1

Defining Marketing
for the 21st Century

Marketing Management, 15th 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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 Good Marketing is No Accident

Starbucks plans to
ensure its marketing
successes in
countries around the
world.

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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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 Successful New Product Launches
Require Careful Planning

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 Marketing Can Promote Ideas

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 The 4 P’s & 4 C’s and 4A’s of the
Marketing Mix
• 4 P’s - Seller’s • 4 C’s - Buyer’s • 4 A’s - Buyer’s
View View View
1. Acceptability
1. Product 1. Customer 2. Affordability
2. Price Solution Economical
(ability to
3. Place 2. Customer pay)
4. Promotion Cost Psychological
3. Convenien (willingness
to pay)
ce 3.Accessibility(Av
4. Communic ailability)
ation 4.
Awareness( b
rand
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 Needs - states of felt deprivation
including physical needs for food, social
needs for belonging and individual
needs for self-expression.
i.e. I am thirsty.
Wants – one form of need that is
shaped by culture and individual
personality.
i.e. I want a Coca-Cola.
Demands - human wants backed by
buying power. i.e. I have money to buy a
Coca-Cola.
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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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 • Negative Demand • Irregular Demand
• Consumers purchases vary on a
• Consumers dislike the product
e.g. Vaccination, Dental work conversional mkt
seasonal, monthly, weekly, daily or
hourly e.g. Museums on week days, Travelling
• No Demand Peak Off Peak time synchromarketing

• Consumers may be unaware of • Unwholesome

the product e.g. Foreign Language course
• Stimulation mkt
• Latent Demand
• Consumers may share a strong
need that can’t be satisfied with
existing product e.g. Harm less
cigarettes, Fuel Efficient cars .innovative
• Declining Demand
• Consumers begins to buy the
product less frequently e.g. churches,
Govt. Schools Remarketing
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Demand
• Consumers attracted to products
that have undesirable social
consequences e.g. Cigarettes, Alcohol,
Drugs social marketing
• Full Demand
• Consumers are adequately buying
all products. Maintenance
marketing
• Overfull Demand
• More consumers would like to buy
than can be satisfied. De
marketing
 • Irregular Demand
• Negative Demand • Consumers purchases vary on a
seasonal, monthly, weekly, daily or
• Consumers dislike the product hourly e.g. Museums on week days, Travelling
e.g. Vaccination, Dental work conversional mkt
Peak Off Peak time synchromarketing

• No Demand • Unwholesome
• Consumers may be unaware of
the product e.g. Foreign Language course Demand
• Stimulation mkt • Consumers attracted to products
that have undesirable social
• Latent Demand consequences e.g. Cigarettes, Alcohol,
Drugs social marketing
• Consumers may share a strong
need that can’t be satisfied with • Full Demand
existing product e.g. Harm less
cigarettes, Fuel Efficient cars .innovative • Consumers are adequately buying
all products. Maintenance
• Declining Demand marketing
• Consumers begins to buy the
product less frequently e.g. churches,
• Overfull Demand
Govt. Schools Remarketing • More consumers would like to buy than
can be satisfied. De marketing
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 Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

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 Edmunds.com:
A Metamediary Website

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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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 Major Societal Forces

• Model-based decision making

• Reengineering
• Outsourcing
• Benchmarking
• Supplier-partner
• Glocal
• E-commerce
• IMC

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 New Consumer Capabilities

•A substantial increase in buying power

•A greater variety of available goods and services
•A greater amount of information about practical
Anything
•Greater ease in interacting and placing and receiving
orders
•An ability to compare notes on products and
services
•An amplified voice to influence peer and public opinion

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 Figure 1.4 Holistic Marketing Dimensions

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 RBC emphasizes a
relationship marketing approach

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 Figure 1.5 The Four P’s

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 Carnival uses
online marketing activities

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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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