KEY CONCEPTS IN MARKETINGmaureen castillo dyna enad carelle trisha espital ethel silvaWHAT IS MARKETING?nMarketing 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.PRODUCTSMARKETSNEEDS, WANTS & DEMANDSVALUE, SATISFACTION & QUALITYEXCHANGE, TRANSACTIONS & RELATIONSHIPSNEEDS, WANTS AND DEMANDSnNeedqStates of felt deprivation.qphysical, social and individual needs.nWantsqThe form taken by human needs as they are shaped by culture and individual personality.nDemandsqHuman wants that are backed by buying power.PRODUCTSqAnything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas.VALUE, SATISFACTION & QUALITYnCustomer ValueqThe difference between the values the customer gains from owning and using a product and the cost of obtaining the product.nCustomer SatisfactionqThe extent to which a products perceived performance matches a buyers expectations. nTotal Quality Management (TQM)qPrograms designed to constantly improve the quality of products, services, and marketing process.EXCHANGE, TRANSACTIONS & RELATIONSHIPSnExchangeqThe act of obtaining a desired object from someone by offering something in return.nTransactionqA trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.nRelationship MarketingqThe process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders.MARKETqThe set of all actual and potential buyers of a product or service.nMarketplace physical, as when one goes shopping in a storenMarketspace is digital, as when one goes shopping on the internetnMetamarket used to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.A Simple Marketing SystemA Simple Marketing SystemINDUSTRYINDUSTRY (A collection(A collection of sellers)of sellers)MARKETMARKET (A collection(A collection of buyers)of buyers)COMMUNICATIONCOMMUNICATIONINFORMATIONINFORMATIONGOODS & SERVICESGOODS & SERVICESMONEYMONEYStructure of Flows in a Modern Exchange EconomyRESOURCERESOURCE MARKETSMARKETSCONSUMERCONSUMER MARKETSMARKETSINTERMEDIARYINTERMEDIARY MARKETSMARKETSMANUFACTURERMANUFACTURER MARKETSMARKETSGOVERNMENTGOVERNMENT MARKETSMARKETSMONEYMONEYRESOURCESRESOURCESMONEYMONEYRESOURCESRESOURCESMONEYMONEYMONEYMONEYGOODS & SERVICESGOODS & SERVICESGOODS & SERVICESGOODS & SERVICESTAXES &TAXES & GOODSGOODSSERVICESSERVICES & MONEY & MONEY S&MS&MTAXES &TAXES & GOODSGOODSSERVICESSERVICESTAXESTAXESS&MS&MT>&GMARKETINGqmeans managing markets to bring about exchanges for the purpose of satisfying human needs and wants.qprocess by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.Main Actors and Forces in a Modern Marketing SystemS U P P L I E R SCOMPANY(marketer)COMPETITORSMARKETINGINTERMEDIARIESEND USERMARKETOther Key ConceptsMarketers and ProspectsA marketer is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect.Marketing ChannelsnCommunication channelsqDeliver and receive messages from target buyers, and include newspapers, magazines, etcnDistribution channelsqUsed to display, sell or deliver the physical product or service(s) to the buyer or user.nService channelsqUsed to carry out transactions with potential buyers.Supply ChainqDescribes a longer channel stretching from raw materials to components to final products that are carried to final buyers.CompetitionqIncludes all the actual and potential rival offerings and substitutes that a buyer might consider.Four Levels:qBrand competitionqIndustry competitionqForm competitionqGeneric competitionMarketing EnvironmentnTask environmentqIncludes the immediate actors involved in producing, distributing, and promoting the offering.nBroad environmentqConsists of components which contain forces that can have a major impact on the actors in the task environmentMarketing ProgramnMarketing program consists of numerous decisions on the mix of marketing tools to usenMarketing mix set of marketing tools the firm uses to pursue its marketing objectives in the target marketMARKETING MANAGEMENTqThe analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. qInvolves:nDemand Management qDemarketing - Marketing to reduce demand temporarily or permanently the aim is not to destroy demand, but only to reduce or shift it.nCustomer Relationship ManagementMarketing Management ProcessnSituation Anal