Chapter 1

Defining Marketing for the 21st Century

Marketing
The activities a company undertakes to promote the buying or selling of its
products or services.

What is Marketing Management?

The process of planning, executing, and tracking the marketing strategy of an
organization.

Marketing management works to ensure a company is profitable by gaining

new customers, expanding a customer base, building a company's reputation, and
improving customer interactions.

Is marketing important?
Yes, marketing is important for businesses because it helps them grow, create
brand awareness, and connect with customers.

Scope of Marketing
 What is Marketing?

The activities a business undertakes to promote its products or services, and to

build a positive reputation

 How it works?
The process of promoting a business to attract and retain customers
 Market research
 Creating offers
 Designing experiences:
 Advertising
 Building a social media presence
 Networking
 Measuring performance
  Who does it?
Typically carried out by the seller, such as a manufacturer or retailer, but it
can be done by many different types of organizations, including individuals,
government entities, and nonprofit organizations.
 What is Marketed?
To make goods available to buyers in a planned way that encourages people
to buy more of them, for example by advertising. (Advertise or Promote).

What is Marketing?
 Marketing
The activities a company undertakes to promote the buying or
selling of its products or services.
 Marketing Management
The process of planning, executing, and tracking the marketing
strategy of an organization.
 Selling
Any transaction in which money is exchanged for a good or
service.

What is Marketed?
 Goods  Places
 Services  Properties
 Events  Organizations
 Experiences  Information
 Persons  Ideas

Who Markets?
Marketers: A person or company that promotes a company's products,
services, or brand identity

Prospects: A potential customer who is interested in a company's products

or services and may become a lead or sales opportunity.
States of Demand:
 Negative Demand: Consumers dislike the product and may even pay to
avoid it.
 Nonexistent Demand: Consumers may be unaware of or uninterested in the
product.
 Latent Demand: Consumers may share a strong need that cannot be
satisfied by an existing product.
 Declining Demand: when the demand for a product or service decreases in
amount, importance, or quality.
 Irregular Demand: Consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis.
 Full Demand: Where the supply of a product or service is equal to the
demand for it or Consumers are adequately buying all products put into the
marketplace.
 Overfull Demand: Demand exceeds the available supply, leading to
shortages or More consumers would like to buy the product than can be
satisfied.
 Unwholesome Demand: when consumers want and can buy a product that
could harm them or Consumers may be attracted to products that have
undesirable social consequences.
Structure of Flows in a Modern Exchange Economy

Relationship between the Industry and the Market

Key Customer Markets
 Consumer Markets: A system where people buy products and services for
personal use, rather than to resell. It's also known as a business-to-consumer
(B2C) market.
 Business Markets: The exchange of goods and services between
businesses.
 Global Markets: Where goods, services, and labor are exchanged
throughout the entire world.
 Nonprofit and Governmental Markets: Markets are made up of
organizations that serve people, rather than generating profits.

Core Marketing Concepts

 Needs: The desires that drive a customer to buy a product or service
 Wants: requests for specific types of items that consumers desire
beyond their basic needs.
 Demands: The demand for a given product and who wants to
purchase it.
 Target Markets: a specific group of potential customers who a
business aims to reach with its products or services
 Positioning: a strategy that helps a brand or product establish a
unique identity and value proposition in the minds of consumers.
 Segmentation: the process of dividing a company's target market
into groups of potential customers with similar needs and behaviours.
 Offering and Brands: used to provide value to customers and
differentiate a company from its competitors.
 Value: The perceived benefits of a product or service, minus the
costs of acquiring it. This includes aspects like quality, usefulness,
and emotional connection.
 Satisfaction: How well a product or service meets or exceeds a
customer's expectations.
 Marketing Channels: A medium that a business uses to
communicate with customers and promote its products or services.
  Supply Chain: A network of companies and people that are involved
in the production and delivery of a product or service.
 Competition: the rivalry between businesses that sell similar products
or services to the same targeat audience
 Marketing Environment: The sum of all internal and external factors
that impact a company's marketing strategy.

The New Marketing Realities

 Network Information Technology: the use of technology to create,
store, and exchange information to solve problems and support
marketing goals
 Globalization: a strategy that allows companies to promote their
products and services to a global audience.
 Deregulation: removing laws and regulations for new businesses
hence increasing competition in the market.
 Privatization: the process of transferring government-owned
companies or services to the private sector
 Heightened Competition: when multiple people or groups are
competing to get something that not everyone can have.
 Industry Convergence: when previously separate industries merge or
collaborate to create new products or services.
 Retail Transformation: the process of using technology to improve
the customer experience, increase sales, and reduce operational costs.
 Disintermediation: removes intermediaries from a supply chain or
industry
 Consumer Buying Power: the amount of money consumers have to
purchase products and services
 Consumer Information: data that helps consumers make decisions
about products and services
 Consumer Participation: when customers are actively involved in a
company's business, such as product development, marketing, and
customer service
 Consumer resistance: when consumers are unwilling to buy or adopt
a product or service, or to change
New Company Capabilities
 Marketers can use the internet as a powerful information and sales channel
 Marketers can collect fuller and richer information about markets,
Customers, prospects and competitors
 Marketers can tap into social media to amplify their brand message
 Marketers can facilitate and speed external communication among
customers
 Marketers can send ads, coupons, samples, and information to customers
who have requested them or given the company permission to send them.
 Marketers can reach consumers on the move with mobile marketing
 Companies can make and sell individually differentiated goods
 Companies can improve purchasing, recruiting, training, and internal and
external communications
 Companies can facilitate and speed up internal communication among their
employees by using the Internet as a private intranet
 Companies can improve their cost efficiency by skillful use of the Internet

Marketing in an Age of Turbulence

 Secure your market share from core customer segments
 Push aggressively for greater market share from competitors
 Research customers more now, because their needs and wants are in flux
 Minimally maintain, but seek to increase, your marketing budget
 Focus on all that’s safe and emphasize core values
 Drop programs that aren’t working for you quickly
 Don’t discount your best brands
 Save the strong; lose the weak

Company Orientation Toward the Marketplace

 The Production Concept – High production efficiency, low costs and mass
distribution
 The Product Concept – Product offering most quality, performance or
innovative features
 The Selling Concept – Practiced most aggressively with unsought goods
  The Marketing Concept – Customer-centered, sense-and-respond
philosophy
 The Holistic Marketing Concept – Development, design and
implementation of marketing programs, processes and activities that
recognize their breadth and interdependencies

Holistic Marketing Dimensions

Relationship Marketing
 Long term relationship

 Four key constituents for relationship marketing are customers, employees,

marketing partners, and members of the financial community

 Building high customer loyalty

 Emphasizes customer retention

Integrated Marketing
 Whole is greater than sum of its parts
 Two key themes are that
1. many different marketing activities can create, communicate, and
deliver value and
2. marketers should design and implement any one marketing activity
with all other activities in mind
 Company communication must be integrated
 Must develop an integrated channel strategy

Internal Marketing
 Task of hiring, training, and motivating able employees who want to serve
customers well
 Smart marketers recognize that marketing activities within the company can
be as important—or even more important— than those directed outside the
company
 Succeeds only when all departments work together to achieve customer
goals

Performance Marketing
 Understanding the financial and nonfinancial returns to business and society
from marketing activities and programs
 Financial Accountability
 Social Responsibility Marketing
 Updating the Four Ps

Marketing Management Tasks

 Developing Marketing Strategies and Plans
 Capturing Marketing Insights
 Connecting with Customers
 Building Strong Brands
 Shaping the Market Offerings
 Delivering Value
 Communicating Value
 Creating Successful Long-Term Growth

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