Marketing Management Foundations

Study Notes

Marketing is important because it pays off
Good marketing can lead to success, e.g. Sam Adams Boston Beer Company's innovative marketing strategies

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others
Marketing involves delivering a higher standard of living
Marketing is the art of selling

Marketers are responsible for stimulating demand for a company's product
There are eight demand states: non-existent, latent, declining, negative, irregular, full, overfull, and unwholesome

Non-existent demand: consumers are unaware or uninterested in the product
Latent demand: consumers have a strong need that cannot be satisfied by an existing product
Declining demand: consumers begin to buy the product less frequently or not at all
Negative demand: consumers dislike the product and are willing to pay a little more to avoid it
Irregular demand: consumer purchases vary on a seasonal, monthly, daily, or hourly basis
Full demand: consumers are adequately buying all product put into the marketplace
Overfull demand: there are more consumers who would like to buy the product than can be satisfied
Unwholesome demand: consumers are attracted to products that have undesirable social consequences

A market is a collection of buyers and sellers who transact over a particular product or product class### Key Customer Markets
Consumer Markets: companies selling consumer goods and services focus on establishing a superior brand image.
Business Markets: companies selling business goods and services face professional buyers skilled in evaluating competitive offerings.
Global Markets: companies face challenges in entering countries, adapting products/services, and pricing.
Nonprofit and Governmental Markets: companies selling to these markets must price carefully due to limited purchasing power.

The marketplace is changing due to factors like globalization, deregulation, privatization, empowerment, customization, and convergence.
Example: DHL uses drones to deliver urgently needed goods, such as medicine, to remote locations.

The marketing orientation holds that the key to achieving organizational goals is to create, deliver, and communicate superior customer value to chosen target markets.
Reactive market orientation: understanding and meeting consumers' expressed needs.
Proactive marketing orientation: researching or imagining latent consumers' needs through a "probe-and-learn" process.
Total market orientation: combining reactive and proactive marketing orientations.

Production concept: consumers prefer products that are widely available and inexpensive.
Product concept: consumers favor products that offer quality, performance, or innovative features.
Selling concept: consumers and businesses will not buy enough products, so companies must undertake aggressive selling and promotion efforts.
Marketing concept: the key to achieving organizational goals is to create, deliver, and communicate value.
Holistic marketing concept: recognizes the breath and interdependencies of marketing efforts, considering the consumer, employees, other companies, competition, and society as a whole.

Holistic marketing develops, designs, and implements marketing programs that recognize the interdependencies of marketing efforts.
Holistic marketing recognizes that "everything matters" with marketing, including the consumer, employees, other companies, competition, and society as a whole.
Integrated marketing: marketing mix decisions must be made for influencing trade channels and final consumers.
4Ps (Product, Price, Place, Promotion) correspond to 4Cs (Customer solution, Customer cost, Convenience, Communication).