Marketing: the delivery of customer value at a profit
Marketing Vs Selling:
• Selling occurs only after a product is produced.
• Marketing starts long before a company has a product.
Core Marketing Activities
• Product development
• R & D
TRANSACTION MARKETING: trading of values between parties (either monetary or barter transaction)
RELATIONSHIP MARKETING: the process of creating, maintaining and enhancing strong value-laden relationships with customers and other stakeholders
Marketing Management: The analysis, planning, implementation and control of programmes designed to help marketing.
MARKETING MANAGEMENT CONCEPTS
• The production concept
• The product concept
• The selling concept
• The Marketing concept
• The societal marketing concept
The production concept
It holds that management should focus on improving production and distribution efficiency because customers favour products that are available and highly affordable (it is behind selling). This concept works better when demand exceeds supply.
The product concept
Consumers favour goods that offer quality, performance and features. In that respect we should devote our energy in improving products (companies that have good research and development and technology follow this concept). It can lead to “marketing myopia”.
The selling concept
Consumers will not buy enough of a product unless we undertake a large-scale selling and promotion effort (i.e. unsought goods: encyclopedias, insurance). It aims on creating sales transactions in the short-term – not building relationships.
The Marketing concept
Adding value to the customer more efficiently and more effectively than competitors. The focus is on customer needs, and creating long term relationships (i.e. Toyota). It works better when there is a clear need and when customers know what they want.
The societal marketing concept...