Defining Marketing

for the 21
st
Century

Marketing Management
A South Asian Perspective, 13
th
ed
1-2
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?
opyright 2009 Dorling Kindersley (ndia) Pvt. Ltd. 1-3
ood Marketing is No Accident
The roaring success
of four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
1-4
hat 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.
t iz abt indentifyin n meeting
Human n social needs
1-5
hat 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
$eIIing is onIy the tip of the iceberg
"%ere will always be a need for
some selling. But te aim of marketing
is to make selling superfluous. %e aim
of marketing is to know and understand
te customer so well tat te product or
service fits im and sells itself. Ideally,
marketing sould result in a customer
wo is ready to buy. All tat sould be
needed is to make te product or
service available."
Peter Drucker
1-7
hat is Marketed?
Goods Goods
Services Services
Events & Experiences Events & Experiences
Persons Persons
Places & Properties Places & Properties
Organizations Organizations
nformation nformation
deas deas
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$uccessfuI New Product Launches
Require CarefuI PIanning
1-9
Marketing Can Promote Ideas
1-10
igure 1.1 $tructure of Iows in a Modern
Exchange Economy
1-11
igure 1.2 A $impIe Marketing $ystem
1-12
Demand $tates
Nonexistent
Latent
Declining
rregular
Full
Unwholesome Overfull
Negative
1-13
ey Customer Markets
onsumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
1-14
www.marutitruevaIue.com
unctions of CMOs
Strengthening the brands
Measuring marketing effectiveness
Driving new product development
based on customer needs
Gathering meaningful customer insights
Utilizing new marketing technology
. 1-16
Core Marketing Concepts
Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction
Marketing channels
Supply chain
ompetition
Marketing
environment
1-17
Positioning
Press ads of the
Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on emotional
benefits.
. 1-18
%he marketpIace isn't what it used to be.
nformation technology nformation technology
Globalization Globalization
Deregulation Deregulation
Privatization Privatization
ompetition ompetition
onvergence onvergence
onsumer resistance onsumer resistance
Retail transformation Retail transformation
1-19
New Consumer CapabiIities
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
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Company Orientations
Production
Selling Marketing
Product
COMPANY ORIEN%A%ION
PRODUTON: consumers will prefer
products that are widely available and
inexpensive
Relevant concept in a developing
country like hina with introducing
LENOVO and Haier
Marketers use this concept when they
want to expand the market
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Continued..
PRODUT ONEPT-Marketers focus
on making superior products and
improving them over time
NNOvation has to be relevant
e.g. OOL ats,Decorated eiling fans
decorated with cartoons meant for
children failed
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Continued..
Selling concept
Practiced more aggresively with unsought
goods like insurance
Very aggressive selling and promotional
effort
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Continued..
Marketing concept
Emerged in the late 50's
ustomer centered approach
To find the right product for your
customer
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igure 1.4 HoIistic Marketing Dimensions
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RBC emphasizes a
reIationship marketing approach
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igure 1.5 %he our P's
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InternaI Marketing
InternaI marketing is the task of
hiring, training, and motivating able
employees who want to serve
customers well.
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Performance Marketing
Financial
Accountability
Social
Responsibility
Marketing
$ociaI Initiatives
orporate social
marketing
ause marketing
ause-related marketing
orporate philanthropy
orporate community
involvement
Socially responsible
business practices
opyright 2009 Dorling Kindersley (ndia) Pvt. Ltd. 1-30
Marketing Management %asks
Develop market strategies and plans
apture marketing insights
onnect with customers
Build strong brands
Shape market offerings
Deliver value
ommunicate value
reate long-term growth
opyright 2009 Dorling Kindersley (ndia) Pvt. Ltd. 1-31
Marketing Debate:
%ake a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?
opyright 2009 Dorling Kindersley (ndia) Pvt. Ltd. 1-32
Marketing Discussion
onsider 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?