Chapter 1 Flashcards
It 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.
Marketing
It is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Marketing Management
What is the goal of such a process?
The goal is to provide satisfaction to everyone involved in the said process, including the company, customers, suppliers, and channel members.
What is marketed?
Goods and services
Events
Persons and Places
Experiences
Properties
Organizations
Information and Ideas
(GEPEPOI)
It constitute the bulk of most countries’ production and marketing effort. Examples are: refrigerators, television sets, food products, machines etc
Goods or Physical Goods
As economies advance, a growing proportion of their activities is focused on the production of ________. Examples include the work of airlines, hotels, car rental firms, barbers, beauticians etc. and professionals such as, Accountants, bankers, lawyers, engineers, doctors etc.
Services
By orchestrating several services and goods, a firm creates, stage and market ________. For example: travels, climbing Mount Everest etc.
Experiences
Marketers promote time-based _______, such as trade-shows, artistic performance, Asian Games, Sport-events
Events
Celebrity marketing is a major business. To-day, every major film star has an agent, a personal manager and ties to a public relations agency. For Examples, artists, musicians, physicians etc.
Persons
Cities, states, regions and whole nations compete actively to attract tourists, factories, company headquarters and new residents. Further examples: commercial banks, local business associations, real estate agents, Economic development specialists etc.
Places
These are intangible rights of ownership of either real (real estate) or financial (stocks, bonds etc.). These are also bought and sold, and this requires marketing.
Properties
This actively work to build a strong, favorable and unique image in the minds of their target public. Universities, museums, performing arts ________ and non-profits all use marketing to boost their public images and to compete for audiences and funds.
Organizations
It can be produced and marketed as a product. This is essentially what schools and universities produce and distribute at a price to parents, students and communities. For example, magazines, encyclopedias, news-papers etc. supply _________
Information
Every market offering includes a basic _______. “In the factory, we make cosmetics; in the store we sell hope.” Social marketers are busy in promoting such ______.
Ideas
Types of demand also help a marketer in demand forecasting of the product i.e. to estimate what total amount of sales will be done in a particular period when the product is brought into the market. Types of demand are also called____________ ___ _________
Demand State; Classification of Demand
Types of Demand
Negative Demand
Unwholesome Demand
Non-existing Demand
Latent Demand
Declining Demand
Irregular Demand
Full Demand
Overfull Demand
(NUNLDIFO)
This occurs when a product is disliked by all its target customers in general.
The product is good in quality, affordability, and many other things but its demand is going negative because the customer doesn’t need it.
Negative Demand
For example, nobody likes going to the dentist. That is why we brush our teeth, avoid sugary foods, and use dental floss.
Negative Demand
The second type of demand in economics. If negative demand is the head, this demand is the tail. Another face of negative demand is this.
They both have almost the same elements except there is a single difference between the two which is in negative demand, a consumer doesn’t feel the urge or requirement to buy the product but in this demand consumer badly wants the product but shouldn’t desire or take the decision to buy it.
Unwholesome Demand
Best examples of this demand are cigarettes, alcohol, pirated movies, guns etc.
Unwholesome Demand
This demand can be very harmful to any brand if the market research is not accurate. In this type of demand, a marketer thinks that there is a demand for the product in the market but in reality, there is no demand for the product.
In many cases, companies lose their market value by not analyzing this demand.
Non-existing Demand
Another example can be the mobile phones made by Blackberry and HTC which are not in demand anymore, still, the companies keep on producing them.
Non-existing Demand
It means that the demand for which the product is not available or is not developed to date.
In today’s time, there are very few needs for which any product hasn’t been made or developed. But still, there are many needs of the people which are unseen by the marketer, the products which are invented or developed during this type of demand gain almost all of the market of that product as it is new to everyone.
Latent Demand
The best example for studying this type of demand is by studying the evolution of smartphones or mobile phones.
Latent Demand
As the name suggests means the demand for a product whose demand is _________ with time. It depends from product to product. It may be due to a new invention in that particular product field, bad brand marketing or decreasing the quality of the product.
Declining Demand
There are various products like technological products in which the coming of new technology results in ________ of previous tech or methods.
Declining Demand
This is the demand due to which a company has to change its marketing strategy from time to time repeatedly.
In this type of demand, the sales of a product or service fluctuate too much i.e. sometimes it goes to the extreme top, sometimes it goes to zero. This happens because of the seasonal or time-based needs of the product.
Irregular Demand
If a company is having ______ demand, it is the golden period for that company. It is the state of the market where the supply is equal to the demand. It means that the customers for that product are loyal to the brand, the brand also makes sure that each customer is happy with their Product.
Full Demand
This demand generates when there is a limited manufacturing capacity of the company for a product, but the demand for it is more than the manufacturing capacity. It means that demand is more but supply is less.
The brand equity of the company is highly affected in this type of demand due to which sometimes companies use De-marketing techniques to decrease the demand for their product so that the sales can match the demand.
Overfull Demand
Key Customer Markets are:
- Consumer Market
- Business Market
- Global Market
- Nonprofit and Government Market
A market is when individuals purchase products or services for their own personal use, as opposed to buying it to sell themselves. It consist primarily of products that people use as part of their everyday lives.
Consumer Markets
A method a company uses to sell products or services to a specific group of consumers. Typically, this markets facilitate sales from one business to another in cases where one business plans to reuse or resell another company’s products or services. A company that purchases goods and services in a business market might also use the items they purchase as materials to produce new products of their own.
Business Markets
In which goods and services of one country are traded (purchased or sold) to people of other countries. Refers to the process and activity of purchasing or selling products and services across all nations in the world. The activity can also be conducted through the network and digital means of reaching target markets.
Global Markets
Mainly involves Government offices, ordnance factories, army, navy and other government departments. The non-profits on the other hand may involve groups based on different beliefs, some of which really have an excellent brand name and are recognized by several companies.
Nonprofit and Government Markets
Core Marketing Concepts:
-Needs, Wants and Demands
-Target Market, Positioning and Segmentation
-Offerings and Brand
-Marketing Channels
-Paid, Owned, and Earned Media
-Impressions and Engagement
-Value and Satisfaction
-Supply Chain
-Competition
-Marketing Environment
The new marketing realities are:
- Technology
- Globalization
- Social Responsibility
Massive amounts of information and data about almost everything are now available to consumers and marketers. Even traditional marketing activities are profoundly affected by __________.
Technology
The world has become a smaller place. New transportation, shipping, and communication ___________ have made it easier for us to know the rest of the world, to travel, to buy and sell anywhere.
Technologies
It has made countries increasingly multicultural.
Globalization
It changes innovation and product development as companies take ideas and lessons from one country and apply them to another.
Globalization
The private sector is taking some responsibility for improving living conditions, and firms all over the world have elevated the role of ________________
The organization’s task is to determine the needs, wants, and interests of target markets and satisfy them more effectively and efficiently than competitors, while preserving or enhancing consumers’ and society’s long-term well-being.
corporate social responsibility
Poverty, pollution, water shortages, climate change, wars, and wealth concentration demand our attention.
Globalization
A dramatically changed marketplace:
- Changing Channel
- Heightened Competition
Changing Channel:
a. Retail Transformation
b. Disintermediation
Heightened Competition
a. Private labels
b. Mega – Brands
c. Deregulation
d. Privatization
Brand manufacturers are further buffeted by powerful retailers that market their own store brands, increasingly indistinguishable from any other type of brand.
Private Labels
Many strong brands have become _________ and extended into related product categories, including new opportunities at the intersection of two or more industries.
Mega-brands
Many countries have deregulated industries to create greater competition and growth opportunities.
Deregulation
Many countries have converted public companies to private ownership and management to increase their efficiency.
Privatization
New Consumer Capabilities
-Consumers can use the internet as a powerful information and purchasing aid
-Consumers can search, communicate, and purchase on the move
-Consumers can tap into social media to share opinions and express loyalty
-Consumers can actively interact with companies
-Consumers can reject marketing they find inappropriate
New Company Capabilities
-Companies can use the internet as a powerful information and sales channel, including for individually differentiated goods
-Companies can collect fuller and richer information about markets, customers, prospects, and competitors
-Companies can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information
-Companies can improve purchasing, recruiting, training, and internal and external communications
-Companies can improve cost efficiency
Marketing in Practice
- Marketing Balance
- Marketing Accountability
- Marketing in the Organization
Companies must always move forward, innovating products and services, staying in touch with customer needs, and seeking new advantages, rather than relying on past strengths.
Marketing Balance
Marketers are increasingly asked to justify their investments in financial and profitability terms, as well as in terms of building the brand and growing the customer base.
Marketing Accountability
Marketing is not done only by the marketing department; every employee has an impact on the customer.
Marketers now must properly manage all possible touch points: store layouts, package designs, product functions, employee training, and shipping and logistics.
Marketing in the Organization
Structure of Flows in Modern Exchange Economy:
Government Market (center)
-Resource Market (top)
-Consumer Market (right)
-Intermediary Market (bottom)
-Manufacturer Market (left)
Simple Marketing System
Industry (collection of sellers)
-communication & goods/services
Market (collection of buyers)
-information & money
Holistic Marketing
- Internal Marketing
- Performance Marketing
- Integrated Marketing
- Relationship Marketing
(IPIR)
It is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their scope and interdependencies.
Holistic Marketing Concept
It acknowledges that everything matters in marketing—and that a broad, integrated perspective is often necessary. It thus recognizes and reconciles the scope and complexities of marketing activities.
Holistic Marketing
Evolution of Marketing Management
-Marketing Mix (4Ps)
Product, Place, Promotion, Price
Evolution of Marketing Management
-Modern Marketing (4Ps)
People, Processes, Programs, Performance
He is the one who classified various marketing activities into marketing-mix tools of four broad kinds, which he called the four Ps of marketing: product, price, place, and promotion.
McCarthy
It reflects, in part, internal marketing and the fact that employees are critical to marketing success. Marketing will only be as good as the people inside the organization.
People
It reflects all the creativity, discipline, and structure brought to marketing management
Processes
It reflects all the firm’s consumer-directed activities
Programs
It reflects as in holistic marketing, to capture the range of possible outcome measures that have financial and nonfinancial implications (profitability as well as brand and customer equity) and implications beyond the company itself (social responsibility, legal, ethical, and the environment).
Performance
(3) Major Market Forces
Technology
Globalization
Social Responsibility
(2) Key Market Outcomes
New Consumer Capabilities
New Company Capabilities
(4) Fundamental Pillars of Holistic Marketing
Internal marketing
Performance marketing
Integrated marketing
Relationship marketing
(IPIR)
