MARKETING MANAGEMENT

15 Edition
th

Philip Kotler and Kevin Keller

Chapter
Chapter 11
Defining Marketing for the New
Realities
What is
Marketing?
Marketing has been derived from word “Market”.
Place where buyers and sellers meet to exchange
products and services for money.
In old days Marketing was process of telling and
selling goods and services produced by a business.
All those activities related to market.
(producing, selling, advertising, after sales services)
Meaning
Meeting needs profitably.(Google-powerful search
engine to access information)
Process by which individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.

More simply: Marketing is the delivery of

customer satisfaction at a profit.
Eg. IKEA Global leader in home furnishing(Sweden in1943)
(Ingvar Kamprad , Elmtaryd Agunnaryd -Place)
What is Marketed?(geesop3)
1. Goods- Cars, TV
2. Services- Airlines, Hotels, Banks, Beauticians
3. Events-Olympics, World Cup
4. Experience-KOD,WOW
5. Persons-CEO, Lawyers, Doctors
6. Places- Chandni Chowk, Lajapat nagar, India Gate,
Pink city,
7. Properties-Residential, Commercial
8. Organizations-College, University, Museum, DU
Key Customer Market
Consumer Market-mass consumer goods and services
(shoes, cosmetics, juice)
Business Market-business goods & services (spare
parts, industrial goods)
Global Market-different countries (China, Japan)
Non- Profit and Govt. Markets –ltd Purchasing
(churches, temples, charitable organizations,
universities)
Core
Core Marketing
Marketing
Concepts
Concepts
Products
Needs, wants, and
and demands Services

Core
Core
Marketing
Marketing
Concepts
Concepts
Markets
Value, satisfaction,
and quality

Exchange, transactions,
and relationships
What Motivates a
Consumer
Needs – Basic human requirements such as for
to Take
air, food,Action?
water, clothing, shelter. i.e. Buy a car
Stated needs ( Inexpensive car)
Real needs (Low Price)
Unstated needs (Good Service)
Delight needs (Onboard GPS system
Secret needs (friends see- savvy customer)
Continued…..
Wants - form that a human need takes as shaped by culture
and individual personality. i.e. I want a BMW.

Demand - human wants backed by buying power. i.e. I

have money to buy a Mercedes.
What
What Will
Will Satisfy
Satisfy
Consumer’s
Consumer’s
Needs
Needs and
and
Products Wants?
Wants?
- anything that Services - activities or
can be offered to a benefits offered for sale
market for attention, that are essentially
acquisition, use or intangible and don’t
consumption and that result in the ownership
might satisfy a need or of anything.
want. Examples: banking,
Examples: persons, airlines, haircuts, and
places, organizations, hotels.
activities, and ideas.
How
How dodo Consumers
Consumers choose
choose
among
among Products
Products and
and
Services?
Servi ces?
Customer Value - benefit that the customer gains
from owning and using a product compared to
the cost of obtaining the product.

Customer Satisfaction - depends on the product’s

perceived performance in delivering value
relative to a buyer’s expectations. Linked to
Quality and Total Quality Management (TQM).
How
How dodo Consumers
Consumers Obtain Obtain
Products
Products and
and Services?
Services?
Exchanges - act of obtaining a desired object from
someone by offering something in return.

Transactions - trade of values between parties.

Usually involves money and a response.

Relationships - building long-term relationships with

consumers, distributors, dealers, and suppliers.
Who
Who Purchases
Purchases
Products
Products
and
and Services?
Services? Actual
Actual
Market
Market -- buyers
buyers Buyers
Buyers
who
who share
share aa
particular
particular need
need
or
or want
want that
that can
can
be
be satisfied
satisfied by
by aa
company’s
company’s products
products Potential
Potential
or
or services.
services. Buyers
Buyers
 End
End User
User
Market
Market
Marketing
Marketing
Intermediaries
Intermediaries

Environment
Environment

Company
Company Competitors
Competitors
(Marketer)
(Marketer)
Suppliers
Suppliers
System
System
Marketing
Modern Marketing
Modern
 Marketing
Marketing Management-
Management-
Philosophies
Philosophies
• Inexpensive and easily available
Production
Production Concept
Concept • Large scale production to reduce cost
(HUL)

• High quality, performance, and

Product
Product Concept
Concept innovative features(APPLE)
Focus on quality and improvisation

• Goods are not bought, but sold

Selling
Selling Concept
Concept • Focus on Aggressive selling and
Promotional efforts (SALE)

• Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets
Delivering satisfaction better than
competitors
• Consumer satisfaction of target
Societal
Societal Marketing
Marketing Concept
Concept markets
• Environment friendly
Marketing
Marketing & &
Sales
Sales
Starting
Concepts
Concepts
Point
Focus Means Ends

Contrasted
Contrasted
Factory
Existing
Products
Selling
and
Promoting
Profits
through
Volume
The Selling
The Concept
Selling Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction
The Marketing
The Concept
Marketing Concept
Examples
Philips India started with audio system ,forayed into
household kitchen appliance.
Fast food industry-Hamburger offers tasty but unhealthy
foods.(wrapped leads to waste and environment
degradation.)

According to Jagdish Seth & Rajender Sisodia- 4A

Acceptability,
Affordability,
Accessibility,
Awareness
Societal
Societal Marketing
Marketing
Concept
Concept Society
Society
(Human
(Human Welfare
Welfare))

Societal
Societal
Marketing
Marketing
Concept
Concept
Consumers
Consumers Company
Company
(Wants)
(Wants) (Profits)
(Profits)
New
New Marketing
Marketing
Challenges
Challenges
New
Marketing
Landscape &
Information Nonprofit
Technology Marketing

Emerging
Emerging
Ethical
Concerns
Challenges
Challenges Globalizatio
n
Changing
World
Economy
Today’s companies also have new capabilities as given below:-
• Ability to operate powerful information and sales channels.
• Ability to collect fuller and richer information about
markets, customers, prospects, and competitors.
• Faster internal communication amongst employees.
• Two way communication with customers and prospects.
• Send ads, coupons, samples, and information to customers.
• Customize offerings and services to individual customers.
• Improved, purchasing, recruiting, and training.
• Improved external communication.
• Improved logistics and service quality
Marketing Process
Understand the market
Design Products to satisfy Needs & Wants
Develop an integrated marketing program
Build profitable relationship with customer and offer
customer delight
Capture value from customers to create profits from
customers to create profits and customers loyalty
Draw a positioning map to describe the
Shampoo,
Handsets,
TV,
Washing Powder
.Choose any two characteristics to show how the
different brands can be viewed based on these traits
on four axis.