Defining Marketing For The New Realities

Chapter
1
Defining
Marketing
for the
New Realities
Copyright © 2016 Pearson Education Ltd. 1-1

Learning Objectives
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some core marketing concepts?
4. What forces are defining the new marketing
realities?
5. What new capabilities have these forces given
consumers and companies?
6. What does a holistic marketing philosophy include?
7. What tasks are necessary for successful marketing
management?

The Value of Marketing
• Financial success often depends on marketing
ability
• Successful marketing builds demand for
products and services, which, in turn, creates
jobs
• Marketing builds strong brands and a loyal
customer base, intangible assets that contribute
heavily to the value of a firm

The Scope of Marketing
• Marketing is about identifying and meeting
human and social needs
• AMA’s formal definition: Marketing is the activity,

set of institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large

Marketing Management
• 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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What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons

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What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas

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Who Markets?
• A marketer is someone who seeks a

response—attention, a purchase, a vote, a
donation—from another party, called the
prospect

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8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
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Fig. 1.1
Structure Of Flows In A Modern
Exchange Economy
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Fig. 1.2
A Simple Marketing System

Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets

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Core Marketing Concepts
• Needs: the basic human requirements
such as for air, food, water, clothing, and
shelter
• Wants: specific objects that might satisfy

the need
• Demands: wants for specific products

backed by an ability to pay
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Types of Needs
STATED
REAL
UNSTATED
DELIGHT
SECRET

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• Target markets
• Positioning
• Segmentation

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• Value proposition: a set of benefits that
satisfy those needs
• Offerings: a combination of products,

services, information, and experiences
• Brands: an offering from a known source

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• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE

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• Paid media: TV, magazine and display
ads, paid search, and sponsorships
• Owned media: a company or brand

brochure, web site, blog, Facebook page,
or twitter account
• Earned media: word of mouth, buzz, or

viral marketing
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• Impressions: occur when consumers view
a communication
• Engagement: the extent of a customer’s

attention and active involvement with a
communication

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• Value: a combination of quality, service,
and price (qsp: the customer value triad)
• Satisfaction: a person’s judgment of a

product’s perceived performance in
relationship to expectations

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• Supply chain: a channel stretching from raw materials to
components to finished products carried to final buyers
(Fig 1.3: The Supply Chain for Coffee)

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• Competition: all the actual and potential
rival offerings and substitutes a buyer
might consider

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• Marketing
environment
– Task environment
– Broad environment

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The New Marketing Realities
• Technology
• Globalization
• Social
responsibility

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A dramatically changed
marketplace
• New consumer capabilities
– Can use the internet as a powerful information

and purchasing aid
– Can search, communicate, and purchase on

the move
– Can tap into social media to share opinions

and express loyalty
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marketplace
• New consumer
capabilities
– Can actively interact

with companies
– Can reject marketing

they find inappropriate

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marketplace
• New company capabilities
– Can use the internet as a powerful information and
sales channel, including for individually differentiated
goods
– Can collect fuller and richer information about

markets, customers, prospects, and competitors
– Can reach customers quickly and efficiently via social

media and mobile marketing, sending targeted ads,
coupons, and information
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marketplace
• New company capabilities
– Can improve purchasing, recruiting, training, and

internal and external communications
– Can improve cost efficiency

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marketplace
• Changing channels
– Retail
transformation
– Disintermediation

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marketplace
• Heightened competition
– Private brands
– Mega-brands
– Deregulation
– Privatization

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Marketing in practice
• Marketing balance
• Marketing accountability
• Marketing in the organization

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Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING

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Fig. 1.4
Holistic Marketing Dimensions

Relationship marketing
CUSTOMERS
EMPLOYEES
MARKETING
PARTNERS
FINANCIAL
COMMUNITY

Integrated marketing
• Devise marketing activities and programs that
create, communicate, and deliver value such that
“the whole is greater than the sum of its parts.”

Internal marketing
• The task of hiring, training, and motivating
able employees who want to serve
customers well

Performance marketing
FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT
SOCIAL IMPACT

Fig. 1.5
Marketing Mix Components (4 Ps)

MODERN MARKETING
MANAGEMENT
PEOPLE
PROCESSES
PROGRAMS
PERFORMANCE

MARKETING
MANAGEMENT TASKS
• Developing market strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands

MARKETING
MANAGEMENT TASKS
• Creating value
• Delivering value
• Communicating value
• Creating successful long-term growth


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Chapter

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• AMA’s formal definition: Marketing is the activity,

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COPYRIGHT © 2016 PEARSON

COPYRIGHT © 2016 PEARSON

COPYRIGHT © 2016 PEARSON

• A marketer is someone who seeks a

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COPYRIGHT © 2016 Copyright

• Wants: specific objects that might satisfy

• Demands: wants for specific products

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COPYRIGHT © 2016 Copyright

• Offerings: a combination of products,

• Brands: an offering from a known source

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COPYRIGHT © 2016 Copyright

• Owned media: a company or brand

• Earned media: word of mouth, buzz, or

• Engagement: the extent of a customer’s

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• Satisfaction: a person’s judgment of a

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COPYRIGHT © 2016 Copyright

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COPYRIGHT © 2016 Copyright

COPYRIGHT © 2016 Copyright

– Can use the internet as a powerful information

– Can search, communicate, and purchase on

– Can tap into social media to share opinions

– Can actively interact

– Can reject marketing

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– Can collect fuller and richer information about

– Can reach customers quickly and efficiently via social

– Can improve purchasing, recruiting, training, and

– Can improve cost efficiency

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COPYRIGHT © 2016 Copyright

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• Marketing in the organization

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• Capturing marketing insights

• Connecting with customers

• Building strong brands

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