MBA Marketing Management Chapter 1 PDF

MBA Alia Aleshaiwi What is Marketing about? CH 6&9 CH 1 &4 CH 10 CH 13&16& 17&19 VALUE Chapter 1 Defining Marketing for the New Realities Marketing Management, 15! edition Kotler & Ke8er Prepared by: Alia Aleshaiwi Defining Marketing for the New Realities 1. Why is marketing important? (p. 25) 2. Wh...

MBA Alia Aleshaiwi What is Marketing about? CH 6&9 CH 1 &4 CH 10 CH 13&16& 17&19 VALUE Chapter 1 Defining Marketing for the New Realities Marketing Management, 15! edition Kotler & Ke8er Prepared by: Alia Aleshaiwi Defining Marketing for the New Realities 1. Why is marketing important? (p. 25) 2. What is the scope of marketing? (p. 27) 3. What are some core marketing concepts? (p. 31) 4. What forces are defining the new marketing realities? (p. 35) 5. What new capabilities have these forces given consumers and companies? (p. 38) 6. What does a holistic marketing philosophy include? (p. 42) 7. What tasks are necessary for successful marketing management? (p. 49) Defining Marketing for the New Realities The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marke6ng Concepts The New Marketing Realities Marke6ng in Prac6ce Needs, Wants, and Demands Technology Target Markets, Posi5oning, and Segmenta5on Globalization MarkeEng Accountability Offerings and Brands Marke5ng Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Sa5sfac5on Supply Chain Compe55on Marke5ng Environment Social Responsibility MarkeEng Balance MarkeEng in the OrganizaEon Company Orienta6on toward the Marketplace A Dramatically Changed Marketplace The ProducEon Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The MarkeEng Concept The HolisEc Upda6ng the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success Defining Marketing for the New Realities The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marke6ng in Prac6ce Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization MarkeEng Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility MarkeEng Balance MarkeEng in the OrganizaEon Company Orienta6on toward the Marketplace A Dramatically Changed Marketplace The ProducEon Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The MarkeEng Concept The HolisEc Upda6ng the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success The Value of Marke.ng The Value of Marketing They fail to carefully monitor their customers and competitors, continuously improve their value offerings and marketing strategies, or satisfy their employees, stockholders, suppliers, and channel partners in the process. The Value of Marketing Obj 6-4 Crafting Persuasive Communication Strategies Obj 6-4 Crafting Persuasive Communication Strategies Skillful marketing is a never-ending pursuit Defining Marketing for the New Realities The Value of Marke6ng Marke4ng Decision Making Winning Marke4ng The Scope of Marke6ng What Is Marke4ng? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization Marketing Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success The Scope of Marketing What Is Marke9ng? “mee6ng needs profitably.” AMA: “Marke4ng is the ac4vity, set of ins4tu4ons, and processes for crea4ng, communica4ng, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” Marke6ng Management: “the art and science of choosing target markets and geBng, keeping, and growing customers through crea4ng, delivering, and communica4ng superior customer value.” Social and a managerial definitions of marketing: “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.” Selling is not the most important part of marketing! Selling is only the tip of the marketing iceberg. Peter Drucker: There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. The Scope of Marketing What Is Marketed? Goods Services Events (time-based events) Experiences Persons Places Properties Organizations Information Ideas Behaviors The Scope of Marketing Who Markets? Marketers and Prospects 1. Negative demand—Consumers dislike the product and may even pay to avoid it. 3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product. 4. Declining demand—Consumers begin to buy the product less frequently or not at all. 2. Nonexistent demand—Consumers may be unaware of or uninterested in the product. 5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. The Scope of Marketing Who Markets? Marketers and Prospects 6. Full demand—Consumers are adequately buying all products put into the marketplace. 7. Overfull demand—More consumers would like to buy the product than can be satisfied. 8. Unwholesome demand—Consumers may be attracted to products that have undesirable social consequences. The Scope of Marke8ng Industry VS Market Key Customer Markets: Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets Behavioral change markets Defining Marke8ng for the New Reali8es The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization Marketing Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success Core Marke8ng Concepts Needs, Wants, and Demands 1. Stated needs (The customer wants an inexpensive car.) 2. Real needs (The customer wants a car whose operating cost, not initial price, is low.) 3. Unstated needs (The customer expects good service from the dealer.) 4. Delight needs (The customer would like the dealer to include an onboard GPS system.) 5. Secret needs (The customer wants friends to see him or her as a savvy consumer.) These distinctions shed light on the criticism that “marketers get people to buy things they don’t want.” Marketers do not create needs: Needs pre-exist marketers. Marketers might promote the idea that a Mercedes satisfies a person’s need for social status. They do not, however, create the need for social status. Some customers have needs of which they are not fully conscious or cannot articulate. Consumers did not know much about tablet computers when they were first introduced, but Apple worked hard to shape consumer perceptions of them. To gain an edge, companies must help customers learn what they want. Core Marketing Concepts Target Markets, Segmentation Positioning, and Core Marketing Concepts Offerings and Brands Offering: a combination of products, services, information, and experiences. Brand is an offering from a known source. Core Marke8ng Concepts Offerings and Brands Offering: a combination of products, services, information, and experiences. Brand is an offering from a known source. All companies strive to build a brand image with as many strong, favorable, and unique brand associations as possible. Core Marke8ng Concepts Paid, Owned, and Earned Media Paid media Owned media Earned media Core Marketing Concepts Marketing Channels Communication channels Distribution channels Service channels Core Marketing Concepts Impressions and Engagement Impressions don’t provide any insight into the results of viewing the communication. Engagement reflects a much more active response than a mere impression and is more likely to create value for the firm. Core Marke8ng Concepts Value and Satisfaction The buyer chooses the offerings he or she perceives to deliver the most value, the sum of the tangible and Intangible benefits and costs. We can think of marketing as the identification, creation, communication, delivery, and monitoring of customer value. Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations Core Marke8ng Concepts Supply Chain Core Marketing Concepts Competition Competition includes all the actual and potential rival offerings and substitutes a buyer might consider Core Marketing Concepts Marketing Environment The marketing environment consists environment and the broad environment of the task Defining Marke8ng for the New Reali8es The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marke6ng Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Posi5oning, and Segmenta5on Globalization Marketing Accountability Offerings and Brands Marke5ng Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Sa5sfac5on Supply Chain Compe55on Marke5ng Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success The New Marketing Realities Technology Globalization Social Responsibility Getting to Marketing 3.0 (5.0) MarkeEng 5.0 is about using technology that mimics humans to create, communicate, deliver, and enhance value throughout the customer journey. In the journey, the goal is to create a new customer experience (CX) that is fricEonless and engaging. Technologies include AI, NLP, sensors, roboEcs, augmented reality (AR), virtual reality (VR), IoT, and blockchain. hUps://www.pkmarkeEng.jp/en/arEcles/markeEng5_ 01_en/ Defining Marketing for the New Realities The Value of Marke6ng Marke4ng Decision Making Winning Marke4ng The Scope of Marke6ng What Is Marke4ng? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization Marketing Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success A Dramatically Changed Marketplace New Consumer CapabiliLes New Company CapabiliLes Changing Channels Heightened CompeLLon A Dramatically Changed Marketplace New Consumer CapabiliLes New Company CapabiliLes Changing Channels Heightened CompeLLon A Dramatically Changed Marketplace New Consumer Capabilities New Company Capabilities Changing Channels: retail transformation, disintermediation, and reintermediation Heightened Competition A Dramatically Changed Marketplace New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition Private labels Mega-brands Deregulation Privatization Defining Marketing for the New Realities The Value of Marke6ng Marke4ng Decision Making Winning Marke4ng The Scope of Marke6ng What Is Marke4ng? What Is Marketed? Who Markets? Core Marketing Concepts The New Marke6ng Reali6es Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation GlobalizaEon Marketing Accountability Offerings and Brands Marketing Channels GeZng to MarkeEng 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Drama6cally Changed Marketplace The Production Concept New Consumer CapabiliEes New Company CapabiliEes Changing Channels Heightened CompeEEon The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success Marketing in Practice Marketing Balance Marketing Accountability Marketing in the Organization As the late David Packard of HewlettPackard observed: “Marketing is far too important to leave to the marketing department.” Increasingly marketing is not done only by the marketing department; every employee has an impact on the customer. Defining Marke8ng for the New Reali8es The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marke6ng Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Posi5oning, and Segmenta5on Globalization Marketing Accountability Offerings and Brands Marke5ng Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Sa5sfac5on Supply Chain Compe55on Marke5ng Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success Company Orientation toward the Marketplace The evolution of marketing philosophies The Production Concept: Achieving high production efficiency, low costs, and mass distribution The Product Concept A better product will by itself lead people to beat a path to their door. The selling Concept consumers and businesses, if left alone, won’t buy enough of the organization’s products. The Marketing Concept The job is to find not the right customers for your products, but the right products for your customers. The Holistic Marketing Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it. Company Orientation toward the Marketplace The evoluIon of markeIng philosophies. The HolisLc MarkeLng Marketing network Defining Marketing for the New Realities The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marke6ng in Prac6ce Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization MarkeEng Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility MarkeEng Balance MarkeEng in the OrganizaEon Company Orienta6on toward the Marketplace A Dramatically Changed Marketplace The ProducEon Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The MarkeEng Concept The HolisEc Upda6ng the Four Ps Marketing Management Tasks Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success Upda8ng the Four Ps Defining Marketing for the New Realities The Value of Marketing Marketing Decision Making Winning Marketing The Scope of Marketing What Is Marketing? What Is Marketed? Who Markets? Core Marketing Concepts The New Marketing Realities Marketing in Practice Needs, Wants, and Demands Technology Target Markets, Positioning, and Segmentation Globalization Marketing Accountability Offerings and Brands Marketing Channels Getting to Marketing 3.0 (5.0) Paid, Owned, and Earned Media Impressions and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Social Responsibility Marketing Balance Marketing in the Organization Company Orientation toward the Marketplace A Dramatically Changed Marketplace The Production Concept New Consumer Capabilities New Company Capabilities Changing Channels Heightened Competition The Product Concept The selling Concept The Marketing Concept The Holistic Updating the Four Ps Marke6ng Management Tasks Developing MarkeEng Strategies and Plans Capturing MarkeEng Insights ConnecEng with Customers Building Strong Brands CreaEng Value Delivering Value CommunicaEng Value conducEng markeEng responsibly for long-term success Marketing Management Tasks Marke8ng Management Tasks Refer to “LEGO Case Study” to assess their Marketing Management Tasks then: A) Write a brief answer under each point explaining how Lego carried out such a task. B) Is there any task that is not mentioned in the case? If so, how Lego can apply this task? Marketing Management Tasks 1. 2. 3. 4. 5. 6. 7. 8. Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building Strong Brands Creating Value Delivering Value Communicating Value conducting marketing responsibly for long-term success