chapter 1 kotler

8/6/2019 Chapter 1 Kotler

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Chapter 1

Defining Marketing for theDefining Marketing for the

TwentyTwenty--First CenturyFirst Century


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Objectives Understand the new economy.

Learn the tasks of marketing. Become familiar with the major concepts

and tools of marketing.

Understand the orientations exhibited by

companies.


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Objectives Learn how companies and marketers are

responding to new challenges.


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The New Economy

Consumer benefits from the digital revolution

include:

Increasedbuying power.

Greater variety of goods and services.

Increased information.

Enhanced shopping convenience. Greater opportunities to compare product

information with others.


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The New Economy

Firm benefits from the digital revolution

include:

New promotional medium.

Access to richer research data.

Enhanced employee and customer

communication. Ability to customize promotions.


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Marketing

Tasks

Marketing practices may pass through three

stages:

Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing

As marketing becomes more formulated,creativity is inhibited.


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What Can Be

Marketed?

Goods

Services Experiences

Events

Persons

Places

Properties Organizations

Information

Ideas


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Marketing Defined

Kotlers social definition:

Marketing is a societal processby which

individuals and groups obtain what they need

and want through creating, offering, and freely

exchanging products and services of value with

others.


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Marketing Defined

The AMA managerial definition:

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 objectives.


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CoreM

arketing Concepts Target markets and market

segmentation

Marketplace, market-space,metamarkets

Marketers & prospects

Needs, wants, demands

Product offering andbrand Value and satisfaction

Exchange and transactions

Relationship and networks

Marketing channels Supply chain

Competition

Marketing environment

Marketing program


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CoreM

arketing Concepts Target markets & segmentation

Differences in needs, behavior, demographics

or psychographics are used to identify

segments.

The segment servedby the firm is called the

target market.The market offering is customized to the needs

of the target market.


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CoreM

arketing Concepts A Productis any offering that can satisfy a need

or want, while a brandis a specific offering from

a known source. When offerings delivervalue and satisfaction to

thebuyer, they are successful.


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CoreM

arketing Concepts

Exchange involves obtaining a desired productfrom someone by offering something in return.

Five conditions must be satisfied for exchangeto occur.

Transaction involves at least two things ofvalue, agreed-upon conditions, a time of

agreement, and a place of agreement.


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CoreM

arketing Concepts

Relationship marketingaims to build

long-term mutually satisfying relationswith key parties, which ultimately results

in marketing networkbetween the

company and its supporting stakeholders.


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CoreM

arketing ConceptsMarketing Channels

Communicationchannels

Distribution channels

Service channels

Deliver messages to and

receive messages from

targetbuyers. Includes traditional

media, non-verbal

communication, and

store atmospherics.


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CoreM




Service channels

Display or deliver the

physical products or

services to the buyer /user.


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CoreM




Service channels

Carry out transactions

with potentialbuyersby

facilitating thetransaction.


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CoreM

arketing Concepts Asupply chain stretches from raw materials

to components to final products that are

carried to final buyers.

Each company captures only a certain

percentage of the total value generated by

the supply chain.


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CoreM

arketing Concepts Four levels of competition canbe distinguishedby

the level of product substitutability:

Brand competition

Industry competition

Form competition

Generic competition


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CoreM

arketing Concepts The following forces in the broad environment

have a major impact on the task environment: Demographics

Economics

Natural environment

Technological environment Political-legal environment

Social-cultural environment


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Company Orientations The orientation or philosophy of the firm typically

guides marketing efforts. Several competingorientations exist: Production concept

Product concept

Selling concept

Marketing concept

Customer concept Societal marketing concept


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TheM

arketing Concept Achieving organizational goals requires that companybe more effective than competitors in creating,delivering, and communicating customer value.

Four pillars of the marketing concept:Target market

Customer needs

Integrated marketing

Profitability


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Changes in theM

arketplace Globalization, technological advances, and

deregulation have created many challenges:

Customers

Brand manufacturers

Store-based retailers

Both companies and marketers have beenforced to respond and adjust.

chapter 1 kotler

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