MARKETING MANAGEMENT

12th edition
1
Defining Marketing
for the 21st Century

Kotler Keller
Marketing and Management
 Marketing
Typically, marketing is the task of creating,
promoting, and delivering goods and services to
consumers and businesses.

 Management
Management is a set of activities (including planning
and decision making, organizing, leading, and
controlling) directed at an organization’s resources
(human, financial, physical, and information), with
the aim of achieving organizational goals.

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Chapter Questions
 Why is marketing important?
 What is the scope of marketing?
 What are some of the fundamental
marketing concepts?
 How has marketing management
changed?
 What are the tasks necessary for
successful marketing management?

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The Importance of Marketing

• Marketing is meeting customer needs profitably.

So, the marketers’ job is to –

- understand consumer needs

- develop products that provide superior value

- Price, distribute, and promote the products

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The Scope of Marketing

• To understand the scope of marketing, students

of marketing need to understand –
- what marketing is
- how it works
- what is marketed
- who does the marketing

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• What is Marketing?
Marketing is the process by which companies create
values for customers and build strong customer
relationships in order to capture value from customers
in return.
• 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.

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Marketers’ Frequently Asked Questions

 How can we choose the right market segment(s)?

 How can we differentiate our offerings?
 How can we compete against lower-cost, lower-price
competitors?
 How can we grow our business?
 How can we reduce the cost of customer acquisition?
 How can we keep our customers loyal?
 How can we improve sales force productivity?-----

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How Marketing Works

Four alternative ways to obtain a product

 One can self produce the product
 One can use force to get a product
 One can beg
 One can offer a product in exchange for
something
So, exchange is the process of obtaining
a desired product from someone by
offering something in return.
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• An example of Marketing Exchange

Consumer Business
BusinessCosts
ConsumerCosts
Costs Costs

Money Production
Production
Money Promotion
Time
Time Promotion
Cognitive Distribution
CognitiveActivity
Activity Distribution
Marketing
Behavior
Behavioreffort
effort Marketingresearch
research

+ +
Value
Value Profit
Profit

= =
Price
Pricewilling
willingto
topay
pay Price
Pricewilling
willingto
tosell
sell

Marketing
MarketingExchange
Exchange

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For an exchange to occur…..
 There are at least two parties.
 Each party has something that might be of value
to the other party.
 Each party is capable of communication and
delivery.
 Each party is free to reject the exchange offer.
 Each party believes it is appropriate or desirable
to deal with the other party.

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What is Marketed?

 Goods (Salt)  Places (made-in)

 Services (Consulting)  Properties (Real-estate)
 Events (Olympics)  Organizations (Schools)
 Experiences (Disneyland)  Information (AC Nielsen)
 Persons (Physicians)  Ideas (Social Marketing)

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Who Markets?
 A marketer is someone who seeks a response from
another party called the prospect.
Demand States
 Negative (operation)
 Nonexistent (new method)
 Latent (harmless cigarettes)
 Declining (product life-cycle;
remarketing)
 Irregular (seasonal)
 Full (maintaining)
 Overfull (demarketing)
 Unwholesome (drug
abuse)
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Markets
 Traditionally, a market was a physical place where
buyers and sellers gathered to buy and sell goods.
 In economics, a market is a collection of buyers and
sellers.
 In marketing, a market is the set of actual and
potential buyers of a product. For example, the need
markets, product markets, demographic markets,
geographic markets

Key Customer Markets

 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

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STRUCTURE OF FLOWS IN A MODERN EXCHANGE ECONOMY

RESOURCES RESOURCES
RESOURCE
MARKETS
MONEY MONEY

TAXES & SERVICES

GOODS & MONEY
SERVICES
GOVERNMENT
MANUFACTURER CONSUMER
MARKETS
MARKETS S&M MARKETS
TAXES
TAXES &
GOODS S&M T&G

MONEY
MONEY
INTERMEDIARY
MARKETS
GOODS & SERVICES GOODS & SERVICES
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A SIMPLE MARKETING SYSTEM
COMMUNICATION

GOODS & SERVICES

INDUSTRY MARKET
(A collection (A collection
of sellers) of buyers)
MONEY

INFORMATION

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Company Orientations
 Production: Consumers will prefer products that are widely
available and inexpensive.
 Product: Consumers will favor those products that offer the
most quality, performance, or innovative features.
 Selling: Consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and
promotion effort.
 Marketing: Achieving organizational goals depends on
knowing the needs and wants of target markets and
delivering the desired satisfaction better than competitors do.
 Holistic Marketing: Four components are – relationship
marketing, integrated marketing, internal marketing, and
social responsible marketing.

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Marketing Mix and the Customer
 Marketing mix is the set of controllable tools
that the firm blends to produce the response
it wants in the target market.

Four Ps Four Cs
 Product  Customer solution

 Price  Customer cost

 Place  Convenience

 Promotion  Communication

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Core Concepts

 Needs, wants, and  Marketing channels

demands  Supply chain
 Target markets,  Competition
positioning,  Marketing
segmentation environment
 Offerings and brands  Marketing planning
 Value and satisfaction

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I want it, I need it…..

5 Types of Needs
 Stated needs (inexpensive car)
 Real needs (low operating cost)
 Unstated needs (good service)
 Delight needs (navigation feature)
 Secret needs (center of attention)

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Factors Influencing Company Marketing Strategy

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Marketing Management Tasks

 Developing marketing  Shaping market offerings

strategies (Opportunity based) (Product, package ---)
 Capturing marketing insights  Delivering value
(Micro-Macro Environment) (Product and services)

 Connecting with customers  Communicating value

(Customers- what, why --- ) (Means-end chain)
 Creating long-term growth
 Building strong brands
(Researching)
(Positioning efficiently)

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