Good Marketing is No Accident The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements. 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. 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 What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas Demand States Negative Nonexistent Declining Full Latent Irregular Overfull Unwholesome Key Customer Markets Consumer Markets Business Markets Global Markets Nonprofit/ Government Markets 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 Figure 1.3 Improving CMO Success • Make the mission and responsibilities clear • Fit the role to the marketing culture and structure • Ensure the CMO is compatible with the CEO • Remember that show people don’t succeed • Match the personality with the CMO type • Make line managers marketing heroes • Infiltrate the line organization • Require right-brain and left-brain skills Core Marketing Concepts • Needs, wants, and demands • Target markets, positioning, segmentation • Offerings and brands • Value and satisfaction • Marketing channels • Supply chain • Competition • Marketing environment Positioning Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits. The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation 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 Company Orientations Production Product Selling Marketing Figure 1.4 Holistic Marketing Dimensions Figure 1.5 The Four P’s Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Performance Marketing • Financial Accountability • Social Responsibility Marketing Social Initiatives • Corporate social marketing • Cause marketing • Cause-related marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices 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