1

Defining Marketing
st
for the 21 Century

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

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 Good Marketing is No Accident

Starbucks plans to
ensure its marketing
successes in
countries around the
world.

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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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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-6
“There will always be a 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
Selling is only the tip of the iceberg
 What is Marketed?
Goods

Services
Events & Experiences

Persons
Places & Properties

Organizations
Information

Ideas
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 Marketing Can Promote Ideas

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 Figure 1.1 Structure of Flows in a Modern
Exchange Economy

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 Figure 1.2 A Simple Marketing System

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 Demand States

Negative Nonexist Latent

ent

Declining Irregular

Full Unwhole
Overfull
some

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 Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

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 Edmunds.com:
A Metamediary Website

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 Functions of CMOs

• Strengthening the brands

• Measuring marketing effectiveness
• Driving new product development
based on customer needs
• Gathering meaningful customer insights
• Utilizing new marketing technology

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 Figure 1.3 Improving CMO Success

• Make the mission and responsibilities clear

• Fit the role to the marketing culture and
structure
• Ensure the CMO is compatible with the CEO
• Remember that show people don’t succeed
• Match the personality with the CMO type
• Make line managers marketing heroes
• Infiltrate the line organization
• Require right-brain and left-brain skills

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 Core Marketing Concepts

• Needs, wants, and • Value and

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

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 I want it, I need it…

Five Types of Needs

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

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 The marketplace isn’t what it used to be…

Information technology

Globalization
Deregulation

Privatization
Competition

Convergence
Consumer resistance

Retail transformation

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 New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and
services
• A great amount of information about
practically anything
• Greater ease in interacting and placing and
receiving orders
• An ability to compare notes on products and
services
• An amplified voice to influence public opinion

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 Company Orientations

Production Product

Selling Marketing

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 Figure 1.4 Holistic Marketing Dimensions

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 Figure 1.5 The Four P’s

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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

• Financial Social Initiatives

Accountability • Corporate social
• Social marketing
Responsibility • Cause marketing
Marketing • Corporate philanthropy
• Corporate community
involvement
• Socially responsible
business practices

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 Marketing Management Tasks

• Develop market strategies and plans

• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Deliver value
• Communicate value
• Create long-term growth

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 Marketing Debate:
Take a Position!

Does marketing shape consumer needs?

or
Does marketing merely reflect the needs
and wants of consumers?

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 Marketing Discussion

✔ Consider the societal forces noted in

the chapter (e.g., information
technology, globalization, deregulation,
consumer resistance, retail
transformation).
✔ How have marketing practices shifted
to accommodate and even leverage
these forces?

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