Topic 1: Defining Marketing for the 21st Century PDF

Topic 1: Defining Marketing st for the 21 Century Presented by: Ms. Ma. Anna Corina G. Kagaoan, MBA, MA ELS College of Business and Accountancy Learning Outcomes: ▪ Explain why marketing is an important function. ▪ Describe the scope of marketing. ▪ Identify fundame...

Topic 1: Defining Marketing st for the 21 Century Presented by: Ms. Ma. Anna Corina G. Kagaoan, MBA, MA ELS College of Business and Accountancy Learning Outcomes: ▪ Explain why marketing is an important function. ▪ Describe the scope of marketing. ▪ Identify fundamental marketing concept. Marketing ▪ 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. Marketing Management ▪ 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. What is Marketed? ▪ Goods. Physical goods constitute the bulk of most countries’ production and marketing effort e.g., furniture, cars, etc. ▪ Services. As economies advance, a growing proportion of their activities are focused on the production of services e.g lawyers, doctors. ▪ Experiences. By orchestrating several services and goods, one can create, stage, and market experiences e.g., theme parks What is Marketed? ▪ Events. Marketers promote time-based events, such as the Olympics, trade shows etc. ▪ Persons. Celebrity marketing has become a major business. Artists, musicians, CEOs, physicians, high-profile lawyers etc. draw help from celebrity marketers. ▪ Places. Cities, states, regions, and nations compete to attract tourists, factories, company headquarters, and new residents. What is Marketed? ▪ Properties. Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). ▪ Organizations. Organizations actively work to build a strong, favorable image in the mind of their publics e.g Philips said “lets make things better. What is Marketed? ▪ Information. The production, packaging, and distribution of information is one of society’s major industries e.g., schools, universities, encyclopedia, etc. ▪ Ideas. Every market offering has a basic idea at its core. In essence, products and services are platforms for delivering some idea or benefit to satisfy a core need. Demand Management by Marketers ▪ Marketers must manage: ▪ Negative demand (avoidance of a product) ▪ No demand (lack of awareness or interest in a product) ▪ Latent demand (a strong need that cannot be satisfied by existing products) ▪ Declining demand (lower demand) ▪ Irregular demand (demand varying by season, day, or hour) ▪ Full demand (a satisfying level of demand) ▪ Overfull demand (more demand than can be handled) ▪ Unwholesome demand (demand for unhealthy or dangerous products) ▪ Marketing Managers seek to influence the level, timing, and composition of these various demand states. Simple Marketing System Satisfying Diverse Customer Needs ▪ Market segmentation is examining demographic, psychographic, and behavioral differences among buyers. ▪ For each segment, the firm develops a market offering which are more beneficial for company. Key Customer Markets Global Markets Consumer Market Business Markets Government Market Markets ▪ Marketplace. Physical, as when one goes shopping in a store. ▪ Marketspace. Digital, as when one goes shopping on the internet. E-commerce— business transactions conducted on-line—has many advantages for both consumers and businesses, including convenience, savings, selection, personalization, & information. ▪ Metamarket. A cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries. Marketing Mix & the Customer Four Ps Four Cs ▪ Product ▪ Customer solution ▪ Price ▪ Customer cost ▪ Place ▪ Convenience ▪ Promotion ▪ Communication Core Marketing Concepts ▪ Needs describe basic human requirements such as food, air, water, clothing, and shelter. People also have strong needs for recreation, education, and entertainment. ▪ Needs become wants when they are directed to specific objects that might satisfy the need. ▪ Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able and willing to buy one. Core Marketing Concepts ▪ A brand is an offering from a known source. A brand name such as McDonald’s carries many associations in the minds of people like burgers, fun, children, fast food. ▪ In terms of marketing, the product or offering will be successful if it delivers value and satisfaction to the target buyer. Core Marketing Concepts ▪ To reach a target market, the marketer uses three kinds of marketing channels: ▪ Communication channels deliver messages to & receive messages from target buyers—newspapers, magazines, radio, television, mail, telephone, etc. ▪ Distribution channels display or deliver the physical product or service(s) to the buyer or user— warehouses, transportation vehicles, and various trade channels such as distributors, wholesalers, and retailers. ▪ Selling channels include not only distributors and retailers but also banks and insurance companies that facilitate transactions. Core Marketing Concepts ▪ Supply Chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers. ▪ Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. ▪ Brand competition ▪ Industry competition ▪ Form competition ▪ Generic competition