10. Selling is only the tip of the iceberg….. Understanding Marketing Management “ There will always 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 is to make the product or service available.” Peter Drucker
18. Structure of Flows in a Modern Exchange Economy Understanding Marketing Management
19. Industry ( A collection of sellers ) Market ( A collection of buyers ) Communication Goods/Services Money Information A Simple Marketing System Understanding Marketing Management
20. Key Customer markets…. Understanding Marketing Management Consumer Markets Global Markets Nonprofit and Governmental Markets Business Markets
21. Market place is not what it used to be…. Understanding Marketing Management Deregulation Disintermediation Globalization Changing technology Privatization Customer Empowerment Customization Convergence
22. Company Orientations towards the Market Place Understanding Marketing Management Production concept Selling concept Holistic marketing concept Product concept
23. Production concept “ The production concept holds that consumers will prefer products that are widely available and inexpensive.” Understanding Marketing Management
24. Product concept “ The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.” Understanding Marketing Management
25. Selling concept The selling concept holds that consumers and businesses, will ordinarily not buy enough of the organization’s products, therefore, the organization must undertake aggressive selling and promotion effort.” Understanding Marketing Management
26. Marketing concept “ The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets.” Understanding Marketing Management
27. Factory Products Selling and Profits through promoting sales volume Target Customer Integrated Profits through market Needs marketing customer satisfaction The Selling concept The Marketing concept Starting point Focus Means Ends Determinants of customer delivered value Understanding Marketing Management
28. Holistic Marketing concept “ Holistic marketing can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognizes the breath and interdependencies of their efforts. Holistic marketing recognizes that ‘ everything matters’ with marketing—the consumer, employees, other companies, competition, as well as society as a whole.” Understanding Marketing Management
29. Marketing Department Holistic Marketing dimensions Understanding Marketing Management Senior Management Other Departments Communications Products and Services Channels Ethics Environment Legal Community Customers Suppliers Channel Partners Holistic Marketing Internal Marketing Socially Responsible Marketing Integrated Marketing Relationship Marketing Employees
30. The Four P Components of the Marketing Mix Marketing Mix Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns Price List Price Discounts Allowances Payment period Credit terms Promotion Sales promotion Advertising Sales force Public relations Direct marketing Place Channels Coverage Assortments Locations Inventory transport Target Market Understanding Marketing Management
31. Company Product Services prices Offering mix Direct mail telemarketing and internet Public relations Sales force Advertising Sales Promotion Distribution Channels Target customers Communications mix Marketing Mix Strategy Understanding Marketing Management
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33. Traditional Organizational chart Understanding Marketing Management Top Manage ment Middle management Front line people Customers
34. Customers Front line people Middle management Top Manage ment C U S T O M E R S C U S T O M E R S Modern customer oriented Organizational chart Understanding Marketing Management
