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MARKETING MANAGEMENT

12th edition

1
Defining
Marketing
for the
21st Century

MM UNIB. 2010 EFFED DARTA HADI


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?
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Good Marketing is No Accident

Boston Beer
C o m p a n y,
maker of
S a m u e l
A d a m s ,
constantly
innovates

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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 the


art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, 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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Designing the Right Product

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Only the best is good enough for Lexus customers

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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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Are both forms of exchange?

Transactions Transfers

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What is Marketed?
Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
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Marketing Goods

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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.

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Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

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Figure 1.1 Structure of Flows in a
Modern Exchange Economy

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Figure 1.2 A Simple Marketing System

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Key Customer Markets
Consumer Markets Global Markets

Business 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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The marketplace isnt what it used to be

Changing technology

Globalization
Deregulation

Privatization

Empowerment

Customization
Convergence
Disintermediation
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Company Orientations

Production Product

Selling Marketing

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Figure 1.3 Holistic Marketing Dimensions

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Pumas rebirth attributed to holistic marketing

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Figure 1.4 The Four Ps

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Figure 1.5 Marketing-Mix Strategy

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Marketing Mix and the Customer

Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication

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Corporate Social Initiatives

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Corporate Social Initiatives

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Core Concepts

Needs, wants, and Marketing channels


demands Supply chain
Target markets, Competition
positioning, Marketing
segmentation environment
Offerings and brands Marketing planning
Value and
satisfaction

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Core Marketing Concepts

Products
Needs, wants, and
and demands Services

Core
Marketing
Concepts
Markets
Value, satisfaction,
and quality

Exchange, transactions,
and relationships

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I want it, I need it

5 Types of Needs

Stated needs
Real needs
Unstated needs
Delight needs
Secret needs

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Figure 1.6 Factors Influencing
Marketing Strategy

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Marketing Management Tasks

Developing marketing Shaping market


strategies offerings
Capturing marketing Delivering value
insights Communicating
Connecting with value
customers Creating long-term
Building strong growth
brands

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Marketing Debate

Does Marketing
Create or Satisfy Needs?

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Marketing Discussion

Are there any themes that


emerge in the broad shifts
in marketing? Can they be
related to the major societal
forces? Expand.

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