Copyright 2009, Prentice-Hall, Inc.1-1 A Framework for Marketing Management Chapter 1 Defining Marketing for the 21 st Century.

Copyright 2009, Prentice-Hall, Inc. 1-1

A Framework forMarketing Management

Chapter 1Chapter 1Defining Marketing for the 21st Century


Chapter Questions

Why is marketing important? What is the scope of marketing? What are some fundamental marketing

concepts and new marketing realities? What are the tasks necessary for

successful marketing management?


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.


What is Marketed?

Goods Services Events Experiences Persons

Places Properties Organizations Information Ideas


What is a Market?

A market is a grouping of customers: Need markets Product markets Demographic markets Geographic markets Other


Who Markets?

A marketer is someone who seeks a response from another party, called a prospect.


Key Functions of the CMO

Strengthening the brands Measuring marketing effectiveness Driving new product development based on

customer needs Gathering meaningful customer insights Utilizing new marketing technology


Marketing Process

Analyze marketing opportunities Select target markets Design marketing strategies Develop marketing programs Manage the marketing effort


Core Marketing Concepts

Needs, wants, and demands

Target markets, positioning, and segmentation

Offerings and brands

Value and satisfaction Marketing channels Supply chain Competition Marketing environment


Needs, Wants, and Demand

Needs—basic human requirements. Wants—directed to specific objects that

might satisfy the need. Demands—wants for specific products

backed by an ability to pay.


Target Markets, Positioning, and Segmentation Segmentation—identify and profile distinct

groups of buyers examining demographic, psychographic, and behavioral differences.

Target markets—segments presenting the greatest opportunity.

Positioning—what the offering means in the minds of the target buyers as delivering some central benefit(s).


Offerings and Brands

Value proposition—a set of benefits offered to satisfy customers’ needs.

Offering—a combination of products, services, information, and experiences.

Brand—an offering from a known source.


Value and Satisfaction

Value—the sum of the perceived tangible and intangible benefits and costs to customers. “Customer value triad” = quality, service, and

price Satisfaction—a person’s comparative

judgment of a product’s perceived performance (or outcome) in relation to expectation.


Marketing Channels

Communication channels—deliver and receive messages from target buyers.

Distribution channels—display, sell, or deliver the physical product or service(s) to the buyer or user.

Service channels—carry out transactions with potential buyers.


Marketing Environment

Task environment includes the immediate actors involved in producing, distributing, and promoting the offering.

Broad environment includes six environments: Demographic Economic Physical Technological Political-legal Social-cultural


New Marketing Realities

Major societal forces New consumer capabilities New company capabilities


Company Orientations

Production concept Product concept Selling concept Marketing concept Holistic marketing concept


Production Concept

Premise: consumers prefer products that are widely available and inexpensive.

Focus on: High production efficiency Low costs Mass distribution


Product Concept

Premise: consumers favor products offering the most quality, performance, or innovative features.

Focus on: Making superior products Improving them over time


Selling Concept

Premise: customers, if left alone, will not buy enough of the organization’s products.

Focus on: Aggressive selling and promotion efforts


Marketing Concept

Premise: find the right product for your customers.

Focus on: Needs of the buyer


Holistic Marketing Concept

Premise: “everything matters” with marketing.

Focus on: Relationship marketing Integrated marketing Internal marketing Performance marketing


Relationship Marketing

Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business.


Integrated Marketing

Integrated marketing requires the marketer to devise marketing activities and assemble fully integrated marketing programs that create, communicate, and deliver value for customers.

Marketing activities include the four “Ps.”


The Four Ps of the Marketing Mix Product Price Place Promotion


Internal Marketing

Internal marketing ensures that everyone in the organization embraces appropriate marketing principles, especially senior management.

Everyone in the organization must “think customer.”


Performance Marketing

Financial accountability Social responsibility marketing

Societal marketing concept—following the marketing concept while preserving or enhancing customers’ and society’s long-term well-being.


Marketing Management Tasks Developing marketing

strategies and plans Capturing marketing

insights Connecting with

customers Building strong brands

Shaping market offerings

Delivering value Communicating value Creating long-term

growth


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Copyright 2009, Prentice-Hall, Inc.1-1 A Framework for Marketing Management Chapter 1 Defining Marketing for the 21 st Century.

Documents

marketing effort slide

marketing opportunities

marketing programs

marketing effectiveness

marketing process

scope of marketing

new marketing technology

marketing management