MARKETING MANAGEMENT12th edition

1 Defining

Marketing for the

21st Century

Kotler Keller

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Chapter Questions

• Why is marketing important?

• What is the scope of marketing?

• What are some of the fundamental marketing concepts?

• How has marketing management changed?

• What are the tasks necessary for successful marketing management?

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Good Marketing is No Accident

Boston Beer Company, maker of Samuel Adams, constantly innovates

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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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Selling is only the tip of the iceberg

“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be

needed is to make the product or service available.”

Peter Drucker

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Designing the “Right” Product

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Only the best is good enough for Lexus customers

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Obtaining Products

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For an exchange to occur….

• There are at least two parties.

• Each party has something that might be of value to the other party.

• Each party is capable of communication and delivery.

• Each party is free to reject the exchange offer.

• Each party believes it is appropriate or desirable to deal with the other party.

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Are both forms of exchange?

Transactions Transfers

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What is Marketed?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

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Marketing Goods

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Marketing Ideas: Friends Don’t Let Friends Drive Drunk

This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.

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Demand States

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

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Figure 1.1 Structure of Flows in a Modern Exchange Economy

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Figure 1.2 A Simple Marketing System

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Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

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Global Markets

Coke is represented at the first China International Beverage Festival in Beijing in 2003

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The marketplace isn’t what it used to be…

Changing technologyChanging technology

GlobalizationGlobalization

DeregulationDeregulation

PrivatizationPrivatization

EmpowermentEmpowerment

CustomizationCustomization

ConvergenceConvergence

DisintermediationDisintermediation

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Company Orientations

Production

Selling Marketing

Product

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Figure 1.3 Holistic Marketing Dimensions

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Puma’s rebirth attributed to holistic marketing

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Figure 1.4 The Four P’s

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Figure 1.5 Marketing-Mix Strategy

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Marketing Mix and the Customer

Four P’s• Product• Price• Place• Promotion

Four C’s• Customer solution• Customer cost• Convenience• Communication

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Corporate Social Initiatives

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Corporate Social Initiatives

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Core Concepts

• Needs, wants, and demands

• Target markets, positioning, segmentation

• Offerings and brands• Value and

satisfaction

• Marketing channels• Supply chain• Competition• Marketing

environment• Marketing planning

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I want it, I need it…

5 Types of Needs

• Stated needs• Real needs• Unstated needs• Delight needs• Secret needs

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Figure 1.6 Factors Influencing Marketing Strategy

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Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Shaping market offerings

• Delivering value• Communicating

value• Creating long-term

growth

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Marketing Debate

Does Marketing Create or Satisfy Needs?

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Marketing Discussion

Are there any themes that emerge in the broad shiftsin marketing? Can they be

related to the major societalforces? Expand.