Chapter 1
Why is Marketing
Management
Important?
Learning Objectives:
At the end of this chapter students are
expected to understand the following:
1. Define Marketing
2. Marketing is an exchange relationship
3. Why is Marketing Management
Important?
4. The Marketing Framework: The 5Cs,
STP, and 4Ps
Defining Marketing
*In this chapter we’ll begin with an
overview of marketing concepts and
terms. We’ll use the “Marketing
Framework” and define its terms:
5Cs, STP, 4Ps. The framework offers
a systematic way to think about
marketing and a structure for the
book.
Marketing is an Exchange
Relationship
*Marketing is defined as an
exchange between a firm and its
customers. It indicates that the
customer wants something from the
firm, and the firm wants something
from the customer. The key to
marketing is being customer
oriented.
Marketing is an
exchange where;
1. Customer seeks benefits
2. Customer expects to pay
3. Company seeks profits
4. Company offers benefits
Marketing is Everywhere
*Naturally, companies use
marketing for their brands
and themselves, and whole
industries market themselves.
Marketing can be used
beneficially in all situations.
Why is Marketing
Management Important?
Marketing has evolved beyond being
“product” or “production focused,”
where the company mindset is “Let’s
just build a better mouse trap”.
We know that doesn’t work; there’s
no point in producing unless
customers want what we have to sell.
What Can We Market?
1. Goods 8. Ideas
2. Services 9. Companies
3. Experiences 10. Industries
4. Events
5. People
6. Places
7. Information
Why is Marketing Management
Important? (cont.)
*Marketing is evidence of evolved
markets; it signals that an industry or
company has moved beyond production
and sales and seeks a true relationship with
its customers.
*Today’s marketing world is truly
customer oriented and customer
empowered.
Customer Oriented
-Marketers seek to identify their
customers’ needs and wants and try to
formulate attractive solutions.
Customer Empowerment
-is when you give your customers the
information and the tools that they need to
make a decision. By giving them resources
and options, you're providing them with a
much better buying experience and
allowing them to determine the kind of
experience they'd want to have with your
brand.
The Marketing
Framework
5Cs
1. Customer
2. Company
3. Context
4. Collaborators
5. Competitors
Customer and Company- are the
central players of the marketing
exchange.
Context- includes the backdrop of
macro environment factors.
Collaborators and Competitors –
are the companies and the people
we work with vs. those we compete
against.
The Marketing
Framework
STP
1. Segmentation
2. Targeting
3. Positioning
1. Segments- groups of customers who
share similar needs and wants,
2. Target - the act of attempting to
appeal to a person or group or to
influence them in some way. the
targeting of young people as potential
buyers.
3. Positioning - defines where your
product (item or service) stands about
others offering similar products and
services in the marketplace as well as
the mind of the consumer.
The Marketing
Framework
4Ps
1. Product
2. Price
3. Place
4. Promotion
Product – a good or service being offered.
Price – the amount of money expected,
required, or given in payment for something.
Place - the aspect of selling a product that
relates to where and how a company delivers
a product to consumers.
Promotion - refers to any type of marketing
communication used to inform target
audiences of the relative merits of a product,
service, brand or issue, persuasively.
Managerial Recap!
“Marketing can make
customers happier and therefore
companies more profitable.
Marketing will enhance your
career, and marketing can also
make the world a better place.”
