1 Defining Marketing for the 21 st Century 1

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-2

What is Marketing? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3 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.

What is Marketing Management? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-4 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.

What is Marketed? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-5 Goods Services Events Experiences Persons

What is Marketed? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-6 Places Properties Organizations Information Ideas

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7 Demand States  Negative  Nonexistent  Latent  Declining  Irregular  Unwholesome  Full  Overfull

Figure 1.1 Structure of Flows in Modern Exchange Economy Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-8

Figure 1.2 A Simple Marketing System Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-9

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-10 Key Customer Markets  Consumer markets  Business markets  Global markets  Nonprofit/Government markets

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-11

Types of Needs Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-12 Stated Real Unstated Delight Secret

Target Markets, Positioning & Segmentation Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-13

Offerings and Brands Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-14

Value and Satisfaction Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-15

Marketing Channels Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-16 Communication Distribution Service

Marketing Environment Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-17 DemographicEconomic Socio-cultural Natural Technological Political-legal

Major Societal Forces  Network information technology  Globalization  Deregulation  Privatization  Heightened competition  Industry convergence  Retail transformation  Disintermediation  Consumer buying power  Consumer participation  Consumer resistance Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-18

Company Orientations Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-19 Production Product Selling Marketing

Holistic Marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-20

Relationship Marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-21 Customers Employees Marketing Partners Financial Community

Integrated Marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-22

Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-23

Performance Marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-24 Financial Accountability Social Responsibility Marketing

Types of Corporate Social Initiatives  Corporate social marketing  Cause marketing  Cause-related marketing  Corporate philanthropy  Corporate community involvement  Socially responsible business practices Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-25

The Marketing Mix Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-26

The New Four Ps Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-27 Processes People Programs Performance

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-28

For Review  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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-29