UNDERSTANDING

1. PART UNDERSTANDING 1 MARKETING MANAGEMENT Marketing Management - An Asian Perspective 4th Edition

2. Chapter Defining 1 Marketing for the 21st Century Marketing Management - An Asian Perspective 4th Edition

3. Icons used • Click on icon to go directly to the website • Click on icon to go directly to the attached video Marketing Management - An Asian Perspective 4th Edition

4. In this chapter, we address the following questions: • Why is marketing important? • What is the scope of marketing? • What are some fundamental marketing concepts? • How has marketing management changed? • What are the tasks necessary for successful marketing management? Marketing Management - An Asian Perspective 4th Edition

5. Marketing is everywhere Asian brands prominently advertised in New York’s Time Square Marketing Management - An Asian Perspective 4th Edition

6. The Importance of Marketing • Financial success depends on marketing • No demand - no business • Marketing decisions tough • What to design • What prices to offer • Where to sell • How much to spend on advertising… Marketing Management - An Asian Perspective 4th Edition

7. Marketing Management - An Asian Perspective 4th Edition

8. Scope of Marketing –What is Marketing? “Aim of marketing know & understand customer so well product fits him & sells itself…” Eg: When Sony designed PlayStation Swamped with orders – WHY? “Right” product – marketing Marketing Management - An Asian Perspective 4th Edition

9. Scope of Marketing –What is Marketing? Marketing An organizational function & processes to create, communicate & deliver value to customers & manage customer relationships to benefit organization & stakeholders Marketing Management - An Asian Perspective 4th Edition

10. Scope of Marketing – Exchange and Transactions Exchange Process to obtain desired product from someone by offering something in return Marketing Management - An Asian Perspective 4th Edition

11. Scope of Marketing – Exchange and Transactions For exchange potential to exist, 5conditions: • At least 2 parties • Each has thing of value to the other • Capable of communication & delivery • Free to accept/reject offer • Believes it desirable to deal with the other Marketing Management - An Asian Perspective 4th Edition

12. Scope of Marketing – Exchange and Transactions Lexus ads & campaign slogan “The Passionate Pursuit of Perfection” express its marketing philosophy: Only the best is good enough for its customers Marketing Management - An Asian Perspective 4th Edition

13. Scope of MarketingWhat is Marketed? Marketing Management - An Asian Perspective 4th Edition

14. Scope of MarketingWhat is Marketed? The Singapore Zoological Gardensoffers varied experiences - host wedding reception - jungle breakfast with an orang utan Marketing Management - An Asian Perspective 4th Edition

15. Scope of MarketingWhat is Marketed? Billboard ads from Tourism Thailand Promote Thailand where one can find happiness through shopping, outdoor activities & sightseeing Marketing Management - An Asian Perspective 4th Edition

16. Scope of Marketing – Who Markets?MARKETERS AND PROSPECTS A marketerseeks response from prospect If 2 parties seek to sell something to each other, both are marketers Marketing Management - An Asian Perspective 4th Edition

17. Scope of Marketing – Who Markets?MARKETERS AND PROSPECTS Marketing Management - An Asian Perspective 4th Edition

18. Scope of Marketing – Who Markets?MARKETS • Market • Physical place – buyers, sellers buy & sell goods • To economists: collection of buyers & sellers who transact over a product/product class Atraditional dry goods & fruit market in Hanoi targeting local residents Marketing Management - An Asian Perspective 4th Edition

19. Five basic markets & their connecting flows Figure 1.1 Structure of Flows in a Modern Exchange Economy Marketing Management - An Asian Perspective 4th Edition

20. Scope of Marketing – Who Markets?KEY CUSTOMER MARKETS • Consumer MarketsSell mass consumer goods & services • Business MarketsSell business goods & services • Global MarketsSell goods & services in global market • Non-profit & Governmental MarketsSell goods to nonprofit organizations Marketing Management - An Asian Perspective 4th Edition

21. Scope of Marketing – Who Markets?KEY CUSTOMER MARKETS Global marketing Wall climbing on Coke ad attract attention & customers at 1st China International Beverage Festival in Beijing Marketing Management - An Asian Perspective 4th Edition

22. Figure 1.2A Simple Marketing System Marketing Management - An Asian Perspective 4th Edition

23. New Consumer Capabilities • The digital revolution - new capabilities in hands of consumers & businesses. What they have today that they didn’t have yesterday: • Substantial increase in buying power • Greater variety of goods & services • Great amount of information • Easier to interact, place & receive orders • Able to compare products & services Marketing Management - An Asian Perspective 4th Edition

24. Scope of Marketing – Who Markets?MARKETPLACES, MARKETSPACES, & METAMARKETS marketplace a physical place marketspace a digital place metamarketa cluster of related products in consumers’ minds, from diverse industries Marketing Management - An Asian Perspective 4th Edition

25. The 10 Rules of Radical Marketing • CEO own marketing function • Marketing start & stay small & flat • Get face-to-face with customers • Use market research cautiously • Hire passionate missionaries, not marketers • Love & respect customers as individuals • Create community of consumers • Rethink marketing mix • Compete with competitors - fresh ideas • Be true to the brand Marketing Management - An Asian Perspective 4th Edition

26. Scope of Marketing – How Business & Marketing are Changing • Changing technology • Globalization • Deregulation • Privatization • Customer empowerment • Customization • Heightened competition • Industryconvergence • Disintermediation Marketing Management - An Asian Perspective 4th Edition

27. Changingtechnology An example i-mode (Japan) Internet over cell phones Emails, access websites when commuting when waiting for friends Indispensable service Scope of Marketing – How Business & Marketing are Changing Marketing Management - An Asian Perspective 4th Edition

28. Scope of Marketing – How Business & Marketing are Changing CustomerEmpowerment • An example NAM HEONG Traditional Malaysian coffee shop • Advertises website on bannerwww.oldtownwhitecafe.com • Web visitors - can find out more about Nam Heong’s white coffee brand Old Town Marketing Management - An Asian Perspective 4th Edition

29. Scope of Marketing – How Business & Marketing are Changing • Industry convergence • An example Cosmoneuticals: • Dermatology drugsAd by Shiseido: Japanese cosmetics firm • Cleanser, lotion, medication • Sold in Japan -drugstores Marketing Management - An Asian Perspective 4th Edition

30. Company Orientations Toward the Marketplace • What philosophy should guide a company’s marketing efforts? • What relative weights should be given to the interests of organization, customers & society? • Very often these interests conflict Marketing Management - An Asian Perspective 4th Edition

31. Company Orientations Toward the Marketplace - The Production Concept • Consumers prefer products • Widely available & inexpensive • Production oriented businesses • Production efficiency, low costs& mass distribution • Huge cheap labor Marketing Management - An Asian Perspective 4th Edition

32. Company Orientations Toward the Marketplace - The Product Concept Consumers favor products with most quality, performance or innovative features • Focus on making & improving products • Might commit “bettermousetrap” fallacy • New product may not succeed • Unless priced, distributed, advertised & sold properly Marketing Management - An Asian Perspective 4th Edition

33. Company Orientations Toward the Marketplace - The Selling Concept Consumers do not buy enough products, if left alone “Purpose of marketing - sell more - to more people - more often - for more money - to make more profit” • Goods buyers don’t normally buy • Sell what is made not what market wants • Hard selling - high risks Marketing Management - An Asian Perspective 4th Edition

34. Company Orientations Toward the Marketplace - The Marketing Concept • Customer-centered • “Sense-&-respond” philosophy • Right products for customers • Not right customers for products • Better than competitors • Create, deliver & communicate superior value to target markets Marketing Management - An Asian Perspective 4th Edition

35. Company Orientations Toward the Marketplace - The Marketing Concept • Selling - needs of seller • Marketing - needs of buyer • Selling - convert product to cash • Marketing - satisfy buyer with product Marketing Management - An Asian Perspective 4th Edition

36. Company Orientations Toward the Marketplace -The Holistic Marketing Concept • Holistic marketing Develop, design & implement marketing programs, processes & activities that recognize breadth & interdependencies • Holistic marketing recognizes that“everything matters” Marketing Management - An Asian Perspective 4th Edition

37. Figure 1.3Holistic Marketing Dimensions Marketing Management - An Asian Perspective 4th Edition

38. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptRELATIONSHIP MARKETING • Relationship marketing Satisfying long-term relationships, with key parties, to earn & retain business • Marketing network • Company & supporting stakeholders • Mutually profitable business relationships Marketing Management - An Asian Perspective 4th Edition

39. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptRELATIONSHIP MARKETING Company able to deal with customers one at a time due to computers & Internet Eg: • BMW allows buyers to design own model from many variations • 80 % of cars bought in Europe- built to order Marketing Management - An Asian Perspective 4th Edition

40. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptINTEGRATED MARKETING The marketer’s task devise marketing activities & assemble fully integrated programs to create, communicate, & deliver value for consumers Marketing Management - An Asian Perspective 4th Edition

41. Figure 1.4The 4 P Components of the Marketing Mix Marketing Management - An Asian Perspective 4th Edition

42. Figure 1.5Marketing-Mix Strategy Marketing Management - An Asian Perspective 4th Edition

43. Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Company Orientations Toward the Marketplace - The Holistic Marketing ConceptINTEGRATED MARKETING Marketing Management - An Asian Perspective 4th Edition

44. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptINTEGRATED MARKETING 2key themes - integrated marketing: • Different marketing activities used • All marketing coordinated - maximize joint effects Design & implementationof any marketing activitydone with all others in mind Marketing Management - An Asian Perspective 4th Edition

45. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptINTERNAL MARKETING • Ensure all in firm embraces marketing principles • Hire, train & motivate able employees who want to serve customers well Marketing Management - An Asian Perspective 4th Edition

46. Table 1.1 Assessing which Company Departments are Customer-Minded Marketing Management - An Asian Perspective 4th Edition

47. Table 1.1 Assessing which Company Departments are Customer-Minded Marketing Management - An Asian Perspective 4th Edition

48. Table 1.1 Assessing which Company Departments are Customer-Minded Marketing Management - An Asian Perspective 4th Edition

49. Table 1.1 Assessing which Company Departments are Customer-Minded Marketing Management - An Asian Perspective 4th Edition

50. Company Orientations Toward the Marketplace - The Holistic Marketing ConceptSOCIAL RESPONSIBILITY MARKETING • Social responsibility marketing • Understand broader concerns & ethical, environmental, legal & social context of marketing activities • Marketers - role they play in social welfare Marketing Management - An Asian Perspective 4th Edition