Post on 22-Nov-2014
Defining Marketing for the 21st Century
Marketing Management, 13th ed
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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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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.
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What is Marketing Management?
Marketing management is theart and science
of choosing target markets and getting, keeping, and growing
customers throughcreating, delivering, and communicating
superior customer value.
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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
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Obtaining Products
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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.
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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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Marketing Goods
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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.
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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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Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
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Global Markets
Coke is represented at the first China International Beverage Festival in Beijing in 2003
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Corporate Social Initiatives
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The marketplace isn’t what it used to be…
Changing technologyChanging technology
GlobalizationGlobalization
DeregulationDeregulation
PrivatizationPrivatization
EmpowermentEmpowerment
CustomizationCustomization
ConvergenceConvergence
DisintermediationDisintermediation
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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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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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The Four P’s
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Marketing-Mix Strategy
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Marketing Mix and the Customer
Four Ps• Product• Price• Place• Promotion
Four Cs• Customer
solution• Customer cost• Convenience• Communication
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Core Concepts
• 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
• Marketing channels (communications, distribution, and service)
• Supply chain• Competition• Marketing
environment• Marketing planning
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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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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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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• Infiltrate the line organization• Require right-brain and left-brain skills
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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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Internal Marketing
Internal marketing is the task of hiring, training, and motivating able
employees who want to serve customers well.
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Holistic Marketing Dimensions
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Performance Marketing
• Financial Accountability—building band and growing the customer base.
• Social Responsibility Marketing—must consider ethical environment, legal, and social context on activities.
• 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
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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)
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Marketing Debate
Does Marketing Create or Satisfy Needs?
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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 ________.
AA. segmentation
B. integration
C. disintermediation
D. targeting
E. partner relationship management
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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
BB. value proposition
C. offering
D. target market
E. demand
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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
DD. relationship channel
E. intermediary channel
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Study Question 4
Managers of ________-oriented businesses
concentrate on achieving high production efficiency, low
costs, and mass distribution.
A. selling
B. product
CC. production
D. marketing
E. consumer
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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
DD. Channel
E. New-product development