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Marketing Management
Chapter 1 – Defining Marketing for the
New Realities

Dr. Manoochehr Najmi

Graduate School of Management and Economics
Sharif University of Technology
1399-00 (2)
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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?

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 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. (AMA, 2017)

https://www.ama.org/the-definition-of-marketing-what-is-marketing/

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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, communicating,
and delivering superior customer value.

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 What is Marketed? (1)

• Goods
• Services
• Events
• Experiences
• Persons

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 What is Marketed? (2)

• Places
• Properties
• Organizations
• Information
• Ideas

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Figure 1.1 Structure of Flows in
Modern Exchange Economy

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Figure 1.2
A Simple Marketing System

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 Key Customer Markets

 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets
 Core Marketing Concepts
Supply Chain
Marketing Competition
Environment

Marketing
Strategy (STP) Offering and
and Planning Brands
Marketing
Needs, wants, Channels
and demands (Communications,
Distributions and
Core Services)
Marketing Paid, Owned and
Market
Concepts Earned Media
Impressions and
Engagement
Exchange, Value and
and relationships satisfaction
Understanding the Marketplace
and Customer Needs
Needs are states of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

Wants are the form that needs take as

they are shaped by culture and
individual personality

Demands are wants backed by buying

power

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Types of Needs

Stated (The customer wants an inexpensive car)

Real (The customer wants a car whose operating cost,
not initial price, is low.)

Unstated (The customer expects good service from the

dealer.)

Delight (The customer would like the dealer to include

an onboard GPS navigation system.)

Secret (The customer wants friends to see him or her as

a savvy consumer.)

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 Demand States

 Negative: Consumers dislike the product and may even pay to avoid it.
 Nonexistent: Consumers may be unaware of or uninterested in the product.
 Latent: Consumers may share a strong need that cannot be satisfied by an
existing product.

 Declining: Consumers begin to buy the product less frequently or not at all.
 Irregular: Consumer purchases vary on a seasonal, monthly, weekly, daily, or
even hourly basis.

 Full: Consumers are adequately buying all products put into the marketplace.
 Overfull: More consumers would like to buy the product than can be satisfied.
 Unwholesome: Consumers may be attracted to products that have
undesirable social consequences.
Marketing Strategy: Segmentation,
Targeting & Positioning (STP)

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Offerings and Brands

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Marketing Channels

Communication: Deliver and receive messages

Distribution: Display, Sell, or Deliver the physical

product or service(s) to the buyer or user

Service: include warehouses, transportation companies,

banks, and insurance companies

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Value and Satisfaction

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Marketing Environment

Demographic Economic

Socio-cultural
Political-legal

Technological Natural

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 The New Marketing Realities
Three Transformative Forces

 Technology
 Globalization
 Social Responsibility

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A Dramatically Changed Marketplace
New Consumer Capability
A Dramatically Changed Marketplace
New Company Capability
Company Orientations

Production

Product

Selling

Marketing

Holistic Marketing

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Marketing and Sales Concepts
Contrasted

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 ‫ﺗﻮﺳﻌﻪ ﺗﺎرﯾﺨﯽ ﺑﺎزارﯾﺎﺑﯽ‬

MAKE and
…-1950 SELL

1950-… SENSE and

RESPOND

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Holistic Marketing

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Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community

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 Integrated Marketing

Integrated marketing occurs when the

marketer devises marketing activities and
assembles marketing programs to create,
communicate, and deliver value for
consumers such that “the whole is greater
than the sum of its parts.”

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 Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
Also, marketing succeeds only when all
departments work together to achieve customer
goals.
Performance Marketing

Financial Social Responsibility

Accountability Marketing
The Marketing Mix (4 Ps)

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The New Four Ps

People

Processes

Programs

Performance

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 MARKETING
MANAGEMENT TASKS (1)

 Developing market strategies and plans

 Capturing marketing insights

 Connecting with customers

 Building strong brands

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 MARKETING
MANAGEMENT TASKS (2)

 Creating value

 Delivering value

 Communicating value

 Creating successful long-term growth

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 For Review

 What is the scope of marketing?

 Why is marketing important?
 What are some fundamental marketing
concepts?
 How has marketing management changed?
 What are the tasks necessary for successful
marketing management?

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