Defining Marketing for the 21st Century

Marketing Management, 13th ed

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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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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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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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What is Marketed?

• Goods (tangible)

• Services (intangible)

• Events (time based—

trade shows) and Experiences (Walt Disney World’s Magic kingdom)

• Persons (Artists, Musicians, CEO, Physicians)

• Places (Cities, States,

Regions, Nations) and Properties (Intangible rights of ownership of real estate or financial properties)

• Organizations (Universities, Museums, Performing Arts Organization)

• Information (Books, Schools, Magazines)

• Ideas (Revlon sell hope)

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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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Key Customer Markets

• Consumer markets (personal consumption)

• Business markets (resale or used to produce other products or services)

• Global markets (international)

• Nonprofit/Government markets (Churches, Universities, Charitable Organizations, Government Agencies)

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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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Corporate Social Initiatives

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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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Demand States

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

• Nonexistent (unaware of or uninterested in the product)

• Latent (need that cannot be satisfied by existing product)

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

• Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis)

• Unwholesome (product that have undesirable social consequences)

• Full (adequately buying all products put into the marketplace)

• Overfull (more consumers would like to buy the product that can be satisfied)

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Company Orientations

• Production (consumers will prefer products that are widely available and inexpensive)

• Product (consumers favor products that offer the most quality performance, or innovative features)

• Selling (consumer and businesses, if left alone, won’t buy enough of the organization’s products)

• Marketing (find the right product for the consumers (i.e., satisfy the wants and needs of the consumers)

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The Four P’s

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Marketing-Mix Strategy

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Marketing Mix and the Customer

Four Ps• Product• Price• Place• Promotion

Four Cs• Customer

solution• Customer cost• Convenience• Communication

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Core Concepts

• Needs, wants, and demands

• Target markets, positioning (in mind of target buyers), segmentation

• Offerings (intangible benefit made physical) and brands (offering from a know source)

• Value (set of benefits) and satisfaction

• Marketing channels (communications, distribution, and service)

• Supply chain• Competition• Marketing

environment• Marketing planning

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Marketing Management Tasks

• Developing marketing strategies (strategic fit)

• Capturing marketing insights (obtaining information)

• Connecting with customers (relationships)

• Building strong brands (understand strengths and weaknesses)

• Shaping market offerings

• Delivering value• Communicating

value• Creating long-

term growth (positioning and new-product development)

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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

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Improving CMO Success (cont.)

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

structure• Ensure the CMO is compatible with the CEO• Make line managers marketing heroes• Infiltrate the line organization• Require right-brain and left-brain skills

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New Consumer Capabilities

• A substantial increase in buying power (a click away)

• A greater variety of available goods and services (internet)

• A great amount of information about practically anything (online)

• Greater ease in interacting and placing and receiving orders (24/7)

• An ability to compare notes on products and services (internet)

• An amplified voice to influence public opinion (internet)

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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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Holistic Marketing Dimensions

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Performance Marketing

• Financial Accountability—building band and growing the customer base.

• Social Responsibility Marketing—must consider ethical environment, legal, and social context on activities.

• Social Initiatives• Corporate social marketing —

supporting behavior change campaigns

• Cause marketing —promoting social issues through sponsorships, licensing agreements, and advertising

• Corporate philanthropy—making gifts, goods, or time

• Corporate community involvement—in kind or volunteer service

• Socially responsible business practices—to protect environment and human and animal rights

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I want it, I need it…

5 Types of Needs

• Stated needs (inexpensive)

• Real needs (low operating cost)

• Unstated needs (good service)

• Delight needs (extras)• Secret needs (savvy

consumer)

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Marketing Debate

Does Marketing Create or Satisfy Needs?

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Study Question 1

The identification and profiling of distinct

groups of buyers who might prefer or

require varying product and service mixes

is known as ________. 

AA.  segmentation

B.  integration

C.  disintermediation

D.  targeting

E.  partner relationship management

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Study Question 2

Companies address needs by putting

forth a(n) ________, a set of benefits that

they offer to customers to satisfy their

needs.  

A.  brand

BB.  value proposition

C.  offering

D.  target market

E.  demand

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Study Question 3

If a marketer decides to use warehouses, transportation

companies, banks, and insurance companies to

facilitate transactions with potential buyers, the

marketer is using what is called a

________.  

A.  service channel

B.  distribution channel

C.  brand channel

DD.  relationship channel

E.  intermediary channel

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Study Question 4

Managers of ________-oriented businesses

concentrate on achieving high production efficiency, low

costs, and mass distribution.  

A.  selling

B.  product

CC.  production

D.  marketing

E.  consumer

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Study Question 5

________ activities include those the company

undertakes to make the product accessible and

available to target customers.  

A.  Consumer behavior

B.  Market segmentation

C.  Marketing research

DD.  Channel

E.  New-product development