PART 1.

DEFINING MARKETING
FOR THE NEW
REALITIES

DOSEN:
Citra Kusuma Dewi Ph.D
CHAPTER QUESTIONS

 Why is marketing important?

 What is the scope of marketing?
 What are some core marketing concepts?
 What forces are defining the new marketing realities?
 What new capabilities have these forces given consumers and
companies?
 What does a holistic marketing philosophy include?
 What task are necessary for successful marketing management?

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 WHY IS
MARKETING
IMPORTANT?

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UNILEVER REVERSE
INNOVATION
• Unilever is fundamentally changing how it is
doing its marketing, including putting more
emphasis on developing markets.
• Reverse innovation by applying branding
and packaging innovations from developing
markets to recession-hit developed markets.
• In Spain, it now sells Surf detergents in five-
wash packs
• In Greece, it offers mashed potatoes and
mayonnaise in small packages

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 THE VALUE OF MARKETING

• Finance, operations, accounting and other business

functions won’t really matter without sufficient demand
for products and services so the firm can make a profit
• Thus, financial success often depends on marketing ability
• Marketing’s value extends to society, it has helped
introduce new or enhanced products that ease or enrich
people’s lives.

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THE SCOPE OF
MARKETING

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 WHAT IS MARKETING ?

Marketing is a societal process by which

individuals and groups obtain what they need
and want through creating, offering, and freely
exchanging products and value with others.

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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?

1. Goods
2. Services
3. Events
4. Experiences
5. Persons
The Rolling Stones have done a masterful job of
marketing their rebellious form of rock and roll to
audiences of all ages.

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 WHAT IS MARKETED?

6. Places
7. Properties
8. Organizations
9. Information
10.Ideas For a city like Las Vegas that
thrives on tourism, good marketing
is essential.

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 KEY CUSTOMER MARKETS
Consumer markets
Companies selling mass consumer goods
and services spend a great deal of time
establishing a strong brand image.
Business markets
Companies selling business goods and
services often face well-informed
professional buyers skilled at evaluating
competitive offerings.
Global markets
Companies in the global marketplace
decide which countries to enter; how to
enter each, how to adapt, how to price
and how to design communications.
Nonprofit/Government markets
limited purchasing power such as churches,
universities, charitable organizations, and
government agencies need to price
carefully
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CORE MARKETING
CONCEPTS

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 CORE MARKETING CONCEPTS

1. Needs, wants, and demands 5. Impressions and

2. Target markets, Engagement
positioning, segmentation 6. Value and Satisfaction
3. Offerings and brands 7. Supply chain
4. Paid, Owned and Earned 8. Competition
Media 9. Marketing environment

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 1. NEEDS WANTS AND
DEMANDS
✽ Needs
Basic human requirements

✽ Wants
Specific objects that might satisfy the need

✽ Demands
With purchasing power

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2. SEGMENTATION, TARGET
MARKETS & POSITIONING
identify and profile distinct groups of
buyers (Segmentation)

decides which present the greatest

opportunities (Targeting)

develops a market offering that it positions

in the minds of the target buyers as
delivering some central benefits
(Positioning)

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3. OFFERINGS AND BRANDS

The intangible value proposition is made

physical by an offering, which can be a
combination of products, services,
information, and experiences
A brand is an offering from a known source.

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 4. PAID, OWNED AND EARNED
MEDIA
The rise of digital media gives marketers a host of new ways to interact
with consumers and customers.
•Paid Media: media which allow marketers to show their ad or brand
for a fee  TV, magazine and display ads,
•Owned Media: communication channels marketers actually own 
like a company or brand brochure, web site, blog, Fb page etc.
•Earned Media: streams are which consumers, the press or other
outsiders voluntary communicate something about the brand via WOM,
buzz or viral marketing methods.

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 5. IMPRESSIONS AND
ENGAGEMENT
• Impressions, which occurs when consumers view a communication,
are a useful metric for tracking the scope or breadth of a
communication’s reach that can also be compared across all
communication types.
• Engagements is the extends of a customer’s attention and active
involvement with a communication. Some online measures of
engagement are Fb likes, Twitter tweets, comments on blog, sharing of
video, etc.

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6. VALUE AND SATISFACTION
 Value: the sum of the tangible and intangible benefits and
costs to consumer.
../Video/Value Creation Through the Marketing Mix.mp4
 Value, a central marketing concept, is primarily a combination
of quality, service, and price (qsp)
 Satisfaction reflects a person’s judgment of a product’s
perceived performance in relationship to expectations

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 7. SUPPLY CHAIN

• The supply chain is a

channel stretching from
raw materials to
components to finished
products carried to final
buyers.
• Problems with a supply
chain can be damaging or
even fatal for a business

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 8. COMPETITION

Competition includes all the actual and

potential rival offerings and substitutes a
buyer might consider.

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9. MARKETING ENVIRONMENT
 Task Environment
includes the actors engaged in producing, distributing, and
promoting the offering. These are the company, suppliers,
distributors, dealers, and target customers.
 Broad environment
o Demographic environment
o Economic environment
o Socio-cultural environment
o Natural environment
o Technological environment
o Politic-legal environment

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 THE NEW
MARKETING
REALITIES

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• Technology
• Globalization
• Social Responsibility

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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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