1

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?

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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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 What is Marketed?

• Goods
• Services
• Events
• Experiences
• Persons

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 What is Marketed?

• Places
• Properties
• Organizations
• Information
• Ideas

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 Demand States
 Negative  Irregular
 Nonexistent  Unwholesome
 Latent  Full
 Declining  Overfull

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 Figure 1.1 Structure of Flows in
Modern Exchange Economy

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 Figure 1.2
A Simple Marketing System

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 Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

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

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 Types of Needs

Stated

Real

Unstated

Delight

Secret

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 Target Markets,
Positioning & Segmentation

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 Offerings and Brands

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 Value and Satisfaction

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 Marketing Channels

Communication

Distribution

Service

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 Marketing Environment

Demographic Economic

Socio-cultural
Political-legal

Technological Natural

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 Major Societal Forces
 Network information  Industry convergence
technology  Retail transformation
 Globalization  Disintermediation
 Deregulation  Consumer buying power
 Privatization  Consumer participation
 Heightened competition  Consumer resistance

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 Company Orientations

Production

Product

Selling

Marketing

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 Holistic Marketing

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 Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community

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 Integrated Marketing

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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 Responsibility

Accountability Marketing

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 Types of
Corporate Social Initiatives
 Corporate social marketing
 Cause marketing
 Cause-related marketing
 Corporate philanthropy
 Corporate community involvement
 Socially responsible business practices

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 The Marketing Mix

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 The New Four Ps

People

Processes

Physical Evidence

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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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 For Review
 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?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-30