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Defining Marketing
for the 21st Century

Marketing Management, 13th ed

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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Copyright 2009 Pearson Education, Inc. Publishing as Prentice

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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 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
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What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
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Marketing Can Promote Ideas

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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

A.K.A. The Exchange Process

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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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Core Marketing Concepts

Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands

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Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment

Copyright 2009 Pearson Education, Inc. Publishing as Prentice

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 Needs - states of felt deprivation including physical

needs for food, social needs for belonging and
individual needs for self-expression. i.e. I am thirsty.
Wants - form that a human need takes as shaped by
culture and individual personality. i.e. I want a CocaCola.
Demands - human wants backed by buying power. i.e. I
have money to buy a Coca-Cola.

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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
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Company Orientations

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Production

Product

Selling

Marketing

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Figure 1.4 Holistic Marketing Dimensions

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Figure 1.5 The Four Ps

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Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able
employees who want to serve
customers well.

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Performance Marketing
Financial
Accountability
Social
Responsibility
Marketing

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Social Initiatives
Corporate social
marketing
Cause marketing
Corporate philanthropy
Corporate community
involvement
Socially responsible
business practices

Copyright 2009 Pearson Education, Inc. Publishing as Prentice

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Marketing Management Tasks

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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
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Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?

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Copyright 2009 Pearson Education, Inc. Publishing as Prentice

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