Lecture Marketing management: Chapter 1 – Nguyễn Thị Trang Nhung

Marketing
Management
By: Msc. Nguyen Thi Trang Nhung
Email:

1


Rules of the class

Take
notes

Keep your time

Class Rules
Stay
involv
ed

Turn off your mobile phone


Learning methods


Chapter 1

Defining Marketing
st
for the 21 Century

4


What people often misunderstood
Marketing?
Many people think of marketing only as selling and
advertising.
=> Selling and advertising are only the tip of the
marketing ice-berg.
 Some people believe that only large business
organizations operating in highly developed
economies use marketing,
=> but sound marketing is critical to the success of
every organization – whether large or small, for
profit or non – profit, domestic or global.


5


What does marketing
involve?



Marketing is a very complex concept.
Marketing…






is not ADVERTISING
is not SELLING
is not PROMOTION

It involves:






Research
Product design
Setting prices
Making sure the customer knows about products
Choosing how and where to sell products


Understanding Marketing as an expert
- Marketing, more than any other business function,
deals with customers.







Analyze industries to identify emerging trends.
Determine which national and international markets
to enter or exit.
Conduct research to understand consumer
behavior.
Design integrated marketing mix

- Creating customer value and satisfaction are at the
very heart of modern marketing thinking and practice.

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“Marketing is the science and art of exploring,
creating and delivering value to satisfy the needs
and wants of a target market maintaining loyalty
at a profit.”
Professor Philip Kotler


What is Marketing?
(Definition)
1)

2)

Marketing is the delivery of customer
satisfaction at a profit.
Marketing is a social and managerial

process by which individuals and groups
obtain what they need and want
through creating and exchanging
products and value with others.
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What is Marketing?
(Definition)
3)Marketing:
'The
management
process
responsible for identifying , anticipating and
satisfying customer requirements profitably‘
(The Chartered Institute of Marketing )
4)Marketing: 'satisfying needs and wants
through an exchange process‘ (Philip Kotler)

10


What is Marketing?
(Definition)
5) Marketing : is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships in ways that
benefit the organization and its

stakeholders. (Philip Kotler)
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The Goal of Marketing is:
-

-

To attract customers by promising
superior value, and to keep current
customers by delivering satisfaction.
Marketing is about managing profitable
customer relationships



Attracting new customers
Retaining and growing current customers

12


Scope of marketing
(What is Marketed?)
• Goods
• Services
• Events
• Experiences
• Persons

Copyright © 2011
Pearson Education,
Inc. Publishing as
Prentice Hall

1-13


Scope of marketing
(What is Marketed?)
• Places
• Properties
• Organizations
• Information
• Ideas
Copyright © 2011
Pearson Education,
Inc. Publishing as
Prentice Hall

1-14


Core Marketing Concepts
To explain marketing definition, we examine the following
important terms :

1 - 15

Need

Want


Demand
Wants

Buying Power

“Demand”


Core Marketing Concepts
Need






Marketing offer



State of felt deprivation
Example: Need food



Wants







The form of needs as shaped
by culture and the individual
Example: Want a Big Mac

Demands





Wants which are backed by
buying power



Combination of products,
services, information or
experiences that satisfy a
need or want
Offer may include
services, activities,
people, places,

information or ideas


What is a Market?
Potential consumers make up a
market, which is:
1.

People

2.

with the Desire and

3.

with the Ability to Buy a
specific product.


The Target Market
Because the organization
obviously can’t satisfy all
consumer needs, it must
concentrate its efforts on
certain needs of a specific
group of potential consumers. This is the
target market -- one or more specific
groups of potential consumers toward
which an organization directs its

marketing program.


Core Marketing Concepts
Value









Customers form
expectations regarding
value
Marketers must deliver
value to consumers
Value = functional benefits
+ emotional benefits


Value and Satisfaction


Perceived Value






The customer’s evaluation of the difference
between benefits and costs.
Customers often do not judge values and
costs accurately or objectively.

Customer Satisfaction


A satisfied customer will buy again and tell
others about their good experience
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Customer Satisfaction

Performance

SATISFACTION

Expected
level

DISSATISFACTION
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Discussion Question: Customer Satisfaction

When have you,
personally, been
extremely satisfied or
dissatisfied with a
product? Why?
Why is it so difficult
for companies to
deliver value to
consumers?


1 - 124- 24


Core Marketing Concepts
Exchange









The act of obtaining a
desired object from
someone by offering
something in return
One exchange is not

the goal, relationships
with several exchanges
are the goal
Relationships are built
through delivering
value and satisfaction