The Future Is Not Ahead of Us. It Has Already Happened: Philip Kotler

Chapter 1 Understanding Marketing
The future is not ahead of us. It has already happened.

Philip Kotler
The learning objectives:

What is Market? What is Marketing and marketing management? Marketing core Concepts Marketing management philosophies
2
1. Market
Market means that customers who have purchased or want to purchase a certain product or service.
Market = population+ Purchasing Power + Purchasing Need

Examples: How to understand the market of purified water what is the market of Nike? how to understand the Nikes market?
Market
Consumer Market Business Market Global Market Nonprofit and Government Markets
Consumer Market
The aim of buying is to consume for their own or somebody who has something to do with in consumer market.
Business Market
Business buyers buy goods for their utility in enabling them to make or resell a product to others for the purpose of making profits.
Global Market
Companies selling their goods and services in the global marketplace face additional decisions and challenges.
Nonprofit and Government Markets

Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies.
Simple Marketing System

Communication
Industry (a collection of sellers)
Goods/services Money
Market (a collection of Buyers)
Information
2.Defining Marketing
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. - Philip Kotler
Marketing
Is the process of planning and executing the conception,pricing,promotion, and distribution of ideas,goods,services to create exchanges that satisfy individual and organizational goals.
The Scope of Marketing

Goods Experience Persons Properties Information Services Events Places Organizations Ideas
Target Market and Segmentation

the relationship between the industry and market Marketplace & Marketspace five basic markets
Marketplace and Marketspace

Marketplace is physical, as when one goes shopping in a store, Marketspace is digital, as when someone shopping on the internet.
Five Basic Market

(figure 1.2 P9)
Manufacturer markets Resource markets Government markets Intermediary markets Consumer markets
Resources Money
Structure of Flows
Resource markets
Taxes, goods
Resources Money
Manufacturer markets
Services, money Services, money
Taxes
Taxes, goods Services, money Money
Government markets
Consumer markets
Goods, services
Intermediary markets Goods, services
Services Taxes, goods Money
The Four Ps The Four Cs

Marketing Mix Product Customer Solution Place ConvenPromotion ience Communication
Price Customer Cost
Customer Delivered Value

Starting point
Factory
Focus
Existing products
Means
Selling and promotion
Ends
Profits through sales volume
(a) The selling concept

Market Customer needs Integrated marketing Profits through customer satisfaction
(b) The marketing concept
Traditional Organization Chart

Top Management Middle Management Front-line people Customers
Customer-Oriented Organization Chart

Customers Front-line people Middle management
s er m to us C
Top management
C us to m er s
Evolving Views of Marketings Role

Production Marketing Finance Human resources Production Finance Human resources Marketing
a. Marketing as an equal function
b. Marketing as a more important function

Production
du ro P on cti
e nc na Fi
Marketing
an m ces Hu ur so re
Fi ce an n
Customer
et in
re Hu so m ur an ce s
M ar k
c. Marketing as the major function
d. The customer as the controlling factor

Production Marketing
Customer
an m c es Hu ur so re
ce an in F
e. The customer as the controlling function and marketing as the integrative function
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 organization objectives
3.Core Concepts of Marketing Target Markets & Segmentation Target Markets & Segmentation
Needs, Wants, and Demands Product or Offering Product or Offering Value and Satisfaction Value and Satisfaction Exchange and Transactions Exchange and Transactions Relationships and Networks Relationships and Networks Marketing Channels Marketing Channels Supply Chain Supply Chain Competition Competition Marketing Environment Marketing Environment
Needs, Want, and Demands

Needs describe basic human requirements. Want are shaped by ones society. Demands are wants for specific products backed by ability to pay. examples
Demand States and Marketing Tasks

No demand Latent demand Declining demand Irregular demand full demand Overfull demand Unwholesome demand
Value and satisfaction

Benefits functional benefits
emotional benefits
Costs
Monetary costs Time costs Energy costs Psychic costs
Value and satisfaction

benefits Value = ----------------costs
Discussion
How to increase the value ? How to compare the value?
Exchange and transaction

Exchange is the act of obtaining a desired object from someone by offering something in return. transaction is 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.
Product and service

Product---Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfying a want or need. It includes physical objectives, services, persons, places, organizations and ideas. Service--- any activity or benefit that one party can offer to another
Case Study
Page 41: Priceline.com: Changing Business in the New Millennium
How to understand the case? How to understand the questions? How to analyze the questions? The key question? Whats your idea?
4.marketing philosophies
The The The The The production concept product concept selling concept marketing concept societal marketing concept
Company Orientations Towards the Marketplace

Production Concept Production Concept Product Concept Product Concept Selling Concept Selling Concept Marketing Concept Marketing Concept
Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors
Traditional Organization Chart

Top Management Middle Management Front-line people Customers
Customer-Oriented Organization Chart

Customers Front-line people Middle management
s er m to us C
Top management
C us to m er s

Production Marketing Finance Human resources Production Finance Human resources Marketing
a. Marketing as an equal function
b. Marketing as a more important function

Production
du ro P on cti
e nc na Fi
Marketing
an m ces Hu ur so re
Fi ce an n
Customer
et in
re Hu so m ur an ce s
M ar k
c. Marketing as the major function
d. The customer as the controlling factor

Production Marketing
Customer
an m c es Hu ur so re
ce an in F
e. The customer as the controlling function and marketing as the integrative function
The production concept

the production concept holds that consumers will prefers products that are widely available and inexpensive.
The product concept

The product concept holds that consumers will favor those products that offer the most quality,performance,or innovative features.
The selling concept

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization must, therefore, undertake an aggressive selling and promotion effort
The marketing concept

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
The societal marketing concept

The societal marketing concept holds that the organizations task is to determine the needs, wants,and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys
Discussion
Whats your opinion about the 5 five concepts? Do you think the production concept is outdate
Case Discussion
Reading Discussion

The Future Is Not Ahead of Us. It Has Already Happened: Philip Kotler

Uploaded by

Copyright:

Available Formats

The Future Is Not Ahead of Us. It Has Already Happened: Philip Kotler

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Future Is Not Ahead of Us. It Has Already Happened: Philip Kotler

Uploaded by

Copyright:

Available Formats

Chapter 1 Understanding Marketing

The future is not ahead of us. It has already happened.

The learning objectives:

Market = population+ Purchasing Power + Purchasing Need

Nonprofit and Government Markets

Simple Marketing System

Industry (a collection of sellers)

Market (a collection of Buyers)

The Scope of Marketing

Target Market and Segmentation

Marketplace and Marketspace

Five Basic Market

Services, money Services, money

Taxes, goods Services, money Money

Intermediary markets Goods, services

Services Taxes, goods Money

The Four Ps The Four Cs

Price Customer Cost

Customer Delivered Value

(a) The selling concept

(b) The marketing concept

Traditional Organization Chart

Customer-Oriented Organization Chart

Evolving Views of Marketings Role

a. Marketing as an equal function

b. Marketing as a more important function

Evolving Views of Marketings Role

c. Marketing as the major function

d. The customer as the controlling factor

Evolving Views of Marketings Role

Needs, Want, and Demands

Demand States and Marketing Tasks

Value and satisfaction

Value and satisfaction

Exchange and transaction

Product and service

Company Orientations Towards the Marketplace

Traditional Organization Chart

Customer-Oriented Organization Chart

Evolving Views of Marketings Role

a. Marketing as an equal function

b. Marketing as a more important function

Evolving Views of Marketings Role

c. Marketing as the major function

d. The customer as the controlling factor

Evolving Views of Marketings Role

The production concept

The product concept

The selling concept

The marketing concept

The societal marketing concept

You might also like