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Defining Marketing for the 21st Century

1

Marketing ManagementA South Asian Perspective, 13th ed

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1-2

Chapter Questions• Why is marketing important?• What is the scope of marketing?• What are some fundamental marketing

concepts?• How has marketing management

changed?• What are the tasks necessary for

successful marketing management?


Good Marketing is No Accident

The roaring success of four-wheeler Tata

Ace, in a market earlier dominated by three-wheeler load

carriers, was due to a deep understanding of the market needs

and customer requirements.


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.


What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.


Selling is only the tip of the iceberg

“There will always be a 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


What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas


Successful New Product Launches Require Careful Planning


Marketing Can Promote Ideas


Figure 1.1 Structure of Flows in a Modern Exchange Economy


Figure 1.2 A Simple Marketing System


Key Customer MarketsConsumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets


Core Marketing Concepts

• Needs, wants, and demands

• Target markets, positioning, segmentation

• Offerings and brands

• Value and satisfaction

• Marketing channels• Supply chain• Competition• Marketing

environment


Positioning

Press ads of the Scorpio focused on

the functional features of the vehicle and the television ads

focused on emotional benefits.


The marketplace isn’t what it used to be…

Information technology

Globalization

Deregulation

Privatization

Competition

Convergence

Consumer resistance

Retail transformation


New Consumer Capabilities

• A substantial increase in buying power• A greater variety of available goods and

services• A great amount of information about

practically anything• Greater ease in interacting and placing and

receiving orders• An ability to compare notes on products and

services• An amplified voice to influence public opinion


Company Orientations

Production

Selling Marketing

Product

MKTG CONCEPT has been expressed in many colorful ways…..

1. “Meeting needs profitably”.2. “ Find wants and fill them.”3. “ Love the customer, not the product.”4. “Have it your way” ( Burger King).5. “ You’re the Boss”( United Airlines).6. “ Putting people first. ”( British Airways7. “ Partners for profit.” ( Milliken &

CompanyCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1-18

Levitt of Harvard drew perceptive contrast between the selling &

mktg concepts as ……..• Selling focuses on the needs of the seller;

mktg on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; mktg with the idea of satisfying the needs of the customer by means of the product & the whole cluster of things associated with creating, delivering and finally consuming it.

Holistic Marketing Dimensions

Marketing Mix

• Mktrs use numerous tools to elicit desired responses from their target mkts.

• These tools constitute MARKETING MIX


But what

is Marketing Mix ?


Mktg Mix is

the set Of

mktg tools that a firm uses to pursue its

mktg objectives in the target mkt.



Figure 1.5 The Four P’s

Typically , the firm can change its price, sales force size, and advertising expenditures in the sort run.

It can dvp new products and modify its distribution channels only in the long run. Thus the firm typically makes fewer period to period mktg mix changes in the short run than the number of mktg mix decision variables might suggest.


• 4 Ps represent the sellers’ view of the mktg tools available for influencing buyers.

• From a buyer's point of view , each mktg tool is designed to deliver a customer benefit.

• So, what do traditional 4 Ps mean to customers ?


FOUR Ps Sellers’ Perspective

FOUR CsCustomers’ Perspective

Product Customer Solution

Price Customer Cost

Place Convenience

Promotion Communication


A complementary breakdown of marketing activities has been proposed that centers on customers. Its four dimensions ( SIVA) and the corresponding customer questions these are designed to answer are :

1.SOLUTION : How can I solve my problem?2.INFORMATION : Where can I learn more about it ?3. VALUE : What is my total sacrifice to get this solution ?4. ACCESS : Where can I find it ?

WINNING COMPANIES WILL

BE THOSE

Who can meet CUSTOMER NEEDS economically and

conveniently and with effective mktg

communication



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


Marketing Debate: Take a Position!

Does marketing shape consumer needs?

or

Does marketing merely reflect the needs and wants of consumers?

Top Mgmt

--------------------

Middle Mgmt

------------------------

Front – Line People

------------------------

CUSTOMERS

CUSTOMERS

-----------------------

Front - Line People

-----------------------

Middle Mgmt

--------------------

Top Mgmt

Traditional orgn Vs. Modern Customer – Centric orgn

END OF

THE CHAPTER # 1

AnyQuestion(s)?

ppt 1

Documents

dorling kindersley india

marketing mix copyright

aim of marketing

good marketing

scope of marketing

core marketing concepts

fundamental marketing

ps copyright