MARKETING MANAGEMENT

1
Defining
Marketing
for the
21st Century

Kotler

Keller

Chapter Questions
Why is marketing important?
What is the scope of marketing?
What are some of the fundamental
marketing concepts?
How has marketing management
changed?
What are the tasks necessary for
successful marketing management?
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.
1-3

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.
1-4

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
1-5

Right product should designed for best marketing

practice: Only the best is good enough for Lexus customers

1-6

What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
1-7

Marketing Goods

1-8

Marketing Ideas:
Friends Dont 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.
1-9

Who markets: Marketer => Prospect.

Demand States

Negative

Nonexistent

Irregular

Declining

Full

Latent

Overfull

Unwholesome
1-10

Figure 1.1 Structure of Flows in a

Modern Exchange Economy

1-11

Figure 1.2 A Simple Marketing System

1-12

Key Customer Markets

Consumer Markets

Global Markets

Business Markets

Nonprofit/ Government
Markets

1-13

Global Markets

Coke is
represented at the
first China
International
Beverage Festival
in Beijing in 2003

1-14

Other forms of market- Marketplaces: The marketplaces is physical, such as a

store you shop in.
Marketspace: Marketspace is digital, as when you shop
on the Internet.
Metamarket: Metamarket describe a cluster of
complementary products and services that are closely
related in the minds of consumers, but spread across a
diverse set of industries . Ex. Automobile metamarket
consists of automobile manufacturers, new car and used
car dealers, financing companies, insurance companies,
mechanics, spare parts dealers, service shops, auto
magazines, classified auto ads in newspapers, and auto
sites on the internet.

The marketplace isnt what it used to be

Changing
Changing technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Empowerment
Empowerment
Customization
Customization
Convergence
Convergence
Disintermediation
Disintermediation
1-16

Company Orientations

Production

Product

Selling

Marketing

1-17

Figure: Holistic Marketing Dimensions

1-18

Pumas rebirth attributed to holistic marketing

1-19

Figure : The Four Ps

1-20

Figure : Marketing-Mix Strategy

1-21

Marketing Mix and the Customer

Four Ps
Product
Price
Place
Promotion

Four Cs
Customer solution
Customer cost
Convenience
Communication

1-22

Fundamental marketing
concept: 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

1-23

I want it, I need it

5 Types of Needs

Stated needs
Real needs
Unstated needs
Delight needs
Secret needs

1-24

Marketing Management Tasks

Developing marketing
strategies
Capturing marketing
insights
Connecting with
customers
Building strong
brands

Shaping market
offerings
Delivering value
Communicating
value
Creating long-term
growth

1-25

Marketing Debate

Does Marketing
Create or Satisfy Needs?

1-26