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Defining Marketing
for the 21st Century
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?

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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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Competing in today’s Economy means finding
ways to break out of commodity status to meet
customer’s needs better than competing firms.

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CIM’s Definition of Marketing

“ Marketing is the management process


responsible for identifying, anticipating and
satisfying customer requirements profitably”.

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American Marketing Society (AMA)

From 1985 -2005


“Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy the individual and organisational
objectives.”

The new definition reads:


“ Marketing is an organisational function and a set of institutions,
and processes for creating, communicating, delivering value to
customers and for managing relationships in ways that benefit the
organisation and its stakeholders.
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Philip Kotler
According to Philip Kotler, The term Marketing is
defined as “ a social and managerial process by which
individuals and groups obtain what they need and want
through creating, offering and exchanging products of
value with others”

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Three things should happen when a company is implementing a marketing
concept:

1. Company should define its offering based on its customer needs


2. All staff in the company should accept the responsibility for customer
satisfaction
3. Company believes that by providing customer satisfaction, it can
achieve its goals, e.g. profit and etc.

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The stages in the evolution of
marketing

Production
Societal
Product
orientation orientation Sales Marketing
Marketing
orientation orientation

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Demand States

Negative Irregular
Nonexistent Unwholesome
Latent Full
Declining Overfull

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Key Customer Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets

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The marketplace isn’t what it used to
be….
Changing technology Empowerment
Globalization Customization
Deregulation Convergence
Privatization Disintermediation

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Dimensions That Define A Business

Customer
groups

Customer
Technology
needs
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Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus

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Balancing Orientations
Competitor-centered
Customer-centered

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Marketing Strategies

Marketing Management, 13th ed


BCG Matrix
Market share

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Market Growth Rate

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Ansoff Matrix and Gap Analysis
- Ansoff Matrix (Growth Strategies)
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Gathering Information
and Scanning the
Environment

Marketing Management, 13th ed


Scanning the Marketing
Environment

An analysis of the internal and external factors which may affect a


business's performance.

The marketing audit is a fundamental part of the marketing


planning process. It is conducted not only at the beginning of the
process, but also at a series of points during the implementation
of the plan.

It is a review or appraisal of the existing marketing activities.


Carrying out the marketing audit provides the opportunity to
review and appraise the whole marketing activity.
Scanning the Marketing
Environment
Internal Analyses
By studying the internal
environment, firms identify
what they can do

Unique resources,
capabilities, and core
competencies
(sustainable
competitive
advantage)
Internal Analysis
Tools to Analyse the Internal Environment

Resourced Based view


Value Chain Analysis
Meaningful Comparisons
Components of Value Creation
Internal Analysis
Competitive
Advantage
Core Discovering Core
Competencies Competencies

Capabilities

Five Criteria Value


Resources of Sustainable Chain
 Tangible Advantages Analysis
 Intangible

• Valuable/ Critical
• Appropriate
• Costly to Imitate
• Scarce
• Durable
Applying the Resource Based View

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Value Chain

Servic
e

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External Forces
Demographic
Economic
Socio-Cultural
Natural
Technological
Political-Legal

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External Analyses
Environment By studying the external
Sociocultural environment, firms identify
what they might choose to
Industry do
Environment

Opportunities and
Competitor threats
Environment

Technological

General
Population and Demographics
Size Household patterns
Growth rate Regional characteristics
Age distribution Movement
Ethnic mix
Educational levels

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Economic Environment
$ Purchasing Power
$ Income Distribution
$ Savings Rate
$ Debt
$ Credit Availability

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Types of Industrial Structures
Industrial economies
Industrializing economies
Raw-material exporting economies
Subsistence economies

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Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe

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Natural Environment
Shortage of raw materials
Increased energy costs
Anti-pollution pressures
Governmental protections

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Technological Environment
Pace of change
Opportunities for innovation
Varying R&D budgets
Increased regulation of change

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Five forces analysis
Potential
entrants

Threat of
entrants

Suppliers COMPETITIVE Buyers


RIVALRY
Bargaining Bargaining
power power

Threat of
substitutes

Substitutes
Source: Adapted from M. E. Porter,
Competitive Strategy, Free Press,
1980, p. 4.