Module 1 THE MARKETING MANAGEMENT PROCESS Marketing is a social process involving the activities necessary to enable individuals and organisations to obtain what they need and want through exchanges with others and to develop ongoing exchange relationships. Recent Developments Globalisation Increased importance of service Information Technology Collect more data about customers New way of communicating with customers Relationships across functions & firms Factors Customers Utility/price relationship enhanced: Possession utility Place utility Time utility Ultimate Organisational Needs & wants • Need: gap between actual & desired state Want: Specific way to satisfy need Exchange Marketing activities Vertical integration: all marketing activities are performed by a single organisation identified potential exchange partners developed offerings communicated info delivered products collected payments Marketing channels: part of marketing activities are performed b:y Merchant wholesalers Agent middlemen Retailers Facilitating agencies Create value Process Products & Services Markets (consist of) Customers buy benefits, not products Benefits, service & price determine value L/T relationships make the lifetime customer value increase 1. Need 2. Benefits sought 3. Choice criteria 4. Product/service features 5. Brand/supplier chosen People Products: Tangible Institutions Services: Less Tangible Activities Places Individuals & Organisations (who are) Interested & Willing (and have) Resources available People’s needs: flow from basic biological and psychological human make-up Organisations’ needs: shaped by the organisation’s strategic objectives and Benefits: relate to resource inputs, capital equipment, supplies, and services necessary ro Transactional efficiency assure theri survival and well-being Functional effciency People’s want:s: shaped by social influences, their past history, and consumption