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Defining Marketing
for the 21st Century

Marketing Management, 13th ed


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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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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Selling is only the tip of the iceberg

“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

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What is Marketed?
Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
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 Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

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Key Customer Markets
Consumer Markets

Global Markets

Business Markets

Nonprofit/ Government Markets

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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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