Defining Marketing for the 21 st Century
Marketing Management, 15 th ed
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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?
Good Marketing is No Accident
Starbucks plans to ensure its marketing successes in
countries around the
world.
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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.
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.
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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
What is Marketed?
Goods Goods
Services Services
Events & Experiences Events & Experiences
Persons Persons
Places & Properties Places & Properties
Organizations Organizations
Information Information
Ideas
Ideas
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Successful New Product Launches
Require Careful Planning
Marketing Can Promote Ideas
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Figure 1.1 Structure of Flows in a Modern
Exchange Economy
Figure 1.2 A Simple Marketing System
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Demand States
Nonexistent Latent
Declining Irregular
Full Overfull Unwholesome
Negative
Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
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Edmunds.com:
A Metamediary Website
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
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Figure 1.3 Improving CMO Success
• 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
Core Marketing Concepts
• Needs, wants, and demands
• Target markets, positioning,
segmentation
• Offerings and brands
• Value and satisfaction
• Marketing channels
• Supply chain
• Competition
• Marketing
environment
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I want it, I need it…
Five Types of Needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs
The marketplace isn’t what it used to be…
Information technology Information technology
Globalization Globalization
Deregulation Deregulation
Privatization Privatization
Competition Competition
Convergence Convergence
Consumer resistance Consumer resistance
Retail transformation
Retail transformation
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Major Societal Forces
• Model-based decision making
• Reengineering
• Outsourcing
• Benchmarking
• Supplier-partner
• Glocal
• E-commerce
• IMC
New Consumer Capabilities
•A substantial increase in buying power
•A greater variety of available goods and services
•A greater amount of information about practical Anything
•Greater ease in interacting and placing and receiving orders
•An ability to compare notes on products and services
•An amplified voice to influence peer and public opinion
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Figure 1.4 Holistic Marketing Dimensions
RBC emphasizes a
relationship marketing approach
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Figure 1.5 The Four P’s
Carnival uses
online marketing activities
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Internal Marketing
Internal marketing is the task of hiring, training, and motivating able
employees who want to serve
customers well.
Performance Marketing
• Financial
Accountability
• Social
Responsibility Marketing
Social Initiatives
• Corporate social marketing
• Cause marketing
• Corporate philanthropy
• Corporate community involvement
• Socially responsible
business practices
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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
Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?
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Marketing Discussion
Consider the societal forces noted in the chapter (e.g., information
technology, globalization, deregulation, consumer resistance, retail
transformation).
How have marketing practices shifted
to accommodate and even leverage
