Understanding Marketing Management - 01 by skillfulyards


									                     Marketing Management
         By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

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                                  SUMMARY by

                  Chapter        1
    Understanding Marketing

                             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
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.
        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
                                       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.
                    •     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
 • Gathering
                    •     Target Markets are the market segments identified by the marketer which
                          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.
              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
                          •   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.
competition,                           Marketing Management Tasks:
industry               The following are the most important marketing management tasks:
convergence,              •   Developing Marketing Strategies and Plans
                          •   Capturing Marketing Insights
                          •   Connecting with Customers
resistance, retail        •   Building Strong Brands
transformation and        •   Shaping the Marketing Offerings
disintermediation.        •   Delivering Value
                          •   Communicating Value
                          •   Creating Long-Term Growth

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