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Defining Marketing for the 21 st Century

1. Defining Marketing for the 21 st Century. Marketing Management, 13 th ed. Chapter Questions. Why is marketing important? What is the scope of marketing? What are some fundamental marketing concepts? How has marketing management changed?

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Defining Marketing for the 21 st Century

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

  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? 1-2

  3. 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.

  4. 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.

  5. Selling is only the tip of the iceberg “There will always be 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

  6. Obtaining Products

  7. 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.

  8. Goods (tangible) Services (intangible) Events (time based—trade shows) and Experiences (Walt Disney World’s Magic kingdom) Persons (Artists, Musicians, CEO, Physicians) Places (Cities, States, Regions, Nations) and Properties (Intangible rights of ownership of real estate or financial properties) Organizations (Universities, Museums, Performing Arts Organization) Information (Books, Schools, Magazines) Ideas (Revlon sell hope) What is Marketed? 1-8

  9. Marketing Goods

  10. Marketing Ideas: Friends Don’t Let Friends Drive DrunkThis is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.

  11. Key Customer Markets • Consumer markets (personal consumption) • Business markets (resale or used to produce other products or services) • Global markets (international) • Nonprofit/Government markets (Churches, Universities, Charitable Organizations, Government Agencies) 1-11

  12. Consumer Markets Global Markets Business Markets Key Customer Markets Nonprofit/ Government Markets

  13. Global Markets Coke is represented at the first China International Beverage Festival in Beijing in 2003

  14. Corporate Social Initiatives

  15. Changing technology (digital revolution) Globalization (transportation, shipping, communication) Deregulation (telecommunications, electric utilities) Privatization (British Airways) Empowerment (Domestic, Foreign, Store and Brands) Customization Convergence (Computing and consumer electronics—Dell/ HP) Disintermediation The marketplace isn’t what it used to be…

  16. Negative (dislike product and may even pay a price to avoid it) Nonexistent (unaware of or uninterested in the product) Latent (need that cannot be satisfied by existing product) Declining (buy the product less frequently or not at all) Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis) Unwholesome (product that have undesirable social consequences) Full (adequately buying all products put into the marketplace) Overfull (more consumers would like to buy the product that can be satisfied) Demand States 1-16

  17. Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market

  18. Company Orientations • Production (consumers will prefer products that are widely available and inexpensive) • Product(consumers favor products that offer the most quality performance, or innovative features) • Selling(consumer and businesses, if left alone, won’t buy enough of the organization’s products) • Marketing(find the right product for the consumers)--i.e., satisfy the wants and needs of the consumers 1-18

  19. The Four P’s

  20. Marketing-Mix Strategy

  21. Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Marketing Mix and the Customer 1-21

  22. Needs, wants, and demands Target markets, positioning (in mind of target buyers), segmentation Offerings (intangible benefit made physical) and brands (offering from a know source) Value (set of benefits and satisfaction) Marketing channels (communications, distribution, and service) Supply chain Competition Marketing environment Marketing planning Core Concepts 1-22

  23. Developing marketing strategies (strategic fit) Capturing marketing insights (obtaining information) Connecting with customers (relationships) Building strong brands (understand strengths and weaknesses) Shaping market offerings Delivering value Communicating value Creating long-term growth (positioning and new-product development) Marketing Management Tasks 1-23

  24. Functions of CMOs • Strengthening the brands • Measuring marketing effectiveness • Driving new product development based on customer needs • Gathering meaningful customer insights • Utilizing new marketing technology 1-24

  25. 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 • Make line managers marketing heroes • Require right-brain and left-brain skills 1-25

  26. New Consumer Capabilities • A substantial increase in buying power (a click away) • A greater variety of available goods and services (internet) • A great amount of information about practically anything (online) • Greater ease in interacting and placing and receiving orders (24/7) • An ability to compare notes on products and services (internet) • An amplified voice to influence public opinion (internet) 1-26

  27. Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. 1-27

  28. Holistic Marketing Dimensions

  29. Financial Accountability—building band and growing the customer base. Social Responsibility Marketing—must consider ethical environment, legal, and social context on activities. Social Initiatives Corporate social marketing —supporting behavior change campaigns Cause marketing —promoting social issues through sponsorships, licensing agreements, and advertising Corporate philanthropy—making gifts, goods, or time Corporate community involvement—in kind or volunteer service Socially responsible business practices—to protect environment and human and animal rights Performance Marketing 1-29

  30. I want it, I need it… 5 Types of Needs • Stated needs (inexpensive) • Real needs (low operating cost) • Unstated needs (good service) • Delight needs (extras) • Secret needs (savvy consumer)

  31. Marketing Debate Does Marketing Create or Satisfy Needs?

  32. Study Question 1 The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________.  A.  segmentation B.  integration C.  disintermediation D.  targeting E.  partner relationship management 1-32

  33. Study Question 2 Companies address needs by putting forth a(n) ________, a set of benefits that they offer to customers to satisfy their needs.   A.  brand B.  value proposition C.  offering D.  target market E.  demand 1-33

  34. Study Question 3 If a marketer decides to use warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using what is called a ________.   A.  service channel B.  distribution channel C.  brand channel D.  relationship channel E.  intermediary channel 1-34

  35. Study Question 4 Managers of ________-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.   A.  selling B.  product C.  production D.  marketing E.  consumer 1-35

  36. Study Question 5 ________ activities include those the company undertakes to make the product accessible and available to target customers.   A.  Consumer behavior B.  Market segmentation C.  Marketing research D.  Channel E.  New-product development 1-36

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