MARKETING MANAGEMENT. 1 Defining Marketing for the 21 st Century. MARKETING MANAGEMENT. In this chapter we will address the following questions: What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing?
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In this chapter we will address the following questions:
What is the new economy like?
What are the tasks of marketing?
What are the major concepts and tools of marketing?
What orientations do companies exhibit in the marketplace?
How are companies responding to the new challenges?
The old economy is based on the Industrial Revolution and on managing manufacturing industries
The new economy is based on the Digital Revolution and the management of information.
Substantial increase in buying power
Greater variety of available goods and services
Great amount of information about practically anything
Greater ease in interacting and placing and receiving orders
An ability to compare notes on products and services
Operate powerful new information and sales channels
Collect richer information about markets, customers, prospects, and competitors
Speed up internal communication among employees
Have two-way communications with customers and prospects
Send promotional tools easily and quickly
Able to customize offerings
Improve purchasing, recruiting, training and internal and external communication.
Maintain cost saving while improving accuracy and service quality.
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 objectives
“There will always 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 is to make the product or service available.”
Events & Experiences
Places & Properties
IdeasWhat is Exchanged in Marketing?
An American needs food but wants a hamburger, French fries and soft drink.
Many people want a Mercedes, only a few are able and willing to buy one.
Value is a ratio between what customer gets and what he gives
Value = Benefits/Costs
How to increase value?
For exchange to occur, there must be:
Three kinds of marketing channels:
Four (4) levels of competition:
is the analysis, planning, implementation, and control of marketing programs designed to create, build, and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organizational objectives.
2. Product concept: assumes consumers will favor those products that offer the most quality, performance, and features. (Focus: Superior product)
The purpose of marketing companies:
is to sell more stuff to
more people more often
for more money in order
to make more profit
4. Marketing concept: holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. (Focus: different needs of buyers)
(a) The Selling Concept companies:
(b) The Marketing Concept
NeedsMarketing and Selling Concepts Contrasted
1. Target Market: tailored marketing programs
2. Customer Needs:
3. Integrated Marketing: all company’s departments work together to serve the customer’s interests.
a. External marketing:
directed at people outside the company.
b. Internal marketing:
the task of hiring, training, and motivating able employees who want to serve customers well.
Which one is more important?
CustomersModern Customer-Oriented Organization Chart
5. The customer concept:
6. The societal marketing concept: to determine the needs, wants, and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.