MARKETING MANAGEMENT

12th edition

1 Defining Marketing for the 21st Century

Kotler

Keller

Chapter topics
The difference between Marketing and Marketing Management Forms of exchange What is Marketed? Key Customer Markets How has marketing management changed? Demand States Company Orientations

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The difference between marketing and marketing management

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

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Are both forms of exchange?

Transactions

Transfers

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What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
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Key Customer Markets

Consumer Markets Global Markets

Business Markets

Nonprofit/ Government Markets

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How has marketing management changed?

Changing technology Globalization Deregulations Privatization Customer empowerment Customization Competition Retail transformation
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Demand States

Negative

Nonexistent

Latent

Declining

Irregular

Full

Overfull

Unwholesome
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In class exercise
Discuss the demand states for contact lenses for the following customers.
children less than five years University students Rural areas Urban areas for consumers over 90

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How is Marketing Done?

The marketing planning process consists of:
1. 2. 3. 4. 5. Analyzing marketing opportunities Selecting target markets Designing market strategies Developing marketing programs Managing the marketing effort

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Core concepts
Needs, wants, and demands

Target markets, segmentation

Offering and Brands , value proposition Value and satisfaction Marketing channels (communication, distribution, service) Supply chain Competition Marketing environment (task and broad environment)
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Company Orientations
Production Product

Selling

Marketing

Holistic Marketing
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Company Orientations
Production: Consumer preference products widely available and inexpensive Managers concentration high production efficiency low costs mass distribution Suitable for developing countries Product : Consumer preference high quality superior performance innovative features Managers concentration superior products continuous improvement Suitable for developed countries
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Company Orientations (cont.)

Selling: Consumer preference assumes customer will like the product Managers concentration practice aggressive selling aggressive promotion Suitable for unsought goods ex. Encyclopedias, insurance Marketing: Consumer preference To fulfill their needs Managers concentration Focus on the needs of the buyer Suitable for high competitive countries Develop Total market orientation Reactive and Proactive

Holistic Marketing
What is Holistic Marketing
Holistic marketing recognizes that everything matters with marketingthe consumer, employees, other companies, competition, as well as society as a whole. The marketing programs, processes, and activities the recognizes their breadth and interdependencies

Why Use Holistic marketing

Successful companies apply holistic marketing to keep their programs and activities changing with the changes in their marketplace and market space.
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Figure 1.3 Holistic Marketing Dimensions

Sales Revenue

Performance Marketing
Brand & Customer Equity

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Themes of Holistic marketing concept (Cont)

1.

Relationship marketing
a. Has the aim of building mutually satisfying long-term relationships with key parties
Customers. Employees. Marketing partners (channels, suppliers, distributors, dealers, agencies). Members of the financial community (shareholders, investors, analysts).

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Themes of Holistic marketing concept (Cont

b. Relationship marketing builds strong economic, technical, and social ties among the parties.
CRM PRM A marketing NETWORK consists of the company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationships.

How to implement this concept?

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Themes of Holistic marketing concept (Cont) 2. Integrated Marketing

The marketers task is to devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers.

Robert Lauterborn
Four Ps Product Price Place Promotion Four Cs Solution Customer cost Convenience Communication

McCarthy

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Figure 1.5 Marketing-Mix Strategy

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Themes of Holistic marketing concept (Cont)

3. Internal Marketing
Ensures that everyone in the organization embraces appropriate marketing principles.
Internal marketing is the task of hiring, training, and motivating employees who want to serve customers well. Internal marketing must take place on two levels:
o At one level, the various marketing functions must work together. o Secondly, marketing must be embraced by the other departmentsthey must think customer.
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Themes of Holistic marketing concept (Cont)

4. Performance Marketing
a. Financial accountability.
Marketers are increasingly asked to justify their investment to top management in financial and profitability terms, as well as in terms of building the brand and growing the customer base.

Practical steps
planning recording Internal control Monitoring Where the money is kept Transferring money Effective use of money
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b. Social responsibility marketing.

shows concern for the people and environment in which it transacts business. these values should exist within the organization and its business partners. For instance, marketers may sponsor charity events or produce cause-related advertising. such efforts do not automatically translate into increased revenue or even an improved public image. organizations that consistently exhibit socially responsible tendencies gain a strong reputation and increase customer loyalty.

Mobinil social responsibility

According to the agreement, safe housing, clean water, sanitation and even furniture are provided to hundreds of families in need in many villages in Upper Egypt. Mobinil will cooperate with UNICEF to provide safe drinking water and to provide, or improve, sanitation for thousands of poor families in the Sohag governorate in Upper Egypt. In addition, Mobinil will support Habitat for Humanity-Egypt and Dar Alorman in the construction and repair of simple homes of hundreds of poor families in many villages in Minia and Bani Suef governorates in Upper Egypt.

Marketing Management Tasks

Developing marketing strategies; ch2 Capturing marketing insights ch3 Connecting with customers ch4,5,6,7 Building strong brands ch8,9 Shaping market offerings ch10,11,12 Delivering value ch13,14 Communicating value ch15,16,17 Creating long-term growth ch18
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