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Defining Marketing
for the 21st Century
Chapter Questions
 Why
is marketing important?
 What is the scope of marketing?
 What are some of the 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.
-- American Marketing Association --1-3
What is Marketing? (social definition of marketing)
Marketing is a societal process by
which individuals and groups obtain
what they need & want through
creating, offering, & freely
exchanging product, services of
value with others.
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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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Exchange:
the core concept of marketing
The process of obtaining a desired
product from someone by offering
something in return.
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For an exchange to occur…..
There are at least two parties.
 Each party has something that might be of
value to the other party.
 Each party is capable of communication
and delivery.
 Each party is free to reject the exchange
offer.
 Each party believes it is appropriate or
desirable to deal with the other party.
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Good Marketing is No Accident
Starbucks plans to
ensure its marketing
successes in
countries around the
world.
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Successful New Product Launches
Require Careful Planning
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What is Marketed?
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Goods
Services
Events
Experiences
Persons
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Places
Properties
Organizations
Information
Ideas
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Marketing Can Promote Ideas
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What is being Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being
Marketed?
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What is being Marketed?
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What is being
Marketed?
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What is being Marketed?
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Demand States
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Negative
Nonexistent
Latent
Declining
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Irregular
Unwholesome
Full
Overfull
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Types of Needs
Stated
The customer wants an inexpensive car
Real
The customer wants a car whose
operating cost, not its initial price, is low.
Unstated
The customer expects good service from
the dealer.
Delight
The customer would like the dealer to
include an onboard navigation system
Secret
The customer wants to be seen by
friends as a savvy consumer
Key Customer
Markets
Consumer markets
 Business markets
 Global markets
 Nonprofit/Government
markets
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The marketplace isn’t
what it used to be….
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Changing technology
Globalization
Deregulation
Privatization
Empowerment
Customization
Convergence
Disintermediation
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Company Orientations
Production
 Product
 Selling
 Marketing
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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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The Selling and Marketing Concepts contrasted
Starting point
Factory
Focus
Existing
Products
Means
Ends
Selling &
Promoting
Profits through
Sales Volume
THE SELLING CONCEPT
Market
Customer
Needs
Integrated
Marketing
Profits through
Customer
Satisfaction
THE MARKETING CONCEPT
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Core Concepts
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Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and brands
Value and
satisfaction
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Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning
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Holistic Marketing
Relationship Marketing
Customers
Employees
Marketing Partners
Financial
Community
Integrated
Marketing
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
Types of Corporate Social Initiatives
Corporate social marketing
 Cause marketing
 Cause-related marketing
 Corporate philanthropy
 Corporate community involvement
 Socially responsible business practices
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The Marketing Mix
The New Four Ps
People
Processes
Programs
Performance
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
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Marketing Management Tasks
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Developing
marketing strategies
Capturing marketing
insights
Connecting with
customers
Building strong
brands
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Shaping market
offerings
Delivering value
Communicating
value
Creating long-term
growth
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Discussion:
Shifts in Marketing Management (1)
From Marketing Does the Marketing to Everyone Does the Marketing.
From Organizing by Product Units to Organizing by Customer Segments.
From Making Everything to Buying More Goods and Services from Outside
From Using Many Suppliers to Working with Fewer Suppliers in a
“partnership”.
From Relying on Old Market Position to Uncovering New Ones.
From Emphasizing Tangible Assets to Emphasizing Intangible Assets.
From Building Brand through Advertising to Building Brands Through
Performance and Integrated Communications.
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Shifts in Marketing Management (2)
From Selling to Everyone to Trying to Be the Best Firm Serving
Well-defined Target Market.
From Focusing on Profitable Transactions to Focusing on
Customer Lifetime Value.
From a Focus on Gaining Market Share to a Focus on Building
Customer Share.
From Being Local to Being “Glocal” – Both Global and Local.
From Focusing on the Financial Scorecard to Focusing on the
Marketing Scorecard.
From Focusing on Shareholders to Focusing on Stakeholders.
Shift in Marketing Paradigm
The Transaction-based marketing
 The Relationship paradigm
 The Network paradigm
 The Service-Dominant paradigm
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Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?
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