Seminar

1: Introduction to Marketing and Marketing Management in the 21st Century

Department of Marketing Management Faculty of Marketing, VCU

Contents
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Fundamental concepts of Marketing! Scope of Marketing! Marketing Management! Company orientations toward marketplace!

Fundamental Marketing Concepts

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Needs (Nhu cu): are states of felt deprivation.! Wants (Mong mun): these needs become wants when they are directed to specic objects that might satisfy the need. Wants are shaped by culture and individual personality.! Demands (Yu cu): are wants for specic products backed by an ability to pay.!
8 types of demands (Kotler et al. 2006)!

Exchange (Trao i): is the process of obtaining a desired product from someone by offering something in return.!
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Five conditions:!
There are at least two parties! Each party has something that might be of value to the other party! Each party is capable of communication and delivery! Each party is free to accept or reject the exchange offer! Each party believes it is appropriate or desirable to deal with the other party!

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Transaction (Thng v): is a trade of values between two or more parties.! Transaction is marketings unit of measurement.! A transaction involves in dimensions:!
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at least two things of value! agreed-upon conditions! a time of agreement! And, a place of agreement!

Market (Th trng): is described as a collection of buyers and sellers who transact over a particular product or product class!
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Consumer Markets! Business Markets! Global Markets! Non-prot and Governmental Markets!

Value (Gi tr): The consumers assessment of the products overall capacity to satisfy his or her needs.!

Satisfaction (S tha mn): The extent to which a products perceived performance matches a buyers expectations.!

Scope of Marketing

What is Marketing
From a societal point of view:!
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Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others (Kotler et al. 2006)!

What is Marketing
From a managerial point of view:!
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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 organizationals goals.! ! ! ! ! ! ! ! !!

What is marketed
10 types of entities!
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Goods: cars, television sets, etc.! Services: the work of airlines, hotels, banks! Events: Olympics, World Cup!

What is marketed
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Experiences: by orchestrating several services and goods, e.g. enjoy a meal and see a band in a live concert Cool!!!! Persons: Celebrity marketing!

What is Marketed
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Places: Malaysia Truly Asia or ThailandHappiness on Earth!

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Properties: real estate or nancial property! Organizations: LG Electronics The Messenger of Happiness, Lifes Good.!

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Information: ???! Ideas: Thai Buy Thai, Vietnamese Use Vietnamese Product!

Who markets
Marketers and prospects!
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A marketer is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect.!

A simple Marketing system

Marketing Management

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

Marketing Management Tasks

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Developing marketing strategies and plans! Capturing marketing insights and performance! Connecting with customers! Building strong brands! Shaping the market offerings! Delivering value! Communicating value! Creating successful long-term growth!

Company Orientations Toward the Marketplace

The Production Concept (Quan im trng sn xut)

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One of the oldest concepts in business! Consumers will prefer products that are widely available and inexpensive! Production-oriented companies focus on achieving high production efciency, low costs, and mass-distribution.!

The Product Concept (Quan im trng sn phm)

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Consumers will favour those products that offer the most quality, performance, or inovative features.! Organizations concentrate on making superior products and improving them over time.!

The Selling Concept (Quan im trng bn)

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Consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products.! Selling-oriented organizations must undertake aggressive selling and promotion effort.! Should be practiced most aggressively with unsought goods, i.e. goods that buyers normally do not think of buying, such as insurance, funeral plots!

The Marketing Concept (Quan im trng Marketing)

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It focuses on the needs of the buyers.! Being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets.!

Organizations embracing the marketing concept are likely to achieve superior performance.!

E.g. HP, Sony!

The Holistic Marketing Concept

References
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Kotler, P, Keller, KL, Ang, SH, Leong, SM & Tan, CT 2006, Marketing Management An Asian Perspective, Pearson!

Kotler, P, Wong, V, Saunders, J & Armstrong, G 2005, Principles of Marketing, 4th European Edition, Prentice Hall!