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1 
Defining Marketing 
for the 21st Century 
1
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. 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-2
What is Marketing Management? 
Marketing management is the 
art and science 
of choosing target markets 
and getting, keeping, and growing 
customers through 
creating, delivering, and communicating 
superior customer value. 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3
What is Marketed? 
• Goods 
• Services 
• Events 
• Experiences 
• Persons 
• Places 
• Properties 
• Organizations 
• Information 
• Ideas 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-4
Key Customer Markets 
 Consumer markets 
 Business markets 
 Global markets 
 Nonprofit/Government markets 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-5
Core Concepts 
 Needs, wants, and 
demands 
 Target markets, 
positioning, 
segmentation 
 Offerings and 
brands 
 Value and 
satisfaction 
 Marketing channels 
 Supply chain 
 Competition 
 Marketing 
environment 
 Marketing planning 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-6
Marketing Channels 
Communication 
Distribution 
Service 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7
Marketing Environment 
Demographic Economic 
Socio-cultural 
Political-legal 
Technological Natural 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-8
Major Societal Forces 
 Network information 
technology 
 Globalization 
 Deregulation 
 Privatization 
 Heightened competition 
 Industry convergence 
 Retail transformation 
 Disintermediation 
 Consumer buying power 
 Consumer participation 
 Consumer resistance 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-9
Company Orientations 
Production 
Product 
Selling 
Marketing 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-10
Relationship Marketing 
Customers 
Employees 
Marketing Partners 
Financial Community 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-11
Internal Marketing 
Internal marketing is the task of 
hiring, training, and motivating able employees 
who want to serve customers well. 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-12
Types of 
Corporate Social Initiatives 
 Corporate social marketing 
 Cause marketing 
 Cause-related marketing 
 Corporate philanthropy 
 Corporate community involvement 
 Socially responsible business practices 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-13
The Marketing Mix 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-14
Marketing Management Tasks 
 Develop market strategies and plans 
 Capture marketing insights 
 Connect with customers 
 Build strong brands 
 Shape market offerings 
 Deliver value 
 Communicate value 
 Create long-term growth 
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-15

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Kotler mm 14e_01_ippt

  • 1. 1 Defining Marketing for the 21st Century 1
  • 2. 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. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-2
  • 3. What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-3
  • 4. What is Marketed? • Goods • Services • Events • Experiences • Persons • Places • Properties • Organizations • Information • Ideas Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-4
  • 5. Key Customer Markets  Consumer markets  Business markets  Global markets  Nonprofit/Government markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-5
  • 6. Core Concepts  Needs, wants, and demands  Target markets, positioning, segmentation  Offerings and brands  Value and satisfaction  Marketing channels  Supply chain  Competition  Marketing environment  Marketing planning Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-6
  • 7. Marketing Channels Communication Distribution Service Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7
  • 8. Marketing Environment Demographic Economic Socio-cultural Political-legal Technological Natural Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-8
  • 9. Major Societal Forces  Network information technology  Globalization  Deregulation  Privatization  Heightened competition  Industry convergence  Retail transformation  Disintermediation  Consumer buying power  Consumer participation  Consumer resistance Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-9
  • 10. Company Orientations Production Product Selling Marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-10
  • 11. Relationship Marketing Customers Employees Marketing Partners Financial Community Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-11
  • 12. Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-12
  • 13. Types of Corporate Social Initiatives  Corporate social marketing  Cause marketing  Cause-related marketing  Corporate philanthropy  Corporate community involvement  Socially responsible business practices Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-13
  • 14. The Marketing Mix Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-14
  • 15. Marketing Management Tasks  Develop market strategies and plans  Capture marketing insights  Connect with customers  Build strong brands  Shape market offerings  Deliver value  Communicate value  Create long-term growth Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-15

Editor's Notes

  1. Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.” The American Marketing Association offers the following 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.
  2. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Thus we see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
  3. Marketers market 10 main types of entities as shown on slides 1-5 and 1-6.
  4. Consumer Markets: Companies selling mass consumer goods and services spend a great deal of time establishing a strong brand image by developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service. Business Markets: Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Global Markets: Companies in the global marketplace must decide which countries to enter; how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer); how to adapt product and service features to each country; how to price products in different countries; and how to design communications for different cultures. They face different requirements for buying and disposing of property; cultural, language, legal and political differences; and currency fluctuations. Nonprofit and Governmental Markets: Companies selling to nonprofit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully.
  5. This is a list of core marketing concepts. They will be discussed further on the coming slides.
  6. To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, firms communicate through the look of their retail stores and Web sites and other media. Marketers are increasingly adding dialogue channels such as e-mail, blogs, and toll-free numbers to familiar monologue channels such as ads. The marketer uses distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user. These channels may be direct via the Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries. To carry out transactions with potential buyers, the marketer also uses service channels that include warehouses, transportation companies, banks, and insurance companies. Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and service channels for their offerings.
  7. The marketing environment consists of the task environment and the broad environment. The task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers. In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunications companies. Distributors and dealers include agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers. The broad environment consists of six components: demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political- legal environment. Marketers must pay close attention to the trends and developments in these and adjust their marketing strategies as needed.
  8. Today, major, and sometimes interlinking, societal forces have created new marketing behaviors, opportunities, and challenges. Here are 12 key ones.
  9. The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. The product concept proposes that consumers favor products offering the most quality, performance, or innovative features. The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s products. It is practiced most aggressively with unsought goods—goods buyers don’t normally think of buying such as insurance and cemetery plots—and when firms with overcapacity aim to sell what they make, rather than make what the market wants. The marketing concept emerged in the mid-1950s41 as a customer-centered, sense-and respond philosophy. The job is to find not the right customers for your products, but the right products for your customers.
  10. Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. Four key constituents for relationship marketing are customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts). Marketers must create prosperity among all these constituents and balance the returns to all key stakeholders. To develop strong relationships with them requires understanding their capabilities and resources, needs, goals, and desires. The ultimate outcome of relationship marketing is a unique company asset called a marketing network, consisting of the company and its supporting stakeholders—customers, employees, suppliers, distributors, retailers, and others—with whom it has built mutually profitable business relationships. The operating principle is simple: build an effective network of relationships with key stakeholders, and profits will follow.
  11. Snowshoe Mountain in Snowshoe, West Virginia, embarked on a marketing program based on internal marketing to better brand the ski resort with a promise of an “authentic, rustic and engaging wilderness experience.” In launching a branding initiative to define their goals and articulate what they wanted the Snowshoe Mountain brand to represent to visitors, the resort’s marketers started inside. They incorporated the new brand promise in a 40-page brand book that contained the history of the resort and a list of seven attitude words that characterized how employees should interact with guests. On-mountain messaging and signs also reminded employees to deliver on the brand promise. All new hires received a brand presentation from the director of marketing to help them better understand the brand and become effective advocates.
  12. In Table 1.2 these forms of social activity are defined and examples from McDonald’s are provided.
  13. McCarthy classified various marketing activities into marketing-mix tools of four broad kinds, which he called the four Ps of marketing: product, price, place, and promotion. The marketing variables under each P are shown in Figure 1.4. Given the breadth, complexity, and richness of marketing, however—as exemplified by holistic marketing—clearly these four Ps are not the whole story anymore.
  14. With the holistic marketing philosophy as a backdrop, we can identify a specific set of tasks that make up successful marketing management and marketing leadership.