Marketing involves identifying and meeting customer needs to create value for both customers and organizations. It is defined by several sources as the process of anticipating customer needs and directing the flow of goods and services to satisfy those needs profitably. Marketing management involves choosing target markets and getting, keeping, and growing customers through superior customer value. The marketing concept holds that achieving organizational goals requires understanding customer needs and wants and satisfying them better than competitors.
Marketing involves identifying and meeting customer needs to create value for both customers and organizations. It is defined by several sources as the process of anticipating customer needs and directing the flow of goods and services to satisfy those needs profitably. Marketing management involves choosing target markets and getting, keeping, and growing customers through superior customer value. The marketing concept holds that achieving organizational goals requires understanding customer needs and wants and satisfying them better than competitors.
Marketing involves identifying and meeting customer needs to create value for both customers and organizations. It is defined by several sources as the process of anticipating customer needs and directing the flow of goods and services to satisfy those needs profitably. Marketing management involves choosing target markets and getting, keeping, and growing customers through superior customer value. The marketing concept holds that achieving organizational goals requires understanding customer needs and wants and satisfying them better than competitors.
Marketing involves identifying and meeting customer needs to create value for both customers and organizations. It is defined by several sources as the process of anticipating customer needs and directing the flow of goods and services to satisfy those needs profitably. Marketing management involves choosing target markets and getting, keeping, and growing customers through superior customer value. The marketing concept holds that achieving organizational goals requires understanding customer needs and wants and satisfying them better than competitors.
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Marketing Management
Chapter 1
Understanding Marketing Management
What is Marketing?
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing defined: “Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably” (Chartered Institute of Marketing)
Marketing defined:
“Marketing seeks to accomplish an organisation’s objectives by
anticipating customers or clients needs and directing a flow of products and services to satisfy those needs, making the optimum use of available resources” (Perreault et al)
Marketing defined:
“Marketing consists of individual and organisational activities that
facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas” (Dibb et al) Marketing defined:
“Marketing is a process for understanding markets, for
quantifying the present and future value required by the different groups of customers within these markets, for communicating this to all other functions with the responsibility for delivering this value, and for measuring the value actually delivered. For marketing to be effective, all other functions should be market driven” (Mc Donald et al)
Marketing defined:
“The marketing concept holds that the key to achieving
organisational goals lies in determining the needs and wants of target markets and delivering the desired satisfaction more efficiently and effectively than the competition” (P. Kotler) 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. Value Exchange Core Concepts of Marketing
Exchange Exchange is the act of obtaining a desired object from someone by offering something in return. For a voluntary exchange to take place: 1. There has to be at least two parties 2. Each party has something that may be of value to the other party 3. Each party is capable of communication and delivery 4. Each party is free to accept or reject the other party’s offer 5. Each party believes that it is appropriate or desirable to deal with the other party.
Transaction Transaction is the actual transfer of goods and services (trade) between two or more parties. Value Value is the customer’s estimation of a product’s overall capacity to satisfy a need or want. In other words, value is the bundle of benefits customers get from using or consuming a product or service. It is the difference between the benefit of obtaining a product/ service and the cost of obtaining it.
Cost Cost is the price paid to obtain a product or service. The meaning of price includes the physical effort, time effort, and the money spent on purchasing a product.
Satisfaction Satisfaction is a mental state expressing the benefits derived from usage of a product or service. the extent to which a product’s perceived performance in delivering value matches a buyer’s expectations.
Quality The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. Needs A human need is a state of felt deprivation in a person.
Wants Human wants are the form human needs take as shaped by culture and individual personality.
Demands People have almost unlimited wants but limited resources. Wants become demands when backed by purchasing power. For Example:
Needs Wants Demands
Footwear Shoes APEX Tk. 3500
Bata Tk. 2500
Food Burger McDonalds
Needs
Physiological Needs Basic needs for sustaining human life itself (food, water, clothing, shelter, sleep)
Security/Safety Needs Free from physical danger and the fear of losing job, property, food, clothing etc.
Affiliation/Acceptance/ Social Needs
Since people are social beings, they need to belong, to be accepted by other.
Esteem Needs Once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by other. This kind of need produces such satisfaction as power, prestige, status and self confidence.
Need for Self Actualization
It is the desire to become what one is capable of becoming – to maximize one’s potential and to accomplish something. Product A product is anything that can be offered to satisfy a need or want. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. **Be careful not to confuse a product with a need For Example: A manufacturer of drill machine may think that the customers need a drill machine. However, what the customers actually need is a “HOLE”!
Service A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production and consumption may or may not be tied to a physical product. Market A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. A market does not essentially have to have a physical place to be defined.
Customer A customer is a person who has willingness to buy a product and service, which is backed by his/ her ability, qualification, and access to buy the desire product/ service. Marketing Philosophies
1. Production Concept ‘Lets make the cheapest, most efficiently… Production concept holds that consumers will favour those product that are available and highly affordable and therefore management should concentrate of improving production and distribution efficiently’ Example: Model T Ford
2. Product Concept
‘Lets make the best…
Product concept holds that consumers will favour those
product that offer the most quality, performance, and features. Hence the organisation should devote its energy to making continuous product improvements 3. Selling Concept Selling concept holds that consumers will not buy enough of the organisation’s products unless the organisation undertakes a substantial selling and promotion effort Example: Political canvassing….
4. Marketing Concept Marketing concept holds that the key to achieving organisational goals consists of determining the needs of and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
Societal Marketing concept holds that the key to achieving
organisational success consists of determining the needs of and wants of target markets and delivering them the desired satisfactions more effectively and efficiently than competitors in such a way that enhances social and greater well-being. Concept Evolution
1. The Production Era (1st Half of 19th century)
2. The Product Era (19th/ century)
3. The Selling Era (mid 1920s – early 1950s)
3. The Marketing Era (early 1950s +)
4. The Societal Marketing Era (1990s +)
Holistic Approach to Marketing The Marketing Mix (4 Ps) Marketing Management Tasks
