MARKETING MANAGEMENT 12 th edition 1 Defining Marketing

MARKETING MANAGEMENT 12 th edition 1 Defining Marketing for the 21 st Century Kotler Keller

Chapter Questions • Why is marketing important? • What is the scope of marketing? • What are some of the fundamental marketing concepts? • How has marketing management changed? • What are the tasks necessary for successful marketing management? 2

Good Marketing is No Accident Boston Beer Company, maker of S a m u e l A d a m s , constantly innovates 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. 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. 5

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 6

Designing the “Right” Product 7

Only the best is good enough for Lexus customers 8

Obtaining Products 9

For an exchange to occur…. • There 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. 10

Are both forms of exchange? Transactions Transfers 11

What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas 12

Marketing Goods 13

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. 14

Demand States Negative Nonexistent Irregular Declining Full Latent Overfull Unwholesome 15

Figure 1. 1 Structure of Flows in a Modern Exchange Economy 16

Figure 1. 2 A Simple Marketing System 17

Key Customer Markets Consumer Markets Global Markets Business Markets Nonprofit/ Government Markets 18

Global Markets Coke is represented at the first China International Beverage Festival in Beijing in 2003 19

The marketplace isn’t what it used to be… Changing technology Globalization Deregulation Privatization Empowerment Customization Convergence Disintermediation 20

Company Orientations Production Product Selling Marketing 21

Figure 1. 3 Holistic Marketing Dimensions 22

Puma’s rebirth attributed to holistic marketing 23

Figure 1. 4 The Four P’s 24

Figure 1. 5 Marketing-Mix Strategy 25

Marketing Mix and the Customer Four P’s • Product • Price • Place • Promotion Four C’s • Customer solution • Customer cost • Convenience • Communication 26

Corporate Social Initiatives 27

Corporate Social Initiatives 28

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 29

I want it, I need it… 5 Types of Needs • • • Stated needs Real needs Unstated needs Delight needs Secret needs 30

Figure 1. 6 Factors Influencing Marketing Strategy 31

Marketing Management Tasks • Developing marketing strategies • Capturing marketing insights • Connecting with customers • Building strong brands • Shaping market offerings • Delivering value • Communicating value • Creating long-term growth 32

Marketing Debate Does Marketing Create or Satisfy Needs? 33

Marketing Discussion Are there any themes that emerge in the broad shifts in marketing? Can they be related to the major societal forces? Expand. 34