining Marketing for theDefining Marketing for the
TwentyTwenty--First CenturyFirst Century
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Why Study Marketing?Why Study Marketing?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.
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What Can Be Marketed?What Can Be Marketed?
Goods
Services Experiences
Events
Persons
Places
Properties Organizations
Information
Ideas
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Marketing DefinedMarketing Defined Kotlers 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.
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Marketing ManagementMarketing Management
DefinedDefinedMarketing Management is the art and science of
choosing target markets and
getting
keeping and
growing customers through
creating
delivering and
communicating
superior customer value.
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The Changes In The Market:The Changes In The Market:
CustomerCustomer Changes inConsumer/Customerby the
information revolution :
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.Greater opportunities to compare product
information with others.
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The Changes In The Market:The Changes In The Market:
FirmFirm
Changes in Firm way of operating due to
digital/information revolution :
New promotional medium.
Access to richer research data.
Enhanced employee and customer
communication. Ability to customize promotions.
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Changes In MarketingChanges In Marketing
PracticesPractices Marketing practices had pass through three stages:
Entrepreneurial marketing (individual success stories)
Formulated marketing (now a formal marketing effort)
Intrepreneurial marketing (too formulated)
In Intrepreneurial marketing,as marketing becomes
more formulated, creativity is inhibited.
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Where one can shop?Where one can shop?Shopping can take place in a:
MarketplacePhysical entity e.g. Bohari Bazar, Forum
Market spaceVirtual entity e.g. Ebay, Amazon
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Target Markets &Target Markets &
SegmentationSegmentation
The customers served by the firm is called the
target market.
Customers differences in needs, behavior,
demographics or psychographics give rise to
market segments.
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ProductProduct vs Brandvs Brand A Productis any offering that can satisfy a need
or want.
A brandis a specific offering from a knownsource.
Success depends onwhenofferings delivervalue andsatisfaction tothe consumeror customer.
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Enhancing ValueEnhancing Value U can enhance the value of an offering to
the customer by:
Raising benefits.
Reducing costs.
Meta markets refer to complementary
goods and services that are related in theminds of consumers.
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The EnvironmentThe Environment
The environmentalforces have amajor impact on the marketingdecisions.
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Political/
Legal
Political/
Legal
EconomicEconomic
TechnologicalTechnological
NaturalNatural
DemographicDemographicSocioculturalSociocultural
CompetitiveCompetitive
EnvironmentEnvironment
IndustryEnvironmentIndustryEnvironment
The EnvironmentThe EnvironmentThe EnvironmentThe Environment
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The CompetitionThe Competition Four levels of competition can be distinguished by
the level of product substitutability:
Brand competition
Industry competition
Form competition
Generic competition
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Levels of CompetitionLevels of Competition
Generic Competition
Form Competition
Industry Competition
Brand Competition
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Levels of CompetitionLevels of Competition
Generic competitione.g. Honda against Dubai festival forthe same consumer rupee
Form competitione.g. Toyota against manufacturers of othervehicles that provide the same service such as Yamaha
(motorcycle)
Industry competitione.g. Honda against Toyota etc whomake the same products or class of products (different prices)
Brand competitione.g. Honda Civic against Toyota Corolla
who offer similar products and service to the same customersat similar prices
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The Marketing MixThe Marketing Mix The marketingprogram is developed to achieve the
companys objectives. Marketing mix decisionsinclude: Product: provides customer solution.
Price: represents the customers cost.
Place: customer convenience is key.
Promotion: communicates with customer.
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Company OrientationsCompany Orientations The orientation or philosophy of the firm typically
guides marketing efforts. Several competingorientations exist: Production concept Widely available & inexpensive
Product concept- Quality,performance & innovation
Selling concept-will buy enoughonly if persuaded
Marketing concept-Sense and respond
Customer concept-Shaping separate offers Societal marketing concept-Preservation of consumer &
society well being
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The 4 Pillars of MarketingThe 4 Pillars of Marketing
ConceptConcept Achieving organizational goals requires that company
be more effective than competitors in creating,delivering, and communicating customer value.
Four pillars of the marketing concept: Target market
Customer needs
Integrated marketing Profitability
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Relationship MarketingRelationship Marketing
Relationship marketingaims to build
long-term mutually satisfying relationswith key parties, which ultimately results
in marketingnetworkbetween the
company and its supporting stakeholders.
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Marketing ChannelsMarketing ChannelsMarketing Channels
Communicationchannels
Distribution channels
Service channels
Deliver messages to and
receive messages from
target buyers. Includes traditional
media, non-verbal
communication, and
store atmospherics.
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Marketing ChannelsMarketing ChannelsMarketing Channels
Communicationchannels
Distribution channels
Service channels
Display or deliver the
physical products or
services to the buyer /user.
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Marketing ChannelsMarketing ChannelsMarketing Channels
Communicationchannels
Distribution channels
Service channels
Carry out transactions
with potential buyers by
facilitating thetransaction.
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Supply Chain ConceptSupply Chain Concept
Asupply chain stretches from rawmaterials to components to final
products that are carried to final
buyers.
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Challenges in the MarketplaceChallenges in the Marketplace Globalization, technological advances, and
deregulation have created many challenges:
Customers
Brand manufacturers
Store-based retailers
Both companies and marketers have beenforced to respond and adjust.
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PakistaniPakistani MarketingMarketing
EnvironmentEnvironmentLearn how companies and marketers are responding
to new challenges.
Pakistani companies are slowly moving from salesto marketing.
High dependence on advertising and earlier onsales promotion
PR is being recognized as an important marketingtool and activities are now being planned.
New technologies and process are beingintroduced to cut costs.