1

Defining Marketing
for the 21st Century
 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?
 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.
 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.
 What is Marketed?

• Goods • Places and

• Services properties
• Events and • Organizations
experiences • Information
• Persons • Ideas
 Key Customer Markets

• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
 The Evolution of Marketing

Production Era

Sales Era

Marketing Era
Relationship Marketing Era
Dr. Rosebloom
The Evolution of Marketing
Production Era

n Business philosophy
Orientation: focusing on
manufacturing
efficiency; demand
exceeds supply =
seller’s market
Dominant n Prior to the
time period: 1920s
Dr. Rosebloom
The Evolution of Marketing
Sales Era

n Business philosophy
Orientation: focusing on selling
existing products;
supply exceeds
demand = buyer’s
market
Dominant n Prior to the
time period: 1950s
Dr. Rosebloom
The Evolution of Marketing
Marketing Era

n Business philosophy
Orientation: focusing on
consumer wants and
needs; any
supply/demand
situation
Dominant n Last half of 20th
time period: century
Dr. Rosebloom
The Evolution of Marketing
Relationship Marketing Era

n Business philosophy
Orientation: focusing on
reinforcing the
customer-oriented
focus of the
marketing era
Dominant n Last decade of
time period: 20th century
Dr. Rosebloom
Marketing Mix and the Customer

Four Ps Four Cs
• Product • Customer
• Price solution
• Place • Customer cost
• Promotion • Convenience
• Communication
The marketing mix is the tactical or
operational part of a marketing plan.
The marketing mix is also called the
4Ps and the 7Ps. The 4Ps are price,
place, product and promotion. The
services marketing mix is also called
the 7Ps and includes the addition of
process, people and physical evidence.
Dr. Rosebloom
The 7Ps of Marketing Mix
 The 7Ps of Marketing Mix
n PEOPLE -They are the ones who make the products and services a
success. People refer to the staff and salespeople who work for your
business, including yourself.
n PROCESS - refers to the processes involved in delivering your
products and services to the customer.
n PHYSICAL EVIDENCE - refers to everything your customers see
when interacting with your business. This includes:
• the physical environment where you provide the product or service;
• the layout or interior design;
• your packaging;
• your branding.
n Physical evidence can also refer to your staff - how they dress and act.
 Core Concepts

• Needs, wants, and • Marketing

demands channels
• Target markets, • Supply chain
positioning, • Competition
segmentation • Marketing
• Offerings and environment
brands • Marketing
• Value and planning
satisfaction
 The Marketing Environment

Microenvironment
Objectives and resources

Macroenvironment
Competitive environment
Legal/political environment
Socio-cultural environment
Economic environment
Technological environment
Dr. Rosebloom
 Macroenvironment (NEW)

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-18

Marketing Management Tasks

• Developing • Shaping market

marketing offerings
strategies • Delivering value
• Capturing • Communicating
marketing insights
value
• Connecting with • Creating long-
customers term growth
• Building strong
brands
 Functions of Chief Marketing
Officer (CMO)
• Strengthening the brands
• Measuring marketing effectiveness
• Driving new product development
based on customer needs
• Gathering meaningful customer insights
• Utilizing new marketing technology
 Figure 1.3 Improving CMO Success
(cont.)
• 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
 New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and
services
• A great amount of information about
practically anything
• Greater ease in interacting and placing and
receiving orders
• An ability to compare notes on products and
services
• An amplified voice to influence public opinion
 Internal Marketing

Internal marketing is the task of

hiring, training, and motivating able
employees who want to serve
customers well.
 Performance Marketing
• Financial Accountability • Social Initiatives
• Social Responsibility • Corporate social
Marketing marketing
• Cause marketing
• Corporate philanthropy
• Corporate community
involvement
• Socially responsible
business practices
 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
 HOMEWORK

REFLECTION PAPER
See guideline/suggested format in the
Assignment section of CANVAS.

Good luck!