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01 Defining Marketing For The 21st Century

1. The document defines marketing as creating, communicating, and delivering value to customers and managing customer relationships in a way that benefits the organization. 2. It discusses the scope of marketing, including marketing concepts like segmentation, targeting, positioning, the marketing mix, and the changing marketing environment. 3. The document outlines the tasks of modern marketing management, such as developing strategies and plans, connecting with customers, building brands, and creating long-term growth.

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Shivam Tiwari
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138 views39 pages

01 Defining Marketing For The 21st Century

1. The document defines marketing as creating, communicating, and delivering value to customers and managing customer relationships in a way that benefits the organization. 2. It discusses the scope of marketing, including marketing concepts like segmentation, targeting, positioning, the marketing mix, and the changing marketing environment. 3. The document outlines the tasks of modern marketing management, such as developing strategies and plans, connecting with customers, building brands, and creating long-term growth.

Uploaded by

Shivam Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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1

Defining Marketing
for the 21st Century

Marketing Management
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?
2 Facets : Formulated & Creative
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.
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.
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.
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
What is Marketed?
Goods
Goods

Services
Services

Events
Events && Experiences
Experiences

Persons
Persons

Places
Places && Properties
Properties

Organizations
Organizations

Information
Information

Ideas
Ideas
Marketing Can Promote Ideas
Who Markets…?

• Marketer is some one who seeks a


response –
• An Attention,
• A Purchase,
• A Vote,
• A Donation
From another party, called the prospect.
Demand States
(Marketers are skilled at stimulating the demands )

Full Overfull Unwholesome

Latent

Nonexistent Declining

Negative Irregular
Figure 1.1 Structure of Flows in a Modern
Exchange Economy
Figure 1.2 A Simple Marketing System
Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets


Market Terminologies :
1-Marketplaces
2-MarketSpaces
3-Metamarkets

E.g. Automobile : -
Automobile Manufacturer, New and used Car Delears,
Service Shops, Auto Magazines, Classified Auto Ads, News Papers,
Finance Companies, Insurance Companies, Accessories Market….
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
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
Core Marketing Concepts

• Needs, wants, and • Value and


demands satisfaction
• Target markets, • Marketing channels
positioning, • Supply chain
segmentation • Competition
• Offerings and • Marketing
brands environment
“Needs”---- “Wants”
“Marketers create needs”
Marketers get people to buy things that they don’t
want”
1.Stated Need (The Customer wants an Inexpensive Car)
2.Real Need(Whose operating cost not just its initial price is low)
3.Unstated Need(Expects good service from the dealer)
4.Delight Need(like the dealer to include an onboard Navigator)
5.Secret Need(Customer wants friends to see him as a SAVVY
consumer)
Segmentation-Targeting &
Positioning (STP)
• Segmentation : Breaking the big market
into small segments basis certain
parameters .i.e Gender, age, income etc
• Targeting / Target Market :
Identification of the segment that
presents the greatest Opportunity.
• Positioning : -Creating / Taking a place
in customer’s mind
Value & Satisfaction

• Value = Benefits /Cost


• ( Benefits v/s Cost)
• > Benefits > Value &
• < Cost >Value
• Satisfaction :
• Perceived Delivery (Performance) V/s
Expectations
• PD=E Satisfied
• PD<EDissatisfied
• PD>EDelight
Marketing Channels

1. Communication Channels :
• Sending Msg-News papers,Magazines, Radio,TV, Mail,
Telephone,Billboard,Posters,Fliers, CD,Audio Tapes, Internet…
• Receiving Msg: -Dialogue Channels.i.e. E-mail, Blogs, Chat, Toll-free
no.

2. Distribution Channels:-
• Co C&FDistributorWholesalerRetailer
3. Service Channels
• Ware houses, Transportation Cos., Banks, Insurance
Cos.,
Supply Chain
• A supply chain is a system of
organizations, people, activities,
information, and resources involved
in moving a product or service from
supplier to customer. 

• Supply chain activities transform


natural resources, raw materials,
and components into a finished
product that is delivered to the end
customer.
Value chain
Competition

1. Actual
2. Potential
3. Substitute
Marketing Environment
The marketplace isn’t what it used to be…

Information
Information technology
technology

Globalization
Globalization

Deregulation
Deregulation

Privatization
Privatization

Competition
Competition

Convergence
Convergence

Consumer
Consumer resistance
resistance

Retail
Retail transformation
transformation
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
Company Orientations

Production Product

Selling Marketing
Figure 1.4 Holistic Marketing Dimensions
RBC emphasizes a
relationship marketing approach
The Four P’s
Marketing Mix
Seller’s view of Mkting Solution

Buyer’s View : - SIVA : Solution, Information, Value, Access


Internal Marketing
Internal marketing is the task of hiring,
training, and motivating able employees
who want to serve customers well.

Must take place at 2 levels


•Various Mkting Functions must work together
(Sales force, Advt., Cust. Service, Product Mgmt., Marketing Research)

•Other Functional departments should Embrace


Mkting & “Think Customer”
Performance Marketing
• Financial Social Initiatives
Accountability • Corporate social
• Marketing Score marketing
Card • Cause marketing
• Market Share • Cause-related marketing
• Customer Loss Rate
• Corporate philanthropy
• Cust Satisfaction
• Product Qlty
• Corporate community
• Social
involvement
Responsibility
• Socially responsible
Marketing
business practices
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
Marketing Debate:
Take a Position!

Does marketing shape consumer needs?


or
Does marketing merely reflect the needs
and wants of consumers?
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?

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