1. Defining Marketing for the 21st Century
Marketing Management, 13th ed

2. Chapter Questions Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing concepts?
How has marketing management changed?
What are the tasks necessary for successful marketing management?
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3. 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.

4. 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.

5. Selling is only the tip of the iceberg
“There will always be 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

6. Obtaining Products

7. 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.

8. What is Marketed? Goods (tangible) Services (intangible)
Events (time based—trade shows) and Experiences (Walt Disney World’s Magic kingdom)
Persons (Artists, Musicians, CEO, Physicians)
Places (Cities, States, Regions, Nations) and Properties (Intangible rights of ownership of real estate or financial properties)
Organizations (Universities, Museums, Performing Arts Organization)
Information (Books, Schools, Magazines)
Ideas (Revlon sell hope)
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9. Marketing Goods

10. Marketing Ideas: Friends Don’t Let Friends Drive Drunk This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.

11. Key Customer Markets Consumer markets (personal consumption)
Business markets (resale or used to produce other products or services)
Global markets (international)
Nonprofit/Government markets (Churches, Universities, Charitable Organizations, Government Agencies)
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12. Key Customer Markets Consumer Markets Global Markets Business Markets
Nonprofit/ Government Markets

13. Global Markets
Coke is represented at the first China International Beverage Festival in Beijing in 2003

14. Corporate Social Initiatives

15. The marketplace isn’t what it used to be…
Changing technology (digital revolution)
Globalization (transportation, shipping, communication)
Deregulation (telecommunications, electric utilities)
Privatization (British Airways)
Empowerment (Domestic, Foreign, Store and Brands)
Customization
Convergence (Computing and consumer electronics—Dell/ HP)
Disintermediation

16. Demand States
Negative (dislike product and may even pay a price to avoid it)
Nonexistent (unaware of or uninterested in the product)
Latent (need that cannot be satisfied by existing product)
Declining (buy the product less frequently or not at all)
Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis)
Unwholesome (product that have undesirable social consequences)
Full (adequately buying all products put into the marketplace)
Overfull (more consumers would like to buy the product that can be satisfied)
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17. Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market17

18. Company Orientations
Production (consumers will prefer products that are widely available and inexpensive)
Product (consumers favor products that offer the most quality performance, or innovative features)
Selling (consumer and businesses, if left alone, won’t buy enough of the organization’s products)
Marketing (find the right product for the consumers)--i.e., satisfy the wants and needs of the consumers
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19. The Four P’s

20. Marketing-Mix Strategy

21. Marketing Mix and the Customer
Four Ps
Product
Price
Place
Promotion
Four Cs
Customer solution
Customer cost
Convenience
Communication
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22. Core Concepts
Marketing channels (communications, distribution, and service)
Supply chain
Competition
Marketing environment
Marketing planning
Needs, wants, and demands
Target markets, positioning (in mind of target buyers), segmentation
Offerings (intangible benefit made physical) and brands (offering from a know source)
Value (set of benefits and satisfaction)
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23. Marketing Management Tasks
Developing marketing strategies (strategic fit)
Capturing marketing insights (obtaining information)
Connecting with customers (relationships)
Building strong brands (understand strengths and weaknesses)
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth (positioning and new-product development)
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24. 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
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25. Improving CMO Success (cont.)
Make the mission and responsibilities clear
Fit the role to the marketing culture and structure
Ensure the CMO is compatible with the CEO
Make line managers marketing heroes
Require right-brain and left-brain skills
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26. New Consumer Capabilities
A substantial increase in buying power (a click away)
A greater variety of available goods and services (internet)
A great amount of information about practically anything (online)
Greater ease in interacting and placing and receiving orders (24/7)
An ability to compare notes on products and services (internet)
An amplified voice to influence public opinion (internet)
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27. Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
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28. Holistic Marketing Dimensions

29. Performance Marketing
Social Initiatives
Corporate social marketing —supporting behavior change campaigns
Cause marketing —promoting social issues through sponsorships, licensing agreements, and advertising
Corporate philanthropy—making gifts, goods, or time
Corporate community involvement—in kind or volunteer service
Socially responsible business practices—to protect environment and human and animal rights
Financial Accountability—building band and growing the customer base.
Social Responsibility Marketing—must consider ethical environment, legal, and social context on activities.
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30. I want it, I need it… 5 Types of Needs Stated needs (inexpensive)
Real needs (low operating cost)
Unstated needs (good service)
Delight needs (extras)
Secret needs (savvy consumer)

31. Create or Satisfy Needs?
Marketing Debate
Does Marketing
Create or Satisfy Needs?

32. Study Question 1 The identification and profiling of distinct
groups of buyers who might prefer or
require varying product and service mixes
is known as ________. 
A.  segmentation
B.  integration
C.  disintermediation
D.  targeting
E.  partner relationship management
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33. Study Question 2 Companies address needs by putting
forth a(n) ________, a set of benefits that
they offer to customers to satisfy their
needs.  
A.  brand
B.  value proposition
C.  offering
D.  target market
E.  demand
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34. Study Question 3 If a marketer decides to use warehouses,
transportation companies, banks, and insurance
companies to facilitate transactions with
potential buyers, the marketer is using what is
called a ________.  
A.  service channel
B.  distribution channel
C.  brand channel
D.  relationship channel
E.  intermediary channel
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35. Study Question 4 Managers of ________-oriented businesses
concentrate on achieving high production
efficiency, low costs, and mass distribution.  
A.  selling
B.  product
C.  production
D.  marketing
E.  consumer
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36. Study Question 5 ________ activities include those the company
undertakes to make the product accessible and
available to target customers.  
A.  Consumer behavior
B.  Market segmentation
C.  Marketing research
D.  Channel
E.  New-product development
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