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Module 1

Introduction to

Marketing management

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When you finish this chapter, you should

Module 1 Objectives

1. Nature and Scope of

Marketing

2. Evolution and

Marketingorientations

3. Marketing versusselling

4. Consumer- Needs ,wants and demands

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Marketing Defined

The process by which companies create

value for customers & build strong

customer relationships in order to capture

value from customers in return

Meeting needs profitably

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Implications of the Definition

Capture value from customers to createprofits & customer quality.

NOT just persuading customers to buy.

Begins with customer needs and focuses oncustomer satisfaction.

Marketing activities --but it is a philosophy

that guides the whole business. Seeks to builds a relationship with the

customer.

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Marketing Is Important!

Marketing impacts all of us in our lives as

consumers

Gives us choices

Stimulates innovation and economic growth

There are many good job opportunities in

marketing

Regardless of what career path you take, nofirm (or non-profit organization) survives

for long if it cant satisfy some group of

customers.

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Core marketing Concepts

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Maslows Hierarchy of needs

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Self-supportingagriculture

Pre industrial orcommercial

Primary manufacturing

Nondurable

consumerproducts

Capital equipment anddurable consumerproducts

Exporting

manufactured products

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Stage 6

Marketing in Economic Development

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Elements ofmarketing system

Suppliers

Suppliers

Company(Marketer

Competitors

End usersMarketingintermediaries

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Marketing Management Orientations

The Production Concept- The idea that

consumers will favor products that are

available & highly affordable

The Product Concept- The idea thatconsumers will favor the most in quality,

performance & features & organizations

should focus on continuous productimprovements

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Marketing Management Orientations

The Selling Concept- the idea that

consumers will not buy enough of the firms

products unless it undertakes a large-scale

selling & promotion effort The Marketing Concept- Achieving

organizational goals depends on knowing

the needs & wants of target markets &delivering the desired satisfactions better

than competitors do

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selling Vs marketing

Starting point Focus

Means Ends

The selling concept

The marketing concept

Factory Existingproducts

Selling &promoting

Profits through salesvolume

Market Customerneeds

IntegratedMarketing

Profits through customersatisfaction

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Societal Marketing Concept

Societal marketingconcept

Society(Human welfare

Company(Profits)

Consumers(Want satisfaction)

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Holistic Marketing Management

Sociallyresponsible

marketing

Integrated

marketing

Internalmarketing

Relationship

marketing

Marketingdepartment

Senior

management

Other depts

CommunicationsProducts

& services

Channels

EthicsEnvironment

Legal

Community

Customers ChannelPartners

Holisticmarketing

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Customer Value Reflects Benefits and

Costs

Customer value concerns the difference between the benefits a customer

sees from a firms market

offering and the costs of obtaining those benefits

Costs Benefits

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The Four Ps of the Marketing Mix

Product Place

Price Promotion

C

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trategy Decision Areas

Organized by the Four Ps

Product

Physical GoodsServiceFeaturesQuality LevelAccessoriesInstallationInstructionsWarrantyProduct LinesPackagingBranding

Place

ObjectivesChannel TypeMarket ExposureKinds of

MiddlemanKinds and

Locations ofStores

How to HandleTransportingand Storing

Service LevelsRecruiting

MiddlemenManaging

Channels

Promotion

ObjectivesBlendSalespeople

KindNumberSelectionTrainingMotivation

AdvertisingTargetsKinds of AdsMedia TypeCopy ThrustWho Prepares?

Sales PromotionPublicity

Price

ObjectivesFlexibilityLevel over PLCGeographic

TermsDiscountsAllowances

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The Marketing Process

Understandmarket &

Consumer needs

Design consumerDriven

marketingstrategy

Constructmarketingprogram

Build profitableRelationships &

Create customer delight

Capture valuefromCustomersto createprofits

&Customer

equity

HarnessMarketingtechnology

ManageGlobal

markets

Ensure ethical& social

responsibility