Chapter One:

An overview to Marketing and

Marketing Management
Chapter One- An overview to Marketing and Marketing
Management

1.1 Marketing and its Core Concepts

1.2 Philosophies of Marketing
1.3 Importance of Marketing
1.4 Scope of Marketing
1.5 Companies’ Orientation to Marketing
1.6 Goals of Marketing System
1.1 Marketing and its Core Concepts
What is Marketing
• Marketing is about identifying and meeting human and social needs.
One of the shortest good definitions of marketing is “meeting needs
profitably.”
• When Google recognized that people needed to more effectively
and efficiently access information on the Internet, it created a
powerful search engine that organized and prioritized queries.
When IKEA noticed that people wanted good furnishings at
substantially lower prices, it created knock down furniture. These
two firms demonstrated marketing savvy and turned a private or
social need into a profitable business opportunity.
• The American Marketing Association (AMA) offers the following
formal definition: “Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and
society at large.”
• Coping with these exchange processes calls for a considerable amount
of work and skill. Marketing management takes place when at least
one party to a potential exchange thinks about the means of
achieving desired responses from other parties. Thus, we see
marketing management as the art and science of choosing target
markets and getting, keeping, and growing customers through
creating, delivering, and communicating superior customer value.
• Managers sometimes think of marketing as “the art of selling
products,” but many people are surprised when they hear that selling
is not the most important part of marketing! Selling is only the tip of
the marketing iceberg.
• Peter Drucker (1973), famed management theorist, put it this way:
There will always, one can assume, be need for some selling. But
the aim of marketing is to make selling superfluous. The aim of
marketing is to know and understand the customer so well that the
product or service fits him and sells itself. Ideally, marketing should
result in a customer who is ready to buy. All that should be needed
then is to make the product or service available.
• When Nintendo designed its Wii game system, when Apple
launched its iPad tablet computer, and when Toyota introduced its
Prius hybrid automobile, these manufacturers were swamped
with orders because they had designed the right product, based
on careful marketing homework about consumers, competition,
and all the external factors that affect cost and demand.

A Simple Marketing System

Why Marketing?
• Finance, operations, accounting, and other business functions
won’t really matter without sufficient demand for products and
services so that the firm can make a profit. In other words, there
must be a top line for there to be a bottom line.
• Thus, financial success often depends on marketing ability.
Marketing’s value extends to society as a whole. It has helped
introduce new or enhanced products that ease or enrich people’s
lives.
• Successful marketing builds demand for products and services,
which, in turn, creates jobs. By contributing to the bottom line,
successful marketing also allows firms to more fully engage in
socially responsible activities.
• CEOs recognize that marketing builds strong brands and a loyal
customer base, intangible assets that contribute heavily to the
value of a firm. Many firms, even service and nonprofit, now have a
chief marketing officer (CMO) to put marketing on a more equal
footing with other C-level executives such as the chief financial
officer (CFO) or chief information officer (CIO).
• In an Internet-fueled environment where consumers, competition,
technology, and economic forces change rapidly and consequences
quickly multiply, marketers must choose features, prices, and markets
and decide how much to spend on advertising, sales, and online and
mobile marketing.
• Meanwhile, the economic downturn that began globally in 2008 and
the sluggish recovery since have brought budget cuts and intense
pressure to make every marketing dollar count. There is little margin
for error in marketing.
• Just a short time ago, MySpace, Yahoo!, Blockbuster, and Barnes &
Noble were admired leaders in their industries. What a difference a
few years can make! Each of these brands has been completely
overtaken by an upstart challenger—Facebook, Google, Netflix, and
Amazon—and they now struggle, sometimes unsuccessfully, for mere
survival.
• Firms must constantly move forward. At greatest risk are those that
fail to carefully monitor their customers and competitors,
continuously improve their value offerings and marketing strategies,
or satisfy their employees, stockholders, suppliers, and channel
partners in the process.
What is Marketing Management?
• Marketing Management can be defined as a process by which
organizations oversee and coordinate various marketing efforts and the
individuals involved, including managers, professionals, and contractors.
• These efforts typically involve setting goals, conducting market research,
creating campaigns, identifying target audiences, and managing content
across multiple channels and mediums. Ultimately, effective marketing
management requires the successful execution of strategies and plans.
• Marketing management involves planning, organizing, decision-making,
directing, forecasting, coordinating, and managing to convert customers
into loyal ones.
• It involves industry analysis, development, production, innovation,
advertising, promotion pricing, product distribution, and customer
relationship management.
• Marketing management assesses the effectiveness of initiatives and
evaluates marketing teams and programs.
• Marketing management is important for businesses to attract
customers, generate profits, meet customer demands, and improve
their reputation.
• Through a strategic marketing mix (product, price, place, promotion),
marketing management orchestrates a symphony of efforts to
captivate the target audience.

The Four P Components of the Marketing Mix

Core Concepts of Marketing
To understand the marketing function, we need to
understand the following core set of concepts.
• Needs, Wants, and Demands
• Target Markets, Positioning, and Segmentation
• Offerings and Brands
• Marketing Channels
• Paid, Owned, and Earned Media
• Impressions and Engagement
• Value and Satisfaction
• Supply Chain
• Competition
• Marketing Environment
Needs, Wants, and Demands
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 directed to specific objects that might satisfy the need.
A U.S. consumer needs food but may want a Chicago-style “deep-
dish” pizza. A person in Afghanistan needs food but may want rice,
lamb, and carrots. Our wants are shaped by our society. Demands
are wants for specific products backed by an ability to pay.
Many people want a Mercedes; only a few can 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 criticism that “marketers get people to buy things they
don’t want.”
Marketers do not create needs: Needs pre-exist marketers.
Marketers might promote the idea that a Mercedes satisfies a
person’s need for social status. They do not, however, create the
need for social status.
Some customers have needs of which they are not fully conscious or
cannot articulate. What does the customer mean in asking for a
“powerful” lawn mower or a “peaceful” hotel? The marketer must
probe further. We can distinguish five types of needs:
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not
initial price, is low.)
3. Unstated needs (The customer expects good service from the
dealer.)
4. Delight needs (The customer would like the dealer to include an
onboard GPS system.)
5. Secret needs (The customer wants friends to see him or her as a
savvy consumer.)
Responding only to the stated need may shortchange the customer.
Consumers did not know much about tablet computers when they
were first introduced, but Apple worked hard to shape consumer
perceptions of them. To gain an edge, companies must help
customers learn what they want.
Target Markets, Positioning, and Segmentation
Not everyone likes the same cereal, restaurant, university, or movie.
Marketers therefore identify distinct segments of buyers by identifying
demographic, psychographic, and behavioral differences between them.
They then decide which segment(s) present the greatest opportunities. For
each of these target markets, the firm develops a market offering that it
positions in target buyers’ minds as delivering some key benefit(s). Volvo
develops its cars for the buyer to whom safety is a major concern,
positioning them as the safest a customer can buy. Porsche targets buyers
who seek pleasure and excitement in driving and want to make a statement
about their wheels.
Offerings and Brands
Companies address customer needs by putting forth a value proposition, a
set of benefits that satisfy those needs. The intangible value proposition is
made physical by an offering, which can be a combination of products,
services, information, and experiences. A brand is an offering from a known
source. A brand name such as Apple carries many different kinds of
associations in people’s minds that make up its image: creative, innovative,
easy-to-use, fun, cool, iPod, iPhone, and iPad to name just a few. All
companies strive to build a brand image with as many strong, favorable,
and unique brand associations as possible.
Marketing channels
To reach a target market, the marketer uses three kinds of marketing channels.
Communication channels deliver and receive messages from target buyers and
include newspapers, magazines, radio, television, mail, telephone, smart phone,
billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, firms
communicate through the look of their retail stores and Web sites and other
media, adding dialogue channels such as e-mail, blogs, text messages, and URLs to
familiar monologue channels such as ads. Distribution channels help display, sell,
or deliver the physical product or service(s) to the buyer or user. These channels
may be direct via the Internet, mail, or mobile phone or telephone or indirect with
distributors, wholesalers, retailers, and agents as intermediaries. To carry out
transactions with potential buyers, the marketer also uses service channels that
include warehouses, transportation companies, banks, and insurance companies.
Marketers clearly face a design challenge in choosing the best mix of
communication, distribution, and service channels for their offerings.
Paid, owned, and earned Media
The rise of digital media gives marketers a host of new ways to interact with
consumers and customers. We can group communication options into three
categories. Paid media include TV, magazine and display ads, paid search, and
sponsorships, all of which allow marketers to show their ad or brand for a fee.
Owned media are communication channels marketers actually own, like a
company or brand brochure, Web site, blog, Facebook page, or Twitter account.
Earned media are streams in which consumers, the press, or other outsiders
voluntarily communicate something about the brand via word of mouth, buzz, or
viral marketing methods. The emergence of earned media has allowed some
companies, such as Chipotle (an international chain of fast casual restaurants), to
reduce paid media expenditures.
Impressions and Engagement
Marketers now think of three “screens” or means to reach
consumers: TV, Internet, and mobile. Surprisingly, the rise of digital
options did not initially depress the amount of TV viewing, in part
because, as one Nielsen study found, three of five consumers use
two screens at once.
Impressions, which occur when consumers view a communication,
are a useful metric for tracking the scope or breadth of a
communication’s reach that can also be compared across all
communication types. The downside is that impressions don’t
provide any insight into the results of viewing the communication.
Engagement is the extent of a customer’s attention and active
involvement with a communication. It reflects a much more active
response than a mere impression and is more likely to create value
for the firm. Some online measures of engagements are Facebook
“likes,” Twitter tweets, comments on a blog or Web site, and sharing
of video or other content. Engagement can extend to personal
experiences that augment or transform a firm’s products and
services.
Value and Satisfaction
Value, a central marketing concept, is primarily a combination of quality,
service, and price (qsp), called the customer value triad. Value
perceptions increase with quality and service but decrease with price. We
can think of marketing as the identification, creation, communication,
delivery, and monitoring of customer value. Satisfaction reflects a person’s
judgment of a product’s perceived performance in relationship to
expectations. If performance falls short of expectations, the customer is
disappointed. If it matches expectations, the customer is satisfied. If it
exceeds them, the customer is delighted.
Supply Chain
The supply chain is a channel stretching from raw materials to
components to finished products carried to final buyers. As Figure in the
next slide suggests the supply chain for coffee may start with Ethiopian
farmers who plant, tend, and pick the coffee beans and sell their harvest. If
sold through a Fair Trade cooperative, the coffee is washed, dried, and
packaged for shipment by an Alternative Trading Organization (ATO) that
pays a minimum of $1.26 a pound. The ATO transports the coffee to the
developed world where it can sell it directly or via retail channels. Each
company in the chain captures only a certain percentage of the total value
generated by the supply chain’s value delivery system.
 The Supply Chain for Coffee

Problems with a supply chain can be damaging or even fatal for a

business. When Johnson & Johnson ran into manufacturing
problems with its consumer products unit (which makes Tylenol and
other products), it hired away from Bayer AG a top executive known
for her skill at fixing consumer and supply chain problems
Competition
Competition includes all the actual and potential rival offerings and
substitutes a buyer might consider. An automobile manufacturer can buy
steel from U.S. Steel in the United States, from a foreign firm in Japan or
Korea, or from a mini-mill such as Nucor at a cost savings, or it can buy
aluminum parts from Alcoa to reduce the car’s weight or engineered plastics
from Saudi Basic Industries Corporation (SABIC) instead of steel.
Marketing Environment
The marketing environment consists of the task environment and the broad
environment. The task environment includes the actors engaged in
producing, distributing, and promoting the offering. These are the company,
suppliers, distributors, dealers, and target customers. In the supplier group
are material suppliers and service suppliers, such as marketing research
agencies, advertising agencies, banking and insurance companies,
transportation companies, and telecommunications companies. Distributors
and dealers include agents, brokers, manufacturer representatives, and
others who facilitate finding and selling to customers. The broad
environment consists of six components: demographic environment,
economic environment, social-cultural environment, natural environment,
technological environment, and political-legal environment. Marketers must
pay close attention to the trends and developments in these and adjust their
marketing strategies as needed.
1.2 Philosophies of Marketing
Let us take a look at the five Marketing Management
Philosophies.
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. The Marketing Concept
5. The Holistic Marketing Concept
The Production Concept
The production concept is one of the oldest concepts in business. It holds
that consumers prefer products that are widely available and
inexpensive. Managers of production-oriented businesses concentrate on
achieving high production efficiency, low costs, and mass distribution.
This orientation has made sense in developing countries such as China,
where the largest PC manufacturer, Legend (principal owner of Lenovo
Group), and domestic appliances giant Haier have taken advantage of the
country’s huge and inexpensive labor pool to dominate the market.
The Product Concept
The product concept proposes that consumers favor products
offering the most quality, performance, or innovative features.
However, managers are sometimes caught in a love affair with their
products. They might commit the “better mousetrap” fallacy,
believing a better product will by itself lead people to beat a path to
their door. As many start-ups have learned the hard way, a new or
improved product will not necessarily be successful unless it’s
priced, distributed, advertised, and sold properly.
The Selling Concept
The selling concept holds that consumers and businesses, if left
alone, won’t buy enough of the organization’s products. It is
practiced most aggressively with unsought goods—goods buyers
don’t normally think of buying such as insurance and cemetery
plots—and when firms with overcapacity aim to sell what they
make, rather than make what the market wants. Marketing based
on hard selling is risky. It assumes customers coaxed into buying a
product.
The Marketing Concept
The marketing concept emerged in the mid-1950s as a customer-centered,
sense-and-respond philosophy. The job is to find not the right customers for
your products, but the right products for your customers. Dell doesn’t
prepare a PC or laptop for its target market. Rather, it provides product
platforms on which each person customizes the features he or she desires in
the machine. The marketing concept holds that the key to achieving
organizational goals is being more effective than competitors in creating,
delivering, and communicating superior customer value to your target
markets.
The Holistic Marketing Concept
The holistic marketing concept is based on the development, design, and
implementation of marketing programs, processes, and activities that
recognize their breadth and interdependencies. Holistic marketing
acknowledges that everything matters in marketing—and that a broad,
integrated perspective is often necessary. Holistic marketing thus recognizes
and reconciles the scope and complexities of marketing activities.
There are four broad components characterizing holistic marketing:
relationship marketing, integrated marketing, internal marketing, and
performance marketing.
Relationship marketing aims to build mutually satisfying long-term
relationships with key constituents in order to earn and retain their business.
Four key constituents for relationship marketing are customers, employees,
marketing partners (channels, suppliers, distributors, dealers, agencies), and
members of the financial community (shareholders, investors, analysts).
Integrated marketing occurs when the marketer devises marketing activities
and assembles marketing programs to create, communicate, and deliver value
for consumers such that “the whole is greater than the sum of its parts.”
Internal marketing, an element of holistic marketing, is the task of hiring,
training, and motivating able employees who want to serve customers well.
Smart marketers recognize that marketing activities within the company can
be as important—or even more important—than those directed outside the
company.
Performance marketing, requires understanding the financial and
nonfinancial returns to business and society from marketing activities and
programs. As noted previously, top marketers are increasingly going beyond
sales revenue to examine the marketing scorecard and interpret what is
happening to market share, customer loss rate, customer satisfaction, product
quality, and other measures.
1.3 Importance of Marketing Management
Some of the factor's why Marketing Management is important:
• Understanding Customer Needs: Conducting thorough market
research to tailor products and services to customer demands.
• Product Development: Identifying market gaps and developing
products with unique features to stand out.
• Market Segmentation: Dividing the market into specific groups to
target marketing efforts and customize offerings.
• Brand Building: Establishing a strong brand identity to differentiate
from competitors and build customer loyalty.
• Promotion and Communication: Utilizing various channels for
strategic promotion and clear communication of product benefits.
• Revenue Generation: Attracting new customers and retaining
existing ones to boost sales and profits.
• Competitive Advantage: Gaining an edge over competitors by
emphasizing unique strengths through marketing strategies.
Importance of Marketing Management (Contd.)

• Market Expansion: Identifying new markets and demographics for

business growth, including international expansion.
• Customer Relationship Management (CRM): Implementing
strategies to maintain a loyal customer base for repeat sales and
referrals.
• Data-Driven Decision-Making: Utilizing data analytics for informed
decision-making and optimizing marketing strategies.
Demand States
Marketers are skilled at stimulating demand for their
products, but that’s a limited view of what they do. They
also seek to influence the level, timing, and composition of
demand to meet the organization’s objectives. Eight
demand states are possible:
1. Negative demand—Consumers dislike the product and
may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of
or uninterested in the product.
3. Latent demand—Consumers may share a strong need
that cannot be satisfied by an existing product.
4. Declining demand—Consumers begin to buy the
product less frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal,
monthly, weekly, daily, or even hourly basis.
6. Full demand—Consumers are adequately buying all products
put into the marketplace.
7. Overfull demand—More consumers would like to buy the
product than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to
products that have undesirable social consequences.
In each case, marketers must identify the underlying cause(s) of the
demand state and determine a plan of action to shift demand to a
more desired state.
1.4 Scope of Marketing
To be a marketer, you need to understand what marketing is, how it
works, who does it, and what is marketed.
A. What Is Marketing
B. Who Markets
C. What Is Marketed?
A. What is Marketing
• Marketing as discussed previously is about identifying and meeting
human and social needs. One of the shortest good definitions of
marketing is “meeting needs profitably.” When Google recognized
that people needed to more effectively and efficiently access
information on the Internet, it created a powerful search engine that
organized and prioritized queries. When IKEA noticed that people
wanted good furnishings at substantially lower prices, it created
knock down furniture. These two firms demonstrated marketing
savvy and turned a private or social need into a profit able business
opportunity.
B. Who Markets
Marketers and prospects
• A marketer is someone who seeks a response—attention, a purchase, a
vote, a donation—from another party, called the prospect. If two parties are
seeking to sell something to each other, we call them both marketers.
• Marketers are skilled at stimulating demand for their products, but that’s a
limited view of what they do. They also seek to influence the level, timing,
and composition of demand to meet the organization’s objectives. Eight
demand states have been identified as discussed in previous slides:
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand.
In each case, marketers must identify the underlying cause(s) of the demand
state and determine a plan of action to shift demand to a more desired state.
C. WHAT IS MARKETED?
Marketers market 10 main types of entities: goods, services, events,
experiences, persons, places, properties, organizations, information, and
ideas.
• GOODS Physical goods constitute the bulk of most countries’ production and
marketing efforts. Each year, U.S. companies market billions of fresh, canned,
bagged, and frozen food products and millions of cars, refrigerators,
televisions, machines, and other mainstays of a modern economy. services As
economies advance, a growing proportion of their activities focuses on the
production of services. The U.S. economy today produces a services-to-goods
mix of roughly two-thirds to one-third.
• SERVICES include the work of airlines, hotels, car rental firms, barbers and
beauticians, maintenance and repair people, and accountants, bankers,
lawyers, engineers, doctors, software programmers, and management
consultants. Many market offerings mix goods and services, such as a fast-
food meal.
• EVENTS Marketers promote time-based events, such as major trade shows,
artistic performances, and company anniversaries. Global sporting events
such as the Olympics and the World Cup are promoted aggressively to
companies and fans. Local events include craft fairs, bookstore readings, and
farmer’s markets. experiences By orchestrating several services and goods, a
firm can create, stage, and market .
• EXPERIENCES By orchestrating several services and goods, a firm can create,
stage, and market experiences. Walt Disney World’s Magic Kingdom lets
customers visit a fairy kingdom, a pirate ship, or a haunted house. Customized
experiences include a week at a baseball camp with retired baseball greats, a
four-day rock and roll fantasy camp, and a climb up Mount Everest.
• PERSONS Artists, musicians, CEOs, physicians, high-profile lawyers and
financiers, and other professionals often get help from [Link]
athletes and entertainers have done a masterful job of marketing
themselves—NFL quarterback Peyton Manning, talk show veteran Oprah
Winfrey, and rock and roll legends The Rolling Stones. Management
consultant Tom Peters, himself a master at self-branding, has advised each
person to become a “brand.”
• PLACES Cities, states, regions, and whole nations compete to attract tourists,
residents, factories, and company headquarters. Place marketers include
economic development specialists, real estate agents, commercial banks, local
business associations, and advertising and public relations agencies. The Las
Vegas Convention & Visitors Authority has met with much success with its
provocative ad campaign “What Happens Here, Stays Here,” portraying Las
Vegas as “an adult playground.”
• PROPERTIES Properties are intangible rights of ownership to either real
property (real estate) or financial property (stocks and bonds). They are
bought and sold, and these exchanges require marketing. Real estate agents
work for property owners or sellers, or they buy and sell residential or
commercial real estate. Investment companies and banks market securities
to both institutional and individual investors.
• ORGANIZATIONS Museums, performing arts organizations, corporations,
and nonprofits all use marketing to boost their public images and compete
for audiences and funds. Some universities have created chief marketing
officer (CMO) positions to better manage their school identity and image, via
everything from admission brochures and Twitter feeds to brand strategy.
• INFORMATION- Information is essentially what books, schools, and
universities produce, market, and distribute at a price to parents, students,
and communities. Firms make business decisions using information supplied
by organizations like Thomson Reuters: “We combine industry expertise with
innovative technology to deliver critical information to leading decision
makers in the financial, legal, tax and accounting, healthcare, science and
media markets, powered by the world’s most trusted news organization.”
• IDEAS- Every market offering includes a basic idea. Charles Revson of Revlon
once observed: “In the factory we make cosmetics; in the drugstore we sell
hope.” Products and services are platforms for delivering some idea or
benefit. Social marketers promote such ideas as “Friends Don’t Let Friends
Drive Drunk” and “A Mind Is a Terrible Thing to Waste.”
1.5 Companies’ orientation to marketing
What Is Market Orientation?
• Market orientation is an approach to business that prioritizes
identifying the needs and desires of consumers and creating
products and services that satisfy them. Companies that have a
market orientation consider the opinions and needs of their target
market as a critical component of their research and development
(R&D) for new products.
• It may sound obvious, but advocates of market orientation argue
that the conventional approach to product development is the
opposite. That is, marketing strategies focus on establishing key
selling points to promote existing products rather than designing
products that have the qualities consumers say they want.
How Market Orientation Works
• Market orientation is a customer-centered approach to product design. It
involves market research aimed at determining what consumers view as
their immediate needs, primary concerns, or personal preferences within
a particular product category. Researchers use activity, interest, and
opinion (AIO) surveys along with demographic to gain insight into the
target customer desires.
• Companies may also employ additional data analysis to reveal trends and
consumer desires that are not specifically expressed. A knowledge of
these trends ideally can help product developers meet or even anticipate
consumer needs. They may even inspire improvements that the consumer
was not aware of as being an option.
• This allows a company to focus its product development efforts on the
characteristics that are most in-demand. With an increasingly global
economy and the proliferation of choices for consumers, companies that
adapt to a market orientation may benefit from a competitive advantage
over other companies
Advantages of Market Orientation
• Market orientation often includes improvements in customer service and
product support geared to solving concerns raised by consumers. This
helps ensure customer satisfaction remains high with the company as a
whole and promotes brand loyalty and positive word-of-mouth
advertising.
• To be successful, companies need to ensure that all departments adopt
and promote the market orientation approach so that it becomes an
integral part of the corporate culture. When effective, market orientation
can help a company increase customer retention and propel growth in
new demographics.
• At times, market orientation may reveal customer desires that are simply
not cost-effective or practical to implement. The business then must
determine how to meet customer expectations in the best way possible.
• At the very least, impractical ideas may inform long-term development
strategies. Options that are not cost effective today may become quite
possible down the line due to changes in technology, science, regulation
or other market conditions.
Real World Examples of Market Orientation
Amazon
• Amazon is an example of a market-oriented company. As it has grown and
developed, it has consistently added processes and features that clearly
address concerns and desires expressed by consumers.
• For example, many consumers, especially city dwellers, worry about getting
packages delivered when they're not at home. The company responded with
Amazon Locker, a network of self-service pickup boxes.
• Delivery charges, no matter how reasonable, are a chief irritant to
consumers, and a reason to buy locally instead of ordering online. Amazon
Prime charges an annual fee for the free delivery of most of its products.
Coca-Cola
• Coca-Cola is another company that is famous for its market orientation.
Considerable research goes into identifying new flavors that consumers will
actually like, such as wild strawberry and lime.
• But those new flavors won't help Coca-Cola address the increasing health
consciousness of consumers. That's why the company acquired brands
including Dasani, Honest Tea, Smartwater, Simply Orange, Minute Maid, and
Vitaminwater.
1.6 Goals of Marketing System
Major Marketing System Goals
• Developing Marketing Strategies and Plans
• Tracking and monitoring marketing campaigns
• Collecting feedback from customers
• Creating a strong and dependable brand
• Introducing new products or services
• Boosting company sales
• Delivering value to your customers and leads
• Fueling successful marketing growth over time

Developing Marketing Strategies and Plans

The most important marketing system goal is to plan and develop
effective marketing strategies and campaigns. While managers
don’t do all of this work by themselves (that’s what the rest of the
marketing team is for), they do play a key part in this process.
 Tracking and monitoring marketing campaigns
In marketing management, there are three ways to track and monitor
campaigns: resource management, objectives and key results (OKRs), and
key performance indicators (KPIs).
• Resource management means tracking both budgets and human
resources to make sure time and money are allocated appropriately.
• OKRs are measurements (like reaching 1,000 social media followers, or
increasing website traffic by 10%) that you establish as milestones to track
progress along the way to a bigger goal.
• Key performance indicators measure marketing program performance,
which makes them crucial to optimizing campaigns.
 Collecting feedback from customers
• In the past, marketing relied almost exclusively on advertising, but today’s
marketers must offer more in the way of customer value. This means
connecting with target customers through social media marketing and
other tactics — like collecting customer feedback.
• Feedback is an especially effective marketing technique because it builds
on customer relationships by encouraging brand loyalty and engagement.
Creating a strong and dependable brand
• Understanding the organization’s brand is a key part of marketing
management, and managers need to be able to take that understanding and
use it to build a stronger brand while improving brand awareness.
• This means looking at the brand the way customers see it. What are the
brand's strengths, and what are its weaknesses? In capturing marketing
insights like these, managers can guide branding so that it’s better at
communicating value to existing and new customers alike to better
communicate value.
Introducing new products or services
• New product development means new product launches, which come with
their own set of tasks. A big part of the management process will be
gathering marketing information about target markets and how new
products will deliver value to customers.
• This will help your team analyze market potential and create ad campaigns
that speak to customer needs.
Boosting company sales
• The goal of every marketing department is to boost company sales, and as
team leaders, managers shoulder the responsibility when sales rise or fall.
• Effective managers will know how to leverage marketing opportunities,
handle market research, and use that information to help their teams
develop campaigns that bring in new leads and new paying customers.
Delivering value to your customers and leads
• One of the basic principles of marketing is that you need to deliver value
to customers and leads in order to drive sales.
• In practice, this means carefully analyzing both customers and the
product itself. Start by learning customer pain points so that you can
address them via content marketing or other types of campaigns.
Fueling successful marketing growth over time
• There’s a big difference between marketing campaigns and marketing
strategies. Think of a campaign like a sprint: They’re short-term efforts
designed to boost sales.
• On the other hand, marketing strategies focus on the long term — and
they take a holistic marketing approach that often factors for multiple
campaigns at once.
Thank You