Principles of MarketingPhilip KotlerGray ArmstrongSeventh EditionDr. Wei songMarketing in a Changing world:Marketing in a Changing world:Creating Customer Value & SatisfactionCreating Customer Value & SatisfactionWhat is Marketing?Marketing ManagementMarketing Management PhilosophiesMarketing Challenges into the Next CenturySummaryWhat is Marketing?Marketing 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. Needs,Wants and DemandsMarketsExchange,Transactionsand RelationshipsValue,Satisfaction and QualityProductsCore Marketing ConceptsNeeds,Wants DemandsHuman needs are states of felt deprivation.Wants are the form taken by human needs as they are shaped by culture and individual personality.Demands are the human wants that are backed by buying power.ProductsA product is anything that can be offered to a market to satisfy a need or want.Value,Satisfaction and QualityCustomer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product.Customer satisfaction is closely linked to quality.Customer satisfaction depends on a products perceived performance in delivering value relative to a buyers expectations.Exchange,Transactionsand RelationshipsExchange in the act of obtaining a desire object from someone by offering something in return.A transaction consists of a trade of values between two parties.The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.Markets A market is the set of actual and potential buyers of a product.Industry (a collection of sellers)Market (a collection of buyers)CommunicationProducts/servicesMoneyInformationMarketingMarketing means managing markets to bring about exchanges for the purpose of satisfying human needs and wants. SuppliersCompany (marketer)CompetitorsMarketing IntermediariesEnd user marketEnvironmentBuilding Profitable Customer RelationshipsDemand ManagementMarketing management seeks to affect the level ,timing, and nature of demand in a way that helps the organization achieve its objectives.Simply put,marketing management is demand management.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.Marketing ManagementMarketing Management Philosophies The Production ConceptThe Production ConceptThe Product ConceptThe Product ConceptThe Selling ConceptThe Selling ConceptThe production concept holds that consumers will favor products that are available and highly affordable.The product concept holds that consumers will favor products that offer the most quality, performance, and innovative features. Selling concept holds that consumers will not buy enough of the organizations products unless it undertakes a large-scale selling and promotion effort.The Social Marketing ConceptThe Social Marketing ConceptThe Marketing ConceptThe Marketing ConceptThe marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.The societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets Marketing Challenges into the Next CenturyGROWTH OF NONPROFIT MARKETINGGROWTH OF NONPROFIT MARKETINGIn the past, marketing has been most widely applied in the business sector.In recent years, however, marketing also has become a major component in the strategies of many nonprofit organizations.RAPID GLOBALIZATIONRAPID GLOBALIZATIONThe world economy has undergone radical change during the past two decades. THE CALL FOR MORE ETHICS AND SOCIAL THE CALL FOR MORE ETHICS AND SOCIAL RESPONSIBILITYRESPONSIBILITY A large part of the world has grown poorer during the past few decades.A third factor in todays marketing environment is the increased call for companies to take responsibility for the social and environmental impact of their actions.The past decade taught business firms everywhere a humbling lesson.THE CHANGING WORLD ECONOMYTHE CHANGING WORLD ECONOMYTHE NEW MARKING LANDSCAPETHE NEW MARKING LANDSCAPEStrategic Planning & the Marketing ProcessStrategic Planning & the Marketing ProcessStrategic PlanningDesigning the Business PortfolioThe Marketing ProcessManaging the Marketing EffortSummaryStrategic PlanningvvDEFINING THE COMPANY MISSIONDEFINING THE COMPANY MISSIONA mission statement is a statement of the organizationss purpose-what it wants to accomplish in the larger environment.The companys mission needs to be turned into detailed supporting objectives for each level of management.vvSETTING COMPANY OBJECTIVES AND SETTING COMPANY OBJECTIVES AND GOALSGOALSDesigning th