Chapter 1 Marketing in the TwentyFirst Century 1

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Chapter 1 Marketing in the Twenty-First Century 1 Copyright 2004 © Pearson Education Canada

Chapter 1 Marketing in the Twenty-First Century 1 Copyright 2004 © Pearson Education Canada Inc

Kotler on Marketing The future is not ahead of us. It has already happened.

Kotler on Marketing The future is not ahead of us. It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations. 2 Copyright 2004 © Pearson Education Canada Inc

Chapter Objectives • In this chapter we will address the following questions: – –

Chapter Objectives • In this chapter we will address the following questions: – – What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace? – How are companies and marketers responding to the new challenges? 3 Copyright 2004 © Pearson Education Canada Inc

The New Economy • Substantial increase in buying power • A greater variety of

The New Economy • Substantial increase in buying power • A greater variety of goods and services • A greater amount of information about practically anything • A greater ease in interacting and placing and receiving orders • An ability to compare notes on products and services 4 Copyright 2004 © Pearson Education Canada Inc

The New Economy • Websites can provide companies with powerful new information and sales

The New Economy • Websites can provide companies with powerful new information and sales channels. • Companies can collect fuller and richer information about markets, customers, prospects and competitors. • Companies can facilitate and speed up communications among employees. • Companies can have 2 -way communication with customers and prospects 5 Copyright 2004 © Pearson Education Canada Inc

The New Economy • Companies can send ads, coupons, samples, information to targeted customers.

The New Economy • Companies can send ads, coupons, samples, information to targeted customers. • Companies can customize offerings and services to individual customers. • The Internet can be used as a communication channel for purchasing, training, and recruiting. • Companies can improve logistics and operations for cost savings while improving accuracy and service quality. 6 Copyright 2004 © Pearson Education Canada Inc

The three major challenges faced by businesses today are globalization, advances in technology, and

The three major challenges faced by businesses today are globalization, advances in technology, and deregulation. Which of these affords the greatest opportunity for established businesses? Which affords the greatest opportunities for new businesses? Why? 7 Copyright 2004 © Pearson Education Canada Inc

Marketing Task • Ten rules of radical marketing – The CEO must own the

Marketing Task • Ten rules of radical marketing – The CEO must own the marketing function. – Make sure the marketing department starts small and flat and stays small and flat. – Get face to face with the people who matter most – the customers. – Use market research cautiously. – Hire only passionate missionaries. 8 Copyright 2004 © Pearson Education Canada Inc

Marketing Task – Love and respect your customers. – Create a community of consumers.

Marketing Task – Love and respect your customers. – Create a community of consumers. – Rethink the marketing mix. – Celebrate common sense. – Be true to the brand. • Three stages of marketing practice – Entrepreneurial Marketing – Formulated Marketing – Intrepreneurial Marketing 9 Copyright 2004 © Pearson Education Canada Inc

The Scope of Marketing • Marketing: typically seen as the task of creating, promoting,

The Scope of Marketing • Marketing: typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. 10 Copyright 2004 © Pearson Education Canada Inc

Table 1. 1 Demand States and Marketing Tasks 1. Negative demand A major part

Table 1. 1 Demand States and Marketing Tasks 1. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it —vaccinations, dental work, vasectomies, and gallbladder operations, for instance. Employers have a negative demand for exconvicts and alcoholics as employees. The marketing task is to analyze why the market dislikes the product and whether a marketing program consisting of product redesign, lower prices, and more positive promotion can change beliefs and attitudes. 2. No demand Target consumers may be unaware of or uninterested in the product. Farmers may not be interested in a new farming method, and college students may not be interested in foreign-language courses. The marketing task is to find ways to connect the benefits of the product with people’s natural needs and interests. See text for complete table Copyright 2004 © Pearson Education Canada Inc 11

Can you name a category of products for which your negative feelings have softened?

Can you name a category of products for which your negative feelings have softened? What precipitated this change? 12 Copyright 2004 © Pearson Education Canada Inc

The Scope of Marketing • • • Places Properties Organizations Information Ideas • •

The Scope of Marketing • • • Places Properties Organizations Information Ideas • • • Goods Services Experiences Events Persons 13 Copyright 2004 © Pearson Education Canada Inc

The Decisions Marketers Make • • Consumer Markets Business Markets Global Markets Nonprofit and

The Decisions Marketers Make • • Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets 14 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools • Defining Marketing – Marketing management • Core Marketing Concepts

Marketing Concepts and Tools • Defining Marketing – Marketing management • Core Marketing Concepts – Target Markets and Segmentation 15 Copyright 2004 © Pearson Education Canada Inc

Figure 1. 1: A Simple Marketing System 16 Copyright 2004 © Pearson Education Canada

Figure 1. 1: A Simple Marketing System 16 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools – Marketplace, Marketspace, and Metamarket 17 Copyright 2004 © Pearson

Marketing Concepts and Tools – Marketplace, Marketspace, and Metamarket 17 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools – Marketers and Prospects – Needs, Wants, and Demands –

Marketing Concepts and Tools – Marketers and Prospects – Needs, Wants, and Demands – Product, Offering, and Brand – Value and Satisfaction • Customer value triad • Value = Benefits / Costs = (Functional benefits + Emotional benefits) / (Monetary costs + Time costs + Energy costs + Psychic costs) 18 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools – Exchange and Transactions • • • Exchange Transaction Barter

Marketing Concepts and Tools – Exchange and Transactions • • • Exchange Transaction Barter Transfer Behavioural response 19 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools – Relationships and Networks • Relationship marketing • Marketing network

Marketing Concepts and Tools – Relationships and Networks • Relationship marketing • Marketing network – Marketing Channels – Supply Chain – Competition 20 Copyright 2004 © Pearson Education Canada Inc

Marketing Concepts and Tools • • Brand competition Industry competition Form competition Generic competition

Marketing Concepts and Tools • • Brand competition Industry competition Form competition Generic competition – Marketing environment • Task environment • Broad environment – Marketing Program • Marketing program • Marketing mix 21 Copyright 2004 © Pearson Education Canada Inc

Company Orientations Toward the Marketplace • Market Orientation – Intelligent generation – Intelligent dissemination

Company Orientations Toward the Marketplace • Market Orientation – Intelligent generation – Intelligent dissemination – Responsiveness 22 Copyright 2004 © Pearson Education Canada Inc

Company Orientations Toward the Marketplace – Target Market – Customer Needs • • •

Company Orientations Toward the Marketplace – Target Market – Customer Needs • • • Stated needs Real needs Unstated needs Delight needs Secret needs 23 Copyright 2004 © Pearson Education Canada Inc

Company Orientations Toward the Marketplace – Integrated Marketing • External marketing • Internal marketing

Company Orientations Toward the Marketplace – Integrated Marketing • External marketing • Internal marketing 24 Copyright 2004 © Pearson Education Canada Inc

Company Orientations Toward the Marketplace – Profitability • • • Sales decline Slow growth

Company Orientations Toward the Marketplace – Profitability • • • Sales decline Slow growth Changing buying patterns Increasing competition Increasing marketing expenditures 25 Copyright 2004 © Pearson Education Canada Inc

Company Orientations Toward the Marketplace • Customer Concept • Societal Marketing Concept – Cause-related

Company Orientations Toward the Marketplace • Customer Concept • Societal Marketing Concept – Cause-related marketing 26 Copyright 2004 © Pearson Education Canada Inc

Can you identify the trends that have made the marketing concept, the customer concept,

Can you identify the trends that have made the marketing concept, the customer concept, and the societal marketing concept more attractive models for contemporary marketing managers? 27 Copyright 2004 © Pearson Education Canada Inc

How Business and Marketing are Changing – Customers – Brand manufacturers – Store-based retailers

How Business and Marketing are Changing – Customers – Brand manufacturers – Store-based retailers 28 Copyright 2004 © Pearson Education Canada Inc

How Business and Marketing are Changing • Company responses and adjustments – Reengineering –

How Business and Marketing are Changing • Company responses and adjustments – Reengineering – Outsourcing – E-commerce – Benchmarking – Alliances § § Partner-suppliers Market-centered Global and local Decentralized 29 Copyright 2004 © Pearson Education Canada Inc

How Business and Marketing are Changing • Marketer Responses and Adjustments – Customer relationship

How Business and Marketing are Changing • Marketer Responses and Adjustments – Customer relationship marketing – Customer lifetime value – Customer share – Target marketing – Customization – Customer database § Integrated marketing communications § Channels as partners § Every employee a marketer § Model-based decision making 30 Copyright 2004 © Pearson Education Canada Inc

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Part I Entrepreneurship in the TwentyFirst Century ChapterPart I Entrepreneurship in the TwentyFirst Century Chapter
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