Understanding marketing management 01
- 1. Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 1 Understanding Marketing Management Marketing is an essential art and science that is engaged in a vast number of activities by both persons and organizations. It has become an increasingly vital ingredient in the success of a business. Good marketing is the result of careful planning and execution. There are two sides to marketing – the formulated side and the creative side. It is important to lay the foundation in marketing concepts, tools, frameworks and issues of the formulated side while at the same time instil the real creativity and passion for Social marketing, as we shall come to see in this chapter. Definition of Marketing is increasingly becoming an important function in all organizations to ensure Marketing that demand for a product or service persists along with customer retention. Marketing is a societal process by Scope of Marketing which individuals A good marketer must be able to answer the following questions: and groups obtain what they need and What is Marketing? want through The formal definition of marketing is, Marketing is an organizational function and a set creating, offering of processes for creating, communicating and delivering value to customers and for and freely managing customer relationship in ways that benefit the organization and its stakeholders. exchanging products and What is Marketed? services of value with others. Some of the common entities that are marketed are goods, services, events, experiences, persons, places, properties, organizations, information and ideas.
- 2. Chapter 1 - Understanding Marketing Management Who Markets? A marketer is someone who seeks a response, attention, purchase, vote, donation etc from another party called the prospect. Marketing managers are responsible for demand The five key management. Eight demand states are possible: functions of a • Negative demand • Nonexistent demand marketing • Latent demand manager or • • Declining demand Irregular demand CMO are: • Full demand • Overfull demand • Unwholesome demand • Strengthening The key customer markets are consumer markets, business markets, global markets, the brand non-profit and governmental markets. • Measuring marketing effectiveness Core Marketing Concepts: • Driving new product • Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. development • Wants - form that a human need takes as shaped by culture and individual based on personality i.e. I want a hamburger, French fries, and a soft drink. customer needs • Demands - human wants backed by buying power. i.e. I have money to buy this meal. • Gathering • Target Markets are the market segments identified by the marketer which meaningful present the greatest opportunity. customer • Value Proposition is a set of benefits that companies offer to customers to insights satisfy their needs. The intangible value proposition is made physical by as offering. A brand is an offering from a known source. • Utilizing new • Value reflects the sum of the perceived tangible intangible benefits and costs to marketing customers. Satisfaction reflects a person’s judgements of a product’s perceived technology performance. • To reach a target market a marketer uses different marketing channels like communication channels, distribution channels and service channels. • Supply chain is a longer channel stretching from raw materials to components to final products that are carried to final buyers.
- 3. Chapter 1 - Understanding Marketing Management Company orientation towards Marketplaces: The major marketing philosophies are: • The Production Concept o Consumers favor products that are available and highly affordable. o Improve production and distribution. • Product Concept New o Consumers favor products that offer the most quality, performance, and innovative features. Marketing • Selling Concept Realities: o Consumers will buy products only if the company promotes/ sells these products. • Marketing Concept o Focuses on needs/ wants of target markets & delivering satisfaction better Some of the major than competitors. societal forces that • Societal Marketing Concept marketers have to o Focuses on needs/ wants of target markets & delivering superior value. • Holistic Marketing Concept deal with today are o Based on the development, design and implementation of marketing network programs, processes and activities that recognize their breadth and information interdependencies. technology, • Relationship Marketing globalization, o Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. deregulation, privatization, heightened competition, Marketing Management Tasks: industry The following are the most important marketing management tasks: convergence, • Developing Marketing Strategies and Plans • Capturing Marketing Insights consumer • Connecting with Customers resistance, retail • Building Strong Brands transformation and • Shaping the Marketing Offerings disintermediation. • Delivering Value • Communicating Value • Creating Long-Term Growth