Marketing for the 21st Century 4239

8/2/2019 Marketing for the 21st Century 4239

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INTRODUCTION

DEFINING MARKETNG FOR

THE 21ST

CENTURY

DEFINING MARKETNG FOR

THE 21ST

CENTURY


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http://www.umt.edu.pk

THE WORLD OF MARKETINGTHE WORLD OF MARKETING

IMPORTANCE OF MARKETING

THE SCOPE OF MARKETING

COMPONY ORIENTATION TOWARDSTHE MARKET PLACE

FUNDAMENTAL MARKETING

CONCEPTS, TRENDS AND TASKS


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IMPORTANCE OF MARKETING IN

YOUR LIFE

IMPORTANCE OF MARKETING IN

YOUR LIFE Mar ketingis a largepart of yourdaily

life. Consumers areexposedto 3,000

commercial messages a day. Studyingmarketingwill make you a

better-informed customer.

Mar ketingprobably relates -- directly orindirectly -- to your career aspirations.


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Defining MarketingDefining Marketing

An organizational function and a set ofprocesses for creating,communicating, anddeliveringvalueto customers and formanaging customer relationshipsinwaysthat benefittheorganization anditsstakeholders

Mar ketingis a societal process by whichindividuals andgroups

obtainwhatthey need andwantthrough creating, offering, and freelyexchangingproducts andservices ofvaluewith others. (KOTLER)

Mar ketingis aboutmanagingprofitable customer relationships

Attractingnew customers

Retaining andgrowing current customers

Theprocess of buildingprofitable customer relationships by creatingvalue for customers and capturingvaluein return

An organizational function and a set ofprocesses for creating,communicating, anddeliveringvalueto customers and formanagingcustomer relationshipsinwaysthat benefitthe organization anditsstakeholders.


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Marketing ManagementMarketing Management

Mar ketingmanagement isthe art and

science of choosingtargetmarkets and

buildingprofitable relationshipswiththem. Thisdefinitionmustinclude answersto twoquestions:

What customerswill weserve?

How canweservethese customers best?


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What Can Be Marketed?What Can Be Marketed?

Fromseriousgoods andservicesto funthings

Goods andservicesmirror changesinpopular

culture

Marketingmessagesmay communicatemythsof a culture

Product: any good, service, oridea

Consumergoods/services

Business-to-businessgoods/services

Not-for-profitmarketing

Idea, place, andpeoplemarketing


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Simple Marketing SystemSimple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information


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Manufacturermarkets

Services,Services,moneymoney

Governmentmarkets


ServicesServices


TaxesTaxes

Taxes,Taxes,goodsgoods

Taxes,Taxes,

goodsgoods

Taxes,Taxes,goodsgoods

MoneyMoney MoneyMoney

Consumermarkets

Intermediary

marketsGoods, servicesGoods, services

Goods, servicesGoods, services

ResourcesResources ResourcesResourcesResourcemarkets

MoneyMoney MoneyMoney

Structure of FlowsStructure of Flows


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Customers

Front-line people

Middle Management

Top

Management

Traditional Organization ChartTraditional Organization Chart


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Customer-Oriented Organization ChartCustomer-Oriented Organization Chart

Customers

Front-line people

Middle management

Top

manage-

ment


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Evolving Views of Marketings RoleEvolving Views of Marketings Role

a. Marketing as an

equal function

FinanceProduction

Marketing Humanresources

b. Marketing as a more

important function

Finance

Humanresources

Marketing

Production


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c. Marketing as the

major function

Marketing

Production

d. The customer as the

controlling factor

Customer


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e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production


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DIFFERENCES BETWEEN MARKETING

AND SELLING.

DIFFERENCES BETWEEN MARKETING

AND SELLING.

Mar ketingistheprocess ofdetermining

customerwants andthendeveloping a

productto satisfy thatneed andstill yield asatisfactory profit. Itisexternally focused.

Sellingisproducing a product andthentrying

to persuade customersto purchaseit -- in

effect, tryingto alter consumerdemand. Itisinternally focused.


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QUALITY IN MARKETINGQUALITY IN MARKETING

Quality has three dimensions

Meeting and striving to exceed

customers requirements.

The absence of variation.

Total organizational commitment.

The best indicator of quality is

customer satisfaction.


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Core Concepts of MarketingCore Concepts of Marketing

Product or OfferingProduct or Offering

Value and SatisfactionValue and Satisfaction

Needs, Wants, and DemandsNeeds, Wants, and Demands

Exchange and TransactionsExchange and Transactions

Relationships and NetworksRelationships and Networks

Target Markets & SegmentationTarget Markets & Segmentation

Marketing ChannelsMarketing Channels

Supply ChainSupply Chain

CompetitionCompetition

Marketing EnvironmentMarketing Environment


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Understandingthe MarketplaceUnderstandingthe Marketplace

Needs, wants, and

demands

Marketing offers:

including products,

services and experiences

Value and satisfaction

Exchange, transactions

and relationships

Markets

Need

State of feltdeprivation

Example: Need food

Wants

The form ofneeds as

shaped by culture andthe

individual

Example: Want a chickenkarahe

Demands

Wantswhich are backed by

buyingpower

Core Concepts


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Marketing Is about Meeting NeedsMarketing Is about Meeting Needs

Meetingtheneeds ofdiversestakeholders

Buyers, sellers, investors, community

residents, citizens.

Mar keting concept

Identifying consumerneeds andproviding

productsthatsatisfy thoseneeds

Themodernmarketplace a mall, a mail-order catalog, a TV shopping

network, aneBay auction, or ane-

commerce Web site


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Needs, wants, and

demands

Marketing offers:

including products,




and relationships

Markets

Core Concepts Mar keting offer

Combination of

products, services,

information or

experiencesthatsatisfy

a need orwant

Offermay include

services, activities,

people, places,information orideas


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Needs, wants, and

demands Marketing offers:

including products,




and relationships

Markets

Value

Customers form

expectations regarding

value

Valuepropositionincludesthe

whole bundle of benefitsthe

firmpromisesto deliver, not just

the benefits oftheproductitself

The ratio of coststo benefits

Satisfaction

A satisfied customerwill buy

again andtell others about

theirgoodexperience

Core Concepts


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Value and SatisfactionValue and Satisfaction

Perceived Value

The customersevaluation ofthedifference

between benefits and costs.

Customers oftendo not judgevalues andcosts accurately or objectively.

Valuepropositionincludesthewhole bundle of

benefitsthe firmpromisesto deliver, not just

the benefits oftheproductitself

Customer Satisfaction

Productsperceivedperformance relativeto

customersexpectations.


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Needs, wants, and

demands Marketing offers:

including products,




and relationships

Markets

Exchange

The act of obtaining a

desired object from

someone by offeringsomethingin return

Oneexchangeisnotthe

goal, relationshipswith

several exchanges arethe

goal Relationships are built

throughdeliveringvalue and

satisfaction

Core Concepts


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Needs, wants, and

demands

Marketing offers:

including products,




and relationships

Markets

Mar ket

Set of actual andpotential

buyers of a product

Marketersseek buyersthat

areprofitable

Core Concepts


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The Evolution of

Marketing

The Evolution of

Marketing


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Production concept

Product concept

Selling concept

Marketing concept

Societal marketing conceptSocial marketing concept: satisfy customersneeds and also benefitsocietySustainability:meetingpresentneeds andensuringthat futuregenerations can

meettheirneeds

Marketing OrientationsMarketing Orientations


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Some industries and organizations remain at the

production-orientation stage.

PRODUCTION ORIENTATION

PROD

UCTION ORIENTATION SALES ORIENTATION

Other industries and organizations have progressed only to the

sales-orientation stage.

Many industries and organizations have progressed to the

marketing-orientation stage.

PROD

UCTIONORIENTATION SALESORIENTATION MARKETINGORIENTATION

Late 1800s Early 1930s Mid-1950s 1900s


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Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only if

the company aggressivelypromotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations Towardsthe

Marketplace

Company Orientations Towardsthe

Marketplace


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MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

Factory Existingproducts Selling andpromotion Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Customer Delivered ValueCustomer Delivered Value


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Marketing as an

Organizational Philosophy

Marketing as an

Organizational Philosophy

MarketingPhilosophy

SellingPhilosophy

ProductionPhilosophy

InternalFocus

ExternalFocus


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The Four PsThe Four PsThe Four PsThe Four Ps

Marketing

Mix

Product

Price Promotion

Place

The Four CsThe Four Cs

Customer

Solution

Customer

Cost

Communication

Conven-ience


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MARKETING MIXMARKETING MIX

1. PRODUCT: A good, service, idea to satisfy theconsumersneed.

2. PRICE: Whatisexchanged fortheproduct.

3. PROMOTION: Means of communicationbetweentheseller and buyer.

4. PLACEMENT: Means ofgettingtheproducttothe consumer.

5. POSITIOINING: Developing a marketing

strategy aimed atinfluencinghow a particularmarketsegmentperceives a good orserviceincomparisonto the competition.


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The Marketing PlanThe Marketing Plan

Transformsthemarketingstrategy into

action.

Includesthemarketingmix andthe4Psofmarketing

Product

Price

Place

Promotion


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Building Customer RelationshipsBuilding Customer Relationships

CRM Customer relationshipmanagement

Delightingthe Customer

The overall process of building andmaintainingprofitable customerrelationships by deliveringsuperior

customervalue andsatisfaction. Itdealswith all aspects of acquiring, keeping andgrowing customers.


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Capturing Value from CustomersCapturing Value from Customers

Customer Loyaltyand Retention

Share of

Customer

Customer Equity

Customerdelight

leadsto emotional

relationships andloyalty

Customer Lifetime

Valueshowstrueworth of a customer

Key ConceptsKey Concepts


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Share ofCustomer

Customer Equity

Share of customers

purchasein a

product category. Achievedthrough

offeringgreater

variety, cross-sellandup-sell

strategies.



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Share ofCustomer

Customer Equity

Share of customers

purchasein a

product category. Achievedthrough

offeringgreater

variety, cross-sellandup-sell

strategies.



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Share ofCustomer

Customer Equity

The combined customer

lifetimevalues of all

current andpotential

customers.

Measures a firms

performance, butin a

mannerthat looksto the

future. Choosingthe best

customersiskey



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Contemporary Marketing FrameworkContemporary Marketing Framework

Marketing

C

V

Global

Relationship

Productivity

Customer Value

Ethics

Entrepreneurship

Technology


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Transaction VersusRelationship Marketing

Transaction VersusRelationship Marketing

Long-Term Focus

We Oriented

Short-Term Focus

Me Oriented

Focus on Results

Emphasize Persuading

A Contest

Manipulation

Conflict

Transaction Marketing Relationship Marketing

Focus on Profits

Emphasize Helping

A Service

Trust

Cooperation


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GO TO THE WEBSITE OF UNIVERSITYOF MANAGEMENT AND TECHNOLOGY,

LAHORE PAKISTAN

www.umt.edu.pk

Documents

Marketing for the 21st Century 4239