1
MKT: 601
Chapter01: Defining Marketing for the 21st Century
The Importance of marketing
The Scope of Marketing
What is Marketing
What is Marketed










Goods
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas
Olympic
Fantasy Kingdom
Celebrity
Tourism
Stock
Philips (Sense and Sensibility)
Magazine
AIDS
Who Markets
Marketers and Prospect








Negative demand
Nonexistent demand
Latent demand
Declining demand
Irregular demand
Full demand
Overfull demand
Unwholesome demand
- dislikes the product and may even pay a price to avoid it.
- Consumers may be unaware or uninterested
- share a strong need that cannot be satisfied
- Consumers begin to buy the product less frequently
- Consumer purchases vary on a seasonal
- Consumers are adequately buying all products
- More consumers would like to buy the product
- products that have undesirable social consequences.
Markets
Key Customer Markets
 Consumer Markets
 Business Markets
 Global Markets
 Nonprofit and Governmental Markets
MNH, MKT 601, CH 01-14th
2
Marketplaces, Market spaces and Metamarkets
Core Marketing Concepts
 Needs, Wants and Demands
 Stated needs (Inexpensive cars)
 Real needs (low operating costs car)
 Unstated needs (good service)
 Delight needs (Onboard navigation by dealer)
 Secret needs (Show others)
 Target markets, Positioning and Segmentation
 Offerings and Brands
 Value and Satisfactions
 Marketing Channels
 Supply chain
 Competition
 Marketing environment
The New Marketing Realities
Major Societal forces
 Network information
technology
 Globalization
 Deregulation
 Privatization
 Heightened Competition
 Industry convergence
(Combining, home theater)
 Consumer resistance
 Retail transformation (Direct
mail)
 Disintermediation
 Consumer buying power
 Consumer information
 Consumer participation
 Consumer resistance
New Company Capabilities
 Marketers can use the Internet as a powerful information and sales channel
 Marketers can collect fuller and richer information about markets,
customers, prospects, and competitors
 Marketers can tap into social media to amplify their brand message.
 Marketers can facilitate and speed external communication among
customers
 Marketers can send ads, coupons, samples, and information to customers
who have requested them or given the company permission to send them.
 Marketers can reach consumers on the move with mobile marketing
 Companies can make and sell individually differentiated goods
 Companies can improve purchasing, recruiting, training, and internal and
external communications.
MNH, MKT 601, CH 01-14th
3
 Companies can facilitate and speed up internal communication among
their employees by using the Internet as a private intranet
 Companies can improve their cost efficiency by skillful use of the Internet.
THE NEW CMO
Innate Qualities
• Risk taker
• Willingness to make decisions
• Problem-solving ability
• Change agent
• Results-oriented
Learned Qualities
• Global experience
• Multichannel expertise
• Cross-industry experience
• Digital focus
• Operational knowledg
MARKETING IN THE ORGANIZATION
Company orientation towards the marketplace
 The Production concept
[1920-]
 The Product concept
[1930-diversified product line]
 The Selling concept
[Aggressive salespeople, mid 1930]
 The Marketing concept
[1950]
 The Holistic Marketing concept
Based on the development, design and implementation of marketing programs,
processes and activities that recognize their breadth and interdependencies.
Relationship marketing
Aims to built mutually satisfying
long-term relationship with
 Customers
 Employees
 Marketing partners
Integrated marketing
 Communication
 Product and Services
 Channels
Internal Marketing
 Marketing department
 Senior management
 Other departments
Performance Marketing
 Sales revenue
 Brand and customer equity
 Ethics
 Environment
 Legal
 Community
Financial Accountability
Social Responsibility Marketing
MNH, MKT 601, CH 01-14th
4






Corporate social Marketing
Cause marketing
Cause related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
Updating the Four Ps
Product
Price
Product variety
List price
Quality
Discounts
Design
Allowances
Features
Payment period
Brand name
Credit terms
Packaging
Sizes
Services
Warranties
Returns
Marketing Mix Four Ps
Product
Place
Promotion
Price
Campaign to change behavior
Sponsoring social events
Donating from sale
Direct donate
Do something for betterment
Recycle packaging
Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing
Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
Modern Marketing Management
Four Ps
People
Processes
Programs
Performance
Marketing management tasks
 Developing Marketing strategies and plans [2]
 Capturing Marketing insights[3, 4]
 Connecting with customers[5-8]
 Building strong brands[9-11]
 Shaping the market offerings[12-14]
 Delivering values[15,16]
 Communicating values[17-19]
 Creating long term growth[20-22]
MNH, MKT 601, CH 01-14th