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A FRAMEWORK for MARKETING MANAGEMENT Kotler Keller Cunningham Chapter Chapter 1 1 Defining Marketing for the 21 st Century
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Kotler Keller Cunningham

Chapter 1Chapter 1Defining

Marketing for the

21st Century

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Chapter Questions

• Why is marketing important?

• What is the scope of marketing?

• What are some fundamental marketing concepts?

• What are the tasks necessary for successful marketing management?

© Copyright 2008 Pearson Education Canada1-2

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•Kraft Canada Inc. continues to operate in a highly complex market

•Customers have more choice but less time for shopping and preparing meals

•Retailers are ramping up the use of own-brands

•Using a newly developed consumer database, Kraft adopted a set of customer relationship management (CRM) initiatives, with the key aim being:

“To help Kraft grow into a service provider that helps consumers shop more efficiently, prepare quick meals simply.”

Profile: Canadian Marketing ExcellenceKRAFT CANADA INC.

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Kraft’s Strategy:

• “Family. Food. Simple.”

The Results:

• Kraft is now on the Marketing Magazine’s annual top ten list of “Marketers that Mattered.”

• Customer satisfaction is high, with thousands calling its 1-800 helpline for cooking tips

Profile: Canadian Marketing ExcellenceKRAFT CANADA INC.

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• Kraft’s What’s Cooking magazine is the largest circulating magazine in Canada

• Kraft also partnered with Food TV and created the number one cooking show in Quebec

• By combining marketing insight and leading edge technologies, Kraft has developed unmatched consumer relationships


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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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The Importance of Marketing

•Financial success often depends on good marketing•Many companies have not understood this completely, including

•Nortel, Bombardier, Sears, Kodak, Xerox•Today’s market leaders, including Wal-Mart, Nike, and Research In Motion (RIM), know they can’t afford to relax•Short term (transactional marketing) versus long term (relationship marketing)•Creation of Chief Marketing Officer (CMO) position

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Big Rock Brewery

•Big Rock Brewery recognizes that meeting customer needs is an infinite quest•In 2005 the company found it necessary to differentiate itself in Alberta’s crowded premium beer market:

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•Using a combination of retro labels (originally used 20 years ago) and the rolling out of the largest-ever multimedia campaign to promote its Grasshopper brand, Big Rock was able to secure a foothold as the beer of choice for many Albertans


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Selling Is Only the Tip of the Iceberg

“There will always be a 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

© Copyright 2008 Pearson Education Canada1-9

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For an Exchange to Occur…..

• There must be 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 accept or 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?



Events and experiencesEvents and experiences


Places and propertiesPlaces and properties




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87% of Canadian Exports (2005)

69% of Canadian GDP (2005)


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Figure 1.1 A Simple Marketing System

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Company Orientations


Selling Marketing


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Figure 1.2 Holistic Marketing Dimensions

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Figure 1.3 The Four P Components of the Marketing Mix

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Key Themes of Integrated Marketing

Many different marketing activities used to

communicate and deliver value

All marketingactivities

coordinated to maximize

theirjoint effects

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Figure 1.4 Marketing-Mix Strategy

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Internal Marketing

• Employees contribute to building long-term relationships with customers• Step 1: Select employees with positive

attitudes• Step 2: Train, motivate, and empower

employees• Step 3: Establish standards for employee

performance• Step 4: Monitor actions and reward good

performance© Copyright 2008 Pearson Education Canada


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Internal Marketing at Scotiabank

• Positioned as a “Client Centred” bank• Plan put into action to align Scotiabank

around customer centricity;

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•Key use was made of internal incentive programs that rewarded staff for spending time with clients•Peer to peer awards program and “Team Voice”, which let employees communicate directly with senior management


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Societal Marketing Concept

An organization’s task is to determine the needs, wants, and interestsof target markets and to deliver the desired satisfactionmore effectively and efficiently than competitors in a way that preserves or enhances the well-being of both consumer and society.

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Fundamental Marketing 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...

Five Types of Needs• Stated needs• Real needs• Unstated needs• Delight needs• Secret needs

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Figure 1.5 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


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For Discussion

How are demographic changesin the Canadian population

affecting marketers?

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