The document discusses key concepts in modern marketing. It defines marketing as identifying and meeting human and social needs profitably. The scope of marketing has expanded beyond traditional goods and now includes services, experiences, organizations and ideas. Core concepts discussed include segmentation, targeting specific customer groups, and positioning offerings to deliver benefits to targets. New capabilities enabled by technology allow more customized and data-driven marketing approaches across touchpoints. Performance marketing requires understanding both financial and non-financial returns from activities.

1. Defining Marketing for the 21ST
Century
Chapter 1

2. Chapter Outline
• The importance of Marketing
• What is Marketing?
• What is the scope of Marketing
• What are some core marketing concepts
• How has marketing management changed
in recent years
• The Holistic Marketing Concept
• Updating the Four Ps

3. The importance of Marketing
• Marketing plays a vital role in today’s
business environment.
• Other business functions such as Finance,
operations, accounting will not matter if
there is not enough demand for products
and services so the company can make a
profit.

4. The importance of Marketing
• Marketing importance goes beyond
businesses and into society as a whole.
• 1. Accept new products
• 2. Enhance existing products
• 3. Create demand for product which
creates jobs

5. The importance of Marketing
• CEOs recognize that marketing helps build
brands and a loyal customer base.
• CMOs are becoming more important to
organizations.
• Good marketing is a never-ending quest to
find new ways to satisfy customers and
beat the competition.

6. The Scope of Marketing
• Marketing is about identifying and
meeting human and social needs. It is
about meeting needs profitability.
• Marketing Management is the art and
science of choosing target markets and
getting, keeping, growing customers
through creating, delivering, and
communicating superior customer value.

7. The Scope of Marketing
• Social definition of marketing
• Managerial definition of marketing

8. What is marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas.

9. Who markets?
• Marketer is a person who seeks
a response-attention, purchase, a
vote, a donation---from another
party called a prospect.

10. Demand Management
• Marketers are responsible for demand
management.
• Marketers try to influence the level, timing,
and composition of demand to meet the
organization’s objectives.

11. Eight demand states
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand
• Marketers have to identify the cause of the

12. Markets
• Marketers use the term market to
cover various groupings of
customers.
• Sellers make up the industry and
buyers make up the market.

13. A Simple Marketing System

14. Key Customer Markets
• Consumer Markets
• Business Markets
• Global Markets
• Nonprofit and Government Markets
• Marketplaces
• Marketspaces
• Metamarkets.

15. Core Marketing Concepts
• Needs are basic human requirements such air, food,
water, clothing, and shelter. Example : I am thirsty
• Humans also have strong needs for recreation,
education, and entertainment.
• Needs become wants when they are directed to
specific objects that might satisfy the need.
Example: I want a Coca-Cola.
• Demands are wants for specific products backed by
the ability to pay. Example: I have money to buy a
Coca-Cola.

16. Types of needs
• Stated needs (The customer wants an
inexpensive car)
• Real needs (The customer wants a car
whose operating cost, not initial price is low)
• Unstated needs (The customer expects
good service from the dealer)
• Delight needs (The customer would like the
dealer to include an onboard GPS navigation
system)
• Secret needs (The customer wants friends to
see him or her as a savvy consumer)
• Customers may have needs that they are not
fully aware of.

17. Segmentation, Target Markets,
Positioning
• Marketers must divide their markets into
segments.
• Marketers then decide which market
segments present the greatest
opportunities to them and these segments
are called target markets.

18. Segmentation, Target Markets,
Positioning
• For each target market, marketers
develop a market offering (which
can be a combination of products,
services, information, and
experiences) that it positions in
the minds of target buyers as
delivering some central benefit(s).

19. Offerings and Brands
• Companies address customer needs by
putting a value proposition, a set of
benefits that satisfy those needs.
• The intangible value proposition is made
physical by an offering, which can be a
combination of products, services,
information, and experiences.
• A brand is an offering from a known
source.

20. Value and Satisfaction
• The buyer chooses the offerings he or she
perceives to deliver the most value.
• Value, the sum of the tangible and
intangible benefits and costs to the
customer.
• Value which is a key marketing concept is
primarily a combination of quality,
service, and price (qsp).

21. Value and Satisfaction
• Satisfaction reflects a person’s judgment of a
product’s perceived performance in relationship
to expectations.
• If the performance falls short of expectation, the
customer is disappointed.
• If the performance matches expectations, the
customer is satisfied.
• If the performance exceeds expectations, the
customer is delighted.

22. Marketing Channels
• Communication channels-Deliver and
receive messages from target buyers.
• Monologue(Newspapers, TV, billboards, and radio) and
Dialogue (Emails, blogs, Social media)
• Distribution channels-Display, sell, or
deliver the product or service. (Direct-Internet,
e-mail, mobile. Indirect-wholesalers, retailers)
• Service channels ( warehouses,
transportation companies, banks, and insurance
companies)

23. Supply Chain
• The supply chain is a longer channel stretching from
raw materials to components to finished products
carried to the final buyers.
• Supplier(raw material or components)
• Transportation(inbound logistics)
• Manufacturer
• Transportation (outbound logistics)
• Warehousing
• Wholesaler
• Retailer
• Final consumer

24. Competition
• Competition includes all actual
and potential rival offerings and
substitutes a buyer might
consider.

25. Marketing Environment
• Task environment (micro)-Everyone
involved in producing, distributing, and
promoting the offering (includes the
company, suppliers, distributors,
dealers, and target markets)
• Broad environment (Macro) (
demographic, economic, social-cultural,
natural, technological, and political-legal
environment)

26. The New Marketing Realties
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competitions
• Industry convergence
• Retail transformation
• Disintermediation and Reintermediation
• Consumer buying power
• Consumer information
• Consumer participation
• Consumer resistance

27. 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 name.

28. New Company Capabilities
• 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

29. New Company Capabilities
• 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.

30. Marketing in Practice
• Companies must always be moving
forward with marketing programs,
innovating products and services, staying
in touch with customers needs and
seeking new advantages rather than
relying on past strengths.
• Companies must also integrate the
Internet into their marketing plans.

31. The new CMO
• The most important role for any CMO is to
infuse a customer perspective and
orientation in business decisions affecting
any customer touch point (where a
customer directly or indirectly interacts
with the company in some form)
• Example of a Hotel’s customer touch
points: Internet and phone reservation,
Hotel website, Hotel reception, check-in
process, room service, laundry service,

32. Marketing in the Organization
• Marketers must properly manage all
possible touch points—store layouts,
package designs, product functions,
employee training, and shipping and
logistics methods.

33. Marketing in the Organization
• Marketers must also have influence on
general management activities such as
product innovation, and new-business
development.
• Marketers must think like executives in
other departments, and executives in other
departments must think like marketers.

34. Company Orientation toward the
Marketplace
• The Production Concept-Customers prefer
products that are widely available and
inexpensive.
• The Product Concept-Consumers favor
products offering the most quality, performance,
or features.
• The Selling Concept- If consumers are left
alone, they will not buy enough of the company’s
products.
• The Marketing Concept-Find the right product
for you customer.

35. The Holistic Marketing Concept
• The holistic marketing concept is based
on the development, design, and
implementation of marketing programs,
processes, and activities that recognize
their breadth and interdependencies.
• Holistic marketing is a marketing strategy
that considers the business as a whole
and not as several different parts.

36. Relationship marketing
• Create prosperity among key
constituents.
• (customers, employees, suppliers,
distributors, shareholders, and investors)
• Focus on the most profitable customers
• Customer retention (cross-selling and up-
selling)
• Closer relationship with suppliers and
distributors

37. Integrated Marketing
• Integrated Marketing occurs when
companies integrate their marketing
activities and programs.(examples:
Integrated communication, integrated
channel strategies)
• Many different marketing activities can
create, communicate, and deliver value.
• Marketers should design and implement
any one marketing activity with all other
activities in mind.

38. Internal Marketing
• Internal Marketing is the task of hiring,
training, and motivating able employees
who want to serve the customers well.
• It ensures that everyone in the organization
embraces appropriate marketing principles,
especially top management.
• Marketing activities inside the company can
be as important if not more important than
marketing activities outside the company.

39. Internal Marketing
• Internal marketing requires
vertical alignment with senior
management and horizontal
alignment with other departments.

40. Performance marketing
• Performance marketing requires
understanding the financial and
nonfinancial returns to business and
society from marketing activities and
programs.

41. Performance marketing
• Financial Accountability
• Social Responsibility
Marketing/ Marketers must
consider the ethical,
environmental, legal, and social
context of their roles and
activities.

42. References
• Kotler, Philip and Kevin Lane Keller .
Marketing Management. Pearson
Education Limited, 2012.