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1Defining Marketing for the 21st Century

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Introduction

20 words (concepts) in Marketing (5 mints)

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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?

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Marketing is an organizational function and a set of processes for creating,communicating, and delivering valueto customers and for managingcustomer relationships in ways that benefit the organization and its stakeholders.

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What is Marketing Management?

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Marketing management is theart and scienceof choosing target markets and getting, keeping, and Growing customers throughcreating, delivering, and Communicating superior customer value.

What is Marketed?

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• Goods

• Services

• Events

• Experiences

• Persons

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What is Marketed?

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• Places

• Properties

• Organizations

• Information

• Ideas

Marketers

Marketers are skilled at managing demand: they seek to influence its level, timing, and composition for goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. They also operate in four different marketplaces: consumer, business, global, and nonprofits .

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Who is Responsible for Marketing?

Chief Marketing Officer(CMO)Entire

Organization

Marketing Department

Marketing is not done only by the marketing department. To create a strong marketing organization, marketers must think like executives in other departments, and executives in other departments must think more like marketers.

THE IMPORTANCE OF MARKETING

The first decade of the 21st Century challenged firms to prosper financially and even survive in the face of an unforgiving economic environment.

Finance, operations, accounting, and other business functions won’t really matter without sufficient demand for products and services so the firm can make a profit

Marketing’s broader importance extends to society as a whole. Marketing has helped introduce and gain acceptance of new products that have eased or enriched people’s lives.

CEOs recognize the role of marketing in building strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm.

Marketers must decide what features to design into a new product or service, what prices to set, where to sell products or offer services, and how much to spend on advertising.

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Demand States

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.

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HW1: Example of each

Figure 1.1 Structure of Flows in Modern Exchange Economy

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Figure 1.2 A Simple Marketing System

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Key Customer Markets

Consumer markets (soft drinks and cosmetics, spend a great deal of time trying to establish a superior brand image)

Business markets (Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings)

Global markets (Companies in the global marketplace must decide which countries to enter; how to ………..)

Nonprofit/Government markets (Companies selling to nonprofit organizations with limited purchasing power need to be price carefull).

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Core Concepts

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands

Value and satisfaction

Marketing channels Supply chain Competition Marketing

environment Marketing planning

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Types of Needs

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Stated

Real

Unstated

Delight

Secret

Needs (basic human requirements, needs become wants when they are directed to specific objects that may satisfy the need)Marketers do not create needs, needs pre-exist marketers. Marketers influence wants.

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Target Markets, Positioning & Segmentation

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Marketers start by dividing the market into segments. Identify and profile distinct groups of buyers who might prefer or require varying products/services mixes by examining Demographic, Psychographic and Behavioral information

Target market –which group presents the greatest opportunity

All for SomeSome for AllAll for AllSome for Some

HL

LH

Offerings and Brands

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Market offering –develops an offering to satisfy the wants of the target market

Offering and Brands Value proposition: a set of benefits they offer to customers to satisfy their needs Brand: is an offering from a known source

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Value and Satisfaction

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Customer value triad is the combination of quality, service, and prices (qsp).

Value perceptions increase with quality and service but decrease with price.

Marketing Channels

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Communication

Distribution

Service

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Marketing Ext Environment

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Demographic Economic

Socio-cultural

Natural/ Environment

Technological

Political-legal PESTEL

Major Societal Forces

Network information technology

Globalization Deregulation Privatization Heightened competition

Industry convergence Retail transformation Disintermediation Consumer buying power Consumer participation Consumer resistance

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Company Orientations

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Production

Product

Selling

Marketing

consumers will prefer products that are widely available and inexpensive.

consumers will favor those products that offer the most quality, performance, or innovative features.

consumers, will ordinarily not buy enough of the organization’s products, therefore, the organization must undertake aggressive selling and promotion effort.

the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer

value to your chosen target markets.

Holistic Marketing

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recognize their breadth and interdependencies

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Relationship Marketing

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Customers

Employees

Marketing Partners

Financial Community

build an effective network of relationships with key stakeholders and

profits will follow.

Integrated Marketing

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Two key themes are:A) Many different marketing activities can create, communicate, and deliver valueB) Marketers should design and implement any one marketing activity with all other activities in mind

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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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Marketing is no longer the responsibility of a single department—it is a company-wide undertaking that drives the company’s vision, mission, and strategic planning.

Performance Marketing

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Financial Accountability

Social Responsibility Marketing

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Types of Corporate Social Initiatives

Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy (charity) Corporate community involvement Socially responsible business practices

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The Marketing Mix (4Ps)

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The New Four Ps

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Processes

People

Programs

Performance

People reflect internal marketing and the fact that employees are critical to marketing success. Processes reflect all the creativity, discipline, and structure brought to marketing management.Programs reflect all of the firm’s consumer-directed activities. Performance is holistic marketing to capture the range of possible outcomes/measures that have financial and non-financial implications, and implications beyond the company itself.

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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For Review

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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HW 1 - Individuals

1. 10 Marketing is not ………2. Marketing shapes consumer needs and

wants versus marketing merely reflects the needs and wants of customers? explain.

3. Examples of products for each Demand type and For Jordanian Product what is the current demand

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