Management

Defining Marketing for the 21st Century

1

Marketing ManagementA South Asian Perspective, 13th 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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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 theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, 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?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

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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 MarketsConsumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

MARKETPLACES

MARKETSPACES

METAMARKETS

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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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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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Positioning

Press ads of the Scorpio focused on

the functional features of the vehicle and the television ads

focused on emotional benefits.

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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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Figure 1.5 The Four P’s