Chapter One - Marketing Management
What is Marketing? Marketing is first and foremost about satisfying customer needs in a profitable manner Marketing is the activity, set of institutions, and processes for creating, communicating delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Exchange of Value
: Exchange - the heart of every marketing act : An exchange occurs when come thins is obtained for something else in return : Value is in the eye of the beholder : Markerters must create an attractive value proposition
The Marketing Concept
: Determine unmet needs of consumers : Strive to meet those needs : Meet organisational objectives
Needs vs. Wants Marketing Satisfies Needs
: A need is the difference between a consumer's actual state and some ideal or desired state o Physical & psychological needs : A want is a desire for a particular product used to satisfy that need o Wants are culturally and socially influenced
Marketing Mix (4p's)
: Product Place : Price : Promotion
Benefits, Demand, and Markets
: A product delivers a benefit when it satisfies a want Desire coupled with the resources to satisfy a want results in demand Marketing can help activate a desire : A market consists of all the consumers with that need and the resources to make the exchange : A marketplace is any location or medium used to facilitate an exchange
Collaborative Consumption
Consumers increasingly would rather rent than purchase the products they used (Uber) Traditional marketers are also looking to take advantage of this trend
Almost everything can be marketed
: Consumer goods and services : Business : Not-for-profit Organisations : Ideas Place Events People
How?
: Marketing planning - Analyse the organisation's current strengths, weaknesses, opportunities, and threats (SWOT) - Ask these questions: : How is our firm different from the competition? : Which customer groups should we pursue in the future? - How will changes in the environment affect our marketing mix? : Finding the appropriate market segment - Segmenting the market . Select a target market - Positioning the produce : Plan how the target market should perceive the product in comparison to competitors' brands - the market position : Targeting the appropriate customers
The marketing Concept The marketing Concept stands on four pillars:
Target market Customer needs
: Integrated marketing : Profitability
The Evolution of Marketing
: The production orientation The selling orientation The consumer orientation The new era orientation
The Evolution of the Marketing Concept
Each of these eras varies with respect to the manner in which customer needs are researched and met, and the types of marketing efforts undertaken.
: Production era - Marketing dominated by a production orientation : A management philosophy that emphasises the most efficient ways to produce and distribute products - Marketing promotions played a minor role o Production Orientation: most popular during the beginning of the industrial revolution, when demand for products outstripped supple. Focus on manufacturing efficiency lowered the costs of goods - Pai