MARKETING MANAGEMENT
Defining marketing for the 21st century
ASSIGNMENT
The Importance of Marketing
Financial success often depgndg on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and. services so the company can make a profit
But making the right decisions is not always easy. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products, and how much to spend on advertising or sales. The companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continuously improve their value offerings. Skillful_rnarketing_is a never-ending pursuit.
What Is Marketing?
Marketing deals with identifying and meeting human and social needs.
Marketing is an organizational function and a set of process of creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organi¬zation and its stake holders and Marketing jnanagement takes when at least one party to a potential, exchange thinks, about the means of achieving desired responses from other parties.
A Social Definition is Maketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value-with others.
Exchange and Transactions
Exchange, is the process of obtaining a desired product from someone by offering something in return, For exchange potential to exist, five conditions must be satisfied:
1.There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party.
Two parties are engaged in exchange if they are negotiating—trying to arrive at mutually agreeable terms. When an agreement is reached, we say that a transaction takes place., A transaction js a trade of' values between two or more parties.
A transaction involves several dimensions: at least two things of value, agreed-upon con¬ditions, a time of agreement, and a place of agreement.
What is Marketed?
Marketing people are involved in marketing 10 types of entities: goods, services, experi¬ences events, persons, places, properties, organizations, information, and ideas.
GOODS- Physical goods constitute the bulk of most countries' production and marketing effort. Each year companies market cars, trucks, television sets, machine tools, machines, industrial chemicals, watches, cosmetics and various other mainstays of modern economy. Not only do companies market their goods, but thanks in part to the Internet, even individuals can effectively market goods.
SERVICES - As_economies advance, a growing proportion of their activities is focused on the production of services .Services include the work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, as well as professionals working within of for companies, such as accountants, bankers, lawyers, engineers, doctors, software pro¬grammers, and management consultants.
EVENTS- Marketers promote time-based events, such as major trade shows, artistic perfor¬mances, and company anniversaries.. There is a whole profession _of meeting planners who work out the details of an event and make sure it comes off perfectly.
EXPERIENCES -By orchestrating several services and goods, a firm can create, stage, and market experiences. An amusement park or a water park represents experiential marketing: customers, by taking different "rides" in the amusement park or the water park enjoy the thrill provided by these experiences
PERSONS -Celebrity marketing is a major business. Today many film stars have agents, ,personal managers and use the services of public-relations agencies. 4 Amitabh Bachchan, Sachin Tendulkar, Shah Rukh Khan and Aishwarya Rai, are big brands themselves...
PLACES- Cities, states regions, and whole nations compete actively to attract tourists, factories,company.headquarters and new residents. Place marketers include economic devel¬opment specialists real estate agents, commercial banks, local business associations, and advertising and public relations agencies. The governmgnt of India is marketing India as a tourist destination through the "Incredible India" advertisement campaign)
PROPERTIES- Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). Properties ate bought and sold, and this requires, marketing. Investment companies and banks are involved in marketing secu¬rities to both institutional and individual investors:
ORGANIZATIONS -Organizations actively work to build a strong, favorable, and unique image in the minds of their target publics. Companies spend money on corporate identity ads.Universities, museums, per¬forming arts organizations, and non-profits all use marketing to boost their public images and to compete for audiences and funds.
INFORMATION- Information can be produced and marketed as a product. This is essen¬tially what schools and universities produce and distribute at a price to parents, students, and communities. The_production packaging, and distribution of information is one of our society's major industries.
IDEAS- Every market offering includes a basic idea. Products and Seryices are platforms for delivering some ideas or benefits. Promoting awareness about AIDS, encouraging family planning and discouraging smoking are ideas that fall in the realm of social marketing.
WHO MARKETS?
MARKETERS AND PROSPECTS:
A marketer is someone who seeks a response (attention, a
purchase, a vote, a donation) From another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.
Marketers are skilled in stimulating demand for a company's products, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition_of demand to meet organizations objectives. Eight demand states are possible:
1 . Negative demand - Consumers dislike the product and may eyerrpay a price to avoid it.
2. Nonexistent demand - Consumers may be unawarejjr jfflinterested in the product.
3. Latent demand - Consumers may share a strong need that cannot be satisfied by an existing praduct.
4. Reclining, demand - Consumers, begin to buy the_prpduct less frequently or not at all.
5. Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
6. Full demand-_ Consumers are adequately_buying all products put into the marketplace.
7. Overfull demand - More consumers would like to buy the product than can be satisfied.
8. Unwholesgme demand - Consumers may be attracted to products that have undesir¬able social consequences.
In each case, marketers must identify the underlying cause (s) of the demand state and then determine a plan for action to shift the demand to a more desired state.
MARKET Traditionally, a "market" was a physical place where buyers and sellers gathered To buy_and sell goods. Economists describe a market as a collection of buyers and sellers who transact over-a particular product or product class Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services and then sell finished products to intermediaries, sell them to consumers. Consumers Sell their labor' and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and inter¬mediary markets and uses these goods and, services,to provide public services. Each nation's economy and the global economy consist of complex interacting sets of markets linked through exchange processes.
KEY CUSTOMER MARKETS:
The following key_customer_markets consists of: consumer, busjness.global and non profit.
Consumer Markets:
Companies selling.mass consunier,goods and services such as softdrink ,cosmetic and athletic shoes and equipment spend a great deal of time trying to establish a superior brand
Business market:
Companies,,selling, business ,goods and services often face well-trained professional buyers who ar skilled in evaluating com¬petitive offerinjgs.Business buyers buy goods in order to make or resell a product to other buyers at a profit.Business marketers must demonstrate how their products will help these buyers achieve higher revenue and lower cost.
Global Markets
Companies_selling goods and services in the global market¬place face additional decisions and challenges. They_must.decide which countries to enter, how to enter each country, how to adapt their product and service features to each country; how to price their products in-different countries; and how to adapt theircommunications to fit different cultures
NON PROFIT AND GOVERNMENTAL PRODUCTS: Companies selling_ their goods to nonprofit organizations such as churcHes, universities, charitable organization, government agencies need to price carefully because these organizations have limited pur¬chasing power.) Much government purchasing calls for bids, with the lowest bid being favored, in the absence of extenuating factors.
MARKET PLACES,MARKET SPACES, AND METAMARKETS-
The marketplace is physical, as when u shop in a store;
Marketspace is digital as when you shop on the internet.
A METAMARKET is a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industrjes. The automobile metamarket consists of automobile manufacturers, new car and used car dealers, financing companies, insurance companies, mechanicsv spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet.
How Business and Marketing Are Changing
1. Changing technology.
2. Globalisation
3. Deregulation
4. Privatisation.
5. Customer empowerment
6. Customization
7. Heightened competition.
8. Industry convergence
9. Disintermediation
10. Retail transformation
Company Orientations Toward the Marketplace
The production concept, product concept, selling concept, market¬ing concept, and holistic marketing concept are marketing activities.
The Production Concept
The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.
The Product Concept
The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products and improving them over time. A new improved-product will not necessarily be successful unless the prod¬uct is priced, distributed, advertised, and sold properly.
The Selling concept.
The purpose of selling concept is to sell to more often for more money in order to make more profit. The selling concept is practiced most aggressively with unsought goods that buy
normallv donot think of buying such as insurance and encyclopedia.Most firms practice the selling concept when they have overcapacity. Their aim is to sell what theymake rather than make what the market wants.
The Marketing Concept
The marketing concept emerged in the mid-1950s. The job is not to find the right customers for your products, but the right products for your customers. The marketing concept holds that the key to achieving organizational goals consists of the company being more" effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets]
A Reactive market orientation—understanding and meeting customers expressed needs. High level innovation is possible if the focus is on the customers latent needs. He calls this a proactive marketing orientation Companies_that practice both a reactive and proactive marketing orientation are implementing a total market orientation and are likely to be the most successful.
THE HOLISTIC CONCEPT
The Holistic concept is based on the development, design and implementation of marketing programs, processes, and activities. Holistic marketing iis thus an approach to marketing that attempts to recognize and reconcile the scope and complexities activities.
RELATIONSHIP MARKETING –
Relationship marketing has the aim of building mutually satisfying long-term relationships with key parties,customers & suppliers distributors and other marketing partners—in order to earn and retain their business. Relationship marketing builds strong economic, technical, and social ties among the parties.
The ultimate outcome of relationship marketing is the building of a unique company asset called amarketing: network.A marketing netwprk consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationship.
INTEGRATED MARKETING :
One traditional depiction of marketing activ¬ities is in terms of the marketing mix, which has been defined as fhe set of marketing tools the firm uses to pursue as its marketing objectives. McCarthy classified these tools into four broad groups, which he called the four Ps of marketing; product, price, place, and promotion.
FOUR C’S
• Customer solution
• Customer cost
• Convenience
• Communication
Four Ps
• Product
• Price
• Place
• Promotion
INTERNAL MARKETING,
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well]
' Internal marketing must take place on two levels. At one level, the various marketing functions—sales force, advertising, customer service, product management, marketing research—must work together
At another level, marketing must be embraced by the other departments; they must also "think customer
Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. Xerox accountants know that customer attitudes are affected by xerox's billing accuracy and promptness in returning calls"
SOCIAL RESPONSIBILITY MARKETING :
Holistic marketing incorporates social responsibil¬ity marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs.
CORE CONCEPTS
NEEDS,WANTS AND DEMANDS
The marketer must try to understand the target market's needs, wants, and demans.Needs are the basic human requirements. People_need food, air, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and enteitainment. These needs become wants when they are directed to specific objects that might satisfy the need. Wants are shaped by one's society. Demands are wants for specific products backed by abilities to pay.
Five types of needs are:
1. Stated_needs: (the customer wants an inexpensive car).
2. Real needs: (the customer wants a car whose operating cost, not its initial price, is low).
3. Unstated needs: (the customer expects good service from the dealer).
4. Delight needs
the customer would like the dealer to include an onboard navigation system).
5. Secret needs: the customer wants to be seen by friends as a savvy consumer).
TARGET MARKETS, POSITIONING, AND SEGMENTATION:
Marketers
identify and profile distinct groups of buyers who might prefer or require varying product and services mixes by examining demographic, psychographic, and behavioral dif¬ferences among buyers. The marketer then decides which segments present the greatest opportunity—which are its target markets. For each chosen target market, the firm develops market offering. The offering is positioned in "the minds of the target buyers as delivering some central benefit(s).
OFFERINGS AND BRANDS:
Companies address needs by putting forth a value proposi¬tion, a set of benefits they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering, which can be a combination of products, ser¬vices, information, and experiences
A brand is an Offering from a known source.
Value and satisfac¬tion
Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service and price called the "customer value triad.
Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations.
MARKETING CHANNELS
Communication channels deliver and receive messages from target buyers, and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet.
The marketer uses distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user.They include distributors,wholesalers, retailers, and agents. The marketer also uses service channels to carry out transactions with potential buyers. Seryice, channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions.
SUPPLY CHAIN -Whereas marketing channels connect the market-to-the-target buyers, and describes a longer channel stretching from raw materials,to components to final products that are carried to final buyers.
MARKETING ENVIRONMENT:
The task environment includes the immediate actors involved in producing, distributing,and promoting the offering.
The broad environment consists of six components: demographic environment, economic enyironment, physical environment, technological environment, political-legal environment, and social-cultural enyironment.
Defining marketing for the 21st century
ASSIGNMENT
The Importance of Marketing
Financial success often depgndg on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and. services so the company can make a profit
But making the right decisions is not always easy. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products, and how much to spend on advertising or sales. The companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continuously improve their value offerings. Skillful_rnarketing_is a never-ending pursuit.
What Is Marketing?
Marketing deals with identifying and meeting human and social needs.
Marketing is an organizational function and a set of process of creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organi¬zation and its stake holders and Marketing jnanagement takes when at least one party to a potential, exchange thinks, about the means of achieving desired responses from other parties.
A Social Definition is Maketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value-with others.
Exchange and Transactions
Exchange, is the process of obtaining a desired product from someone by offering something in return, For exchange potential to exist, five conditions must be satisfied:
1.There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party.
Two parties are engaged in exchange if they are negotiating—trying to arrive at mutually agreeable terms. When an agreement is reached, we say that a transaction takes place., A transaction js a trade of' values between two or more parties.
A transaction involves several dimensions: at least two things of value, agreed-upon con¬ditions, a time of agreement, and a place of agreement.
What is Marketed?
Marketing people are involved in marketing 10 types of entities: goods, services, experi¬ences events, persons, places, properties, organizations, information, and ideas.
GOODS- Physical goods constitute the bulk of most countries' production and marketing effort. Each year companies market cars, trucks, television sets, machine tools, machines, industrial chemicals, watches, cosmetics and various other mainstays of modern economy. Not only do companies market their goods, but thanks in part to the Internet, even individuals can effectively market goods.
SERVICES - As_economies advance, a growing proportion of their activities is focused on the production of services .Services include the work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, as well as professionals working within of for companies, such as accountants, bankers, lawyers, engineers, doctors, software pro¬grammers, and management consultants.
EVENTS- Marketers promote time-based events, such as major trade shows, artistic perfor¬mances, and company anniversaries.. There is a whole profession _of meeting planners who work out the details of an event and make sure it comes off perfectly.
EXPERIENCES -By orchestrating several services and goods, a firm can create, stage, and market experiences. An amusement park or a water park represents experiential marketing: customers, by taking different "rides" in the amusement park or the water park enjoy the thrill provided by these experiences
PERSONS -Celebrity marketing is a major business. Today many film stars have agents, ,personal managers and use the services of public-relations agencies. 4 Amitabh Bachchan, Sachin Tendulkar, Shah Rukh Khan and Aishwarya Rai, are big brands themselves...
PLACES- Cities, states regions, and whole nations compete actively to attract tourists, factories,company.headquarters and new residents. Place marketers include economic devel¬opment specialists real estate agents, commercial banks, local business associations, and advertising and public relations agencies. The governmgnt of India is marketing India as a tourist destination through the "Incredible India" advertisement campaign)
PROPERTIES- Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). Properties ate bought and sold, and this requires, marketing. Investment companies and banks are involved in marketing secu¬rities to both institutional and individual investors:
ORGANIZATIONS -Organizations actively work to build a strong, favorable, and unique image in the minds of their target publics. Companies spend money on corporate identity ads.Universities, museums, per¬forming arts organizations, and non-profits all use marketing to boost their public images and to compete for audiences and funds.
INFORMATION- Information can be produced and marketed as a product. This is essen¬tially what schools and universities produce and distribute at a price to parents, students, and communities. The_production packaging, and distribution of information is one of our society's major industries.
IDEAS- Every market offering includes a basic idea. Products and Seryices are platforms for delivering some ideas or benefits. Promoting awareness about AIDS, encouraging family planning and discouraging smoking are ideas that fall in the realm of social marketing.
WHO MARKETS?
MARKETERS AND PROSPECTS:
A marketer is someone who seeks a response (attention, a
purchase, a vote, a donation) From another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.
Marketers are skilled in stimulating demand for a company's products, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition_of demand to meet organizations objectives. Eight demand states are possible:
1 . Negative demand - Consumers dislike the product and may eyerrpay a price to avoid it.
2. Nonexistent demand - Consumers may be unawarejjr jfflinterested in the product.
3. Latent demand - Consumers may share a strong need that cannot be satisfied by an existing praduct.
4. Reclining, demand - Consumers, begin to buy the_prpduct less frequently or not at all.
5. Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
6. Full demand-_ Consumers are adequately_buying all products put into the marketplace.
7. Overfull demand - More consumers would like to buy the product than can be satisfied.
8. Unwholesgme demand - Consumers may be attracted to products that have undesir¬able social consequences.
In each case, marketers must identify the underlying cause (s) of the demand state and then determine a plan for action to shift the demand to a more desired state.
MARKET Traditionally, a "market" was a physical place where buyers and sellers gathered To buy_and sell goods. Economists describe a market as a collection of buyers and sellers who transact over-a particular product or product class Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services and then sell finished products to intermediaries, sell them to consumers. Consumers Sell their labor' and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and inter¬mediary markets and uses these goods and, services,to provide public services. Each nation's economy and the global economy consist of complex interacting sets of markets linked through exchange processes.
KEY CUSTOMER MARKETS:
The following key_customer_markets consists of: consumer, busjness.global and non profit.
Consumer Markets:
Companies selling.mass consunier,goods and services such as softdrink ,cosmetic and athletic shoes and equipment spend a great deal of time trying to establish a superior brand
Business market:
Companies,,selling, business ,goods and services often face well-trained professional buyers who ar skilled in evaluating com¬petitive offerinjgs.Business buyers buy goods in order to make or resell a product to other buyers at a profit.Business marketers must demonstrate how their products will help these buyers achieve higher revenue and lower cost.
Global Markets
Companies_selling goods and services in the global market¬place face additional decisions and challenges. They_must.decide which countries to enter, how to enter each country, how to adapt their product and service features to each country; how to price their products in-different countries; and how to adapt theircommunications to fit different cultures
NON PROFIT AND GOVERNMENTAL PRODUCTS: Companies selling_ their goods to nonprofit organizations such as churcHes, universities, charitable organization, government agencies need to price carefully because these organizations have limited pur¬chasing power.) Much government purchasing calls for bids, with the lowest bid being favored, in the absence of extenuating factors.
MARKET PLACES,MARKET SPACES, AND METAMARKETS-
The marketplace is physical, as when u shop in a store;
Marketspace is digital as when you shop on the internet.
A METAMARKET is a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industrjes. The automobile metamarket consists of automobile manufacturers, new car and used car dealers, financing companies, insurance companies, mechanicsv spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet.
How Business and Marketing Are Changing
1. Changing technology.
2. Globalisation
3. Deregulation
4. Privatisation.
5. Customer empowerment
6. Customization
7. Heightened competition.
8. Industry convergence
9. Disintermediation
10. Retail transformation
Company Orientations Toward the Marketplace
The production concept, product concept, selling concept, market¬ing concept, and holistic marketing concept are marketing activities.
The Production Concept
The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.
The Product Concept
The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products and improving them over time. A new improved-product will not necessarily be successful unless the prod¬uct is priced, distributed, advertised, and sold properly.
The Selling concept.
The purpose of selling concept is to sell to more often for more money in order to make more profit. The selling concept is practiced most aggressively with unsought goods that buy
normallv donot think of buying such as insurance and encyclopedia.Most firms practice the selling concept when they have overcapacity. Their aim is to sell what theymake rather than make what the market wants.
The Marketing Concept
The marketing concept emerged in the mid-1950s. The job is not to find the right customers for your products, but the right products for your customers. The marketing concept holds that the key to achieving organizational goals consists of the company being more" effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets]
A Reactive market orientation—understanding and meeting customers expressed needs. High level innovation is possible if the focus is on the customers latent needs. He calls this a proactive marketing orientation Companies_that practice both a reactive and proactive marketing orientation are implementing a total market orientation and are likely to be the most successful.
THE HOLISTIC CONCEPT
The Holistic concept is based on the development, design and implementation of marketing programs, processes, and activities. Holistic marketing iis thus an approach to marketing that attempts to recognize and reconcile the scope and complexities activities.
RELATIONSHIP MARKETING –
Relationship marketing has the aim of building mutually satisfying long-term relationships with key parties,customers & suppliers distributors and other marketing partners—in order to earn and retain their business. Relationship marketing builds strong economic, technical, and social ties among the parties.
The ultimate outcome of relationship marketing is the building of a unique company asset called amarketing: network.A marketing netwprk consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationship.
INTEGRATED MARKETING :
One traditional depiction of marketing activ¬ities is in terms of the marketing mix, which has been defined as fhe set of marketing tools the firm uses to pursue as its marketing objectives. McCarthy classified these tools into four broad groups, which he called the four Ps of marketing; product, price, place, and promotion.
FOUR C’S
• Customer solution
• Customer cost
• Convenience
• Communication
Four Ps
• Product
• Price
• Place
• Promotion
INTERNAL MARKETING,
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well]
' Internal marketing must take place on two levels. At one level, the various marketing functions—sales force, advertising, customer service, product management, marketing research—must work together
At another level, marketing must be embraced by the other departments; they must also "think customer
Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. Xerox accountants know that customer attitudes are affected by xerox's billing accuracy and promptness in returning calls"
SOCIAL RESPONSIBILITY MARKETING :
Holistic marketing incorporates social responsibil¬ity marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs.
CORE CONCEPTS
NEEDS,WANTS AND DEMANDS
The marketer must try to understand the target market's needs, wants, and demans.Needs are the basic human requirements. People_need food, air, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and enteitainment. These needs become wants when they are directed to specific objects that might satisfy the need. Wants are shaped by one's society. Demands are wants for specific products backed by abilities to pay.
Five types of needs are:
1. Stated_needs: (the customer wants an inexpensive car).
2. Real needs: (the customer wants a car whose operating cost, not its initial price, is low).
3. Unstated needs: (the customer expects good service from the dealer).
4. Delight needs
the customer would like the dealer to include an onboard navigation system).5. Secret needs: the customer wants to be seen by friends as a savvy consumer).
TARGET MARKETS, POSITIONING, AND SEGMENTATION:
Marketers
identify and profile distinct groups of buyers who might prefer or require varying product and services mixes by examining demographic, psychographic, and behavioral dif¬ferences among buyers. The marketer then decides which segments present the greatest opportunity—which are its target markets. For each chosen target market, the firm develops market offering. The offering is positioned in "the minds of the target buyers as delivering some central benefit(s).
OFFERINGS AND BRANDS:
Companies address needs by putting forth a value proposi¬tion, a set of benefits they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering, which can be a combination of products, ser¬vices, information, and experiences
A brand is an Offering from a known source.
Value and satisfac¬tion
Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service and price called the "customer value triad.
Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations.
MARKETING CHANNELS
Communication channels deliver and receive messages from target buyers, and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet.
The marketer uses distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user.They include distributors,wholesalers, retailers, and agents. The marketer also uses service channels to carry out transactions with potential buyers. Seryice, channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions.
SUPPLY CHAIN -Whereas marketing channels connect the market-to-the-target buyers, and describes a longer channel stretching from raw materials,to components to final products that are carried to final buyers.
MARKETING ENVIRONMENT:
The task environment includes the immediate actors involved in producing, distributing,and promoting the offering.
The broad environment consists of six components: demographic environment, economic enyironment, physical environment, technological environment, political-legal environment, and social-cultural enyironment.
