MARKETING MANAGEMENT - DEFINITION

MARKETING CONCEPTS
Art and science of choosing target markets
and getting, keeping and growing
customers through creating, delivering and
communicating superior customer value.
- Philip Kotler

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MARKET

Core Marketing Concepts

Target Markets and Segmentation:

Market segmentation

Target segments

Market Positioning

Markets:

Need markets (the diet seeking market)

Product markets (the shoe market)

Demographic markets (the youth market)

Geographic market (the French market)

Other markets like voter markets, donor markets and labour markets.

Marketplace v/s marketspace physical v/s digital
Marketers and prospects:

Marketer : seeking response in the form of attention, purchase,
vote and donation.

The response is sought from prospect.

Needs, Wants and Demand

Needs :
basic human requirements. (food, air, water, education,
entertainment etc.)
Needs become wants when they are directed to specific objects
that might satisfy the need.

Need for food ---> Want for a Hamburger

Product or offering
Any offering that can satisfy a need or want.
Major typed of basic offerings:
Goods, services, experiences, events, persons,
places, properties, organizations, information and
ideas.

A brand is an offering from a known source.

Demands
wants for specific products backed by willingness and ability to
pay.

Marketers
do not create needs.
along with other social influencers influence wants.
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Value, satisfaction & Quality

Value
what customer gets (benefits) and what he
gives (cost).
Benefits :
functional and emotional benefits.

Costs :
monetary costs, time costs, energy costs and
psychic cost.

Satisfaction

Value and satisfaction

Value of customer
increased by:

offering

can

be

Raise benefits
Reduce costs
Raise benefits AND reduce costs
Raise benefits by MORE THAN the raise in
costs

Quality

Equal, Above and Below

Cognitive Dissonance

Perception of benefits against cost

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Exchange and transactions:

Exchange :
a ways in which a person can obtain a product.
obtaining a desired product from someone by
offering something in return.

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Exchange and transactions:

For exchange potential to exist five conditions
must be satisfied:
1. At least two parties
2. Each party has something that might be of some
value to the other party.
3. Each party is capable of communication and delivery
4. Each party is free to accept or reject offer
5. Each party believes that it is appropriate or desirable
to deal with the other party.

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Exchange and transactions:

Exchange and transactions:

Dimensions of a transaction:

Exchange is :
value-creating process.
a process rather than an event.

At least two things of value Agreed upon

conditions

A transaction is a trade of values between

two or more parties.
Monetary transaction
Barter transaction

A time of agreement
Place of agreement

Transaction marketing Relationship marketing

b/w customers, suppliers, and distributors

Relationships and networks:

Relationships and networks:

Transaction marketing : a part of relationship

marketing.

A marketing network consist of companies

and
its
supporting
stakeholders
(customers,
employees,
suppliers,
distributors,
retailers,
ad
agencies,
university scientists and others).

Relationship marketing
has the aim of : building long term mutually satisfying
relations with key parties customers, suppliers, and
distributors in order to earn and maintain their long
term preference and business.
builds strong economic, social and technical ties
among the parties.

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Marketing Concepts - Summary

Market
Product
Value & Satisfaction
Exchange & Transactions
Relationship & Networks

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