KEY CONCEPTS IN
MARKETING
maureen castillo
dyna enad
carelle trisha espital
ethel silva
WHAT IS MARKETING?
Marketing – is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others.
NEEDS, WANTS
PRODUCTS
& DEMANDS
VALUE, SATISFACTION
MARKETS
& QUALITY
EXCHANGE, TRANSACTIONS
& RELATIONSHIPS
NEEDS, WANTS AND DEMANDS
Need
States of felt deprivation.
physical, social and individual needs.
Wants
The form taken by human needs as they are
shaped by culture and individual personality.
Demands
Human wants that are backed by buying power.
PRODUCTS
Anything that can be offered to a market for
attention, acquisition, use, or consumption that
might satisfy a want or need. It includes physical
objects, services, persons, places, organizations,
and ideas.
VALUE, SATISFACTION &
QUALITY
Customer Value
The difference between the values the customer gains from
owning and using a product and the cost of obtaining the
product.
Customer Satisfaction
The extent to which a product’s perceived performance
matches a buyer’s expectations.
Total Quality Management (TQM)
Programs designed to constantly improve the quality of
products, services, and marketing process.
EXCHANGE, TRANSACTIONS &
RELATIONSHIPS
Exchange
The act of obtaining a desired object from someone by
offering something in return.
Transaction
A trade between two parties that involves at least two
things of value, agreed-upon conditions, a time of
agreement, and a place of agreement.
Relationship Marketing
The process of creating, maintaining and enhancing strong,
value-laden relationships with customers and other
stakeholders.
MARKET
The set of all actual and potential buyers of a product or
service.
Marketplace – physical, as when one goes
shopping in a store
Marketspace – is digital, as when one goes
shopping on the internet
Metamarket – used to describe a cluster of
complementary products and services that are
closely related in the minds of consumers but are
spread across a diverse set of industries.
A Simple Marketing System
COMMUNICATION
GOODS & SERVICES
INDUSTRY MARKET
(A collection (A collection
of sellers) of buyers)
MONEY
INFORMATION
Structure of Flows in a Modern Exchange
Economy
RESOURCES RESOURCES
RESOURCE
MARKETS
MONEY MONEY
TAXES & SERVICES
GOODS & MONEY
SERVICES
GOVERNMENT
MANUFACTURER CONSUMER
MARKETS
MARKETS S&M MARKETS
TAXES
TAXES &
S&M T&G
GOODS
MONEY
MONEY
INTERMEDIARY
MARKETS
GOODS & SERVICES GOODS & SERVICES
MARKETING
means managing markets to bring about
exchanges for the purpose of satisfying human
needs and wants.
process by which individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.
Main Actors and Forces in a Modern
Marketing System
COMPANY
S
U (marketer)
P
P MARKETING END
L USER
INTERMEDIARIES
I MARKET
E
R
S COMPETITORS
Other Key Concepts
Marketers and Prospects
A marketer is someone seeking a response
(attention, a purchase, a vote, a donation)
from another party, called the prospect.
Marketing Channels
Communication channels
Deliver and receive messages from target buyers,
and include newspapers, magazines, etc…
Distribution channels
Used to display, sell or deliver the physical
product or service(s) to the buyer or user.
Service channels
Used to carry out transactions with potential
buyers.
Supply Chain
Describes a longer channel stretching from raw
materials to components to final products that are
carried to final buyers.
Competition
Includes all the actual and potential rival offerings
and substitutes that a buyer might consider.
Four Levels:
Brand competition
Industry competition
Form competition
Generic competition
Marketing Environment
Task environment
Includes the immediate actors involved in
producing, distributing, and promoting the offering.
Broad environment
Consists of components which contain forces that
can have a major impact on the actors in the task
environment
Marketing Program
Marketing program – consists of numerous
decisions on the mix of marketing tools to use
Marketing mix – set of marketing tools the
firm uses to pursue its marketing objectives in
the target market
MARKETING MANAGEMENT
The analysis, planning, implementation, and
control of programs designed to create, build, and
maintain beneficial exchanges with target buyers
for the purpose of achieving organizational
objectives.
Involves:
Demand Management
Demarketing - Marketing to reduce demand temporarily or
permanently – the aim is not to destroy demand, but only to
reduce or shift it.
Customer Relationship Management
Marketing Management Process
Situation Analysis
Economic environment
State of macro-economy and changes in it also bring
marketing opportunities and constraints
Examples
Factors of high inflation and unemployment levels
Changes in technology
Marketing Management Process
Situation Analysis
Social environment
Includes general cultural and social traditions, norms and
attitudes
As values change, change brings the need for new
products and services
Public demand for a cleaner environment
Marketing Management Process
Situation Analysis
Political environment
Includes attitudes and reactions of the general public,
social and business critics
Legal environment
Includes federal, state and local legislation directed at
protecting both business competition and consumer rights.
Deregulation
Marketing Management Process
Marketing planning
Establishing objectives
Provides the framework for the marketing plan
Selecting the target market
What do customers want?
What must be done to satisfy these wants or needs?
What is the size of the market?
What is its growth profile?
Developing the marketing mix
Controllable variables: product, price, promotion and place
(channels of distribution), must be managed to satisfy target
market and achieve objectives
Marketing Management Process
Implementation and Control
Implementing
Putting the plan into action and performing marketing tasks
according to predefined schedule
Marketing executives must closely monitor and coordinate
implementation of the plan
Controlling
Results are measured
Results are compared with objectives
Decisions are made on whether the plan is achieving
objectives
Marketing management process
Analysis/Audit - where are we now?
Objectives - where do we want to
be?
Strategies - which way is best?
Tactics - how do we get there?
Implementation - Getting there!
Control - Ensuring arrival
The marketing opportunities faced by
organizations depend on the changing needs of
society:
• Consumers are becoming more sophisticated
and more discerning in their expectations.
• Globalization of the world’s marketplace has not
only created new possibilities but also challenge
of new competition.
• Examples
Why is marketing planning
necessary?
Systematic futuristic thinking by management
better co-ordination of a company’s efforts
development of performance standards for
control
sharpening of objectives and policies
better prepare for sudden developments
MARKETING MANAGEMENT
PHILOSOPHIES
five different orientation of firms towards the
marketplace:
The PRODUCTION CONCEPT holds that
consumers will prefer products that are widely
available and inexpensive.
MARKETING MANAGEMENT
PHILOSOPHIES
The PRODUCT CONCEPT holds that consumers
will favor those products that offer the most quality,
performance, or innovative features.
MARKETING MANAGEMENT
PHILOSOPHIES
The SELLING CONCEPT holds that consumers and
businesses, will ordinarily not buy enough of the
organization’s products. The organization must
therefore, undertake an aggressive selling and
promotion effort.
MARKETING MANAGEMENT
PHILOSOPHIES
The MARKETING CONCEPT holds that the key to
achieving its organizational goals consists of the
company being more effective than competitors in
creating, delivering, and communicating customer
value to its chosen target markets.
MARKETING MANAGEMENT
PHILOSOPHIES
The SOCIETAL MARKETING involves the marketer
paying attention not only to the needs of customers
but also to the wider natural and social
environment. Marketers’ concern for the natural
environment involves taking into account the
environmental impact of production and distribution.
PRODUCTION PRODUCT SALES MARKETING SOCIETAL
References
Principles of Marketing, 7th ed. by Philip
Kotler and Gary Armstrong
Marketing Management, An Asian
Perspective 3rd ed. by Philip Kotler et al.
