1.defining Marketing

Chapter
1
Defining
Marketing
for the
New Realities
Copyright © 2016 Pearson Education, Inc. 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
COPYRIGHT © 2016Copyright
PEARSON © EDUCATION,
2016 Pearson INC.
Education, Inc. 1-5 1-5
What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
2016 Pearson INC.
What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas
2016 Pearson INC.
Who Markets?
• A marketer is someone who seeks a

response—attention, a purchase, a
vote, a donation—from another
party, called the prospect
2016 Pearson INC.
8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
2016 Pearson INC.
Fig. 1.1
Structure Of Flows In A Modern
Exchange Economy
PEARSON EDUCATION,
© 2016 INC.
Pearson Education, Inc. 1-10 1-10
Fig. 1.2
A Simple Marketing System

Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets
PEARSON EDUCATION,
© 2016 INC.
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
PEARSON EDUCATION,
© 2016 INC.
Types of Needs
STATED
REAL
UNSTATED
DELIGHT
SECRET
PEARSON EDUCATION,
© 2016 INC.
• Target markets
• Positioning
• Segmentation
PEARSON EDUCATION,
© 2016 INC.
• 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
PEARSON EDUCATION,
© 2016 INC.
• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE
PEARSON EDUCATION,
© 2016 INC.
• 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
PEARSON EDUCATION,
© 2016 INC.
• Impressions: occur when
consumers view a communication
• Engagement: the extent of a

customer’s attention and active
involvement with a communication
PEARSON EDUCATION,
© 2016 INC.
• 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
PEARSON EDUCATION,
© 2016 INC.
• 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)
PEARSON EDUCATION,
© 2016 INC.
• Competition: all the actual and
potential rival offerings and
substitutes a buyer might consider
PEARSON EDUCATION,
© 2016 INC.
• Marketing
environment
– Task environment
– Broad environment
PEARSON EDUCATION,
© 2016 INC.
The New Marketing Realities
• Technology
• Globalization
• Social
responsibility
PEARSON EDUCATION,
© 2016 INC.
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
PEARSON EDUCATION,
© 2016 INC.
marketplace
• New consumer
capabilities
– Can actively interact

with companies
– Can reject marketing

they find inappropriate
PEARSON EDUCATION,
© 2016 INC.
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
PEARSON EDUCATION,
© 2016 INC.
marketplace
• New company capabilities
– Can improve purchasing, recruiting, training, and

internal and external communications
– Can improve cost efficiency
PEARSON EDUCATION,
© 2016 INC.
marketplace
• Changing
channels
– Retail
transformation
– Disintermediation
PEARSON EDUCATION,
© 2016 INC.
marketplace
• Heightened competition
– Private brands
– Mega-brands
– Deregulation
– Privatization
PEARSON EDUCATION,
© 2016 INC.
Marketing in practice
• Marketing balance
• Marketing accountability
• Marketing in the organization
PEARSON EDUCATION,
© 2016 INC.
Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING
PEARSON EDUCATION,
© 2016 INC.
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


1.defining Marketing

Uploaded by

Copyright:

Available Formats

1.defining Marketing

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1.defining Marketing

Uploaded by

Copyright:

Available Formats

Chapter

Copyright © 2016 Pearson Education, Inc. 1-1

Copyright © 2016 Pearson Education, Inc. 1-2

Copyright © 2016 Pearson Education, Inc. 1-3

• AMA’s formal definition: Marketing is the

Copyright © 2016 Pearson Education, Inc. 1-4

• A marketer is someone who seeks a

Copyright © 2016 Pearson Education, Inc. 1-11

• Wants: specific objects that might

• Demands: wants for specific

• Offerings: a combination of products,

• Brands: an offering from a known

• Owned media: a company or brand

• Earned media: word of mouth, buzz,

• Engagement: the extent of a

• Satisfaction: a person’s judgment

– 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

– 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

• Marketing in the organization

Copyright © 2016 Pearson Education, Inc. 1-33

Copyright © 2016 Pearson Education, Inc. 1-34

Copyright © 2016 Pearson Education, Inc. 1-35

Copyright © 2016 Pearson Education, Inc. 1-36

Copyright © 2016 Pearson Education, Inc. 1-37

Copyright © 2016 Pearson Education, Inc. 1-38

Copyright © 2016 Pearson Education, Inc. 1-39

• Capturing marketing insights

• Connecting with customers

• Building strong brands

Copyright © 2016 Pearson Education, Inc. 1-40

• Creating successful long-term growth

Copyright © 2016 Pearson Education, Inc. 1-41

You might also like