DEFINING
MARKETING FOR
THE 21 CENTURY
ST
Chapter #1
This Chapter will Answer:
■ Why is Marketing important?
■ What is scope of Marketing?
■ What are some core Marketing concepts?
■ What are the tasks necessary for successful marketing Management?
Marketing ?
Need for
marketing?
THE IMPORTANCE OF MARKETING
• What is marketing?
THE SCOPE OF MARKETING • What is marketed?
• Who markets?
Marketing
“The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in
return.”
“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
“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?
GOODS EVENTS IDEAS
SERVICES
PLACES
EXPERIENCE
PERSONS PROPERTIES
S
INFORMATI ORGANIZATIO
ON NS
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. If two parties are seeking to sell
something to each other, we call them both marketers.
■ Negative demand—Consumers dislike the product and may even pay to avoid it.
■ Nonexistent demand—Consumers may be unaware of or uninterested in the product.
■ Latent demand—Consumers may share a strong need that cannot be satisfied by an existing
product.
■ Declining demand—Consumers begin to buy the product less frequently or not at all.
■ Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even
hourly basis.
■ Full demand—Consumers are adequately buying all products put into the marketplace.
■ Overfull demand—More consumers would like to buy the product than can be satisfied.
■ Unwholesome demand—Consumers may be attracted to products that have undesirable social
consequences.
Who Markets?
■ Market : A collection of
buyers and sellers who
transact over a particular
product or product class
Structure of Flows in a Modern
Exchange Economy
Who Markets?
■ Key Customer Markets:
Who Markets?
■ Marketplaces, marketspaces, and Metamarkets:
• The marketplace is physical, such as a store you shop in.
• The marketspace is digital, as when you shop on the Internet.
• Metamarkets are the result of marketers packaging a system that simplifies carrying out
these related product/service activities
• Needs, wants and demand
• Target markets,
segmentation and
positioning
• Offerings and Brands
CORE MARKETING CONCEPTS
• Value and satisfaction
• Marketing channels
• Supply chain
• Competition
• Marketing environment
Needs, Wants and Demands
Needs, Wants and Demands
■ Stated needs (The customer wants an inexpensive car.)
■ Real needs (The customer wants a car whose operating cost,not initial price,is low.)
■ Unstated needs (The customer expects good service from the dealer.)
■ Delight needs (The customer would like the dealer to include an onboard GPS
navigation system.)
■ Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Target Markets, Segmentation and
Positioning
Offerings and Brands
■ “Value proposition is the set of benefits or values it promises to deliver to consumers to
satisfy their needs”
■ The intangible value proposition is made physical by an offering, which can be a
combination of products, services, information, and experiences.
■ A brand is an offering from a known source
Value and satisfaction
Service
Satisfaction reflects a person’s
judgment of a product’s
perceived performance in
relationship to expectations.
Customer value
triad
Quality Price
Marketing Channels
Marketers use three types of channels:
■Communication channels (newspaper, emails, blogs, TV , magazines, radio e.t.c)
■Distribution channels (retailers, wholesalers)
■Service channels: (warehouses, banks, transportation companies)
Supply Chain
■ The supply chain is a longer channel
stretching from raw materials to
components to finished products carried
to final buyers.
Competition
■ Competition includes all the actual and potential rival offerings and substitutes a buyer
might consider.
Marketing Environment
■ The task environment includes the actors engaged in producing, distributing, and
promoting the offering. These are the company, suppliers, distributors, dealers, and
target customers.
■ The broad environment consists of six components: demographic environment,
economic environment, social-cultural environment, natural environment, technological
environment, and political-legal environment
THE NEW MARKETING • Major Societal Forces
REALITIES • New company capabilities
Major Societal Forces
■ Network information technology
■ Globalization
■ Deregulation
■ 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 image
■ Marketers can spread external communication among customers (buzz)
■ 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 speed up internal communication by using internet as a private intranet
■ Companies can improve their cost efficiency bu skillful use of the internet.
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
COMPANY ORIENTATION • The Holistic Marketing
Concept
TOWARD THE
MARKETPLACE
The Holistic Marketing Concept
The Holistic Marketing Concept
Updating the Four Ps
Updating the Four Ps
Marketing mix Modern Marketing
Four Ps Management mix
Four Ps
Product
People
Price Processes
Place Programs
Promotion Performance
Marketing Management Tasks
End of First Chapter !!
