DEFINING MARKETING FOR THE 21ST CENTUREY CHAPTER : 1 UNDERSTANDING MARKETING MANAGEMENT: DEFINING MARKETING FOR THE 21ST CENTUREY

Learning 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?

GOOD MARKETING IS NO ACCIDENT The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements.

DEFINING 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.

CONCEPTUALIZING MARKETING One of the shortest definition of marketing is “creating profitable customer relationships” Marketing is a process by which companies create value for customers and capture value from customers in return. Note 1: understanding the needs is vital to create value. Note2: Delivering satisfaction is a key to make sure the “profitable relationship” is sustainable.

Disney land Paris makes you experience your childhood dream Disney land Paris makes you experience your childhood dream. That’s the value it delivers to its consumers.

Ikea noticed that people wanted good furnishings at substantially lower prices, as a result it created knocked down furniture.

Ebay recognized that people were unable to locate some of the items they desired most. As a result, it created an online auction clearinghouse.

“There will always be a need for 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

Successful New Product Launches Require Careful Planning WHAT IS MARKETED? Successful New Product Launches Require Careful Planning GOODS SERVICES EVENTS EXPERIENCES PERSONS PLACES & PROPERTIES ORGANIZATIONS INFORMATIONS IDEAS

Structure of Flows in a Modern Exchange Economy

Demand States Negative Nonexistent Latent Declining Irregular Full Overfull Unwholesome

A Simple Marketing System

Nonprofit/ Government Markets KEY CUSTOMER MARKETS Consumer Markets Global Markets Business Markets Nonprofit/ Government Markets

The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation

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

Conceptualizing Holistic Marketing Integrated Marketing Relationship Marketing Performance Marketing Internal Marketing Holistic marketing is what companies in the 21st century must comply with. Marketing has evolved from a mere consumer centric paradigm into a concept that encapsulates internal marketing, performance marketing, relationship marketing, and integrated marketing. In other words, in order for a business to flourish, these 4 parameters should be addressed. A presentation by Varqa Shamsi Bahar

The parameters of Holistic Marketing: Relationship Marketing Relationship Marketing signifies building mutually satisfying long term relationships with key constituents that directly or indirectly affect the success of a firm’s marketing activities. The Key constituents include: customers, employees, marketing partners (suppliers & marketing intermediaries), and members of the financial community ( banks and shareholders). Research has indicated a correlation between relationship marketing and profitability.

The parameters of Holistic Marketing: Integrated Marketing Integrated Marketing signifies the formulation of a product strategy, pricing strategy, channel strategy and communications strategy in order to create, deliver, exchange and communicate value for the consumers. In other words: the right product/service should be designed that provides a value which satisfies a need. The right price should be set so that consumers will be ready to buy the product while also making sure that the company makes profits. The right channels should be pursued so that consumers can access the value. And an effective IMC campaign should be designed to communicate value to the consumers.

The parameters of Holistic Marketing: Internal Marketing Internal Marketing signifies the alignment of every department in the organization to be marketing oriented in order to achieve marketing goals. A marketing manager will not be able to execute her strategy effectively without the help of all the other departments. Hence, there should be an inter-departmental harmony in order to provide customer value.

The parameters of Holistic Marketing: Performance Marketing Performance Marketing signifies how well the business has performed in terms of financial and non financial parameters. Discussion on the triple bottom line approach:

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