Marketing Management: Defining Marketing For The New Realities

Marketing Management
Fifteenth Edition
Introduction:
Defining
Marketing for the
New Realities
Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved
Learning Objectives
1.1 Why is marketing important?
1.2 What is the scope of marketing?
1.3 What are some core marketing concepts?
1.4 What forces are defining the new marketing
realities?
1.5 What new capabilities have these forces
given consumers and companies?
1.6 What does a holistic marketing philosophy
include?
1.7 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
What is Marketed? (1 of 2)
• Goods
• Services
• Events
• Experiences
• Persons
What is Marketed? (2 of 2)
• Places
• Properties
• Organizations
• Information
• Ideas
Who Markets?
• A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect
8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
Figure 1.1 Structure of Flows in a
Modern Exchange Economy
Figure 1.2 A Simple Marketing System
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets
Core Marketing Concepts (1 of 10)
• 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
Types of Needs
• Stated
• Real
• Unstated
• Delight
• Secret
• Target markets
• Positioning
• Segmentation
• 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
• Marketing channels
– Communication
– Distribution
– Service
• 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
• Impressions: occur when consumers view a
communication
• Engagement: the extent of a customer’s attention and
active involvement with a communication
• 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
• Supply chain: a channel stretching from raw
materials to components to finished products carried
to final buyers
Figure 1.3 The Supply Chain for Coffee
• Competition: all the actual and potential rival
offerings and substitutes a buyer might consider
• Marketing environment
– Task environment
– Broad environment
The New Marketing Realities
• Technology
• Globalization
• Social responsibility
A Dramatically Changed
Marketplace (1 of 6)
• 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
• New consumer
capabilities
– Can actively interact with
companies
– Can reject marketing
they find inappropriate
• 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
• New company capabilities
– Can improve purchasing, recruiting, training, and
internal and external communications
– Can improve cost efficiency
• Changing channels
– Retail transformation
– Disintermediation
• Heightened competition
– Private brands
– Mega-brands
– Deregulation
– Privatization
Marketing in Practice
• Marketing balance
• Marketing accountability
• Marketing in the organization
Company Orientation Toward the
Marketplace
• Production
• Product
• Selling
• Marketing
Figure 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 accountability
• Environmental impact
• Social impact
Modern Marketing Management
• People
• Processes
• Programs
• Performance
Figure 1.6 The Evolution of Marketing
Management
Marketing Management Tasks (1 of 2)
• Developing market strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
Marketing Management Tasks (2 of 2)
• Creating value
• Delivering value
• Communicating value
• Creating successful long-term growth
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