Chapter 1 - Defining Marketing for the 21st Century
Questions to be answered
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental marketing concepts and new marketing realities?
4. What are the tasks necessary for successful marketing management?
Reviewing important marketing concepts, tools, frameworks and issues.
The Importance of marketing
* Creating demand
* Introduce and gain acceptance of new products
* Increasing demand creates jobs
* Allow firms to more engage in socially responsible activities
The scope of marketing
Marketing is about identifying and meeting human and social needs.
1. Meeting ...view middle of the document...
g. “Don’t drive and Text”
A Marketer is someone who seeks a response – attention, a purchase, a vote, a donation from another party, called the Prospect. However, marketing is not only done actively by the marketing department, as the touch point of the customer with the company also plays an important role (where a customer in-directly interacts with the company in some form. E.g. store lay-out, packaging, etc.)
What is a Market
Markets: - Economists - A collection of buyers and sellers who transact over a particular product or product class.
Markets: -Marketers- Term to cover a groupings of customers. They view sellers as constituting the industry and buyers as constituting the market.
1. Need Markets
2. Products markets
3. Demographic markets
4. Geographic markets
Marketplace vs. Marketspace vs. Metamarkets vs. Metamediaries
Core Marketing Concepts
Needs: The basic human requirements for air, food, water, clothing and shelter (etc.)
Wants: When needs are directed to a specific object that might satisfy the need. Wants are shaped by the society (NL Bread; India Rice)
Demands: wants for specific products backed by an ability to pay.
2. Marketers do not create needs: Needs preexist Marketers.
Marketers, along with other social factors, influence wants.
Different kind of needs, for example:
6. Stated needs
7. Real needs
8. Unstated needs
9. Delight needs
10. Secret needs
3. Companies must help customers help what they want.
Target Markets, Positioning and Segmentation
11. Marketers identify and profile distinct groups of buyers who might prefer or require varying product and service mixes.
12. Then the marketer decides which groups presents the greatest opportunities (= target markets).
13. The firm develops a market offering that it positions in the mind of the target buyers as delivering some central benefits.
Offerings and Brands
14. Companies address customers’ needs by putting forth a value proposition (A set of benefits that satisfy those needs).
15. The intangible value proposition is made physical by an offering (which can be a combination of products, services, etc.).
16. A brand is an offering from a known source.
Value and satisfaction
17. The offering will be successful if it is perceived to deliver the most value (sum of the tangible and intangible benefits and costs to customers).
18. Customer value triad; value is primarily a combination of quality, service and price
19. Satisfaction; reflects a person’s judgment of product’s perceived performance in relation to expectations.
20. To reach a target market, the marketer uses three kinds of marketing channels
* Communication Channels (to deliver and receive messages from target buyers)
* Distribution Channels (to deliver the physical product/service to the buyer/user)