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INTRODUCTION
• GROUP INTRODUCTION
• GRADE DISTRIBUTION
• COURSE REFERENCES
• TIME AND SCHEDULES

Marketing Marketing
Marketing
Management: A Management:
Management:
Strategic 15th Edition
Knowledge and
Author : J. Paul Peter
Skills, 11th Author: John Mullins
Decision-Making Philip Kotler
Author:
Edition James Donnelly ApproachOrville Walker Kevin Keller
8th Edition

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Chapter
1
Defining
Marketing
for the
New Realities

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Learning Objectives
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some core marketing concepts?
4. What forces are defining the new marketing
realities?
5. What new capabilities have these forces given
consumers and companies?
6. What does a holistic marketing philosophy include?
7. What tasks are necessary for successful marketing
management?

The Value of Marketing

Austrian-born American management


consultant, educator, and author
1909 – 2005

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The Value of Marketing


• Financial success often depends on marketing
ability
• Successful marketing builds demand for
products and services.
• Marketing builds strong brands and a loyal
customer base, intangible assets that contribute
heavily to the value of a firm.

The scope of Marketing


• So what is marketing?
– Is marketing more about planning?

– Is marketing advertising?

– Is marketing selling?

– Is marketing ….?

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“The aim of marketing is to make


selling nonessential.

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

The Scope of Marketing


• What is Marketing…

• As adopted by the National Association of


Marketing Teachers, an American Marketing
Association predecessor organization:

• MARKETING is the performance of


business activities that direct the
flow of goods and services from
producers to consumers. (The 1935 Definition)

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The Scope of Marketing


• What is Marketing…

• MARKETING is the process of


planning and executing the
conception, pricing, promotion and
distribution of ideas, goods and
services to create exchanges that
satisfy individual and organization
objectives.
(The 1985 Definition)

The Scope of Marketing


• 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.
(The 2004 Definition)

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The Scope of Marketing


• What is Marketing…

• MARKETING is the activity, set of


institutions, and processes for
creating, communicating, delivering,
and exchanging offerings that have
VALUE for customers, clients,
partners, and society at large.
(The 2007 Definition)

The Scope of Marketing

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The Scope of Marketing


• Marketing is about identifying and meeting
human and social needs for profits

Core Marketing Concepts


• Needs: the basic human requirements
such as for air, food, water, clothing, and
shelter. A state of felt deprivation

• Wants: specific objects that might satisfy


the need

• Demands: wants for specific objects


backed by an ability to pay

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5 Types of Needs

STATED Inexpensive transportation

REAL Low monthly cash outlays

UNSTATED Comfortable Transportation

DELIGHT Onboard entertainment system

SECRET Friends sees you as smart

8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
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Demand Types Definition

consumer’s dislike a product and may pay to avoid, such as


Negative
with dental work

consumers are unaware of or uninterested in the product or


Nonexistent
service

There is no product on the market that can satisfy consumer


Latent
needs

Consumers purchase a product less and less frequently, or


Declining not at all. For example, the sale of albums (vinyl and CD’s)
are declining significantly

A products demand varies by time, such as on a seasonal


Irregular
basis.

Consumers are attracted to products that have undesirable


Unwholesome
social consequences, such as cigarettes.

Consumers are buying all the products that enter into the
Full
market.

Overfull There are more buyers than product available.

Structure Of Flows In A Modern


Exchange Economy

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Core Marketing Concepts

• Marketing
environment

– Task environment

– Broad environment

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© 2016
INC.
Pearson Education Ltd. 1-21 1-21

The New Marketing Realities

• Technology
• Globalization
• Social Responsibility

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Company Orientation toward


the Marketplace

PRODUCTION

PRODUCT

SELLING

MARKETING

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© 2016
INC.
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Holistic Marketing Dimensions

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Relationship marketing

CUSTOMERS

EMPLOYEES

MARKETING PARTNERS

FINANCIAL
COMMUNITY

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Integrated marketing
• Devise marketing activities and programs that
create, communicate, and deliver value such that
“the whole is greater than the sum of its parts.”

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Internal marketing
• The task of hiring, training, and motivating
able employees who want to serve
customers well

Performance marketing

FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT

SOCIAL IMPACT

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Marketing Mix Components (4 Ps)

4Ps Versus 4Cs


View of the Company View of the Customer

Product Customer Solution

Price Cost

Place Convenience

Promotion Communication

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MODERN MARKETING
MANAGEMENT

PEOPLE

PROCESSES

PROGRAMS

PERFORMANCE

MARKETING
MANAGEMENT TASKS
• Developing market strategies and plans

• Capturing marketing insights

• Connecting with customers

• Building strong brands

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MARKETING
MANAGEMENT TASKS
• Creating value

• Delivering value

• Communicating value

• Creating successful long-term growth

THE MARKETING PROCESS

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THE MARKETING PROCESS

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