The Scope of Marketing: What is Marketing?

1. CHAPTER - 1

2. THE SCOPE OF MARKETING

3. WHAT IS MARKETING Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Social definition: Delivering a higher standard of living Managerial definition: The art of selling products

4. Marketing Management Marketing Management is the art and science of choosing target markets and getting keeping and growing customers through creating, delivering and communicating superior customer value.

5. EXCHANGE AND TRANSACTION Exchange Exchange is the process of obtaining a desired product from someone by offering something in return. • There are at least two parties. • Each party has something that might be of value to the other party. • Each party is capable of communication and delivery. • Each party is free to accept or reject the offer. • Each party believes it is appropriate or desirable to deal with the other party.

6. TransactionA transaction is a trade of values between two or more parties. TransferIn a transfer, one party gives something to the other party, but does not receive anything tangible in return.

7. WHAT IS MARKETED GOODS PLACES SERVICES PROPERTIES EVENTS ORGANIZATIONS EXPERIENCES INFORMATION PERSONS IDEAS

8. WHO MARKETS? MARKETERS & PROSPECTS A marketer is someone who seeks a response from another party, called the prospect. Marketers are responsible for demand management, they seek to influence the level, timing and composition of demand to meet the organization’s objectives.

9. Eight demand states 1. Negative demand 5. Irregular demand 2. Nonexistent demand 6. Full demand 3. Latent demand 7. Overfull demand 4. Declining demand 8. Unwholesome demand

10. KEY CUSTOMER MARKETS Consumer markets Global markets Business markets Nonprofit and governmental markets

11. MARKETPLACES, MARKETSPACES, METAMARKETS • The Marketplace is physical. • The Marketspace is digital. • A Metamarket can be described as a cluster of complementary products and services that are closely related in the consumer minds but are spread across a diverse set of industries.

12. HOW BUSINESS & MARKETING ARE CHANGING Changing technology Customization Globalization Heightened competition Deregulation Industry convergence Changing technology Retail transformation Customer empowerment Disintermediation

13. COMPANY ORIENTATIONS TOWARD THE MARKETPLACE

14. THE PRODUCTION CONCEPT Consumers will favor products that are widely available and inexpensive. THE PRODUCT CONCEPT Consumers will favor those products that offer the most in quality, performance and innovative features.

15. THE SELLING CONCEPT Consumers and businesses will ordinarily not buy enough of the organization’s products unless it undertakes a aggressive selling and promotion effort. THE MARKETING CONCEPT 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.

16. THE HOLISTIC MARKETING CONCEPT The holistic marketing concept is based on the development , design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing.

17. Holistic marketing dimensions Internal marketing Integrated marketing Holistic marketing Socially responsible marketing Relationship marketing

18. Relationship marketing • Customers • Employees • Marketing partners • Members of the financial community Integrated marketing • Communications • Products & services • Channels Product (Customer solution) Marketing mix Price (Customer cost) Promotion (Communication) Place (Convenience)

19. Internal marketing • Marketing department • Senior management • Other departments Socially responsible marketing • Ethics • Environment • Legal • community

20. MARKETING TRENDS AND MARKETING TASKS

21. SHIFTS IN MARKETING MANAGEMENT FROM marketing does the marketing TO everyone does the marketing FROM organizing by product units TO organizing by customer segments FROM making everything TO buying more goods & services from outside FROM using many suppliers TO working with fewer suppliers in a “partnership”

22. FROM relying on old market positions TO uncovering new ones FROM emphasizing tangible assets TO emphasizing intangible assets FROM building brands through advertising TO building brands through performance and integrated communications FROM attracting customers through stores and salespeople TO making products available online FROM selling to everyone TO trying to be the best firm serving well defined target markets

23. FROM focusing on profitable transactions TO focusing on customer lifetime value FROM a focus on gaining market share TO a focus on building customer share FROM being local TO being “Glocal” – both global and local FROM focusing on the financial scorecard TO focusing on the marketing scorecard FROM focusing on shareholders TO focusing on stakeholders

24. MARKETING MANAGEMENT TASKS Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building strong brands

25. Shaping the marketing offerings Delivering value Communicating value Creating long-term growth