MARKETING
Chapter 1 part 1:
THE SCOPE OF MARKETING
Definition marketing: identifying and meeting human and social needs in a way that harmonizes with
the goals of the organization
Marketing management: the art and science of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating customer value
The goal: finding customer needs and satisfy them better than the competition
What can be marketed?
- Goods: food products, cars, TV’s
- Services: offerings of airlines, hotels, barbers
- Events: World Cup, Olympics
,- Experiences: baseball camp, Walt Disney
- People: artists, musicians, CEO’s
- Places: cities, states, nations
- Properties: rights of ownerships to real property or financial property
- Organizations: museums, corporations, performing-arts organizations
- Information: internet, school, radio news
- Ideas: promoting social causes such as gun control, tax reform, health care
THE NEW MARKETING REALITIES
The 4 major market forces:
- Technology: new business models, social media, e-commerce
- Globalization: learn from each other, multi-cultural, war
- Physical environment: climate change, health
- Social responsibility: social context, environmental impact
The 3 key marketing outcomes:
- New consumer capabilities: consumer can use online resources as powerful information and
to purchase things, they can use social media to share opinions, they can actively interact
with companies
- New company capabilities: companies can use internet as powerful information and sales
channel, they can collect fuller and richer information about markets; customers and
competitors, they can improve their cost efficiency
- New competitive environment: privatization, retail transformation, private labels
,Holistic marketing:
- Internal marketing: hiring, training and & motivating employees who want to serve
customers well
- Integrated marketing: directs programs & activities toward creating and communicating
message for consumers
- Performance marketing: understanding (non)financial returns to business & society
- Relationship marketing: develop deep relationships with people and organizations that affect
success of activities
4 P’s:
- PRODUCT
- PRICE
- PROMOTION
- PLACE
(YouTube video slide 26)
THE ROLE OF MARKETING IN THE ORGANIZATION
The 5 philosophies:
- The production concept: consumers will favor products that are cheap and available + they
use this to expand market
- The product concept: favor products that offer most quality, performance and innovative
features
- The selling concept: consumers will not buy enough of the firm’s products unless it
undertakes selling and promotion efforts
- The marketing concept: understand consumers’ needs and deliver better value than
competitors
, - The market-value concept: every functional area of the company should be focused on
creating value for customers, company and collaborators
ORGANIZING THE MARKETING DEPARTMENT
The structure of the marketing department plays a major role in a company’s ability to create
market value.
Different ways to organize:
- Functional organization: main advantage is its administrative simplicity
- Geographic organization: a company selling in a national market
- Product or brand organization: companies producing a variety of products and brands, this
makes sense if the company’s products are different or if there are more products than a
functional organization can handle (hub-and-spoke system)
- Market organization: this is desirable when customers fall into different user groups with
distinct buying preferences and practices
- Matrix organization companies that produce many products for many markets may adopt a
matrix structure employing both product and market managers (disadvantage -> potential
lack of clear focus and accountability)
Their organization:
Functional and geographic organization:
Chapter 1 part 1:
THE SCOPE OF MARKETING
Definition marketing: identifying and meeting human and social needs in a way that harmonizes with
the goals of the organization
Marketing management: the art and science of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating customer value
The goal: finding customer needs and satisfy them better than the competition
What can be marketed?
- Goods: food products, cars, TV’s
- Services: offerings of airlines, hotels, barbers
- Events: World Cup, Olympics
,- Experiences: baseball camp, Walt Disney
- People: artists, musicians, CEO’s
- Places: cities, states, nations
- Properties: rights of ownerships to real property or financial property
- Organizations: museums, corporations, performing-arts organizations
- Information: internet, school, radio news
- Ideas: promoting social causes such as gun control, tax reform, health care
THE NEW MARKETING REALITIES
The 4 major market forces:
- Technology: new business models, social media, e-commerce
- Globalization: learn from each other, multi-cultural, war
- Physical environment: climate change, health
- Social responsibility: social context, environmental impact
The 3 key marketing outcomes:
- New consumer capabilities: consumer can use online resources as powerful information and
to purchase things, they can use social media to share opinions, they can actively interact
with companies
- New company capabilities: companies can use internet as powerful information and sales
channel, they can collect fuller and richer information about markets; customers and
competitors, they can improve their cost efficiency
- New competitive environment: privatization, retail transformation, private labels
,Holistic marketing:
- Internal marketing: hiring, training and & motivating employees who want to serve
customers well
- Integrated marketing: directs programs & activities toward creating and communicating
message for consumers
- Performance marketing: understanding (non)financial returns to business & society
- Relationship marketing: develop deep relationships with people and organizations that affect
success of activities
4 P’s:
- PRODUCT
- PRICE
- PROMOTION
- PLACE
(YouTube video slide 26)
THE ROLE OF MARKETING IN THE ORGANIZATION
The 5 philosophies:
- The production concept: consumers will favor products that are cheap and available + they
use this to expand market
- The product concept: favor products that offer most quality, performance and innovative
features
- The selling concept: consumers will not buy enough of the firm’s products unless it
undertakes selling and promotion efforts
- The marketing concept: understand consumers’ needs and deliver better value than
competitors
, - The market-value concept: every functional area of the company should be focused on
creating value for customers, company and collaborators
ORGANIZING THE MARKETING DEPARTMENT
The structure of the marketing department plays a major role in a company’s ability to create
market value.
Different ways to organize:
- Functional organization: main advantage is its administrative simplicity
- Geographic organization: a company selling in a national market
- Product or brand organization: companies producing a variety of products and brands, this
makes sense if the company’s products are different or if there are more products than a
functional organization can handle (hub-and-spoke system)
- Market organization: this is desirable when customers fall into different user groups with
distinct buying preferences and practices
- Matrix organization companies that produce many products for many markets may adopt a
matrix structure employing both product and market managers (disadvantage -> potential
lack of clear focus and accountability)
Their organization:
Functional and geographic organization:
