MARKETING MANAGEMENT
12th edition
1
Defining Marketing
for the 21st Century
Kotler Keller
Marketing and Management
Marketing
Typically, marketing is the task of creating,
promoting, and delivering goods and services to
consumers and businesses.
Management
Management is a set of activities (including planning
and decision making, organizing, leading, and
controlling) directed at an organization’s resources
(human, financial, physical, and information), with
the aim of achieving organizational goals.
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Chapter Questions
Why is marketing important?
What is the scope of marketing?
What are some of the fundamental
marketing concepts?
How has marketing management
changed?
What are the tasks necessary for
successful marketing management?
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The Importance of Marketing
• Marketing is meeting customer needs profitably.
So, the marketers’ job is to –
- understand consumer needs
- develop products that provide superior value
- Price, distribute, and promote the products
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The Scope of Marketing
• To understand the scope of marketing, students
of marketing need to understand –
- what marketing is
- how it works
- what is marketed
- who does the marketing
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• What is Marketing?
Marketing is the process by which companies create
values for customers and build strong customer
relationships in order to capture value from customers
in return.
• What is Marketing Management?
Marketing management is the art and science
of choosing target markets and getting, keeping,
and growing customers through creating, delivering,
and communicating superior customer value.
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Marketers’ Frequently Asked Questions
How can we choose the right market segment(s)?
How can we differentiate our offerings?
How can we compete against lower-cost, lower-price
competitors?
How can we grow our business?
How can we reduce the cost of customer acquisition?
How can we keep our customers loyal?
How can we improve sales force productivity?-----
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How Marketing Works
Four alternative ways to obtain a product
One can self produce the product
One can use force to get a product
One can beg
One can offer a product in exchange for
something
So, exchange is the process of obtaining
a desired product from someone by
offering something in return.
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• An example of Marketing Exchange
Consumer Business
BusinessCosts
ConsumerCosts
Costs Costs
Money Production
Production
Money Promotion
Time
Time Promotion
Cognitive Distribution
CognitiveActivity
Activity Distribution
Marketing
Behavior
Behavioreffort
effort Marketingresearch
research
+ +
Value
Value Profit
Profit
= =
Price
Pricewilling
willingto
topay
pay Price
Pricewilling
willingto
tosell
sell
Marketing
MarketingExchange
Exchange
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For an exchange to occur…..
There are at least two parties.
Each party has something that might be of value
to the other party.
Each party is capable of communication and
delivery.
Each party is free to reject the exchange offer.
Each party believes it is appropriate or desirable
to deal with the other party.
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What is Marketed?
Goods (Salt) Places (made-in)
Services (Consulting) Properties (Real-estate)
Events (Olympics) Organizations (Schools)
Experiences (Disneyland) Information (AC Nielsen)
Persons (Physicians) Ideas (Social Marketing)
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Who Markets?
A marketer is someone who seeks a response from
another party called the prospect.
Demand States
Negative (operation) Irregular (seasonal)
Nonexistent (new method) Full (maintaining)
Latent (harmless cigarettes) Overfull (demarketing)
Declining (product life-cycle; Unwholesome (drug
remarketing) abuse)
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Markets
Traditionally, a market was a physical place where
buyers and sellers gathered to buy and sell goods.
In economics, a market is a collection of buyers and
sellers.
In marketing, a market is the set of actual and
potential buyers of a product. For example, the need
markets, product markets, demographic markets,
geographic markets
Key Customer Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
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STRUCTURE OF FLOWS IN A MODERN EXCHANGE ECONOMY
RESOURCES RESOURCES
RESOURCE
MARKETS
MONEY MONEY
TAXES & SERVICES
GOODS & MONEY
SERVICES
GOVERNMENT
MANUFACTURER CONSUMER
MARKETS
MARKETS S&M MARKETS
TAXES
TAXES &
GOODS S&M T&G
MONEY
MONEY
INTERMEDIARY
MARKETS
GOODS & SERVICES GOODS & SERVICES
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A SIMPLE MARKETING SYSTEM
COMMUNICATION
GOODS & SERVICES
INDUSTRY MARKET
(A collection (A collection
of sellers) of buyers)
MONEY
INFORMATION
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Company Orientations
Production: Consumers will prefer products that are widely
available and inexpensive.
Product: Consumers will favor those products that offer the
most quality, performance, or innovative features.
Selling: Consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and
promotion effort.
Marketing: Achieving organizational goals depends on
knowing the needs and wants of target markets and
delivering the desired satisfaction better than competitors do.
Holistic Marketing: Four components are – relationship
marketing, integrated marketing, internal marketing, and
social responsible marketing.
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Marketing Mix and the Customer
Marketing mix is the set of controllable tools
that the firm blends to produce the response
it wants in the target market.
Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
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Core Concepts
Needs, wants, and Marketing channels
demands Supply chain
Target markets, Competition
positioning, Marketing
segmentation environment
Offerings and brands Marketing planning
Value and satisfaction
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I want it, I need it…..
5 Types of Needs
Stated needs (inexpensive car)
Real needs (low operating cost)
Unstated needs (good service)
Delight needs (navigation feature)
Secret needs (center of attention)
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Factors Influencing Company Marketing Strategy
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Marketing Management Tasks
Developing marketing Shaping market offerings
strategies (Opportunity based) (Product, package ---)
Capturing marketing insights Delivering value
(Micro-Macro Environment) (Product and services)
Connecting with customers Communicating value
(Customers- what, why --- ) (Means-end chain)
Creating long-term growth
Building strong brands
(Researching)
(Positioning efficiently)
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