MARKETING MANAGEMENT

1
Defining
Marketing
for the
21st 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?
1-2
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.

1-3
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.

1-4
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
1-5
Right product should designed for best marketing
practice: Only the best is good enough for Lexus customers

1-6
What is Marketed?
Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
1-7
Marketing Goods

1-8
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.

1-9
Who markets: Marketer => Prospect.
Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

1-10
Figure 1.1 Structure of Flows in a
Modern Exchange Economy

1-11
Figure 1.2 A Simple Marketing System

1-12
Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government

Markets

1-13
Global Markets

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

1-14
Other forms of market--
• Marketplaces: The marketplaces is physical, such as a
store you shop in.
• Marketspace: Marketspace is digital, as when you shop
on the Internet.
• Metamarket: Metamarket describe a cluster of
complementary products and services that are closely
related in the minds of consumers, but spread across a
diverse set of industries . Ex. Automobile metamarket
consists of automobile manufacturers, new car and used
car dealers, financing companies, insurance companies,
mechanics, spare parts dealers, service shops, auto
magazines, classified auto ads in newspapers, and auto
sites on the internet.
The marketplace isn’t what it used to be…

Changing technology

Globalization
Deregulation

Privatization

Empowerment

Customization
Convergence
Disintermediation
1-16
Company Orientations

Production Product

Selling Marketing

1-17
Figure: Holistic Marketing Dimensions

1-18
Puma’s rebirth attributed to holistic marketing

1-19
Figure : The Four P’s

1-20
Figure : Marketing-Mix Strategy

1-21
Marketing Mix and the Customer

Four P’s Four C’s

• Product • Customer solution
• Price • Customer cost
• Place • Convenience
• Promotion • Communication

1-22
Fundamental marketing
concept: Core Concepts
• Needs, wants, and • Marketing channels
demands • Supply chain
• Target markets, • Competition
positioning, • Marketing
segmentation environment
• Offerings and brands • Marketing planning
• Value and
satisfaction

1-23
I want it, I need it…

5 Types of Needs

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

1-24
Marketing Management Tasks

• Developing marketing • Shaping market

strategies offerings
• Capturing marketing • Delivering value
insights • Communicating
• Connecting with value
customers • Creating long-term
• Building strong growth
brands

1-25
Marketing Debate

Does Marketing
Create or Satisfy Needs?

1-26