1. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 1 Chapter 1 Defining Marketing for the Twenty-First Century PowerPoint by Karen E. James Louisiana State University - Shreveport

2. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 1 Objectives  Understand the new economy.  Learn the tasks of marketing.  Become familiar with the major concepts and tools of marketing.  Understand the orientations exhibited by companies.

3. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 1 Objectives  Learn how companies and marketers are responding to new challenges.

4. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 1 The New Economy  Consumer benefits from the digital revolution include: –Increased buying power. –Greater variety of goods and services. –Increased information. –Enhanced shopping convenience. –Greater opportunities to compare product information with others.

5. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 1 The New Economy  Firm benefits from the digital revolution include: –New promotional medium. –Access to richer research data. –Enhanced employee and customer communication. –Ability to customize promotions.

6. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 1 Marketing Tasks  Marketing practices may pass through three stages: –Entrepreneurial marketing –Formulated marketing –Intrepreneurial marketing  As marketing becomes more formulated, creativity is inhibited.

7. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 1 What Can Be Marketed?  Goods  Services  Experiences  Events  Persons  Places  Properties  Organizations  Information  Ideas

8. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 7 in Chapter 1 Marketing Defined  Kotler’s social definition: “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”

9. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 1 Marketing Defined  The AMA managerial definition: “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

10. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 9 in Chapter 1 Core Marketing Concepts  Target markets and market segmentation  Marketplace, market- space, metamarkets  Marketers & prospects  Needs, wants, demands  Product offering and brand  Value and satisfaction  Exchange and transactions  Relationship and networks  Marketing channels  Supply chain  Competition  Marketing environment  Marketing program

11. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 10 in Chapter 1 Core Marketing Concepts  Target markets & segmentation –Differences in needs, behavior, demographics or psychographics are used to identify segments. –The segment served by the firm is called the target market. –The market offering is customized to the needs of the target market.

12. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 1 Core Marketing Concepts  Shopping can take place in a: –Marketplace (physical entity, Lowe’s) –Marketspace (virtual entity, Amazon)  Metamarkets refer to complementary goods and services that are related in the minds of consumers.  Marketers seek responses from prospects.

13. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 1 Core Marketing Concepts  Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment.  Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)  Demands are wants for specific products backed by an ability to pay.

14. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 1 Core Marketing Concepts  A Product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source.  When offerings deliver value and satisfaction to the buyer, they are successful.

15. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 14 in Chapter 1 Enhancing Value  Marketers can enhance the value of an offering to the customer by: –Raising benefits. –Reducing costs. –Raising benefits while lowering costs. –Raising benefits by more than the increase in costs. –Lowering benefits by less than the reduction in costs.

16. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 1 Core Marketing Concepts  Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur.  Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

17. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 16 in Chapter 1 Core Marketing Concepts  Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.

18. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 17 in Chapter 1 Core Marketing Concepts Marketing Channels  Communication channels  Distribution channels  Service channels  Deliver messages to and receive messages from target buyers.  Includes traditional media, non-verbal communication, and store atmospherics.

19. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 18 in Chapter 1 Core Marketing Concepts Marketing Channels  Communication channels  Distribution channels  Service channels  Display or deliver the physical products or services to the buyer / user.

20. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 19 in Chapter 1 Core Marketing Concepts Marketing Channels  Communication channels  Distribution channels  Service channels  Carry out transactions with potential buyers by facilitating the transaction.

21. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 20 in Chapter 1 Core Marketing Concepts  A supply chain stretches from raw materials to components to final products that are carried to final buyers.  Each company captures only a certain percentage of the total value generated by the supply chain.

22. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 21 in Chapter 1 Core Marketing Concepts  Four levels of competition can be distinguished by the level of product substitutability: –Brand competition –Industry competition –Form competition –Generic competition

23. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 22 in Chapter 1 Core Marketing Concepts  The following forces in the broad environment have a major impact on the task environment: –Demographics –Economics –Natural environment –Technological environment –Political-legal environment –Social-cultural environment

24. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 23 in Chapter 1 Core Marketing Concepts  The marketing program is developed to achieve the company’s objectives. Marketing mix decisions include: –Product: provides customer solution. –Price: represents the customer’s cost. –Place: customer convenience is key. –Promotion: communicates with customer.

25. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 24 in Chapter 1 Company Orientations  The orientation or philosophy of the firm typically guides marketing efforts. Several competing orientations exist: –Production concept –Product concept –Selling concept –Marketing concept –Customer concept –Societal marketing concept

26. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 25 in Chapter 1 The Marketing Concept  Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value.  Four pillars of the marketing concept: –Target market –Customer needs –Integrated marketing –Profitability

27. ©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 26 in Chapter 1 Changes in the Marketplace  Globalization, technological advances, and deregulation have created many challenges: –Customers –Brand manufacturers –Store-based retailers  Both companies and marketers have been forced to respond and adjust.