MKT/Lecture1/Marketing Management in 21st Century

1.

What Is Marketing?

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.

2.

What is Marketing Management

The Art and Science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

3.

Who are stakeholders?

Customers, investors, employees, and the community

4.

In the definition of marketing management what does "art" mean and "science" mean?

Art refers to creativity (consumers like the experience of the product), and science refers to quantitative research (buying patterns) and understanding customers demand.

5.

What is marketed?

Goods (tangible), Services (intangibe - more services than goods), Events & experiences (buy ticket to space), Persons (presidential campaign), Place & Properties, Organizations, Information (university sells your info to bank of america), ideas

MKT/Lecture1/Marketing Management in 21st Century

6.

What is a Marketer?

A person or organization seeking a response attention, purchase, vote, donation from a potential customer or prospect.

7.

What are marketer's responsible for?

Stimulating demand for a company's product offering(s)

8.

What is the eight demand states?

Negative demand, non-existent demand, latent demand, declining demand, irregular demand, full demand, overall demand, unwholesome demand

9.

What is negative demand?

Customers dislike a product offering and may pay a price to avoid it.

10. What is an example of negative demand?

Products tested on animals, so won't buy it.

MKT/Lecture1/Marketing Management in 21st Century

11. What is non-existent demand?

Customers may be unaware or uninterested in a product offering

What is an example of non-existent 12. demand?

Dr. Shaw received two phone calls from funeral home for her to buy a funeral plot (not interested)

13. What is latent demand?

Customers may share a strong need that cannot be satisfied by an existing product offering

14. What is an example of latent demand?

Alternative energy car; strong need for a drug to fight Parkinson's disease but there is currently no drug. Currently using restless leg syndrome to help treat this.

15. What is declining demand?

Customer begin to buy a product offering less frequently or not at all

MKT/Lecture1/Marketing Management in 21st Century

16. What is an example of declining demand?

GM Motors, company is not doing well, so afraid to buy their products.

17. What is irregular demand?

Customer purchases vary on seasonal, monthly, daily or even hourly basis

18. What is an example of irregular demand?

Lawn mowers sell in the spring and summer

19. What is full demand?

Customers are adequately buying all product offerings put into the marketplace

20. What is an example of full demand?

Proctor and Gamble sells a variety of different products, and all are in demand (Brawny, Dove, etc.)

MKT/Lecture1/Marketing Management in 21st Century

21. What is overall demand?

Too many customers would like to buy a product offering

22. What is an example of overall demand?

When Nintendo sold out of Wii console at Christmas time last year, or KFC sold out of grilled chicken for a couple of weeks due to overmarketing

23. Demarketing

Marketers attempt to reduce the demand for a product when the demand for the product is greater than the manufacturer's ability to produce it.

24. What is unwholesome demand?

Customers may be attracted to product offerings that have undesirable social consequences

25.

What is an example of unwholesome demand?

Cigarettes

MKT/Lecture1/Marketing Management in 21st Century

26. What is marketing exchange?

The provision or transfer of goods, services, or ideas in return for something of value (must have at least two parties).

27. What is the concept of Exchange?

Necessary conditions for exchange, at least two parties, something of value, ability to communicate offer, freedom to accept or reject, desire to deal with other party

28. What is an utility?

Value that comes from satisfying human needs

29.

What are the types of utilities and how are they provided?

Form (tangible) and Task (intagible/services) are utilities provided by production with guidance of marketing.

Time, place, possession is provided by marketing

30.

Structure of flows in a modern exchange economy

See Image

MKT/Lecture1/Marketing Management in 21st Century

31. Where does marketing occur?

Marketplace (physical stores, departments), marketspace (digital online), and metamarket (both physical and digital)

32.

The marketplace isn't what it used to be due to the following eight factors:

Information technology, globalization, deregulation, privatization, competition, convergence, consumer resistance, retail transformation

1. A substantial increase in buying power 2. A greater variety of available goods & services 3. A great amount of information about practically anything 33. What are the new customer capabilities? (hint their are six) 4. Greater ease in interacting and placing & receiving orders 5. An ability to compare notes on products and services 6. An amplified voice to influence public opinion (blogs/social networks)

34.

Explain the evolution of the marketing concept:

Product Orientation, Sales Orientation, and Marketing Orientation

MKT/Lecture1/Marketing Management in 21st Century

Efficient production of goods allowed firms to meet strong customer demand. This is supply oriented; make product and say here buy it. 35. What is product orientation? The focus of the business is not the needs of the customer, but of reducing costs by mass production. By reaching economies of scale the business will maximize profits by reducing costs. Weakened demand required that products would have to be "sold". Competitive oriented.

36. What is sales orientation?

The focus here is to make the product, and then try to sell it to the target market. However, the problem could be that consumers do not like what is being sold to them. Adopting a customer focus means a commitment to meeting customers' expressed needs research through a probe and learn process to respond to latent customer needs proactive. Long term customer satisfaction.

37. What is marketing orientation? Puts the customer at the heart of the business. The organization tries to understand the needs of the customers by using appropriate research methods, Appropriate processes are developed to make sure information from customers is fed back into the heart of the organization. In essence all activities in the organisation are

MKT/Lecture1/Marketing Management in 21st Century

based around the customer. The customer is truly king!

38. What is holistic marketing?

Everything matters! Internal marketing, integrated marketing, social responsibility marketing, relationship marketing

39.

In holistic marketing what does internal marketing consist of?

Marketing department, senior management, other departments

40.

In holistic marketing what does integrated marketing consist of?

Communications, products and services, channels, price

41.

In holistic marketing what does social responsibility marketing consist of?

Ethics, environment, legal, community

MKT/Lecture1/Marketing Management in 21st Century

42.

In holistic marketing what does relationship marketing consist of?

Customers, channel, partners