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A Framework forMarketing Management
Chapter 1Chapter 1Defining Marketing for the 21st Century
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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?
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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 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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What is Marketed?
Goods Services Events Experiences Persons
Places Properties Organizations Information Ideas
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What is a Market?
A market is a grouping of customers: Need markets Product markets Demographic markets Geographic markets Other
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Who Markets?
A marketer is someone who seeks a response from another party, called a prospect.
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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
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Marketing Process
Analyze marketing opportunities Select target markets Design marketing strategies Develop marketing programs Manage the marketing effort
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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
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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.
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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).
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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.
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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.
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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.
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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
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New Marketing Realities
Major societal forces New consumer capabilities New company capabilities
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Company Orientations
Production concept Product concept Selling concept Marketing concept Holistic marketing concept
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Production Concept
Premise: consumers prefer products that are widely available and inexpensive.
Focus on: High production efficiency Low costs Mass distribution
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Product Concept
Premise: consumers favor products offering the most quality, performance, or innovative features.
Focus on: Making superior products Improving them over time
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Selling Concept
Premise: customers, if left alone, will not buy enough of the organization’s products.
Focus on: Aggressive selling and promotion efforts
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Marketing Concept
Premise: find the right product for your customers.
Focus on: Needs of the buyer
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Holistic Marketing Concept
Premise: “everything matters” with marketing.
Focus on: Relationship marketing Integrated marketing Internal marketing Performance marketing
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Relationship Marketing
Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business.
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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.”
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The Four Ps of the Marketing Mix Product Price Place Promotion
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Internal Marketing
Internal marketing ensures that everyone in the organization embraces appropriate marketing principles, especially senior management.
Everyone in the organization must “think customer.”
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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.
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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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