Professional Documents
Culture Documents
Chapter 1
Defining Marketing for the New Realities
Spring 2020-2021
Learning Objectives
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some core marketing concepts?
4. What forces are defining the new marketing realities?
5. What new capabilities have these forces given
consumers and companies?
6. What does a holistic marketing philosophy include?
7. What tasks are necessary for successful marketing
management?
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What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
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What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas
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Who Markets?
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8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
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Fig. 1.1
Structure Of Flows In A Modern
Exchange Economy
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Fig. 1.2
A Simple Marketing System
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Core Marketing Concepts
• Needs: the basic human requirements such as
for air, food, water, clothing, and shelter
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Types of Needs
STATED
REAL
UNSTATED
DELIGHT
SECRET
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Core Marketing Concepts
• Target markets
• Positioning
• Segmentation
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Core Marketing Concepts
• Value proposition: a set of benefits that
satisfy those needs
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Core Marketing Concepts
• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE
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Core Marketing Concepts
• Paid media: TV, magazine and display ads,
paid search, and sponsorships
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Core Marketing Concepts
• Value: a combination of quality, service, and
price (qsp: the customer value triad)
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Core Marketing Concepts
• Supply chain: a channel stretching from raw materials to
components to finished products carried to final buyers (Fig 1.3:
The Supply Chain for Coffee)
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Core Marketing Concepts
• Competition: all the actual and potential rival
offerings and substitutes a buyer might
consider
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Core Marketing Concepts
• Marketing
environment
– Task environment
– Broad environment
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The New Marketing Realities
• Technology
• Globalization
• Social responsibility
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A dramatically changed marketplace
• New consumer capabilities
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A dramatically changed marketplace
• New company capabilities
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A dramatically changed marketplace
• Changing channels
– Retail
transformation
– Disintermediation
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A dramatically changed marketplace
• Heightened competition
– Private brands
– Mega-brands
– Deregulation
– Privatization
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Marketing in practice
• Marketing balance
• Marketing accountability
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Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING
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Fig. 1.4
Holistic Marketing Dimensions
CUSTOMERS
EMPLOYEES
MARKETING PARTNERS
FINANCIAL
COMMUNITY
FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT
SOCIAL IMPACT
PEOPLE
PROCESSES
PROGRAMS
PERFORMANCE
• Delivering value
• Communicating value