DEFINING MARKET FOR NEW REALITIES 6.
Full Demand - A state in which customers technological and political-legal
IMPORTANT TERMS are adequately buying all products put into environment.
Marketing - The activity, set of the marketplace.
institutions, and processes for creating, Erosive Forces Concerning Full Demand
delivering, communicating and a. Changing market preference MAJOR MARKET FORCES
exchanging offerings b. Actual competition 1. Technology
Marketing Management - The art and Maintenance Marketing – 2. Globalization
science of choosing target markets maintaining efficiency in the carrying 3. Social Responsibility
Social definition of Marketing - A out of day-to-day marketing activities
societal process by which individuals and and eternal vigilance in spotting new KEY MARKET OUTCOMES
groups obtain what they need and want forces that threaten to erode A. New Consumer Capabilities
Managerial definition of Marketing demand. 1. Consumers can use the Internet as a
art of selling products. 7. Overfull demand - demand exceeds the powerful information and purchasing aid.
THE AIM OF MARKETING level at which the marketer feels able or 2. Consumers can search, communicate, and
To know and understand the customer so motivated to supply it. purchase on the move.
well that the product or service fits him Reasons for Overfull Demand 3. Consumers can tap into social media to
and sells itself. a. Temporary shortage of raw share opinions and express loyalty.
TYPES OF ENTITIES MARKETED materials 4. Consumers can actively interact with
1. Goods b. Chronic over popularity companies.
2. Services Demarketing - discourage 5. Consumers can reject marketing they find
3. Events customers in general or a certain inappropriate.
4. Experiences class of customers B. New Company Capabilities
5. Persons 8. Unwholesome Demand - consumers 1. Companies can use the Internet as a
6. Places may be attracted to products that have powerful information and sales channel,
7. Properties undesirable social consequences. including for individually differentiated
8. Organizations Countermarketing - trying to goods.
9. Information destroy the demand for something. 2. Companies can collect fuller and richer
10. Ideas information about markets, customers,
WHO MARKETS? B. TARGET MARKETS, POSITIONING AND prospects, and competitors.
Marketer - who seeks a response from SEGMENTATION 3. Companies can reach consumers quickly
another party. Target market - qualified available and efficiently via social media and mobile
Prospect - to whom a product is being market the company decides to pursue. marketing, sending targeted ads, coupons,
offered. Market positioning –arranging for a and information.
KEY CUSTOMER MARKETS product to occupy a clear, place relative to 4. Companies can improve purchasing,
1. Consumer Markets competing products recruiting, training, and internal and
2. Business Markets Market segmentation – It means external communications.
3. Global Markets dividing a market into distinct groups of 5. Companies can improve their cost
4. Nonprofit and Governmental Markets buyers who have distinct needs efficiency.
CORE MARKETING CONCEPTS C. OFFERINGS AND BRANDS CHANGES IN DISTRIBUTION CHANNEL
A. NEEDS, WANTS, AND DEMANDS Offering – A product or service that is 1. Retail transformation – New
Needs - The basic human being proposed for consideration technologies and new way to connect with
requirements such as air, food, water, Brand - An offering from a known source. consumers.
clothing, and shelter. D. MARKETING CHANNELS 2. Disintermediation –when a producer
Types of Needs Marketing Channel - Sets of eliminates one or more intermediaries
1. Stated needs interdependent organizations involved in along the supply chain.
2. Real needs the process of making a product or service FACTORS INVOLVED IN HEIGHTENED
3. Unstated needs available COMPETITION
4. Delight needs Kinds of Marketing Channels 1. Private labels - retailer gets produced by
5. Secret needs Communication channels - deliver and a third-party but sells under its own brand
Wants - They are desires for specific receive messages from target buyers. name.
objects that might satisfy the need. Distribution channels - help display, sell 2. Deregulation - reduction or elimination of
Demands - They are wants for or deliver the physical product or services government power in a particular industry,
specific products backed by an ability Service channels - carry out transactions 3. Privatization - from the government to
to pay. with potential buyers. the private sector is termed privatization.
Demand States E. PAID, OWNED AND EARNED MEDIA EVOLUTION OF MARKETING POLICIES
1. Negative demand - consumers dislike Communication Option Categories 1. Production Concept - consumers prefer
the product or service and may even pay a 1. Paid media - Content that is products that are widely available and
price to avoid it. promoted through paid placements. inexpensive.
Conversional Marketing - 2. Owned media - Communication 2. Product Concept consumers favor
developing a plan that will cause channels that marketers actually own. products offering the most quality,
demand to rise from negative to 3. Earned media - consumers, the performance, or innovative features.
positive and eventually equal the press, or other outsiders voluntarily 3. Selling Concept - if left alone, won’t buy
positive supply level. communicate something about the enough of the organization’s products.
2. Non-existent demand - consumers may brand. 4. Marketing Concept - key to achieving
be unaware of or uninterested in the F. IMPRESSIONS AND ENGAGEMENT organizational goals is being more
product. Impressions consumers view communication, effective than competitors
Stimulational Marketing - AS a useful metric for tracking the scope or 5. Holistic Marketing Concept - Based on
transforming no demand into positive breadth of a communication’s reach the development, design, and
demand. Engagement - The extent of a customer’s implementation of marketing programs,
3. Latent Demand - consumers may share a attention and active involvement with a processes, and activities that recognize
strong need that cannot be satisfied by an communication. their breadth and interdependencies.
existing product or service. G. VALUE AND SATISFACTION PILLARS OF HOLISTIC MARKETING
Developmental Marketing - The Value - It is a central marketing concept 1. Relationship Marketing - build mutually
process of effectively transforming Satisfaction - Reflects a person’s satisfying long-term relationships
latent demand into actual demand. judgments of a products 2. Integrated Marketing - when the
4. Declining Demand- consumers begin to H. SUPPLY CHAIN marketer devises marketing activities and
buy or patronize the product or service Supply chain - A channel stretching from assembles marketing programs
less frequently or not at all. raw materials to components to finished 3. Internal marketing - hiring, training, and
Remarketing- search for new products carried to final buyers. motivating able employees
propositions for relating the offer to I. COMPETITION 4. Performance marketing - financial and
its potential markets. Competition –actual and potential rival nonfinancial returns to business and
5. Irregular Demand - consumer purchases offerings and substitutes society from marketing activities and
vary on a seasonal basis. J. MARKETING ENVIRONMENT programs.
Synchromarketing - The marketing Composition of a Marketing Environment Key Constituents for Relationship
task of trying to resolve irregular 1. Task environment –actors engaged in Marketing
demand. producing, distributing and promoting a. Customers
2. Broad environment –demographic, b. Employees
economic, social-cultural, natural, c. Marketing partners
d. Members of the financial community MARKETING MANAGEMENT TASKS
1. Developing marketing strategies and plans
2. Capturing market insights
3. Connecting with customers
4. Building strong brands
5. Creating value
6. Delivering value
7. Communicating value
8. Conducting marketing responsibility for
long term success
THE FOUR P’s
Marketing mix - The set of marketing
tools that the firm uses to pursue its
marketing objectives in the target market
MOST IMPORTANT CUSTOMER VALUES
1. Acceptability - firm’s total product
offering exceeds customer expectations.
2. Affordability - target market are able and
willing to pay the product’s price.
3. Accessibility - able to readily acquire the
product, has two dimensions: availability
and convenience.
4. Awareness informed regarding the
product’s characteristics, persuaded to try
it, and reminded to repurchase.