Basics of

Marketing
Management

Marketing: Managing Profitable

Customer Relationships
 What Is Marketing?

Simple Definition:
Marketing is managing profitable
customer relationships.

Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
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 Marketing Defined

 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.

OLD View NEW

New View
View
of Marketing: of
ofMarketing:
Marketing:
Making a Sale – Satisfying
Satisfying
“Telling & Selling” Customer
customerNeeds
needs

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 The Marketing Process

 A simple 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.

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 Needs, Wants, & Demands

 Need:
State of felt deprivation including
physical, social, and individual needs.
– Physical needs:
• Food, clothing, shelter, safety
– Social needs:
• Belonging, affection
– Individual needs:
• Learning, knowledge, self-expression

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 Needs, Wants, & Demands

 Wants:
Form that a human need takes, as
shaped by culture and individual
personality.

 Wants + Buying Power = Demand

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 Need / Want Fulfillment

 Needs and wants are fulfilled through a

Marketing Offer:
– Some combination of products, services,
information, or experiences offered to a
market to satisfy a need
or want.

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 Marketing Myopia

 Marketing myopia occurs when sellers

pay more attention to the specific
products they offer than to the benefits
and experiences produced by the
products.

 They focus on the “wants” and lose

sight of the “needs.”

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 Marketing Myopia Examples

 Companies went into decline because they

did not define their industries properly
 Examples of some successful and
unsuccessful companies that were product-
oriented and not customer-oriented are:
Railroad (goods moving vs. transportation)
Hollywood (movies vs. entertainment)
Petroleum (oil vs. energy business)

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 Modern Marketing Systems

 Main elements in a modern marketing

system include:
– Suppliers
– Company (marketer)
– Competitors
– Marketing intermediaries
– Final users

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 Marketing Management
Philosophies

 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concept

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Figure 1.4 Holistic Marketing Dimensions

Copyright © 2009 Dorling Kindersley (India)

 Marketing for 21st Century

 Technology impacts the ways firms

bring value to their customers.
 Greater connectivity means greater
access to information, faster travel and
communication.
 The Internet allows anytime, anywhere
connections between firms and
customers.

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 Marketing for 21st Century

 Marketing’s performance has been

disappointing.

 We must replace our Old Marketing

with New Marketing that is:
– holistic,
– technology-enabled,
– and strategic.

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Holistic Marketing

 Marketing must become strategic and drive business

strategy.

 A company needs to take a more holistic view of:

– Relationship Marketing (Customers, Partners &
Channels)
– Internal Marketing (Mktg. Dept.,sr. Mgt. & Other
Dept.
– Integrated Marketing(Communications, Channels,
Products & Services)
– Socially Responsible Marketing(Ethics,
Environment & Legal)
– Holistic marketing will require strong software support. 1-15