CHAPTER 1 DEFINING MARKETING FOR THE 21 ST CENTURY CLASS NOTES OBJECTIVES: Why is marketing important? What is the scope of marketing? What are some fundamental marketing concepts? What are the tasks necessary for successful marketing management? I. What is MARKETING??? Definition— Process by which individuals, groups, and organizations obtain what they need and want through creating and exchanging products and value with others. (old)
What’s the difference?
Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. (new) Note— what are the key terms in this definition? Simply— Marketing is managing profitable customer relationships. Who "markets?"— sellers and/or buyers? Difference between selling, advertising, and marketing. Note— what does Marketing mean to you? Please attempt to develop this thought, as it will provide a basis for you in this course. II. Core Marketing concepts A. Transactions, Exchanges, and Relationships B. Target markets, positioning, and segmentation C. Offerings and brands (value proposition) D. Needs, wants, demands E. What will it "take" to satisfy you when purchasing a product or service? Definition of being satisfied. When was the last time you were completely satisfied with something that you purchased? WHY? How does Loyalty fit into this? III. Why aren't all firms in the business of delivering customer satisfaction? A. Various marketing management orientations. (pp 18 to 23) Production and Product Selling concept
Marketing concept Relationship Marketing B. Contrast of Marketing and Selling concepts C. Integrated marketing IV. How do you or is it feasible to implement a Marketing concept in an organization? A. A market orientation is the implementation of the Marketing concept B. Definition
Market orientation is the organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments,
and organizationwide responsiveness to it. (Kohli and Jaworski, 1990, p.6) Generation of market intelligence. Dissemination of market intelligence throughout your firm. Responsive actions to the market intelligence. V. Marketing activities are CONTEXT dependent. Main actors in a marketing system What are the forces in the environment? (pp 15 & 16) VI. Is Marketing an ART or SCIENCE? Yes and Yes!! VII. Marketing management tasks Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building strong and consistent brands Shaping the market offerings Delivering and communicating VALUE Creating long-term growth
: be prepared to discuss and/or present MARKETING DEBATE on page 31. Marketing has often been defined in terms of satisfying customers’ needs and wants. Critics, however, maintain that marketing goes beyond that and creates needs and wants that did not exist before. According to these critics, marketers encouraging consumers to spend more money than they should on goods and services they really do not need. Consider – credit card programs (at least previous to current financial debacle) What is the primary base of our economy – exports, domestic consumption, industrial production, government spending, or healthcare?