Ch-01 Marketing Management, 13th edition

Ch-01 Defining Marketing for the 21st Century
Marketing Management, 13th ed
Kotler & Keller

1. Defining Marketing for the 21 st Century Marketing Management, 13 th ed 1

2. 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?

3. Good Marketing is No Accident Starbucks plans to ensure its marketing successes in countries around the world.  Cultural Adaptation Localized Products and Menus Community Engagement Digital Presence Consistent Branding Customer Feedback Loop

4. 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.

5. 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.

6. 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

7. What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

8. Successful New Product Launches Require Careful Planning

9. Marketing Can Promote Ideas

10. Figure 1.1 Structure of Flows in a Modern Exchange Economy

11. Figure 1.2 A Simple Marketing System

12. Understanding the Marketplace and Customer Needs

13. Demand States Nonexistent Latent Declining Irregular Full Unwholesome Overfull Negative

14. Key Customer Markets Consumer Markets Business Markets Global Markets Nonprofit/ Government Markets

15. Terms Marketplace-Physical Marketspace-Digital Metamarkets-cluster of complementary products and services

16. Edmunds.com: A Metamediary Website

17. 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

18. 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

19. Core Marketing Concepts Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

20. I want it, I need it… Five Types of Needs Stated needs Real needs Unstated needs Delight needs Secret needs

21. Segmentation Identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers. Target Markets The marketer decides which present the greatest opportunities Positioning develops a market offering that it positions in the minds of the target buyers as delivering some central benefit(s). Concepts

22. Marketing Channels Communication channel Distribution channel Service channel

23. Marketing Environment Task environment company, suppliers, distributors, dealers, and target customers Broad environment consists of six components: demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political- legal environment.

24. The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation

25. New company capabilities Marketers leverage the internet for comprehensive market insights. Social media amplifies brand messages and facilitates external communication. Mobile marketing allows reaching consumers on the go. Customized products and targeted ads enhance customer engagement. Companies improve internal processes through internet-based solutions. Cost efficiency is enhanced through skillful internet use.

26. 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

27. Company Orientations Production Selling Marketing Product

28. Production concept

29. Product concept

30. Selling concept

31. Marketing concept

32. Figure 1.4 Holistic Marketing Dimensions

33. RBC emphasizes a relationship marketing approach

34. Standard Chartered Bank

35. Figure 1.5 The Four P’s

36. Internal Marketing Internal marketing is the task of  hiring, training, and motivating able employees who want to serve customers well.  Drives Customer Satisfaction Well-trained and motivated employees lead to satisfied customers Builds a Positive Company Image Employees as brand ambassadors contribute to a positive public perception Enhances Employee Retention Engaged and motivated staff are more likely to stay with the company

37. Performance Marketing Financial Accountability Social Responsibility Marketing Social Initiatives Corporate social marketing Cause marketing Corporate philanthropy Corporate community involvement Socially responsible business practices

38. 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

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

40. Arguments for "Marketing Shapes Consumer Needs" Creation of Desire: Marketing introduces products, creating desires consumers may not have considered. Advertisements play a pivotal role in shaping perceived needs. Innovation and Trends: Marketing drives innovation, introducing new features and products. Trends often originate from marketing efforts, influencing consumer preferences. Brand Influence: Strong branding shapes consumer needs through identity association. Emotional appeals in marketing influence perceived necessities. Educational Role: Marketing informs consumers about products, shaping their understanding and needs. Educational campaigns create awareness about emerging solutions.

41. Arguments for "Marketing Reflects Consumer Needs Market Research: Marketing is grounded in extensive research, reflecting existing consumer needs. Strategies are tailored based on deep insights into consumer behavior . Customer Feedback: Marketing adapts to consumer feedback, ensuring alignment with evolving needs. Continuous feedback loops inform adjustments to marketing strategies. Consumer Sovereignty : In a free market, successful marketing responds to and satisfies consumer demands. Consumer choices influence the direction of marketing efforts. Ethical Considerations: Ethical marketing prioritizes genuine needs over manipulation. Long-term success requires building trust by aligning with authentic consumer needs.

42. 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 these forces?