Defining Marketing for the 21st Century

Marketing Management, 13th ed

1

Marketing

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.

“ The Passionate Pursuit of Perfection”

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.

Exchange, Transactions & Transfer• Exchange which is the core concept of marketing , is the process of

obtaining a desired product from someone by offering something in return.

• For exchange potential to exist 5 conditions must be satisfied:

1. There are at least two parties

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

3. Each party is capable of communication and delivery

4. Each party is free to accept or reject the exchange offer

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

Transactions

• When an agreement is reached , we say a transaction takes place. A transaction is a trade of values between two or more parties.

Transfer

• In a transfer A gives X to B but does not receive anything tangible in return

• Gifts , subsidies and charitable contributions are all transfers.

What is Marketed?

• Goods• Services• Events and

experiences• Persons

• Places and properties

• Organizations• Information • Ideas

Who Markets?

• Marketers and Prospects

Demand States

1. Negative

2. Nonexistent

3. Latent

4. Declining

5. Irregular

6. Unwholesome

7. Full

8. Overfull

Markets

ManufacturerMarkets

Government Markets

Intermediary Markets

Resource Markets

Consumer Markets

Goods and services

Money

Taxes, Goods

Services, Money

Money

Resources

Services,Money

Taxes, Goods

Money

Goods and services

Money

Resources

Taxes, Goods

Services,Money

A simple marketing system

Key Customer Markets

• Consumer markets• Business markets• Global markets• Nonprofit/Government markets

Marketplaces, Marketspaces & Metamarkets

How Business and Marketing are Changing

• Changing Technology• Globalization• Deregulation• Privatization• Customer Empowerment• Customization• Heightened Competition• Industry Convergence• Retail Transformation• Disintermediation

Company Orientations

• Production Concept• Product Concept• Selling Concept• Marketing Concept

Holistic Marketing Dimensions

Components of Holistic Marketing

1. Relationship marketing

2. Integrated Marketing( 4 P’s and 4 C’s)

3. Internal Marketing

4. Social Responsibility marketing

Marketing Mix and the Customer

Four Ps• Product• Price• Place• Promotion

Four Cs• Customer

solution• Customer cost• Convenience• Communication

4 Ps of Marketing Mix

7 Ps of Marketing Mix

Marketing

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

Factors influencing Company Marketing Strategy

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

Global marketing

Functions of CMOs

• Strengthening the brands• Measuring marketing effectiveness• Driving new product development

based on customer needs• Gathering meaningful customer insights• Utilizing new marketing technology

Improving CMO Success • Make the mission and responsibilities clear• Fit the role to the marketing culture and

structure• Ensure the CMO is compatible with the CEO• Remember that show people don’t succeed• Match the personality with the CMO type• Make line managers marketing heroes• Infiltrate the line organization• Require right-brain and left-brain skills

New Consumer Capabilities

• A substantial increase in buying power• A greater variety of available goods and

services• A great amount of information about

practically anything• Greater ease in interacting and placing and

receiving orders• An ability to compare notes on products and

services• An amplified voice to influence public opinion

Marketing Management Tasks

• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth

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?

Marketing Debate

• Does Marketing Create or Satisfy needs?