Modern Marketing Insights: Key Concepts and Strategies

1. Chapter 1 Defining Marketing for the 21st Century

2. Kotler on Marketing The future is not ahead of us. It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations.

3. Topics to Be Covered • In this chapter, the following topics will be Covered: • Importance of Marketing • Scope of Marketing • Marketing Entities • Composition Demand of Marketing • Key Customers Markets • Core Marketing Concepts • Company Orientations toward the Market Place • Marketing Management Tasks

4. Importance of Marketing • Financial success often depends 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. • Companies need marketing to cope up with the statement- “Change or Die”

5. The Scope of Marketing • Marketing:Typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. It is also about identifying and meeting human and social needs. A Brief Definition: The process by which, companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing management: The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer value.

6. Capture Value fromCustomers in Return Create Value for Customers and Build Customer Relationships Understand the Marketplace and Customer Needs & Wants Design a Customer-Driven Marketing Strategy Construct an Integrated Marketing Program that Delivers Superior Value Build Profitable Relationship and Create Customer Delight Capture Value from Customers to Create Profits and Customer Equity Figure: Marketing Process The Scope of Marketing (Cont.) • The Marketing Process:

7. Places Ex: Beautiful Bangladesh, Incredible India, Truly Asia Properties Ex: Real Estate or Stock & Bonds Companies Organizations Ex: Grameen Phone, Square Information Ex: Information Provided by Companies Ideas Ex: Smoking is Injurious to Health Goods Ex: Lux,Sony Services Ex:Bangladesh Bank, Persona, Jahangirnagar University Events Ex: World Cup Cricket, 2011 Experiences Ex: Water Kingdom, VOOT Persons Ex:Filmstars, Cricketers What is Marketed (Marketing Entities)

8. Who Markets?? • Marketers and Prospects :

9. Stages of Demand

10. Stages of Demand

11. Stages of Demand

12. Who Markets?? Markets: Traditionally, a market is a physical place where buyers and sellers are gathered to buy and sell goods and services. In Marketing, a market is a set of actual and potential buyers.

13. Figure: Structure of Flows in a Modern Exchange Economy

14. Figure: A Simple Marketing System

15. Key Customer Markets • Consumer Markets, Ex: Unilever, Sony Erricson etc • Business Markets Ex: PHP Group • Global Markets Ex: RMG Companies • Nonprofit and Governmental Markets

16. Core Marketing Concepts • Needs, Wants, and Demands 5 Types of Needs: - Stated Needs- inexpensive car - Real Needs- a car with low operating cost - Unstated Needs-good service - Delight Needs-an onboard navigation system - Secret Needs-savvy customer • Target Markets, Positioning and Segmentation • Offerings and Brands • Value and Satisfaction • Marketing Channels • Supply Chain

17. Marketing Conceptsand Tools • Competition - Brand competition - Industry competition - Form competition - Generic competition • Marketing Environment • Task environment • Broad environment

18. Figure: Marketing-Mix Strategy

19. Company Orientations Toward the Marketplace • The Production Concept • The Product concept • The Selling Concept • The Customer Concept • The Marketing Concept • Societal Marketing Concept • The Holistic Marketing Concept

20. The Production Concept • The Oldest concept in business. • Consumers will prefer products that are widely available and inexpensive. • Managers concentrate on achieving high production efficiency, low costs and mass distribution. • This application makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.

21. The Product Concept • Consumers will prefer products that offer the most quality, performance and innovative features. • Managers focus on making superior products and improving them over time. • Not that much valid, as, quality is subjective in nature.

22. The Selling Concept • Consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. • Consumers typically show buying inertia or resistance and must be coaxed into buying it. • Usually, applicable for the unsought goods.

23. The Marketing Concept The marketing concept emerged in the mid-1950s. It replaced the product-centered “make-and-sell” philosophy with the customer centered “sense-and-respond” philosophy. The key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target markets.

24. Figure: Contrasts Between the Selling Concept and the Marketing Concept

25. Figure: Traditional Organizational Chart versus Modern Customer-Oriented Company Organization Chart

26. The Customer Concept

27. The Societal Marketing Concept Is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population, world hunger and poverty and neglected social services. The organization’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more efficiently and effectively than competitors in a way that preserves or enhances the consumer’s and the society’s well being.

28. Senior Management Products & Services Marketing Department Other Departments Communications Channels Internal Marketing Integrated Marketing Holistic Marketing Performance Marketing Relationship Marketing Sales Revenue Brand & Customer Equity Community Customers Channels Partners Ethics Environments Legal The Holistic Marketing Concept

29. Company Orientations Toward the Marketplace • Integrated Marketing • External marketing • Internal marketing

30. Company Responses and Adjustments • Reengineering • Outsourcing • E-commerce • Benchmarking • Alliances • Partner-suppliers • Market-centered • Global and local • Decentralized

31. Managing Marketing Task • Developing Marketing Strategies and Plans • Capturing Marketing Insights • Connecting with Customers • Building Strong Brands • Shaping the Marketing Offerings • Delivering Value • Communicating Value • Creating Long-Term Growth

32. Thank You