Defining Marketing for the 21 st Century 1 Marketing Management A South Asian Perspective, 13 th ed
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