Defining Marketing for the 21st Century - Daffodil International University

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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?

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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.

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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

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What is Marketed?

Goods Goods

Services Services

Events & Experiences Events & Experiences

Persons Persons

Places & Properties Places & Properties

Organizations Organizations

Information Information

Ideas

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Successful New Product Launches

Require Careful Planning

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Marketing Can Promote Ideas

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The 4 P’s & 4 C’s and 4A’s of the Marketing Mix

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• 4 P’s - Seller’s 4 P’s - Seller’s View View

1. Product 1. Product 2. Price 2. Price 3. Place 3. Place

4. Promotion 4. Promotion

• 4 C’s - Buyer’s 4 C’s - Buyer’s View View

1. 1. Customer Customer Solution Solution 2. 2. Customer Customer

Cost Cost

3. 3. Convenien Convenien ce ce

4. 4. Communic Communic a a ^tion ^tion

• 4 A’s - Buyer’s 4 A’s - Buyer’s View View

1. Acceptability 1. Acceptability 2. Affordability 2. Affordability Economical Economical

(ability to (ability to pay) pay)

Psychological Psychological

(willingness (willingness to pay)

to pay)

3.Accessibility(Av 3.Accessibility(Av

ailability) ailability) 4. 4.

Awareness( b Awareness( b rand

rand

awareness awareness and and

knowledge

knowledge ) )

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Needs - states of felt deprivation

including physical needs for food, social needs for belonging and individual needs

for self-expression.

i.e. I am thirsty.

Wants – one form of need that is shaped by culture and individual

personality.

i.e. I want a Coca-Cola.

Demands - human wants backed by buying power. i.e. I have money to buy a

Coca-Cola .

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Figure 1.1 Structure of Flows in a Modern

Exchange Economy

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Figure 1.2 A Simple Marketing System

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Demand States

Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

Negative

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• Negative Demand

• Consumers dislike the product

e.g. Vaccination, Dental work conversional mkt

• No Demand

• Consumers may be unaware of the product

e.g. Foreign Language course

• Stimulation mkt

• Latent Demand

• Consumers may share a strong need that can’t be satisfied with existing product

e.g. Harm less

cigarettes, Fuel Efficient cars .innovative

• Declining Demand

• Consumers begins to buy the product less frequently

e.g. churches, Govt. Schools Remarketing

• Irregular Demand

• Consumers purchases vary on a seasonal, monthly, weekly, daily or hourly

e.g. Museums on week days, Travelling Peak Off Peak time synchromarketing

• Unwholesome Demand

• Consumers attracted to products that have undesirable social

consequences

e.g. Cigarettes, Alcohol, Drugs social marketing

• Full Demand

• Consumers are adequately buying all products. Maintenance

marketing

• Overfull Demand

• More consumers would like to buy than can be satisfied. De

marketing

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• Negative Demand

• Consumers dislike the product

e.g. Vaccination, Dental work conversional mkt

• No Demand

• Consumers may be unaware of the product

e.g. Foreign Language course

• Stimulation mkt

• Latent Demand

• Consumers may share a strong need that can’t be satisfied with existing product

e.g. Harm less

cigarettes, Fuel Efficient cars .innovative

• Declining Demand

• Consumers begins to buy the product less frequently

e.g. churches, Govt. Schools Remarketing

• Irregular Demand

• Consumers purchases vary on a seasonal, monthly, weekly, daily or hourly

e.g. Museums on week days, Travelling Peak Off Peak time synchromarketing

• Unwholesome Demand

• Consumers attracted to products that have undesirable social

consequences

e.g. Cigarettes, Alcohol, Drugs social marketing

• Full Demand

• Consumers are adequately buying all products. Maintenance

marketing

• Overfull Demand

• More consumers would like to buy than

can be satisfied. De marketing

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Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

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Edmunds.com:

A Metamediary Website

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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

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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

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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

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Major Societal Forces

• Model-based decision making

• Reengineering

• Outsourcing

• Benchmarking

• Supplier-partner

• Glocal

• E-commerce

• IMC

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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

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RBC emphasizes a

relationship marketing approach

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Figure 1.5 The Four P’s

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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.

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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

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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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Defining Marketing for the 21st Century - Daffodil International University