Chapter 1Marketing in the 21st century
Courtesy: Marketing Management by Philip Kotler 10th Edition Chapter 1 Marketing in the 21st century
Scope of Marketing
Marketing people are involved in 10 types of entities:
•Goods like eggs, steel, cars (Maruti!!!! Wow)
•Services like airlines, hotels, barbers
•Experiences like Walt Disney world’s magic kingdom, at planet Hollywood •Events like Olympics, trade shows, sports events
•Persons like celebrity marketing by making major film star as brand ambassador etc. •Places like cities, states, nations to attract tourists, factories, company headquarters, and new residents, like we use TAJ or say Nainital •Properties like real state owners market properties or agent markets securities •Organizations thru’ Corporate identity ads like by using tag line ‘Lets make things better’, or like Richard Branson (virgin) or Phil knight of Nike are some identity •Information like thru encyclopedias, CDs and visit the internet for information. This is information marketing •Ideas like the buyer of a drill are really buying a hole. Church should market itself as a place of worship or a community center.
Eight different states of demand:
•Negative demand: if a major part of market dislikes the product and may even pay a price to avoid it – vaccinations, gall bladder operations etc. Marketing task is to analyse why the market dislikes the product and whether a marketing program can change beliefs and attitudes. •No Demand: Target consumers may be unaware of or uninterested in the product. Ex. College students may not be interested in foreign language courses. Marketing should look for ways to benefit others with their product and of course thus sell their product •Latent demand: Market feels strong needs for some products like harmless cigarettes. Marketer needs to measure size of this market and develop such goods •Declining demand: Market for product declines. Then marketer need to know the causes and rectify •Irregular demand: Demand of many products and services are seasonal. Marketer needs to devise ways called synchro-marketing like flexible pricing, promotions and other incentives •Full demand: sometimes full demand is there. Marketing task is to maintain current level of demand in face of changing consumer preferences and increasing competition. •Overfull demand: sometimes demand is higher than what organization can handle. Then marketing task, called de-marketing is required. like thru raising prices and reducing promotion and service. Selective marketing is reducing demand from some parts, say not so profitable, of the market •Unwholesome demand: Unwholesome products will attract organized efforts to discourage consumption. Like unselling campaigns against cigarettes, alcohol, handguns. Marketing can use fear messages like raising prices, reduced availability. Marketing managers face a host of decisions, from major ones such as what product to make, what features, how many salespersons to hire etc. These questions vary according to marketplaces.
Consider following four markets
•Consumer market: mass consumer goods and services such as soft drinks, toothpaste, air travel etc. •Business Markets: Companies selling business goods and services face weel trained and well informed professional buyers. They buy goods for their utility or to to make or resell a product to others. •Global markets: goods and services for global marketplace . They have to decide which country to enter , how to enter, has to have a fit the cultural practices etc. •Nonprofit and Governmental Markets: goods to nonprofit organizations like churches, universities, governmental agencies need to be priced carefully. They have to follow long government procedures to get this market.
Marketing Concepts and Tools:
Marketing is a societal process by which individuals and groups obtain what they need and want...