Introduction to Marketing Management

Doyle’s definition of mktg:
Marketing is getting……
– the right goods and services to
– the right people at
– the right place at
– the right time at
– the right price with
– the right communication & promotion
Kotler & armstrong definition of mktg
Marketing is a process by which companies create value for customers and build strong customer rlts to capture value from customers in return
Market(s)
the set of actual and potential buyers of a product
Exchange
the act of obtaining a desired object from s.o by offering sth in return
The marketing process
5 steps process:
1. understand the marketplace and customer needs and wants
2. design a customer-driven marketing strategy
3. construct an integrated marketing program that delivers superior value
4. build profitable rlts and create customer delight
5. capture value from customers to create profits and customer equity
Needs. Wants. Demands
Needs are states of deprivation.
Wants are forms that needs take as they are shaped by culture and idv personality
Demands are wants backed by buying power.
3 elements of customer-driven marketing strategy
1. marketing mgmt (choosing target markets and building profitable rlts with them)
2. selecting customers (via market segmentation and target marketing)
3. choosing value proposition (set of benefits or values a company promises to deliver to customers to satisfy their needs)
marketing management orientations
– Production concept (firm focus on improving production and distribution eddiciency)
– Product concept (firm focuses on making continuous product improvements)
– Selling concept (selling on product benefits)
– Marketing concept (knowing the needs and wants of the target markets and delivering the desired satisfactions)
– Societal concept (focus on CSR and sustainable resources): deliver value to customers in a way that maintains or improves both the consumer’s and society’s well being
integrated marketing program
comprehensive plan that communicates and delivers the intended value to chosen customers
Product in marketing mix
1. goods
2. services
3. features
4. package
5. brand
Place in marketing mix
1. channel (distribution channels)
2. exposure (customer service)
3. wholesale (demand chain management)
4. retail
5. logistics (logistic management)
Promotion in marketing mix
1. advertise
2. promote
3. sales
4. media
5. publicity
Price in marketing mix
1. profit
2. units
3. discounts
4. allowances
5. terms
Marketing mix
4 Ps of Marketing
7 Ps of Service
The extra 3Ps of services are closely associated with product (part of product)
People in marketing mix
the role of people interacting with other people in service situations
Process in marketing mix
service delivery process.
customers are involved in the process. Technology is also important in the service delivery
Physical evidence
Physical elements of the service evornment
Customer perceived-value
the difference between total customer value and total customer cost
Customer satisfaction
the extent to which a product’s perceived performance matches a buyer’s expectations
Relationship levels
1. Basic relationship: used by company with many low-margin customers. Creates rlts thro brand-building ad, sales promo, and website
2. Full partnership: used in markets with few customers and high margins, sellers want to create full partnerships with key customers.
Basic relationships
1. more carefully selected customers, to target fewer more profitable customers
2. more deeply and interactively via 2-way comm thro blogs, websites, online communities, social networks
Partner rlts management
bringing greater value to customers by working closely with
1. partners in other company departments (every function area interacting with customers)
2. partners outside the company (how marketers connect with their suppliers, channel partners, and competitors by developing partnerships)
Supply chain
a channel that stretches from raw materials to components to final product to final buyers
Customer lifetime value
the value of the entire stream of purchases that the customer would make over a lifetime of patronage
Customer equity
the total combined customer lifetime values of all of the company’s customers. The more loyal the firm’s profitable customers, the higher the firm’s customer equity. It is a better measure of a firm’s performance than current sales or market share
Two key factors indicating marketing is the cornerstone of business success
1. marketing concept
2. strategic planning