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Chapter 1

Marketing in the Twenty-First Century

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Chapter Objectives
In this chapter we will address the following questions:
What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace? How are companies and marketers responding to the new challenges?

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Marketing Concepts and Tools


Marketing
It is an organizational function and a set of processes for creating, communicating and delivering value to the customers and for managing the customer relationships in ways that benefit the organization and its stake holders
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Marketing concepts and tools


Marketing management
It is art and science of choosing target markets and getting, keeping and growing customers through creating, communicating and delivering superior customer value.

Societal definition.
Marketing is a societal process by which individuals and groups obtain what they need and want through creating , offering and freely exchanging products of value with others.
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Marketing concepts and tools


Exchange
It is the process of obtaining a desired product from someone by offering something in return

Transaction
A transaction is a trade of value between two parties.

Transfer
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Fundamental marketing concepts


Needs wants and demands
Stated needs Real needs Unstated needs Delight needs Secret needs

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Marketing concepts and tools


Target markets, positioning and segmentation. Offering and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning
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Who markets????
Marketers and prospects. A marketer is someone who seeks a response from another party called the prospect. Demand management.
Negative demand. Nonexistent demand Latent demand Declining demand Irregular demand Full demand Overfull demand Unwholesome demand
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Who markets...
Markets
Traditionally a market was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product.

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Structure of Flows
Resources Money Resources

Resource markets
Taxes, goods Taxes

Money

Manufacturer markets

Services, money Services, money

Taxes, goods Services, money

Government markets
Services Taxes, goods

Consumer markets

Money Goods, services

Intermediary markets Goods, services


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Money

Simple Marketing System


Communication

Industry (a collection of sellers)

Goods/services Money

Market (a collection of Buyers)

Information
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The Decisions Marketers Make


Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets

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How Business and Marketing are Changing


Changing technology Globalization Deregulation Privatization Customer empowerment Customization Heightened competition Industry convergence Retail transformation Disintermediation

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Company Orientations Toward the Marketplace


The production concept The product concept The selling concept The marketing concept The holistic marketing concept

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Holistic marketing concept


Relationship marketing.
Customers Channel Partners

Integrated marketing
Products Communication Channels
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Holistic marketing concept


Internal marketing
Marketing department Senior management Other departments

Socially responsible marketing


Ethics Environment Legal community
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The Scope of Marketing


Places Properties Organizations Information Ideas Goods Services Experiences Events Persons

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Marketing management tasks


Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building stronger brands Shaping the market offering Delivering value Communicating value Creating long term growth
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