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Marketing Management

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  • 28/02/2015

    1

    1

    Defining Marketing

    for the 21st Century

    1

    Chapter 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?

    Copyright 2012 Pearson Education 1-2

    THE MARKET REVOLUTION:

    CRASH COURSE US HISTORY #12

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3

  • 28/02/2015

    2

    AMAs Official Definition of Marketing and How It Has Changed Over Time

    AMERICAN MARKETING ASSOCIATIONS DEFINITION

    FOCUS OF DEFINITION

    Marketing is the performance of business

    activities that direct the flow of goods, and services from producers to consumers.

    AMA 1935

    1. The managerial function of

    coordinating demand and supply

    2. Production of goods and services

    3. Marketing is a business activity

    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. AMA 1985

    1. Marketing as a managerial function

    2. Purpose of marketing is objective satisfying exchanges

    3. Marketing is both an individual and organizational function

    Marketing is an organizational function and

    a set of processes for creating, communicating and delivering value to

    customers and for managing customer relationship in ways that benefit the

    organization and its stakeholders (2004)

    1. Marketing is once again an

    organizational function, not an individual function

    2. Marketings purpose is to create value

    3. The importance of managing

    relationships with all stakeholders

    Marketing is the activity, set of institutions,

    and processes for creating, communicating, delivering, and exchanging offerings that

    have value for customers, clients, partners, and society at large. (Approved July 2013)

    1. The activity, set of institutions, and

    process

    2. Marketings purpose is to create value

    3. Not only organizational function but it is themselves involved institutions

    THE HISTORY OF

    ADVERTISING IN 60 SECONDS

    History of Marketing

    Production era - 1850s - 1920s

    production creates its own demand -Pillsbury

    major concern of business was production

    good products sell themselves

  • 28/02/2015

    3

    History of Marketing

    Sales Era - 1920s - 1960s

    Firms could produce more than their

    customers could buy

    Competition became significant

    We must hire salespeople to sell it just as we hire accountants to keep our books

    History of Marketing

    Marketing Concept Era - 1960s - 1990s

    We are in the business of satisfying needs and wants of the consumer Pillsbury

    Satisfy the needs of consumers - product

    lines expand

    Achieve the organizations goals (more

    sales) and a happy (faithful) consumer

    History of Marketing

    Market Orientation Era - 1980s

    Total quality management

    Continuously collect information on

    customers needs and competitors

    capabilities

    Share the information across departments

    Use the information to create customer

    value (promote customer retention)

  • 28/02/2015

    4

    The Three Stages of a New Marketing Paradigm

    from Marketing Moves, Philip Kotler, Dipak C. Jain, Suvit Maesincee

    NameStarting

    PointFocus Means Ends

    Selling concept

    Factory ProductsSelling and

    promoting

    Profits through

    sales volume

    Marketing concept

    Customers varying needs

    Appropriate

    offerings and marketing

    mixes

    Market

    segmentation, targeting, and

    positioning

    Profits through

    customer satisfaction

    Holistic marketing

    concept

    Individual

    customer requirements

    Customer

    value, companys core competencies, and

    collaborative network

    Database

    management and value chain

    integration linking

    collaborators

    Profitable

    growth through capturing

    customer share, customer

    loyalty, and customer

    lifetime value

    What is Marketing?

    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

    Marketing is NOT synonymous with sales or advertising

    What is Marketing?

    The American Marketing Association:

    Marketing is the activity, set of institutions, and processes for creating, communicating,

    delivering, and exchanging offerings that have value for customers, clients, partners, and

    society at large

    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

    Marketing is NOT synonymous with sales or advertising

  • 28/02/2015

    5

    What is Marketing Management?

    Kotler and Keller:

    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

    What is Marketed?

    Copyright 2012 Pearson Education 1-14

    Goods

    Services

    Events

    Experiences

    Persons

    What is Marketed?

    Copyright 2012 Pearson Education 1-15

    Places

    Properties

    Organizations

    Information

    Ideas

  • 28/02/2015

    6

    Copyright 2012 Pearson Education 1-16

    Demand States

    Negative

    Nonexistent

    Latent

    Declining

    Irregular

    Unwholesome

    Full

    Overfull

    Figure 1.1 Structure of Flows in

    Modern Exchange Economy

    Copyright 2012 Pearson Education 1-17

    Figure 1.2

    A Simple Marketing System

    Copyright 2012 Pearson Education 1-18

  • 28/02/2015

    7

    Copyright 2012 Pearson Education 1-19

    Key Customer Markets

    Consumer markets

    Business markets

    Global markets

    Nonprofit/Government markets

    Core Concepts

    Needs, wants, and

    demands

    Target markets,

    positioning,

    segmentation

    Offerings and

    brands

    Value and

    satisfaction

    Marketing channels

    Supply chain

    Competition

    Marketing

    environment

    Marketing planning

    Copyright 2012 Pearson Education 1-20

    Types of Needs

    Copyright 2012 Pearson Education 1-21

    Stated

    Real

    Unstated

    Delight

    Secret

  • 28/02/2015

    8

    Target Markets,

    Positioning & Segmentation

    Copyright 2012 Pearson Education 1-22

    Offerings and Brands

    Copyright 2012 Pearson Education 1-23

    Value and Satisfaction

    Copyright 2012 Pearson Education 1-24

  • 28/02/2015

    9

    Marketing Channels

    Copyright 2012 Pearson Education 1-25

    Communication

    Distribution

    Service

    Marketing Environment

    Copyright 2012 Pearson Education 1-26

    Demographic Economic

    Socio-cultural

    NaturalTechnological

    Political-legal

    Major Societal Forces

    Network information

    technology

    Globalization

    Deregulation

    Privatization

    Heightened competition

    Industry convergence

    Retail transformation

    Disintermediation

    Consumer buying power

    Consumer participation

    Consumer resistance

    Copyright 2012 Pearson Education 1-27

  • 28/02/2015

    10

    Company Orientations

    Copyright 2012 Pearson Education 1-28

    Production

    Product

    Selling

    Marketing

    Holistic Marketing

    Copyright 2012 Pearson Education 1-29

    Relationship Marketing

    Copyright 2012 Pearson Education 1-30

    Customers

    Employees

    Marketing Partners

    Financial Community

  • 28/02/2015

    11

    Integrated Marketing

    Copyright 2012 Pearson Education 1-31

    Internal Marketing

    Internal marketing is the task of

    hiring, training, and motivating able employees

    who want to serve customers well.

    Copyright 2012 Pearson Education 1-32

    Performance Marketing

    Copyright 2012 Pearson Education 1-33

    Financial

    Accountability

    Social Responsibility

    Marketing

  • 28/02/2015

    12

    Types of

    Corporate Social Initiatives

    Corporate social marketing

    Cause marketing

    Cause-related marketing

    Corporate philanthropy

    Corporate community involvement

    Socially responsible business practices

    Copyright 2012 Pearson Education 1-34

    The Marketing Mix

    Copyright 2012 Pearson Education 1-35

    Marketing-Mix Strategy

    CompanyProducts

    ServicesPrices

    Offering mix

    Advertising

    Sales

    promotion

    Events and

    experience

    Public

    relations

    Direct

    marketing

    Personal

    selling

    Distribution

    channels

    Target

    customers

    Communication mix

  • 28/02/2015

    13

    The New Four Ps

    Copyright 2012 Pearson Education 1-37

    Processes

    People

    Programs

    Performance

    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

    Copyright 2012 Pearson Education 1-38

    For Review

    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?

    Copyright 2012 Pearson Education 1-39