1 Defining Marketing for the 21 st Century

1 Defining Marketing for the 21 st Century

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?

Chapter Questions • Does marketing create or satisfy needs?

How should the concept “marketing” be defined? Good definitions exhibit: • • inclusivity exclusivity differentiability clarity communicability consistency parsimony

What is Marketing?

What is Marketing? American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

What is Marketing? American Marketing Association 2004 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.

What is Marketing? American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

Scope of Marketing Evolution American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association 2004 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. American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What is Marketed? • Goods • Services • Events and experiences • Persons • Places and properties • Organizations • Information • Ideas

Demand States • • Negative Nonexistent Latent Declining • • Irregular Unwholesome Full Overfull

Key Customer Markets • • Consumer markets Business markets Global markets Nonprofit/Government markets

Company Orientations • • Production Product Selling Market vs. Marketing

Marketing Mix and the Customer Four Ps • Product • Price • Place • Promotion Four Cs • Customer solution • Customer cost • Convenience • Communication

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

Marketing Management Tasks • Developing marketing strategies • Capturing marketing insights • Connecting with customers • Building strong brands • Shaping market offerings • Delivering value • Communicating value • Creating longterm growth

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 • Co-generation of branding and advertising

Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

Performance Marketing American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association 2004 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. American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

Performance Marketing • Financial Accountability • Social Responsibility Marketing • Social Initiatives • Corporate social marketing • Cause marketing • Corporate philanthropy • Corporate community involvement • Socially responsible American Marketing Association 2007 business practices Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

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