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Defining Marketing
for the 21st Century
 Chapter Questions

ƒ Why is marketing important?

ƒ What is the scope of marketing?
ƒ What are some fundamental marketing
concepts?
ƒ How has marketing management changed?
ƒ What are the tasks necessary for successful
marketing management?

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Why is marketing important?

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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.

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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.

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 What is Marketed?

• Goods
• Services
• Events
• Experiences
• Persons

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 What is Marketed?

• Places
• Properties
• Organizations
• Information
• Ideas

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 Key Customer Markets

ƒ Consumer markets
ƒ Business markets
ƒ Global markets
ƒ Non-profit/Government markets

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A Simple Marketing System

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 Functions of CMOs

1. Strengthening the brands

2. Measuring marketing effectiveness
3. Driving new product development based on
customer needs
4. Gathering meaningful customers insights
5. Utilizing new marketing technology

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 Improving CMO Success

ƒ Make the mission and responsibilities clear

ƒ Fit the role to the marketing culture and
structure
ƒ Ensure the CMO is compatible with the CEO
ƒ Make line managers marketing heroes
ƒ Infiltrate the line organization
ƒ Require right-brain and left-brain skills

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Demand States
ƒ Negative (dislike product ƒ Irregular (purchases
and may even pay a price vary on a seasonal,
to avoid it) monthly, weekly, daily, or
even hourly bases)
ƒ Non-existent (unaware ƒ Unwholesome
of or uninterested in the (product that have
product) undesirable social
ƒ Latent (need that cannot consequence)
be satisfied by existing ƒ Full (adequately buying
demand) all products put into the
marketplace)
ƒ Declining (buy the
product less frequently or ƒ Overfull (more
consumers would like to
not at all)
buy the product that can be
satisfied)
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Core Concepts

ƒ Needs, wants, and

demands ƒ Marketing channels
ƒ Target markets, ƒ Supply chain
positioning, and ƒ Competition
segmentation
ƒ Marketing
ƒ Offerings and environment
brands
ƒ Marketing planning
ƒ Value and
satisfaction

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Types of Needs

Stated

Real

Unstated

Delight

Secret

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Target Markets,
Positioning & Segmentation

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Offerings and Brands

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Value and Satisfaction

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Marketing Channels
Communication channels
to deliver and receive information
from target buyers

Distribution channels
to deliver products/services to the
buyers

Service channels
to facilitate transactions with potential
buyers

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Marketing Task Environment

The
Suppliers
Company

Target Distributors
customers

Finance, Marketing
insurance agencies

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Marketing Broad Environment

Demogra-
Economic
phic

Socio-
Political-
cultural
legal

Technologi-
cal Natural

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 How has marketing management
changed?

The marketplace isn’t what it used to be…

ƒ Network information ƒ Heightened

technology competition
ƒ Globalization ƒ Industry convergence
ƒ Deregulation ƒ Retail transformation
ƒ Privatization ƒ Disintermediation
ƒ Consumer resistance

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 New Consumer Capabilities

ƒ A substantial increase in buying power

ƒ A greater variety of available goods and
services
ƒ A great amount of information about practically
anything
ƒ Greater ease in interacting and placing and
receiving orders
ƒ An ability to compare notes on products and
services
ƒ An amplified voice to influence public opinion

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Company Orientations

Production concept

Product concept

Selling concept

Marketing concept

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Holistic Marketing

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Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community

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Integrated Marketing:
Marketing Mix

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The New Four Ps

People

Processes

Programs

Performance

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Internal Marketing

Internal marketing is the task of

hiring, training, and motivating able employees
who want to serve customers well.

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Performance Marketing

Social
Financial
Responsibility
Accountability
Marketing

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 Types of
Corporate Social Initiatives

ƒ Corporate social marketing

ƒ Cause marketing
ƒ Cause-related marketing
ƒ Corporate philanthropy
ƒ Corporate community involvement
ƒ Socially responsible business practices

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 Marketing Management Tasks

ƒ Develop market strategies and plans – ch. 2

ƒ Capture marketing insights – ch. 3
ƒ Connect with customers – ch. 4, 5, 6, 7
ƒ Build strong brands – ch. 8, 9
ƒ Shape market offerings – ch. 10, 11, 12
ƒ Deliver value – ch. 13, 14
ƒ Communicate value – ch. 16, 17
ƒ Create long-term growth – ch. 18

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