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

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? Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-2

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. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-3

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. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-4

What is Marketed? Goods Services Events and experiences Persons Places and properties Organizations Information Ideas Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-5

Demand States Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-6

Key Customer Markets Consumer markets Business markets Global markets Nonprofit/Government markets Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-7

Company Orientations Production Product Selling Marketing Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-8

Marketing Mix and the Customer Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-9

Core Concepts Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-10

Marketing Management Tasks Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-11

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 Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-12

Figure 1.3 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 Remember that show people don’t succeed Match the personality with the CMO type Make line managers marketing heroes Infiltrate the line organization Require right-brain and left-brain skills Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-13

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 Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-14

Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-15

Performance Marketing Financial Accountability Social Responsibility Marketing Social Initiatives Corporate social marketing Cause marketing Corporate philanthropy Corporate community involvement Socially responsible business practices Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-16

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 Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-17