For Marketing Management course

1. Defining Marketing
for the 21st
Century
Marketing Management, 13th
ed
1

2. 1-2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
Hall
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?

3. 1-3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
Hall
Good Marketing is No Accident
Starbucks plans to
ensure its marketing
successes in
countries around the
world.

4. 1-4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
Hall
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.

5. 1-5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
Hall
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

7. 1-7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
Hall
What is Marketed?
GoodsGoods
ServicesServices
Events & ExperiencesEvents & Experiences
PersonsPersons
Places & PropertiesPlaces & Properties
OrganizationsOrganizations
InformationInformation
IdeasIdeas

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Successful New Product Launches
Require Careful Planning

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Marketing Can Promote Ideas

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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 UnwholesomeOverfull
Negative

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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 technologyInformation technology
GlobalizationGlobalization
DeregulationDeregulation
PrivatizationPrivatization
CompetitionCompetition
ConvergenceConvergence
Consumer resistanceConsumer resistance
Retail transformationRetail transformation

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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

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Company Orientations
Production
Selling Marketing
Product

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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?

30. 1-30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice
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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
these forces?