Defining Marketing for the 21 st Century

1. 1 Defining Marketing for the 21st Century Marketing Management, 13th ed

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. 1-2

3. What is Marketing Management? Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. 1-3

4. Selling is only the tip of the iceberg “There will always be a 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 1-4

5. Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas What is Marketed? 1-5

6. Marketing Can Promote Ideas 1-6

7. Figure 1.1 Structure of Flows in a Modern Exchange Economy 1-7

8. Figure 1.2 A Simple Marketing SystemA.K.A. The Exchange Process 1-8

9. 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

10. Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Core Marketing Concepts 1-10

11. Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. i.e. I am thirsty. • Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. • Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola. 1-11

12. 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 1-12

13. Company Orientations Production Product Selling Marketing 1-13

14. Figure 1.4 Holistic Marketing Dimensions 1-14

15. Figure 1.5 The Four P’s 1-15

16. Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. 1-16

17. Financial Accountability Social Responsibility Marketing Social Initiatives Corporate social marketing Cause marketing Corporate philanthropy Corporate community involvement Socially responsible business practices Performance Marketing 1-17

18. 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 1-18

19. Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers? 1-19

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