1Defining Marketing for the 21st Century

Chapter Questions

Why is marketing important?What is the scope of marketing?What are some fundamental marketing concepts?How has marketing management changed?What are the tasks necessary for successful marketing management?

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Why is marketing important?

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What is Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its

stakeholders.

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What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

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What is Marketed?

• Goods

• Services

• Events

• Experiences

• Persons

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What is Marketed?

• Places

• Properties

• Organizations

• Information

• Ideas

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Key Customer Markets

Consumer markets

Business markets

Global markets

Non-profit/Government markets

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A Simple Marketing System

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Functions of CMOs

1. Strengthening the brands2. Measuring marketing effectiveness3. Driving new product development based on

customer needs4. Gathering meaningful customers insights5. Utilizing new marketing technology

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Improving CMO Success

Make the mission and responsibilities clearFit the role to the marketing culture and structureEnsure the CMO is compatible with the CEOMake line managers marketing heroesInfiltrate the line organizationRequire right-brain and left-brain skills

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Demand States

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Negative (dislike product and may even pay a price to avoid it)

Non-existent (unaware of or uninterested in the product)

Latent (need that cannot be satisfied by existing demand)

Declining (buy the product less frequently or not at all)

Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly bases)Unwholesome (product that have undesirable social consequence)Full (adequately buying all products put into the marketplace)Overfull (more consumers would like to buy the product that can be satisfied)

Core Concepts

Needs, wants, and demandsTarget markets, positioning, and segmentationOfferings and brandsValue and satisfaction

Marketing channelsSupply chainCompetitionMarketing environmentMarketing planning

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Types of Needs

Stated

Real

Unstated

Delight

Secret

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Target Markets, Positioning & Segmentation

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Offerings and Brands

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Value and Satisfaction

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Marketing Channels

Communication channelsto deliver and receive information

from target buyers

Distribution channels to deliver products/services to the

buyers

Service channelsto facilitate transactions with potential

buyers

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Marketing Task Environment

The Company Suppliers

Distributors

Finance, insurance

Target customers

Marketing agencies

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Marketing Broad Environment

Demogra-phic Economic

Socio-cultural

Technologi-cal

Political-legal

Natural

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How has marketing management changed?

The marketplace isn’t what it used to be…

Network information technologyGlobalizationDeregulationPrivatization

Heightened competitionIndustry convergenceRetail transformationDisintermediationConsumer resistance

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New Consumer Capabilities

A substantial increase in buying powerA greater variety of available goods and servicesA great amount of information about practically anythingGreater ease in interacting and placing and receiving ordersAn ability to compare notes on products and servicesAn amplified voice to influence public opinion

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Company Orientations

Production concept

Product concept

Selling concept

Marketing concept

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Holistic Marketing

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Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community

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Integrated Marketing:Marketing Mix

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The New Four Ps

People

Processes

Programs

Performance

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Internal Marketing

Internal marketing is the task of hiring, training, and motivating able employees

who want to serve customers well.

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Performance Marketing

Financial Accountability

Social Responsibility

Marketing

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Types of Corporate Social Initiatives

Corporate social marketingCause marketingCause-related marketingCorporate philanthropyCorporate community involvementSocially responsible business practices

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Marketing Management Tasks

Develop market strategies and plans – ch. 2Capture marketing insights – ch. 3Connect with customers – ch. 4, 5, 6, 7Build strong brands – ch. 8, 9Shape market offerings – ch. 10, 11, 12Deliver value – ch. 13, 14Communicate value – ch. 16, 17Create long-term growth – ch. 18

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