Marketing Management Unit 1

Introduction to Marketing Management

• Marketing is engaging customers and managing profitable customer relationships.
• The two-fold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction.

Understanding the Marketplace and Customer Needs

• The five core customer and marketplace concepts are:
• Needs, wants, and demands
• Market offerings (products, services, experiences)
• Value and satisfaction
• Exchange, transactions, and relationships
• Markets

Needs, Wants, and Demands

• Needs are the states of felt deprivation (basic physical, social, and individual needs).
• Wants are the form taken by a human need as shaped by culture and individual personality.
• Demands are human wants that are backed by buying power.

Market Offerings - Products, Services, Experiences

• Market offerings are combinations of products, services, information, or experiences offered to a market to satisfy a need or want.
• Products are anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
• Services are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.

Value and Satisfaction

• Consumers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.
• Satisfied customers buy again and tell others about their good experiences, while dissatisfied customers often switch to competitors.
• Marketers must be careful to set the right level of expectations.

Exchange, Transactions, and Relationships

• Exchange is the act of obtaining a desired object from someone by offering something in return.
• Transaction consists of a trade of values between two parties.
• Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences involving a product, service, idea, or other object.

Markets

• A market is the set of all actual and potential buyers of a product or service.
• These buyers share a particular need or want that can be satisfied through exchange relationships.

Marketing Management

• Marketing management is the art and science of choosing target markets and building profitable relationships with them.
• The marketing manager's aim is to engage, keep, and grow target customers by creating, delivering, and communicating superior customer value.

Marketing Management Orientations

• There are five concepts under which organizations design and carry out their marketing strategies:
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal marketing concept

Marketing Environment

• The marketing environment consists of microenvironment and macroenvironment.
• Microenvironment includes:
  • The company
  • Suppliers
  • Marketing intermediaries
  • Customers
  • Competitors
  • Publics
• Macroenvironment includes:
  • Demographic environment
  • Economic environment
  • Cultural environment
  • Technological environment
  • Natural environment
  • Political environment

Marketing Mix

• Marketing mix is the set of tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market.
• The four Ps are:
• Product: the goods-and-services combination offered to the target market
• Price: the amount of money customers must pay to obtain the product
• Place: includes company activities that make the product available to the target consumers
• Promotion: refers to the activities that communicate the merits of the product and persuade target customers to buy it.

Product and Service Classifications

• Products and services fall into two broad classes:
  • Consumer products: bought by final consumers for personal consumption
  • Industrial products: purchased for further processing or for use in conducting a business.
• Consumer products can be classified further into:
• Convenience products
• Shopping products
• Specialty products
• Unsought products
• Industrial products can be classified into:
• Materials and parts
• Capital items
• Supplies and services