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ChapterChapter

11

Defning

Marketingor the

New Realities

Copyright 2016 Pearson Education, Inc. 1-1


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Learning ObjectivesLearning Objectives

1.

Why is marketing important?2. What is the scope of marketing?

3. What are some core marketing concepts?

4. What forces are dening the new marketing

realities?5. What new capabilities have these forces given

consmers and companies?

!. What does a holistic marketing philosophy inclde?

". What tasks are necessary for sccessfl marketingmanagement?



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#he $ale of %arketing#he $ale of %arketing

&inancial sccess often depends onmarketing ability

'ccessfl marketing bilds demand for

prodcts and services( which( in trn(creates )obs

%arketing bilds strong brands and a loyal

cstomer base( intangible assets thatcontribte heavily to the vale of a rm



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#he 'cope of %arketing#he 'cope of %arketing

Marketing is abot identifying andmeeting hman and social needs

*%*+s formal denition, Marketing is theactivity, set of institutions, and processesfor creating, communicating, delivering,and exchanging oerings that have value

for customers, clients, partners, andsociety at large



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%arketing %anagement%arketing %anagement

#he art and science of choosingtarget markets and getting( keeping(and growing cstomers throghcreating( delivering( andcommnicating sperior cstomervale

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W*# ' %*


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W*# ' %*


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Who %arkets?Who %arkets?

* marketer is someone who seeks aresponse=attention( a prchase( a

vote( a donation=from anotherparty( called the prospect

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97%*89 '#*#7'97%*89 '#*#7'

87*#$7

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@*#78# A-8':%7' %*0'*7 * '#8 8779 #*# -*88#B7 '*#'&79 B0 *8 7'#8/9:-#.C ADEFGHIJKLMNFNC

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&ig. 1.1&ig. 1.1'trctre f &lows n * %odern'trctre f &lows n * %odern

7Uchange 7conomy7Uchange 7conomy



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&ig. 1.2&ig. 1.2

* 'imple %arketing 'ystem* 'imple %arketing 'ystem



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-ore %arketing -oncepts-ore %arketing -oncepts

Needs, the basic hmanreirements sch as for air( food(water( clothing( and shelter

Wants, specic ob)ects that mightsatisfy the need

Demands, wants for specicprodcts backed by an ability to pay



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#0/7' & 8779'#0/7' & 8779'

"tated < the custo%er 'ants an ine*pensi#e car

=ea+ -9he custo%er 'ants a car 'hose operating costs, notinitia+ price, is +o'

>nstated < 9he custo%er e*pects good ser#ice (ro% thedea+er

e+ight < the custo%er 'ou+d +ie the dea+er to inc+ude anon&oard CP" na#igation syste%

"ecret < the custo%er 'ants (riends to see hi% or her as asa##y $RNJXSYKNFLMH) consu%er


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#arget markets

/ositioning

'egmentation




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Value proposition, a set of benetsthat satisfy those needs

Oerings, a combination of prodcts(services( information( and eUperiences

!rands, an oZering from a knownsorce

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%arketing channels

C>?IC89I?

I"9=I@>9I?

"E=AICE

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/aid media,#$( maga[ine and displayads( paid search( and sponsorships

wned media, a company or brandbrochre( web site( blog( facebookpage( or twitter accont

7arned media, word of moth( b[[(or viral marketing

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"mpressions, occr whenconsmers view a commnication

#ngagement, the eUtent of acstomer+s attention and activeinvolvement with a commnication

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Value, a combination of ality(service( and price Aqsp, the cstomervale triadC

$atisaction, a person+s )dgmentof a prodct+s perceived performancein relationship to eUpectations




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$uppl% chain, a channel stretching from rawmaterials to components to nished prodctscarried to nal byers A&ig 1.3, #he 'pply -hain for-oZeeC




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Competition, all the actal andpotential rival oZerings andsbstittes a byer might consider




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Marketingen&ironment

< 9as en#iron%ent$9E 8C9=" E?!8!E I? P=>CI?!,

I"9=I@>9I?!, 8? P=9I?! 9EE=I?!)

< @road en#iron%entE!=8PIC E?AI=?E?9,

EC?IC E?AI=?E?9, "CI87-C>79>=87 E?AI=?E?9, ?89>=87

E?AI=?E?9, 9EC?7!IC87E?AI=?E?9, 8? P7I9IC87-7E!87E?AI=?E?9




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#he 8ew %arketing ealities#he 8ew %arketing ealities

#echnology

lobali[ation

'ocialresponsibility



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* dramatically changed* dramatically changedmarketplacemarketplace

8ew consmer capabilities

< Can use the internet as a po'er(u+ in(or%ation

and purchasing aid

< Can search, co%%unicate, and purchase on

the %o#e

< Can tap into socia+ %edia to share opinions

and e*press +oya+ty



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8ew consmercapabilities

< Can acti#e+y interact'ith co%panies

< Can reDect %areting

they (ind inappropriate

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8ew company capabilities

< Can use the internet as a po'er(u+ in(or%ation and

sa+es channe+, inc+uding (or indi#idua++y di((erentiated

goods

< Can co++ect (u++er and richer in(or%ation a&out

%arets, custo%ers, prospects, and co%petitors

< Can reach custo%ers uic+y and e((icient+y #ia socia+

%edia and %o&i+e %areting, sending targeted ads,

coupons, and in(or%ation

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8ew company capabilities

< Can i%pro#e purchasing, recruiting, training, and

interna+ and e*terna+ co%%unications

< Can i%pro#e cost e((iciency

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-hangingchannels

< =etai+

trans(or%ation

< isinter%ediation

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eightened competition

< Pri#ate &rands

< ega-&rands

< eregu+ation

< Pri#atiation




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%arketing in practice%arketing in practice

%arketing balance

%arketing accontability

%arketing in the organi[ation



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-ompany rientation toward-ompany rientation towardthe %arketplacethe %arketplace

P=>C9I?

P=>C9

"E77I?!

8=FE9I?!



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&ig. 1.4&ig. 1.4

olistic %arketing 9imensionsolistic %arketing 9imensions



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elationship marketingelationship marketing

C>"9E="

EP7GEE"

8=FE9I?! P8=9?E="

I?8?CI87 C>?I9G



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ntegrated marketingntegrated marketing


9evise marketing activities and programsthat create( commnicate( and deliver valesch that ]the whole is greater than the sm

of its parts.^


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nternal marketingnternal marketing

#he task of hiring( training( andmotivating able employees who wantto serve cstomers well



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/erformance marketing/erformance marketing

I?8?CI87

8CC>?98@I7I9G

E?AI=?E?987

IP8C9

"CI87 IP8C9

Copyright 2016 Pearson Education, Inc. 1-3/


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#0/7' /7' &-/*#7 '-*@ 8#*#$7'-/*#7 '-*@ 8#*#$7'

-/*#7 '-*@ %*


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&ig. 1.5&ig. 1.5

%arketing %iU -omponents A4%arketing %iU -omponents A4

/sC/sC

Copyright 2016 Pearson Education, Inc. 1-3B


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%978 %*


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%*


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%*


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