Principles of marketing: Lecture 44

MGT301
Principles of Marketing
Lecture­44


Summary
of  
Lecture­43


Marketing and Society


•

The current issues and marketing can be 
divided into two major subjects:
– Ethics
– Social responsibility

•

The two concepts are very closely related


Consumerism


The Right to Be Safe

The Right to Be Informed

Basic Consumer Rights

The Right to Be Heard

The Right to Choose


Today’s Topics

Review­1


Marketing Involves having the Right Product 
available in the Right Place at the Right Time 
and making sure that the customer is Aware of 
the Product.


Simple Marketing System
Communication
Product/Service
Producer/Seller

Money

Feedback

Consumer

Marketing


Price

Product

Customers
Place

Promotion


Marketing’s 4 P’s 


Product



Price



Place



Promotion 

Marketing’s 4 P’s (+2)







People
Product
Price
Place
Promotion 
Profits


Marketing is....
getting the right products to the right people at 
the right price and at the right place and time 

 

with the right promotion


Marketing is a social and managerial process by 
which individuals and groups obtain what they need 
and want through creating, offering and exchanging 

products of value with others.
Kotler 1994


Actors and Forces in a
Modern Marketing System

Environment

Company
(marketer)
Marketing
intermediaries

Suppliers
Competitors

End-user
market


Pr
od
uc
Se and ts
rvi
ce
s

,

s
t
n s
a
w nd
,
ds ma
e
Ne d de
an

ts
ke
ar
M

Exchange,
transactions,
and relationships

Value,
satisfaction,
and quality

Core
Core
Marketing
Marketing
Concepts
Concepts

Information

Buying

Risk Taking

Selling
Marketing
Functions

Financing
Standardizing
and Grading

Transporting

Storing


Change In Perspective


Yesterday: Here is this great product.  Don’t you 
want to buy it?



Today: Here is what I need.  Can you make it?

Customer Relationship 
Management 


CRM
CRM – Customer relationship  management . . .
“is the overall process of building and maintaining 
profitable customer relationships by delivering superior 
customer 
value and satisfaction.”


SOCIETAL
MARKETING
CONCEPT

PRODUCT
CONCEPT

KEY
MARKETING
PHILOSOPHIES
MARKETING
MARKETING
CONCEPT
CONCEPT

PRODUCTION

CONCEPT
SELLING
CONCEPT


Marketing Challenges in the 21st century
Designing the Business Protfolio
The Boston Consulting Group’s Growth­Share 
Matrix


Stars

Question marks

4

5

3

?

?2

?

Market growth rate

20%18%16%14%12%10%8%6%4%2%0

10x

?

1

Dogs

Cash cow

8
6
4x

7
2x 1.5x

1x

.5x .4x .3x .2x .1x

Relative market share


Product/Market Expansion Grid
Current
products

Current
markets

New
markets

Marketpenetration
strategy

Marketdevelopment
strategy

New
products
Productdevelopment
strategy

(Diversification
strategy)