1588462959-ch-01-defining-marketing-for-the-21st-century.pdf

Business marketing

1. Kotler • Keller
Phillip Kevin Lane
Marketing Management • 14e

2. Defining Marketing for the 21
st
Century

3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3of 25
Discussion Questions
1.Why is marketing important?
2.What is the scope of marketing?
3.What are some fundamental
marketing concepts?
4.How has marketing management
changed in recent years?
5.What are the task necessary for
successful marketing management?

4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4of 25
Marketing
Demand
Revenue
Jobs
ProfitsGiving

5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5of 25
Understanding Marketing Management
Marketingcreatesdemandforaproduct,whichinturndrives
revenue
Greaterdemandcreatestheneedforcompaniestohirenew
workers,whilerevenue(topline)contributestoacompany’s
bottomline(profits),whichallowthecompanytobemorefully
engagedinsociallyresponsibleactivities
ManycompaniesnowhaveaChiefMarketingOfficer(CMO)to
putmarketingonamoreequalfootingwithotherC-level
executivessuchastheCFOandCIO
Marketersmustdecidewhatfeaturestodesignintoanewproduct
orservice,whatpricestoset,wheretosellproductsoroffer
services,andhowmuchtospendonadvertising,sales,the
Internet,ormobilemarketing

6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6of 25
Marketingistheactivity,setof
institutions,andprocessesfor
creating,communicating,delivering,
andexchangingoffersthathavevalue
forcustomers,clients,partners,
andsocietyatlarge.

7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7of 25
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.

8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8of 25
The Scope of Marketing
Marketingisasocietalprocessbywhichindividualsand
groupsobtainwhattheyneedandwantthroughcreating,
offering,andfreelyexchangingproductsandservicesof
valuewithothers
MarketingisdifferentfromSelling-------sellingisnotthe
mostimportantpartofmarketing!Sellingisonlythetipof
themarketingiceberg

9. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9of 25
•Experiences
•Events
•Properties
•Organizations
•Information
•Ideas
What is Marketed?
Places
Persons
Services
Goods

10. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10of 25
What is Marketed?
1.Goods:Companiesmarketbillionsoffresh,canned,bagged,
andfrozenfoodproductsandmillionsof
cars,refrigerators,televisions,machines,andothermainstaysofa
moderneconomy
2.Services:Servicesincludetheworkofairlines,hotels,carrental
firms,barbersandbeauticians,maintenanceandrepairpeople,and
accountants,bankers,lawyers,engineers,doctors,software
programmers,andmanagementconsultants
3.Events:Marketerspromotetime-basedevents,suchasmajor
tradeshows,artisticperformances,companyanniversariesand
majorsportseventssuchasOlympicsandWorldCup

11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11of 25
What is Marketed?
4.Experiences:Afirmcancreate,stage,andmarketexperiences.
WaltDisneyWorld’sMagicKingdomallowscustomerstovisita
fairykingdom,aweekatabaseballcampwithretiredbaseball
greats,afour-dayrockandrollfantasycamp,oraclimbupMount
Everest,FerrariParkinAbuDhabi,PCBTalentHuntProgram
5.Persons:Personalbranding----Artists,musicians,CEOs,
physicians,high-profilelawyersandfinanciers,andother
professionalsallgethelpfromcelebritymarketers
6.Places:Cities,states,regions,andwholenationscompeteto
attracttourists,residents,factories,andcompanyheadquarters.
Placemarketersincludeeconomicdevelopmentspecialists,real
estateagents,commercialbanks,localbusinessassociations,and
advertisingandpublicrelationsagenciese.g.SindhFestival

12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12of 25
What is Marketed?
7.Properties:Propertiesareintangiblerightsofownershipto
eitherrealproperty(realestate)orfinancialproperty(stocksand
bonds).Theyareboughtandsold,andtheseexchangesrequire
marketing
8.Organizations:Organizationsworktobuildastrong,favorable,
anduniqueimageinthemindsoftheirtargetpublics.InPakistan
Safeguard’s“Seht-o-SafaiProgram”.
9.Information:Theproduction,packaging,anddistributionof
informationaremajorindustries.Informationisessentiallywhat
books,schools,anduniversitiesproduce,market,anddistributeat
apricetoparents,students,andcommunities,
10.Ideas:Everymarketofferingincludesabasicidea

13. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13of 25
Who markets?
Marketer Prospect
Attention
Purchase
Donation
Vote
Response

14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14of 25
Who Markets?
Marketersareindividuals,groups,associations,companies,
etc.thatseekaresponse,suchasattention,apurchase,
donation,vote,etc.,fromanotherpartywhichiscalledthe
prospect
Marketersareskilledatstimulatingdemandfortheir
products,butthat’salimitedviewofwhattheydo

15. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15of 25
Types of Demand
Negative
•Nonexistent
•Latent
•Full
•Overfull
DecliningUnwholesome
Irregular

16. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16of 25
Types of Demand
1.NegativeDemand–consumer’sdislikeaproductandmay
paytoavoid
2.NonexistentDemand–consumersareunawareofor
uninterestedintheproductorservice
3.LatentDemand–Thereisnoproductonthemarketthat
cansatisfyconsumerneeds
4.DecliningDemand–Consumerspurchaseaproductless
andlessfrequently,ornotatall.Forexample,thesaleof
albums(vinylandCD’s)aredecliningsignificantly
5.IrregularDemand–Aproduct’sdemandvariesbytime,
suchasonaseasonalbasis

17. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17of 25
Types of Demand
5.FullDemand–Consumersarebuyingalltheproductsthat
enterintothemarket
6.OverfullDemand–Therearemorebuyersthanproduct
available
7.UnwholesomeDemand–Consumersareattractedto
productsthathaveundesirablesocialconsequences,suchas
cigarettesorgambling.

18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18of 25
Markets

19. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19of 25
Markets
Economistdescribeamarketasacollectionofbuyersandsellers
whotransactoveraparticularproductorproductclass
Therearefivebasicmarkets–Manufacturer,resource(financial,
labor,rawmaterials),intermediary(wholesalers,resellers,etc.),
consumer,andgovernment.
Marketersusethetermmarkettocovervariousgroupingsof
customers.Theyviewsellersasconstitutingtheindustryand
buyersasconstitutingthemarket
Theytalkaboutneedmarkets(thediet-seekingmarket),product
markets(theshoemarket),demographicmarkets(theyouth
market),andgeographicmarkets(theChinesemarket);orthey
extendtheconcepttocovervotermarkets,labormarkets,and
donormarkets,forinstance

20. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20of 25
Simple Marketing System

21. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21of 25
Key Customer Markets
Global Markets
Business Markets
Government Market
Consumer Market

22. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22of 25
Key Customer Markets
1.ConsumerMarkets:Companiessellingmassconsumergoods
andservicessuchasjuices,cosmetics,athleticshoes,andair
travelspendtoendusers
2.BusinessMarket:Companiessellingbusinessgoodsand
servicesoftenfacewell-informedprofessionalbuyersskilledat
evaluatingcompetitiveofferings.Businessbuyersbuygoodsto
makeorresellaproducttoothersataprofit
3.GlobalMarkets:Marketsbasedondifferentmarketentry
strategiesi.e.exporting,franchising,strategicalliancesetc.
4.Non-ProfitandGovernmentalMarkets:Companies
sellingtononprofitorganizationswithlimitedpurchasingpower
suchaschurches,universities,charitableorganizations,and
governmentagenciesneedtopricecarefully

23. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23of 25
MARKETPLACES, MARKETSPACES, & METAMARKETS
1.Marketplace–physicallocations(suchasretailstore)
2.Marketspace–digitallocation(onlineretailer)
3.Metamarkets–(NorthwesternUniversity’sMohan
Sawhneyhasproposedtheconcept).Theclusterof
complementaryproductsandservicesrelatedin
consumersmind,butspreadacrossdiversesetof
industries.
ForExample:Theautomobilemetamarketconsistsof
automobilemanufacturers,newandusedcardealers,financing
companies,insurancecompanies,mechanics,spareparts
dealers,serviceshops,automagazines,classifiedautoadsin
newspapers,andautositesontheInternet

24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24of 25
Markets
Marketplaces
Marketspaces
Metamarkets

25. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25of 25
Core Marketing Concepts
Needs, Wants, and Demands
Target Markets, Positioning,
and Segmentation
Offerings and Brands
Value and Satisfaction

26. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26of 25
Core Marketing Concepts
Marketing Channels
Competition
Marketing Environment
Supply Chain

27. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27of 25
The New Marketing Realities
New Company
Capabilities
Major Societal
Forces
Information
Technology
Globalization
Increased
Competition
Consumer
Information
Communicate
w/Customer
Collect
Information
Differentiate
Goods

28. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28of 25
Who is Responsible for Marketing?
Chief Marketing Officer
(CMO)
Entire Organization
Marketing Department

29. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29of 25
Who is Responsible for Marketing?
CMOsmusthavestrongquantitativeskills,toaccompany
theirqualitativeskills.Mustbeentrepreneurialaswellas
ateamplayer
However,theCMOnorthemarketingdepartmentcanbe
solelyresponsibleformarketing.Itmustbeundertakenby
theentireorganization
DavidPackardofHewlett-Packardisquotedassaying:
“Marketingisfartoimportanttobelefttothemarketing
department.”

30. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 30of 25
HolisticMarketing
Marketing Concepts
SellingProductProduction
Mass production
Mass distribution
Quality
Innovation
Unsought goods
Overcapacity
Create, deliver, and
communicate value

31. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31of 25
Marketing Concepts
Thefivedistinctmarketingconceptsare:Production,Product,
Selling,Marketing,andHolistic
Thesephilosophieshaveevolvedovertimeandbeganwiththe
productionconcept
Theevolutionofanewmarketingconceptdoesnotmeanthatall
companiesarechanging
Manycompaniescontinuetooperateundertheproduction
concept
1.ProductionConcept:Underaproductionphilosophythe
companywillseektomassproduceproductsandtodistributethem
onawidescale.Thebeliefisthatconsumerspreferproductsthat
arewidelyavailableandinexpensive
ForExample:InChinaLegendHaiertakeadvantageofcountry’shuge
andlowcostlaborforce.

32. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 32of 25
Marketing Concepts
2.ProductConcept:Theproductconceptproposesthat
consumerspreferproductsthathavehigherquality,performance,
oraremoreinnovative.Often,managersfocustoomuchonthe
product(abettermousetrap)butthisdoesnotalwaysequal
success
3.SellingConcept:Itarguesthatmembersofamarketwillnot
purchaseenoughproductontheirownsocompaniesusethe
“hard-sell”toincreasedemand.Typicallyusedwithunsought
goodssuchasinsuranceorcemeteryplots,orwhencompanies
faceovercapacity
4.MarketingConcept:Firstemergedinthe1950’sandfocuses
moreonthecustomerwitha“sense-and-respond”attitude.
Companiesthathaveembracedthemarketingconcepthavebeen
showntoachievesuperiorperformancethancompetitors.

33. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33of 25
Marketing Concepts
5.The Holistic Marketing Concept:
The holistic concept takes a philosophy that everything matters
in marketing
Holistic marketing acknowledges that everything matters in
marketing—and that a broad, integrated perspective is often
necessary
Broad components characterizing holistic marketing are:
(i)Relationship marketing
(ii)Integrated marketing
(iii)Internal marketing
(iv)and Performance marketing

34. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 34of 25
Holistic Marketing Dimensions

35. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 35of 25
(i)Relationship Marketing
Build long-term relationships
Develop marketing networks

36. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 36of 25
(i)Relationship Marketing
Relationshipmarketingseekstobuildmutuallybeneficial,
long-termrelationshipwithkeyconstituentsinordertoearn
andretaintheirbusiness
Thefourkeyconstituentsare:customers,employees,partners,
andmemberofthefinancialcommunity
Attractinganewcustomercancostfivetimesasmuchas
retainingexistingcustomerssobuildinglong-term
relationshipsmakesfinancialsenseforthecompany
Marketingnetworksconsistofthecompanyanditssupporting
stakeholderswhohavebuiltamutuallyprofitablebusiness
relationship
RoyalBankofCanadahas11millionsofcustomersandservethem
onthebasisofcustomersegmentsratherthanproductsegments

37. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 37of 25
(ii)Integrated Marketing
Create, communicate, and
deliver customer value

38. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 38of 25
(iii)Internal Marketing

39. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 39of 25
(iv)Performance Marketing
Social Responsibility
Financial Accountability

40. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 40of 25
Holistic Marketing Dimensions
ii.IntegratedMarketing:
Itholdsthatallactivitiesundertakenbythecompanyshould
create,communicate,anddelivervalue
Further,allnewactivitiesshouldtakeintoconsiderationallother
marketingactivities
IMactivitiesincludeIMC (IntegratedMarketing
Communications)strategy,IMC(IntegratedMarketingChannel
Strategy)
iii.InternalMarketing:
Internalmarketingisthetaskofhiring,training,andmotivating
ableemployeestoservecustomerswell
Youcan’tpromiseexcellentserviceifyoucan’tdeliverexcellent
service
Internalmarketingrequiresverticalalignmentwithsenior
managementandhorizontalalignmentwithotherdepartments

41. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 41of 25
Holistic Marketing Dimensions
iv.PerformanceMarketing:
Marketersmustunderstandboththefinancialandnonfinancial
returnstoabusinessandsocietyfrommarketingprogramsand
activities
ItinvolvesbothFinancialAccountability(intermsofmarket
share,brandimageetc.)andSocialResponsibilityMarketing
Financialaccountabilityinvolvesthejustificationofmarketing
expendituresintermsoffinancialreturns
Buttheymustalsothinkabouttheethical,environmental,
legal,andsocialaspectsoftheiractivities.

42. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 42of 25
The Four P’s of the Marketing Mix

43. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 43of 25
•Developing market strategies and plans
•Capturing marketing insights
•Connecting with customers
•Building strong brands
•Shaping market offerings
•Delivering value
•Communicating value
•Creating long-term growth
Marketing Management Tasks

44. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 44of 25
Marketing Management Tasks
Developingmarketstrategiesandplans
Anorganizationneedstoidentifyitslongtermopportunities,
useitsmarketexperienceandcorecompetenciesinorderto
designthecompetitiveproducts
Capturingmarketinginsights
Considermacroandmicromarketingenvironment
FormareliableMIS(MarketingInformationSystem)
Formadependablemarketingresearchsystem
Connectingwithcustomers
Createvalueforthechosentargetmarket
Developstrong,profitable,long-termrelationshipswith
customers
IdentifyB2CandB2Bsegments

45. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 45of 25
Marketing Management Tasks
BuildingStrongBrands
Assessyourstrengthsandweaknessesasastrongoraweak
brand
Positionyourselfasalowpriceorhighqualitybrand
Alsokeepfocusonmovementsofyourcompetitors
Shapingmarketofferings
Firm’stangibleofferingtothemarket,whichincludesthe
productquality,design,features,andpackaging
Asetofaftersaleservicesincludingleasing,delivery,repair,
andtrainingaspartofitsproductoffering
Decisionrelatestopriceincludingwholesaleandretailprices,
discounts,allowances,andcreditterms

46. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 46of 25
Marketing Management Tasks
DeliveringValue
Channelactivitiesincludingretailers,wholesalersand
physicaldistributionfirmsmustbeproperlymanagedin
ordertodeliversuperiorcustomervalue
CommunicatingValue
UseIMCthatincludesthemasscommunicationprograms
(advertising,salespromotion,events,andpublic)relations
Alsoneedstoplanpersonalcommunications(Directand
interactivemarketing,aswellashire,train,andmotivate
salespeople)
CreatingSuccessfulLong-TermGrowth