1 Defining Marketing for the 21 st Century

1 Defining Marketing for the 21 st Century Marketing Management, 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? 1 -2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Good Marketing is No Accident Starbucks plans to ensure its marketing successes in countries around the world. 1 -3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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. 1 -4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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. 1 -5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 1 -6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas 1 -7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Successful New Product Launches Require Careful Planning 1 -8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Can Promote Ideas 1 -9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1. 1 Structure of Flows in a Modern Exchange Economy 1 -10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1. 2 A Simple Marketing System 1 -11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Demand States Negative Nonexistent Declining Full 1 -12 Latent Irregular Overfull Unwholesome Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Key Customer Markets Consumer Markets Business Markets 1 -13 Global Markets Nonprofit/ Government Markets Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Edmunds. com: A Metamediary Website 1 -14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 1 -15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1. 3 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 1 -16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Core Marketing Concepts • Needs, wants, and demands • Target markets, positioning, segmentation • Offerings and brands 1 -17 • Value and satisfaction • Marketing channels • Supply chain • Competition • Marketing environment Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

I want it, I need it… Five Types of Needs • • • 1 -18 Stated needs Real needs Unstated needs Delight needs Secret needs Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation 1 -19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 1 -20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Company Orientations 1 -21 Production Product Selling Marketing Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1. 4 Holistic Marketing Dimensions 1 -22 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

RBC emphasizes a relationship marketing approach 1 -23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1. 5 The Four P’s 1 -24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Carnival uses online marketing activities 1 -25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. 1 -26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Performance Marketing • Financial Social Initiatives Accountability • Corporate social marketing • Social Responsibility • Cause marketing Marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices 1 -27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Management Tasks • • 1 -28 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 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers? 1 -29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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? 1 -30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall