Chapter 1 - Defining Marketing
for the 21st Century
In This Chapter, We Will Address the
Following Questions
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some core marketing concepts?
4. How has marketing management changed in recent years?
5. What are the tasks necessary for successful marketing management?
The Importance of Marketing
• Foundation for Business Success
• Customer Value Creation
• Economic Growth
• Innovation and Improvement
• Strategic Decision-Making
• Supports Brand Building
Barack Obama’s 2008 Presidential Campaign
The Scope of Marketing
What Is Marketing?
• Marketing is about identifying and meeting human and social needs.
• “meeting needs profitably.”
• Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
• Marketing management as the art and science of choosing target markets
and getting, keeping, and growing customers through creating, delivering,
and communicating superior customer value.
• Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering, and freely exchanging
products and services of value with others.
What is Marketed?
Categories of marketable entities:
1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
Who Markets?
MARKETERS AND PROSPECTS
A marketer is someone who seeks a response—attention, a purchase, a
vote, a donation—from another party, called the prospect.
• Marketers are responsible for demand management.
• Demand states: Negative, Nonexistent, Latent, Declining, Irregular,
Full, Overfull, Unwholesome.
MARKETS
KEY CUSTOMER MARKETS
• Consumer, Business, Global, and Nonprofit and Governmental
• Marketplaces, Marketspaces, and Metamarkets
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Core Marketing Concepts
• Needs, Wants, and Demands
• Target Markets, Segmentation, and Positioning
• Offerings and Brands (value proposition)
• Value and Satisfaction (customer value triad)
• Marketing Channels (Communication, distribution and service)
• Supply Chain and Competition
• Marketing Environment.
The New Marketing Realities
Major Societal Forces
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Retail transformation
• Disintermediation
• Consumer buying power
• Consumer information
• Consumer participation
• Consumer resistance
New Company Capabilities
• Marketers can use the Internet as a powerful information and sales channel.
• Marketers can collect fuller and richer information about markets, customers,
prospects, and competitors.
• Marketers can tap into social media to amplify their brand message.
• Marketers can facilitate and speed external communication among customers
• Marketers can send ads, coupons, samples, and information to customers who have
requested them or given the company permission to send them.
• Marketers can reach consumers on the move with mobile marketing.
• Companies can make and sell individually differentiated goods.
• Companies can improve purchasing, recruiting, training, and internal and external
communications.
• Companies can facilitate and speed up internal communication among their
employees by using the Internet as a private intranet.
• Companies can improve their cost efficiency by skillful use of the Internet.
Company Orientations toward the Marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Holistic Marketing Concept
Updating The Four Ps
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Marketing Management Tasks
• Developing Marketing Strategies and Plans
• Connecting with Customers
• Building Strong Brands
• Shaping the Market Offerings
• Capturing Marketing Insights
• Delivering and communicating value
• Creating Successful Long-Term Growth
