Chapter -One: An overview of marketing and

Transcript:Chapter -One: An overview of marketing and:
Chapter -One: An overview of marketing and marketing management By: K.E (Ph.D) March, 2020 G.C 4/27/2020 MARKETING MANAGEMENT (MBA4051) 4/27/2020 What is marketing? Marketing is a social and managerial process by which an individual or group obtain what they need and want through creating, offering and exchanging of product of values with others (Philip Kotler) Marketing is the total business activity designed to plan, price, promote and distribute want satisfying products to target market to achieve organizational goal (William J.Stanton) Marketing management is the process of planning and executing, the conception, pricing, promoting and distributing of ideas, goods and services to create an exchange that satisfy individual or group objectives (American marketing Association) 1.1. Marketing and its core concepts 4/27/2020 The above definitions of marketing resets on the following core concepts: needs, wants and demands; products (Goods, Services and Idea), value, cost and satisfaction: exchange and transaction; Relationship and Networks; market; and marketers and prospects. Cont’d…. The Marketing Process 4/27/2020 4 Below is a five-step model of the marketing process: Understand the marketplace and customer needs and wants. Design a customer-driven marketing strategy. Construct a marketing program that delivers superior value. Build profitable relationships and create customer delight. Capture value from customers to create profits and customer quality. In the first four steps, we create value for customers and build customer relationships. In the last fifth step, we capture value from customers in return. 4/27/2020 Needs, Wants, and Demands Human needs are states of felt deprivation. Needs are the basic human requirements such as for air, food, water ,clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the need. For example: A U.S. consumer needs food but may want a Philly cheesesteak and an iced tea. A person in Afghanistan needs food but may want rice, lamb, and carrots. Wants are shaped by our society. According to Abraham Maslow human needs form hierarchy. Core Concepts Of Marketing 4/27/2020 Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it. These distinctions shed light on the frequent criticism that “marketers create needs” or “marketers get people to