Chapter 1 What is Marketing.pdf

Chapter 1 What is Marketing? Marketing has 2 definitions As social definition marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value...

Chapter 1 What is Marketing? Marketing has 2 definitions As social definition marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others Managerial definition Marketing (management) 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 goals. (The American Marketing Association AMA definition) Marketing encompasses Marketing as a System Target segment ▪ marketers start with market segmentation. ▪ They identify and profile distinct groups of buyers who might prefer or require varying products and marketing mixes. ▪ positioning ▪ Market ▪ Marketing tools: Ps ▪ Customer needs, wants, ▪ Customer relationship management demands Understanding the market place and customer needs and wants 1. customer needs and wants: Needs are states of felt deprivation. They include physical needs for food, warmth, and safety, social need s for belongings. Wants are the form human needs take as they are shaped by culture and individual personality. marketers do not create needs: Needs preexist marketers. Marketers arouse needs States of deprivation 1. Physical—food, clothing, warmth, safety Needs 2. Social—belonging and affection 3. Individual—knowledge and self-expression Form that needs take as they are shaped by culture and individual Wants personality Demands Wants backed by buying power A.Hossam  Eight demand states: Each requires unique marketing strategy Negative demand Consumers dislike the product and may even pay to avoid it. Nonexistent demand Consumers may be unaware of or uninterested in the product. Consumers may share a strong need that cannot be satisfied by an Latent demand existing product. Declining demand Consumers begin to buy the product less frequently or not at all. Consumer purchases vary on a seasonal, monthly, weekly, daily, or Irregular demand even hourly basis. Consumers are adequately buying all products put into the Full demand marketplace. Overfull demand More consumers would like to buy the product than can be satisfied. 2. Market offerings: Product , services and experiences Customer needs and wants are fulfilled through market offerings. They include products, services, ideas, information, organizations. It is important for markets to pay attention to the benefits behind offerings and the way they will fulfill needs and wants. ▪ Goods Physical goods ▪ Services are promises ▪ Events ▪ Persons ▪ Places ▪ Experiences ▪ Cities ▪ Organizations ▪ ideas 3. customer value and satisfaction Two building blocks for developing and managing customer relationships. 4. Market The market is a set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships. Marketing means managing markets to bring about profitable customer relationships. This needs work which represented in searching for buyers, identify their needs design good market offerings, set prices for them, promote them and store and deliver them. Activities such as consumer research, product development , communication, distribution, pricing and service are core marketing activities. Key Customer Markets ▪ Companies in the global marketplace navigate cultural, language, legal, and political differences while deciding which countries to enter, how to enter each (as exporter, licenser, joint venture partner, Global contract manufacturer, or solo manufacturer), how to adapt product and service features to each country, how to set prices, and how to communicate in different cultures. A.Hossam  ▪ Companies selling to nonprofit organizations with limited purchasing Nonprofit and power need to price carefully. governmental ▪ Much government purchasing requires bids; buyers often focus on practical solutions and favor the lowest bid, other things equal. ▪ Consumer Markets Companies selling mass consumer goods and services establish a strong brand image by developing a superior Consumer product or service, ensuring its availability, and backing it with engaging communications and reliable performance. ▪ selling business goods and services often face well-informed Business professional buyers skilled at evaluating competitive offerings. Marketing Mix Marketing mix are the tools marketers use to satisfy the needs and wants of their customers. ▪ is the tool by which marketers create value to customers. Product ▪ It simply answers what is the added value customers is paying for. Price ▪ is the amount customer sacrifice to obtain the added value. ▪ is the way marketers use to deliver the value to customers by closing time, Place place and possession gaps. ▪ is the communication tools markers use to communicate the value of Promotion products to their customers. ▪ internal marketing and the fact that employees are critical to marketing success. ▪ Marketing will only be as good as the people inside the organization. People ▪ It also reflects the fact that marketers must view consumers as people to understand their lives more broadly, and not just as shoppers who consume products and services. ▪ include all the creativity, discipline, and structure brought to marketing Processes management. The evolution of marketing philosophies ▪ is one of the oldest concepts in business. It holds that consumers prefer production products that are widely available and inexpensive. concept ▪ Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. ▪ The product concept proposes that consumers favor products offering the The Product most quality, performance, or innovative features. However, a new or Concept improved product will not necessarily be successful unless it’s priced, distributed, advertised, and sold properly. ▪ Takes an inside-out perspective Selling ▪ It starts with the factory , focuses on the company's existing products, and philosophy calls for heavy selling and promotion to obtain profitable sales. ▪ Takes an outside-in perspective ▪ It starts with a well defined target market., focuses on their needs, and Marketing integrates all the marketing activities that affect customers. philosophy ▪ In turn it yields profits by creating lasting relationships with the right customers based on customer value and satisfaction. A.Hossam  ▪ concept emerged in the early 1970s, promising a more socially The societal responsible and ethical model for marketing. It has emerged due to the marketing criticisms directed to marketing as an activity, that it encourages overconsumption and affects the resources of the planet negatively. Marketing and exchanging value Marketing occurs when people decide to satisfy needs and wants through exchange relationships. Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing is about actions taken to build and maintain desirable exchange relationships with target audience involving a product, service idea or other object. Branding Any market offering can be branded. Yet, the mechanism by which the tools of operationalized branding are might differ depending on the nature of the marketing offering. The aim of marketing and tools of branding Value : Is the aim of marketers and a tool of branding. It is the output of the marketing process. In terms of marketing, the product or offering will be successful if it delivers value and satisfaction to the target buyer. Value when quantified is termed as utility. The buyer chooses between different offerings based on that which delivers the most value. value is defined as a ratio between what the customer gets and what he gives. The customer gets benefits and assumes costs, as shown in this equation: A.Hossam  The aim of marketing and tools of branding The outcomes of creating customer value is : ▪ Losing a customer means losing more than a single sale. Customer loyalty ▪ It means losing the entire stream of purchases that the customer and retention would make over a lifetime of patronage, which is known as customer lifetime value. ▪ the share producers get of the customers’ purchasing in their product Share of market categories. and share of ▪ Customer lifetime value is the value of the entire stream of customer purchases that the customer would make over a lifetime of patronage. ▪ The total combined customer lifetime values of all of the company’s Customer equity customers. ▪ difference between perceived quality and expected quality. ▪ If expectations are higher than actual perception of value and performance, then satisfaction will be low. Customer ▪ the more loyal the firm’s profitable customers, the higher its satisfaction customer equity. ▪ Customer equity may be a better measure of a firm’s performance than current sales or market share. The New Marketing Realities Technology and internet: effect on opportunities, consumer behavior The competition has increased beyond home market boundaries: Companies should also track competitors from outside their home markets. Brand manufacturers are faced by powerful retailers that market their own store brands from marketing to individuals to marketing that cares about social concern New Company Capabilities Changing Channels The End Of Chapter 1 ‫ال تنسوا الدعاء لوالدي بالرحمة والمغفرة‬ ‫ال تنسوا الدعاء ألخواتنا في فلسطين‬ A.Hossam