Defining Marketing for the New Realities

Kotler, Philip. Marketing management/Philip Kotler, Kevin Lane Keller. — 14th ed. p. cm
Discussion Questions

1.Why is marketing important?

2.What is the scope of marketing?
3.What are some fundamental marketing concepts?
4.How has marketing management changed in recent years?
5.What are the task necessary for successful marketing management?
 What is Marketing?

Marketing is an organizational function and a set of processes for creating, com-

municating, and delivering value to customers and for managing customer relation-
ships in ways that benefit the organization and its stakeholders.
 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.
– What customers will we serve?
– How can we best serve these customers?
 What is Marketed?
• Experiences • Goods: Physical goods
• Events • Services: Intangible
• Properties • Events: Shows such as new year celebration, or a
• Organizations sporting event
• Information • Experiences: Such as organized holiday tour package
•  
Ideas
• Places: Like cities, state, nations, for purposes such as
attracting tourists.
• Properties: like real estate
• Organizations: companies, universities, and charita-
ble organizations.
• Information: Magazines
 Types of Demand
8 Demand States
• Unwholesome
• Negative
• Irregular
• Declining
• Nonexistent
• Latent
• Full
• Overfull
Negative demand: Generally, negative demand is created when customers have disliked the product but this
product actually useful to them. They try to avoid this product. Customers merely don’t want it.
For example, if the hospitals or clinics reduce 50%on chemotherapy, is there any customers who will go for it?
The answer is no one will go for it.
Example of negative demand: Dentist, many people avoid seeing the dentist
Task: Disabuse the demand
Technique: Conversational marketing- use marketing to have a rational, calming dialogue with customers about
the importance of dental hygiene and how the dentist is professional and painless. 
Services like dental treatments, insurance policies face a lot of negative demand because people rather than
going to a doctor for treatment or taking an insurance policy, prefer taking preventive measures to avoid buying
these services.
Non-existent demand: Customers are unaware or uninterested in these types of products. Or the customers
know about the product but are not interested to buy. This may be happening because of culture or thinking this
mere waste of money.
For example, family planning is a non-existent demand for rural people. They are unaware or uninterested in fam-
ily planning. Or they know this but are not interested to use. Insurance is another example. Insurance is both
negative demand and non-existent demand.

Non-existent demand can be a positive one by doing some things.

 At first, create awareness
 Modern farming is the best example.
 After taking modern facilities, farmers are producing more crops than before.
 Non-existent demand can be turned into full demand if you promote it effectively.
 Everywhere you need to give your message to the customers.
 The negative demand and non-existent demand need aggressive promotion.
 Now contraceptive pill is the overfull demand but in the past, it was non-existent demand. This happens
because of creating awareness.
Latent demand: The existing products are not satisfying the customer’s present needs. Producers need to
understand the latent demand of the customer.
To understand the latent demand of the customer, you need to question your customer about what
they want.
 Latent demand is, as the name suggests, a demand which the customer realizes later.
 Thus, while buying the product, he might not desire some features. But later on, he might think about those
features and buy the product. The best example of latent demand are normal phones vs smart phones.
 People nowadays want more and more features in the smartphone. They might settle for a normal phone, but
then later on they get the itch to buy a smart phone.
 A marketing managers job is to find out the features which people might be looking for later and market them
to the customer in such a manner that he immediately wants them.
Declining demand: In the past, Aromatic soap is the market leader but gradually it loses its appeal. This product
is facing declining demand. This may be happening because of changes in customers’ preferences, tastes, and
radical technological development. For example, people in the past used Walkman for listening to songs. Then
after introducing the iPod, people move to the iPod. And after introducing headphones, people love it most.
Walkman has faced declining demand.
Declining demand:
Every organization, sooner or later, faces demand for one or more of its product. The marketer must analyze the
causes of market decline and determine whether demand can be re-stimulated by finding new target markets,
changing the products features or developing more effective communication. The marketing task is to reverse the
declining demand through creative remarketing of the product.
Example: High School student enrollments for college
Task: Revitalize demand
Technique: Remarketing- develop a marketing mix that repositions schools, rebrands schools and revitalizes
demand. 
Irregular demand: Irregular demand is created because of usage rate based on a seasonal, monthly, weekly,
daily, and hourly basis. For example, an umbrella. We use an umbrella only in the rainy season but all over the
year umbrella faces irregular demand.
Irregular demand: Many organizations face demand that varies on a seasonal, daily, or even hourly basis,
causing problems of idle capacity or overworked capacity.
Museums are under visited during weekdays and overcrowded during weekends.
Irregular demand can be demand which is not consistent. The best example of irregular demand is seasonal
products like umbrellas, air conditioners or resorts. These products sell irregularly and sell more during peak sea-
son
whereas their demand is very low during non seasons. The best way to counter irregular demand is to introduce 
incentives for the customer to buy the product.

Unwholesome demand: People are aware of the bad effect of the product but they are still attracted to this. In
unwholesome demand, the customer should not desire the product, yet the customer wants the product badly.
Best example of unwholesome demand are cigarettes and alcohol.
Full demand: The products have the same demand all over the year.
In an ideal environment, a company should always have full demand. Full demand means that the demand is
meeting the supply potential of the company. It also means that the markets are satisfied with the products of the
company and that people want to buy from the same company. The marketing challenge in this type of demand is
to maintain the same level of interest in the product and the company.
For example, medicines are always having full demand. Whatever the doctor suggests, customers buy it.
Example: Panadol
Task: Maintain demand
Technique: Maintenance marketing- develop a marketing mix that reinforces and reminds customers why they
follow the brand.
Overfull demand: Suddenly people are likely to buy more products. These create a shortage of supply and an
increase in prices. Overfull demands happen when the companies manufacturing capacity is limited but the de-
mand is more than the supply. This can be observed in the cement industry occasionally. Generally, most ce-
ment industries have limited manufacturing capacity. And hence, brand switching in cement industry is
high.
Many companies use de-marketing techniques to counter act overfull demands. This is because if the company
keeps marketing, but it is not able to supply the material, then the company might suffer badly in brand equity.
 Key Customer Markets

• Global Markets
• Customer Markets
• Business Markets
• Nonprofit/Government markets
Consumer Market is the place where companies offer their goods and services to the last-mile customers. In
comparison to the buyer market, the consumer market contains a lot of sellers, which is a very regulated busi-
ness.
 
Business purchasers would purchase the goods or services in order to create new goods for resale. The com-
pany will not purchase the next cargo until all of the current items have been sold.
 
Consumer Markets:  Companies selling mass consumer goods and services such as juices, cosmetics, athletic
Shoes spend a great deal of time establishing a strong brand image by developing a superior
product and packaging, ensuring its availability, and backing it with engaging communications and reliable ser-
vice.

Business Markets:  Companies selling business goods and services often face well-informed professional buy-
ers skilled at evaluating competitive offerings. Business buyers buy goods to make or resell a product to others at
a
profit.
Types of Business Markets:
Business-to-Consumer Market
Business-to-Consumer is the type of market where businesses and marketers advertise their products or ser-
vices by using different media channels to reach a large audience.
Examples. Clothing, fashion, grocery stores, and food items are some of the common examples of B2C market
where businesses target the large audience, who ultimately consume the product or service.
 Business-to-Business market

Business-to-Business market
Business-to-business is the type of market where businesses sell their products or services to other businesses.
Examples. Sale of raw material to the construction company where one business sells products to the other
business; office furniture, and an accounting firm is providing services to different businesses.
Service Market
The service market is the type of market where a business offers intangible (not physical) products, that we call
service. It could be business to business or business to consumer.
Examples. Cable operator, telephone lines, internet service. These are some of the most common examples of
the profession that we see in our daily lives, and they provide services to other businesses and consumers as
well.
Industrial Market
The industrial market is the market where businesses sell their products or services to the industries. This type of
market doesn’t involve consumers or the mass audience because the product or service is none of their use.
Examples. Steel, wood, glass and other raw materials which businesses sell it to the industries; where they fur-
nish it and manufacture something new for the target audience.
Professional Service Market
It is the type of market where businesses have expertise in a certain field and they offer services to other busi-
nesses or consumers.
Examples. Doctors, legal and accounting firms are some of the familiar examples of businesses, where one ser-
vices industry professionals sell their services to the other business.
Global Markets:  Companies in the global marketplace must decide which countries to enter; how to enter each
(as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer); how to adapt prod-
uct and service features to each country; how to price products in different countries; and how to design commu-
nications for different cultures.
Non-profit and Governmental Markets:  Companies selling to nonprofit organizations with limited purchasing
power such as churches, universities, charitable organizations, and government agencies need to price carefully. 
Marketing Concepts
Holistic Marketing Dimensions
 Marketing Mix and the Customer

Four Cs
Four Ps
• Customer solution
• Product
• Customer cost
• Price
• Convenience
• Place
• Communication
• Promotion
The Four P’s of the Marketing Mix
 Brand Portfolio

A brand portfolio is the set of all brands and brand lines a particular firm of-
fers for sale in a particular category or market segment.
 Core Marketing Concepts

• Developing marketing strategies • Shaping market offerings

• Capturing marketing insights • Delivering value
• Connecting with customers • Communicating value
• Building strong brands • Creating long-term growth
 Marketing Management Tasks

• Developing marketing strategies • Shaping market offerings

• Capturing marketing insights • Delivering value
• Connecting with customers • Communicating value
• Building strong brands • Creating long-term growth