1 Defining Marketing for the 21 st Century

1 Defining Marketing for the 21 st Century Marketing Management A South Asian Perspective, 13 th ed

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? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -2

Good Marketing is No Accident The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -3

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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -4

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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -5

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 © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -6

What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -7

Successful New Product Launches Require Careful Planning Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -8

Marketing Can Promote Ideas Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -9

Figure 1. 1 Structure of Flows in a Modern Exchange Economy Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -10

Figure 1. 2 A Simple Marketing System Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -11

Demand States Negative Nonexistent Declining Full Latent Irregular Overfull Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Unwholesome 1 -12

Key Customer Markets Consumer Markets Business Markets Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Global Markets Nonprofit/ Government Markets 1 -13

www. marutitruevalue. com Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -14

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -15

Core Marketing Concepts • Needs, wants, and demands • Target markets, positioning, segmentation • Offerings and brands Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. • Value and satisfaction • Marketing channels • Supply chain • Competition • Marketing environment 1 -16

Positioning Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -17

The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -18

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -19

Company Orientations Production Product Selling Marketing Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -20

Figure 1. 4 Holistic Marketing Dimensions Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -21

Figure 1. 5 The Four P’s Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -22

Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -23

Performance Marketing • Financial Accountability • Social Responsibility Marketing Social Initiatives • Corporate social marketing • Cause-related marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -24

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -25

Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -26

Marketing Discussion ü Consider the societal forces noted in the chapter (e. g. , information technology, globalization, deregulation, consumer resistance, retail transformation). ü How have marketing practices shifted to accommodate and even leverage these forces? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1 -27