summary marketing management, kotter & keller
by: maureen koek
chapter 1: defining marketing for the 21st century
the importance of marketing
finance, operations, and other business functions won’t really matter without
sufficient demand for products and services so the firm can make a profit -> thus
financial success often depends on marketing ability.
the scope of marketing
what is marketing?
marketing is about identifying and meeting human and social needs: “meeting
needs profitably”.
the american marketing association offers the following formal definition:
marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
marketing management can be seen as: the art and science of choosing
target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.
marketing is a social 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.
selling is not the most important part of marketing!
“there will always, one can assume, 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.”
what is marketed?
marketers market 10 main types of entities:
- goods
- services
- events
- experiences
- persons
- places
- properties: intangible rights of ownership to either real property (real
estate) or financial property (stocks and bonds)
- organizations
- information
- ideas
,who markets?
a marketer is someone who seeks a response – attention, a purchase, a vote, a
donation – from another party, called the prospect.
➔ if both parties are seeking to sell something to each other, we call them
both marketers
marketers are responsible for demand management.
eight demand stages are possible:
1. negative demand - consumers dislike the product and may even pay to
Avoid it
2. nonexistent demand – consumers may be unaware of or uninterested in
the product
3. latent demand – consumers may share a strong need that cannot be
satisfied by an existing product
4. declining demand – consumers begin to buy the product less frequently
or not at all
5. irregular demand – consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis
6. full demand – consumers are adequately buying all products put into the
marketplace
7. overfull demand – more consumers would like to buy the product than
can be satisfied
8. unwholesome demand – consumers may be attracted to products that
have undesirable social consequences.
in each case, marketers must identify the underlying cause(s) of the demand
state and determine a plan of action to shift demand to a more desired state.
economists describe a market as a collection of buyers and sellers who transact
over a particular product or product class (such as the housing market or the
grain market).
marketers use the term market to cover various groupings of customers.
➔ they view sellers as constituting the industry and buyers as constituting
the market. they talk about need markets (the diet seeking market),
product markets (the shoe market), demographic markets (the youth
market), and geographic markets (the chinese market).
key customer markets
- consumer markets
o a lot of time is spend on establishing a strong brand image by
developing a superior product and packaging, ensuring its
availability, and backing it with engaging communications and
reliable service.
- business markets
o often encounters with well-informed professional buyers skilled at
evaluating competitive offerings. business buyers buy goods to
make or resell a product to others at a profit.
- global markets
, o deciding which countries to enter; how to enter each; how to adapt
product and service features to each country; how to price products
in different countries; and how to design communications for
different cultures.
- nonprofit and governmental markets
o need to price carefully. much government purchasing calls for bids,
and buyers often focus on practical solutions and favor the lowest
bid in the absence of extenuating factors.
the market place is physical, such as a store you shop in; the marketspace is
digital, as when you shop on the internet.
a metamarket is a cluster of complementary products and services closely
related in the minds of consumers, but spread across a diverse set of industries.
➔ metamarkets create an opportunity for metamediaries to assist customers
in moving seamlessly through them.
core marketing concepts
to understand the marketing function, we need to understand the following core
set of concepts.
needs are the basic human requirements such as for air, food, water, clothing,
and shelter. humans also have strong needs for recreation, education, and
entertainment.
➔ these needs become wants when they are directed to specific objects that
might satisfy the need. wants are shaped by society
➔ demands are wants for specific products backed by an ability to pay.
o companies must measure not only how many people want their
product, but also how many are willing and able to buy it.
marketers do not create needs. marketers, along with other societal factors,
influence wants.
we can distinguish five types of needs:
1. stated needs (the consumer wants an inexpensive car)
2. real needs (the customer wants a car whose operating cost, not initial
price, is low)
3. unstated needs (the customer expects good service from the dealer)
4. delight needs (the customer would like the dealer to include an onboard
gps navigation system)
5. secret needs (the customer wants friend to see him/her as a savvy
consumer).
to gain an edge, companies must help customers learn what they want.
target markets, positioning and segmentation
after identifying market segments, the marketer decides which present the
greatest opportunities – which are its target markets. for each, the firm develops
a market offering that it positions in the minds of the target buyers as delivering
some central benefit(s).
, offerings and brands
by: maureen koek
chapter 1: defining marketing for the 21st century
the importance of marketing
finance, operations, and other business functions won’t really matter without
sufficient demand for products and services so the firm can make a profit -> thus
financial success often depends on marketing ability.
the scope of marketing
what is marketing?
marketing is about identifying and meeting human and social needs: “meeting
needs profitably”.
the american marketing association offers the following formal definition:
marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
marketing management can be seen as: the art and science of choosing
target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.
marketing is a social 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.
selling is not the most important part of marketing!
“there will always, one can assume, 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.”
what is marketed?
marketers market 10 main types of entities:
- goods
- services
- events
- experiences
- persons
- places
- properties: intangible rights of ownership to either real property (real
estate) or financial property (stocks and bonds)
- organizations
- information
- ideas
,who markets?
a marketer is someone who seeks a response – attention, a purchase, a vote, a
donation – from another party, called the prospect.
➔ if both parties are seeking to sell something to each other, we call them
both marketers
marketers are responsible for demand management.
eight demand stages are possible:
1. negative demand - consumers dislike the product and may even pay to
Avoid it
2. nonexistent demand – consumers may be unaware of or uninterested in
the product
3. latent demand – consumers may share a strong need that cannot be
satisfied by an existing product
4. declining demand – consumers begin to buy the product less frequently
or not at all
5. irregular demand – consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis
6. full demand – consumers are adequately buying all products put into the
marketplace
7. overfull demand – more consumers would like to buy the product than
can be satisfied
8. unwholesome demand – consumers may be attracted to products that
have undesirable social consequences.
in each case, marketers must identify the underlying cause(s) of the demand
state and determine a plan of action to shift demand to a more desired state.
economists describe a market as a collection of buyers and sellers who transact
over a particular product or product class (such as the housing market or the
grain market).
marketers use the term market to cover various groupings of customers.
➔ they view sellers as constituting the industry and buyers as constituting
the market. they talk about need markets (the diet seeking market),
product markets (the shoe market), demographic markets (the youth
market), and geographic markets (the chinese market).
key customer markets
- consumer markets
o a lot of time is spend on establishing a strong brand image by
developing a superior product and packaging, ensuring its
availability, and backing it with engaging communications and
reliable service.
- business markets
o often encounters with well-informed professional buyers skilled at
evaluating competitive offerings. business buyers buy goods to
make or resell a product to others at a profit.
- global markets
, o deciding which countries to enter; how to enter each; how to adapt
product and service features to each country; how to price products
in different countries; and how to design communications for
different cultures.
- nonprofit and governmental markets
o need to price carefully. much government purchasing calls for bids,
and buyers often focus on practical solutions and favor the lowest
bid in the absence of extenuating factors.
the market place is physical, such as a store you shop in; the marketspace is
digital, as when you shop on the internet.
a metamarket is a cluster of complementary products and services closely
related in the minds of consumers, but spread across a diverse set of industries.
➔ metamarkets create an opportunity for metamediaries to assist customers
in moving seamlessly through them.
core marketing concepts
to understand the marketing function, we need to understand the following core
set of concepts.
needs are the basic human requirements such as for air, food, water, clothing,
and shelter. humans also have strong needs for recreation, education, and
entertainment.
➔ these needs become wants when they are directed to specific objects that
might satisfy the need. wants are shaped by society
➔ demands are wants for specific products backed by an ability to pay.
o companies must measure not only how many people want their
product, but also how many are willing and able to buy it.
marketers do not create needs. marketers, along with other societal factors,
influence wants.
we can distinguish five types of needs:
1. stated needs (the consumer wants an inexpensive car)
2. real needs (the customer wants a car whose operating cost, not initial
price, is low)
3. unstated needs (the customer expects good service from the dealer)
4. delight needs (the customer would like the dealer to include an onboard
gps navigation system)
5. secret needs (the customer wants friend to see him/her as a savvy
consumer).
to gain an edge, companies must help customers learn what they want.
target markets, positioning and segmentation
after identifying market segments, the marketer decides which present the
greatest opportunities – which are its target markets. for each, the firm develops
a market offering that it positions in the minds of the target buyers as delivering
some central benefit(s).
, offerings and brands
