Chapter 1

Defining Marketing for the New

Realities
 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.

Or marketing is “meeting needs profitably.”

 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.
 The Value of Marketing
• Financial success often depends on
marketing ability.
• Marketing builds strong brands and a loyal
customer base.
 Core Marketing Concepts
• Needs
• Wants
• Demands
 Target Markets, Positioning &
Segmentation
• Marketers identify distinct segments of buyers by
identifying demographic, psychographic, and
behavioral differences between them.
• They then decide which segment's present the
greatest opportunities.
• For each of these target market the firm
develops a market offering that it positions in
target buyers’ minds as delivering some key
benefits
Target Markets, Positioning &
Segmentation
 Marketing Channels
• To reach a target market, the marketer
uses three kinds of marketing channels:
• 1- Communication channels deliver and
receive messages from target buyers.
• 2- Distribution channels help display,
sell, or deliver the physical product or
service(s) to the buyer or user.
• 3- Service channels to carry out
transactions with potential buyers.
• The buyer chooses the offerings he or she
perceives to deliver the most value the
sum of the tangible and intangible benefits
and costs.
Value, a central marketing concept, is
primarily a combination of quality,
service, and price (qsp), called the
customer value triad.
 The New Marketing Realities
• Three transformative forces:

• Technology
• Globalization
• Social responsibility
 What New Capabilities have these forces
given consumers and companies?

• NEW COMPANY CAPABILITIES

Can use the Internet as a powerful information and
sales channel, including for individually
differentiated goods.
Can collect fuller and richer information about
markets, customers, prospects, and competitors.
Can reach customers quickly and efficiently via
social media and mobile marketing.
Can improve purchasing, recruiting, training, and
internal and external communications.
Can improve cost efficiency.
 Production

Product

Selling

Marketing

Holistic marketing concept

 The Production Concept
• It holds that consumers prefer products
that are widely available and
inexpensive.

• Managers of production-oriented
businesses concentrate on achieving high
production efficiency, low costs, and
mass distribution.
 The Product Concept
• The Product concept proposes that
consumers favor products offering the
most quality, performance, or innovative
features.
 The Selling concept
• The selling concept holds that consumers
and businesses, if left alone, won’t buy
enough of the organization’s products.
• It is practiced most aggressively with
unsought goods—goods buyers don’t
normally think of buying such as insurance
and cemetery plots and when firms with
overcapacity aim to sell what they make,
rather than make what the market wants
 The Marketing Concept
• The job is to find not the right customers
for your products, but the right products
for your customers.
• The marketing concept holds that the key
to achieving organizational goals is being
more effective than competitors in
creating, delivering, and communicating
superior customer value to your target
markets.
The Holistic Marketing Concept
• The holistic marketing concept is based on the
development, design, and implementation of
marketing programs, processes, and activities
that recognize their breadth and
interdependencies.

• Holistic marketing acknowledges that

everything matters in marketing— and that a
broad, integrated perspective is often necessary.
 Relationship Marketing
• Relationships with people and organizations that
directly or indirectly affect the success of the
firm’s marketing activities.

• Four key constituents for relationship marketing

are customers, employees, marketing
partners (channels, suppliers, distributors,
dealers, agencies), and members of the
financial community (shareholders, investors,
analysts)
 Integrated Marketing
• Within the integrated marketing component of a
holistic strategy, businesses work towards
making marketing decisions that create value for
stakeholders through a clear, concise marketing
message. All activities within integrated
marketing, including advertising, public
relations, direct marketing, online
communications, and social media marketing,
work in sync with one another to ensure the
company's customers and business partners
have the same experience with and perception
of the company.
 Internal Marketing

• Internal marketing is aimed at catering to the

specific needs of the business's own employees.
Internal marketing ensures that employees are
satisfied with the work they perform each day as
well as the philosophy and direction of the
organization as a whole. Greater satisfaction
among employees leads to increased customer
satisfaction over time, making internal marketing
a key aspect of the holistic approach.
 Societal Marketing

• Societal marketing is aimed at creating

marketing initiatives that are based on
ethically sound business practices, such
as environmentally-friendly production or
meaningful interaction with the
surrounding community. Marketing
campaigns that are intentionally socially
responsible provide another method for
businesses to build long-lasting, beneficial
stakeholder and partner relationships