Marketing Management

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Marketing Management
What is Marketing?
 Marketing is a social & managerial process by
which individuals & groups obtain what they need
& want through creating, offering & exchanging
products of value with others
Needs, Wants, & Demands
 Needs:
A human need is a state of deprivation of some
basic satisfaction. People require food, clothing,
shelter, safety, belonging & esteem. These are not
created by society or marketers. They exist in the
very texture of human biology & condition.
Wants
 Desires for specific satisfiers of needs. Although
needs are few, wants are many & are continually
shaped & reshaped by social forces & institutions.
Demands
 Wants for specific products that are backed by an
ability & willingness to buy them. Wants become
demand when supported by purchasing power.
Products
 Goods
 Services
 Ideas
“A product is anything that can be offered to satisfy
a need or a want”
A marketer’s job is to sell the benefits or services
built into physical products.
Markets
 Consist of all the potential customers sharing a
particular need or want who might be willing & able
to engage in exchange to satisfy the need or want.
Marketing
 Is a social & managerial process by which
individuals & groups obtain what they need &
want through creating, offering, & exchanging
products of value with others.
 Marketing Management is the process of
planning & executing the conception, pricing,
promotion & distribution of ideas, goods, &
services to create exchanges that satisfy
individual & organizational goals.
Relationship Marketing
 The practice of building long-term satisfying
relations with key parties – customers, suppliers,
distributors – in order to retain their long-term
preference & business.
Marketing Concept
 Holds that the key to achieving organizational
goals consists of being more effective than
competitors in integrating marketing activities
toward determining & satisfying the needs & wants
of target markets.
Selling vs. Marketing
 Selling focuses on the needs of the seller,
marketing on the needs of the buyer.
 Selling is preoccupied with the seller’s need
to convert his product into cash, marketing
with the idea of satisfying the needs of the
customer by means of the product & the
whole cluster of things associated with
creating, delivering & finally consuming it.
 Selling is “push”, Marketing is “pull”.
Societal Marketing
 Societal Marketing Concept holds that the
organization’s task is to determine the needs,
wants & interests of target markets & to deliver the
desired satisfactions more effectively & efficiently
than competitors in a way that preserves or
enhances the consumer’s & society’s well-being.
Marketing Mix
 Set of marketing tools that the firm uses to
pursue its marketing objectives in the target
market:
2. Product
3. Price
4. Promotion
5. Place
Also known as the 4 P’s of Marketing
Product
 Variety
 Quality
 Design
 Features
 Brand name
 Packaging
 Sizes
 Warranties
BCG Model
 Growth-share matrix
 Market growth rate on the vertical axis
indicates the annual growth rate of the market
in which the business operates.
 Relative market share (horizontal axis) refers
to the SBU’s market share relative to that of
its largest competitor.
 Growth-share matrix is divided into 4 cells,
each indicating a different type of business.