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Defining Marketing
for the 21st Century

Marketing Management, 13th ed

 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?

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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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 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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 What is Marketed?

• Goods (tangible) • Places (Cities, States,

• Services (intangible) Regions, Nations) and

• Events (time based— Properties (Intangible

rights of ownership of real
trade shows) and estate or financial properties)
Experiences (Walt • Organizations
Disney World’s Magic (Universities, Museums,
kingdom) Performing Arts Organization)
• Persons (Artists, • Information (Books,
Musicians, CEO, Schools, Magazines)
Physicians) • Ideas (Revlon sell hope)

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 Marketing Goods

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 Marketing Ideas:
Friends Don’t 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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 Key Customer Markets

• Consumer markets (personal

consumption)
• Business markets (resale or used to
produce other products or services)
• Global markets (international)
• Nonprofit/Government markets
(Churches, Universities, Charitable
Organizations, Government Agencies)

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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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 Corporate Social Initiatives

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 The marketplace isn’t what it used to be…

Changing
Changing technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Empowerment
Empowerment
Customization
Customization
Convergence
Convergence
Disintermediation
Disintermediation
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 Demand States
• Negative (dislike product
and may even pay a price to
avoid it)
• Nonexistent (unaware
of or uninterested in the
product)
• Latent (need that cannot
be satisfied by existing
product)
• Declining (buy the
product less frequently or
not at all)
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• Irregular (purchases vary
on a seasonal, monthly, weekly,
daily, or even hourly basis)
• Unwholesome (product
that have undesirable social
consequences)
• Full (adequately buying all
products put into the
marketplace)
• Overfull (more consumers
would like to buy the product
that can be satisfied)
 Company Orientations

• Production (consumers will prefer products that

are widely available and inexpensive)
• Product (consumers favor products that offer the
most quality performance, or innovative features)
• Selling (consumer and businesses, if left alone,
won’t buy enough of the organization’s products)
• Marketing (find the right product for the
consumers (i.e., satisfy the wants and needs of the
consumers)

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 The Four P’s

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 Marketing-Mix Strategy

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Marketing Mix and the Customer

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

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 Core Concepts

• Needs, wants, and • Marketing channels

demands (communications,
• Target markets, distribution, and
positioning (in mind of service)
target buyers), • Supply chain
segmentation • Competition
• Offerings (intangible • Marketing
benefit made physical) environment
and brands (offering
• Marketing planning
from a know source)
• Value (set of benefits)
and satisfaction
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Marketing Management Tasks
• Developing marketing • Shaping market
strategies (strategic fit)
offerings
• Capturing marketing
• Delivering value
insights (obtaining
information) • Communicating
• Connecting with value
customers • Creating long-
(relationships) term growth
• Building strong brands (positioning and
(understand strengths new-product
and weaknesses)
development)

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 Functions of CMOs

• Strengthening the brands

• Measuring marketing effectiveness
• Driving new product development
based on customer needs
• Gathering meaningful customer insights
• Utilizing new marketing technology

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 Improving CMO Success (cont.)

• Make the mission and responsibilities clear

• Fit the role to the marketing culture and
structure
• Ensure the CMO is compatible with the CEO
• Make line managers marketing heroes
• Infiltrate the line organization
• Require right-brain and left-brain skills

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 New Consumer Capabilities
• A substantial increase in buying power (a click
away)
• A greater variety of available goods and
services (internet)
• A great amount of information about
practically anything (online)
• Greater ease in interacting and placing and
receiving orders (24/7)
• An ability to compare notes on products and
services (internet)
• An amplified voice to influence public opinion
(internet)
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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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 Holistic Marketing Dimensions

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 Performance Marketing
• Social Initiatives
• Financial • Corporate social marketing —
Accountability— supporting behavior change
campaigns
building band and • Cause marketing —promoting
growing the customer social issues through
base. sponsorships, licensing
agreements, and advertising
• Social Responsibility • Corporate philanthropy—making
Marketing—must gifts, goods, or time
• Corporate community
consider ethical involvement—in kind or volunteer
environment, legal, and service
social context on • Socially responsible business
practices—to protect environment
activities. and human and animal rights

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 I want it, I need it…

5 Types of Needs
• Stated needs (inexpensive)
• Real needs (low operating
cost)
• Unstated needs (good
service)
• Delight needs (extras)
• Secret needs (savvy
consumer)

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 Marketing Debate

Does Marketing
Create or Satisfy Needs?

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 Study Question 1
The identification and profiling of distinct
groups of buyers who might prefer or
require varying product and service mixes
is known as ________. 
A.  segmentation
B.  integration
C.  disintermediation
D.  targeting
E.  partner 1-31
relationship management
 Study Question 2
Companies address needs by putting
forth a(n) ________, a set of benefits that
they offer to customers to satisfy their
needs.  
A.  brand
B.  value proposition
C.  offering
D.  target market
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 Study Question 3
If a marketer decides to use warehouses, transportation
companies, banks, and insurance companies to
facilitate transactions with potential buyers, the
marketer is using what is called a
________.  

A.  service channel

B.  distribution channel
C.  brand channel
D.  relationship channel
E.  intermediary channel
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 Study Question 4
Managers of ________-oriented businesses
concentrate on achieving high production efficiency, low
costs, and mass distribution.  

A.  selling
B.  product
C.  production
D.  marketing
E.  consumer

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 Study Question 5
________ activities include those the company
undertakes to make the product accessible and
available to target customers.  

A.  Consumer behavior

B.  Market segmentation
C.  Marketing research
D.  Channel
E.  New-product development

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