MARKETING MANAGEMENT

1 Defining Marketing for the 21st Century

Kotler

Keller

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?
1-2

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.
1-3

 Marketing is a social and managerial process by which individuals and groups obtain what they need and what they want through creating, offering, and exchanging products of value with others (Kotler and Armstrong, 2003).

1-4

 AMA American Marketing Association (08/2004): 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.

1-5

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.
1-6

 It is important to distinguish between a social and managerial definition of marketing. Social definition: marketing is a societal process by which individuals and groups obtain what they need and what they want through creating, offering, and exchanging products of value with others. Managerial definition: the art of selling products The most important part of marketing is not selling.
1-7

Selling is only the tip of the iceberg

There will always be 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
1-8

For an exchange to occur..

For an exchange to occur.. There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.
1-9

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
1-10

Marketing Ideas: Friends Dont Let Friends Drive Drunk This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.
1-11

Who Markets
Marketers and Prospects A marketer is someone who seeks a response (attention, a purchase, a vote, a donation) from another party, called the prospect. If the two parties are seeking to sell something to each other, we call them both marketers. Marketing mangers seek to influence the level, timing and composition of demand to meet the organization's objectives.

1-12

Demand States
Latent

Negative

Nonexistent

Declining

Irregular

Full

Overfull

Unwholesome
1-13

Figure 1.1 Structure of Flows in a Modern Exchange Economy

1-14

Figure 1.2 A Simple Marketing System

1-15

Key Customer Markets

Consumer Markets Global Markets

Business Markets

Nonprofit/ Government Markets

1-16

The marketplace isnt what it used to be

Changing technology Globalization Deregulation Privatization Empowerment Customization Convergence Disintermediation
1-17

Company Orientations

Production

Product

Selling

Marketing

1-18

Figure 1.3 Holistic Marketing Dimensions

1-19

Figure 1.4 The Four Ps

1-20

Figure 1.5 Marketing-Mix Strategy

1-21

Marketing Mix and the Customer

Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication

1-22

Core Concepts
Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning

1-23

I want it, I need it

5 Types of Needs Stated needs Real needs Unstated needs Delight needs Secret needs

1-24

Figure 1.6 Factors Influencing Marketing Strategy

1-25

Marketing Management Tasks

Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth

1-26

Marketing Debate

Does Marketing Create or Satisfy Needs?

1-27

Marketing Discussion

Are there any themes that emerge in the broad shifts in marketing? Can they be related to the major societal forces? Expand.

1-28

Case Study (1)

1-29