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1.5.2 Introduction to the Marketing Management

Managerial Definition of Marketing

One recognized managerial definition of marketing, provided by Philip Kotler, is:

"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals."

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Key Components in Kotler’s Definition

  1. Process-Oriented: Marketing management emphasizes a structured process (conception, pricing, promotion, distribution).
  2. Marketing Mix: The 4 Ps (Product, Price, Place, Promotion) are crucial in creating a strategic framework to reach customers.
  3. Value of Ideas, Goods, and Services: This definition recognizes that ideas (e.g., social causes like blood donation) and services (e.g., Spotify's streaming) can also be marketed alongside goods.
  4. Creating Exchanges: Marketing creates exchanges that meet the needs of both individuals and organizations.
  5. Organizational and Individual Goals: For an exchange to be successful, it must satisfy the organization (profit, market share, etc.) and the individual (utility, satisfaction).

Differences Between Marketing and Marketing Management

  1. Focus on Organization: Marketing exists to meet societal needs, whereas marketing management narrows this to organizational objectives (e.g., profit or market share).
  2. Planning and Execution: Marketing management requires careful planning and execution to align marketing activities with organizational goals.
  3. Value for Both Parties: The organization gets value (profits, brand loyalty), and the customer gains satisfaction from products, services, or ideas.

Summary of Key Marketing Principles

  1. Customer-Centric: The core philosophy is that customer satisfaction should be the focus of all marketing activities.
  2. Anticipating Needs: Marketers must identify and anticipate customer needs, using the 4 Ps (and sometimes up to the 7 Ps in services).
  3. Profit Orientation: For private sector organizations, profitability is typically a key focus, though public and non-profit sectors can also adopt marketing without profit being the primary goal.
  4. Relationship Building: Customer Relationship Marketing (CRM) focuses on building and maintaining relationships, fostering customer loyalty.
  5. Organizational-Wide Philosophy: Customer satisfaction should be embraced across all levels, not solely by the marketing team.
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