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1 Defining Marketing for the 21st Century
Marketing Management A South Asian Perspective, 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? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-2
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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-3
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.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-4
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.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-5
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-6
What is Marketed? (Market defn: it was a physical place where buyers and sellers gathered to buy and sell goods). Goods (Tv, laptops,truks) Services(work of airlines, hotels, car rental firms ,doctors,) Events & Experiences(global sporting events, n experience such an amusement park or a water park ) Persons(celebrity marketing is major business) Places & Properties(cities states regions, e.g. incredible india, silicon valley bangalore and properties are intangible assets of owner bought and sold through eBay or any other market) Organizations(universities ,museums, performing arts and non profitable organisation all use marketing to boost their public images) Information(books, school and universities produce information market even the company sell products try to add value through the use of information. Ideas(creating awareness of AIDS ,or NO SMOKING this is all so required marketing Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-7
Successful New Product Launches Require Careful Planning (Apple iPod was very successful during its launch, was due to a deep understanding of the market needs and customer requirements
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
.)
1-8
Marketing Can Promote Ideas(NO SMOKING )
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-9
Figure 1.1 Structure of Flows in a Modern Exchange Economy
Five basic markets and their connecting flow are showing fig. Manufacturer go to resource markets(raw material markets, labor markets, money markets) and turn them into goods and services, and then sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer and intermediary markets and uses these goods and services to provide public services. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-10
Figure 1.2 A Simple Marketing System
Sellers and buyers are connected with four flows. The inner loop shows An exchange of money for goods and services; the outer loop shows an exchange of information.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-11
Demand States page 10 Negative Demand: consumer dislike the Product and they even ready to Pay the money to avoid the Product.
Non existent : Unaware and Uninterested.
Declining
Full
Latent : share the need That not satisfied by Existing product.
Irregular
Overfull
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
Unwholesome 1-12
Key Customer Markets (Market defn: it is a physical place where buyers and sellers gathered to buy and sell goods). Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-13
MARKETPLACES: it is physical such as a store where you shop in MARKETSPACES: it is digital as when you shop on the internet. METAMARKETS: Ex is given below that is this creates opportunity for metamediaries to assist buyers through websites….
www.marutitruevalue.com
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-14
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-15
Figure 1.3 Improving CMO Success • Make the mission and responsibilities clear • Fit the role to the marketing culture and structure • Ensure the CMO is compatible with the CEO • Remember that show people don’t succeed • Match the personality with the CMO type • Make line managers marketing heroes • Infiltrate the line organization • Require right-brain and left-brain skills Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-16
Core Marketing Concepts • Needs, wants, and demands • Target markets, positioning, segmentation • Offerings and brands
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
• Value and satisfaction • Marketing channels • Supply chain • Competition • Marketing environment
1-17
Positioning Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-18
The NEW MARKETING REALITIES “The marketplace isn’t what it used to be” we have to attend and respond to a number of significant developments
…
Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-19
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-20
Company Orientations
Production
Product
Selling
Marketing
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-21
Figure 1.4 Holistic Marketing Dimensions
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-22
RBC emphasizes approach relationship marketing (Relationship marketing aims to build mutually satisfying long term relation with key constituents in order to earn and retain their business..
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-23
Figure 1.5 The Four P’s
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-24
Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-25
Performance Marketing • Financial Accountability • Social Responsibility Marketing
Social Initiatives • Corporate social marketing • Cause marketing • Cause-related marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-26
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
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-27
Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-28
Marketing Discussion Consider the societal forces noted in the chapter (e.g., information technology, globalization, deregulation, consumer resistance, retail transformation). How have marketing practices shifted to accommodate and even leverage (power) these forces? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-29
Marketing Management A South Asian Perspective, 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? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-2
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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-3
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.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-4
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.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-5
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-6
What is Marketed? (Market defn: it was a physical place where buyers and sellers gathered to buy and sell goods). Goods (Tv, laptops,truks) Services(work of airlines, hotels, car rental firms ,doctors,) Events & Experiences(global sporting events, n experience such an amusement park or a water park ) Persons(celebrity marketing is major business) Places & Properties(cities states regions, e.g. incredible india, silicon valley bangalore and properties are intangible assets of owner bought and sold through eBay or any other market) Organizations(universities ,museums, performing arts and non profitable organisation all use marketing to boost their public images) Information(books, school and universities produce information market even the company sell products try to add value through the use of information. Ideas(creating awareness of AIDS ,or NO SMOKING this is all so required marketing Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-7
Successful New Product Launches Require Careful Planning (Apple iPod was very successful during its launch, was due to a deep understanding of the market needs and customer requirements
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
.)
1-8
Marketing Can Promote Ideas(NO SMOKING )
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-9
Figure 1.1 Structure of Flows in a Modern Exchange Economy
Five basic markets and their connecting flow are showing fig. Manufacturer go to resource markets(raw material markets, labor markets, money markets) and turn them into goods and services, and then sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer and intermediary markets and uses these goods and services to provide public services. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-10
Figure 1.2 A Simple Marketing System
Sellers and buyers are connected with four flows. The inner loop shows An exchange of money for goods and services; the outer loop shows an exchange of information.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-11
Demand States page 10 Negative Demand: consumer dislike the Product and they even ready to Pay the money to avoid the Product.
Non existent : Unaware and Uninterested.
Declining
Full
Latent : share the need That not satisfied by Existing product.
Irregular
Overfull
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
Unwholesome 1-12
Key Customer Markets (Market defn: it is a physical place where buyers and sellers gathered to buy and sell goods). Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-13
MARKETPLACES: it is physical such as a store where you shop in MARKETSPACES: it is digital as when you shop on the internet. METAMARKETS: Ex is given below that is this creates opportunity for metamediaries to assist buyers through websites….
www.marutitruevalue.com
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-14
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-15
Figure 1.3 Improving CMO Success • Make the mission and responsibilities clear • Fit the role to the marketing culture and structure • Ensure the CMO is compatible with the CEO • Remember that show people don’t succeed • Match the personality with the CMO type • Make line managers marketing heroes • Infiltrate the line organization • Require right-brain and left-brain skills Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-16
Core Marketing Concepts • Needs, wants, and demands • Target markets, positioning, segmentation • Offerings and brands
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
• Value and satisfaction • Marketing channels • Supply chain • Competition • Marketing environment
1-17
Positioning Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-18
The NEW MARKETING REALITIES “The marketplace isn’t what it used to be” we have to attend and respond to a number of significant developments
…
Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-19
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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-20
Company Orientations
Production
Product
Selling
Marketing
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-21
Figure 1.4 Holistic Marketing Dimensions
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-22
RBC emphasizes approach relationship marketing (Relationship marketing aims to build mutually satisfying long term relation with key constituents in order to earn and retain their business..
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-23
Figure 1.5 The Four P’s
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-24
Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-25
Performance Marketing • Financial Accountability • Social Responsibility Marketing
Social Initiatives • Corporate social marketing • Cause marketing • Cause-related marketing • Corporate philanthropy • Corporate community involvement • Socially responsible business practices
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-26
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
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-27
Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-28
Marketing Discussion Consider the societal forces noted in the chapter (e.g., information technology, globalization, deregulation, consumer resistance, retail transformation). How have marketing practices shifted to accommodate and even leverage (power) these forces? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.
1-29
