Marketing Management

Fifteenth Edition

Chapter 1
Defining
Marketing for the
New Realities

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Learning Objectives
1.1 Why is marketing important?
1.2 What is the scope of marketing?
1.3 What are some core marketing concepts?
1.4 What forces are defining the new marketing
realities?
1.5 What new capabilities have these forces
given consumers and companies?
1.6 What does a holistic marketing philosophy
include?
1.7 What tasks are necessary for successful
marketing management?
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 Kotler on Marketing

Good marketing is no accident.

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 Bashir on Marketing

Bad marketing is no accident too.

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The Value of Marketing (importance)
• Financial success often depends on marketing ability
• Successful marketing builds demand for products and
services, which, in turn, creates jobs
• Marketing builds strong brands and a loyal customer base,
intangible assets that contribute heavily to the value of a
firm
• Strong brands---loyal customer base = intangible asset
(goodwill/brand equity)

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The Scope of Marketing
• Marketing is about identifying and meeting human
and social needs and demands sustainably.
• AMA’s formal definition: Marketing is the activity, set
of institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large

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Marketing Management

• The art and science of choosing target markets and

getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value.
• (Target market: actual and potential customers)
• (Performing functions)
• (Value = Benefits - costs)

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What is Marketed? (1 of 2)
• Goods
• Services
• Events
• Experiences
(ambience)
• Persons

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What is Marketed? (2 of 2)
• Places
• Properties
• Organizations
• Information
• Ideas

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Who Markets?
• A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect
(buyer/customer/consumer)

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8 Demand States
• Negative (USP=unique
selling proposition, campaign)
• Nonexistent (no demand)
• Latent (R&D)
• Declining (Re-marketing)
• Irregular (Synchromarketing)
• Unwholesome
• Full (Maintain value)
• Overfull (De-marketing)
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Key Customer Markets
• Consumer markets (For personal or family
consumption/B2C)
• Business markets (For reselling, or manufacturing/B2B)
• Global markets
• Nonprofit & governmental markets

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Core Marketing Concepts (1 of 10)
• Needs: the basic human requirements such as for air,
food, water, clothing, and shelter
• Wants: specific objects that might satisfy the need
• Demands: wants for specific products backed by an
ability to pay

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Types of Needs
• Stated
• Real
• Unstated
• Delight
• Secret (savvy/smart)

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Core Marketing Concepts (2 of 10)
• Target markets
[choosing one or
more segment(s)]
• Positioning [distinct
image in buyer’s
mind]
• Segmentation
(divide the market
based on income
and other criteria)
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Core Marketing Concepts (3 of 10)
• Value proposition: a set of benefits that satisfy those
needs (Benefits - Costs)
• Offerings: a combination of products, services,
information, and experiences
• Brands: an offering from a known source

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Core Marketing Concepts (4 of 10)
• Marketing channels
– Communication (Media)
– Distribution (Pathao, foodpanda)
– Service (banks, insurance)

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Core Marketing Concepts (7 of 10)
• Value: a combination of quality, service, and price
(qsp: the customer value triad)
• Satisfaction: a person’s judgment of a product’s
perceived performance in relationship to expectations
[the ability of a product to provide the benefits]

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Core Marketing Concepts (8 of 10)
• Supply chain: a channel stretching from raw
materials to components to finished products carried
to final buyers
Figure 1.3 The Supply Chain for Coffee

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Core Marketing Concepts (9 of 10)
• Competition: all the actual and potential rival
offerings and substitutes a buyer might consider

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A Dramatically Changed
Marketplace (6 of 6)
• Heightened competition
– Private brands [private universities, hospitals]
– Mega-brands (Sony, Samsung, Dove, ponds, PRAN,
Apple, infinity and so on)
– Deregulation
– Privatization

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Company Orientation Toward the
Marketplace/Marketing philosophies
(Philosophies/assumptions that govern our actions
in the market)
• Production (make the product, affordable and available –
low price; demand exceeds supply)
• Product (make the best quality product but don’t fall in
myopia = problem of focus)
• Selling (rely on heavy advertising and push-selling)
• Marketing (Find the need and satisfy it by delivering value
better than competitors) [1950s to onwards; GE company
developed the concept]

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Figure 1.4 Holistic Marketing
Dimensions [marketing by all]

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Relationship Marketing
• Customers
• Employees
• Marketing partners
• Financial community

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Integrated Marketing
• Devise marketing activities and programs that create,
communicate, and deliver value such that “the whole
is greater than the sum of its parts.”

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Internal Marketing
• The task of hiring, training, and motivating able
employees who want to serve customers well

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Performance Marketing
• Financial accountability
• Environmental impact
• Social impact

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Figure 1.5 Marketing Mix
Components (4 Ps)

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Rethinking the Marketing Mix
(4 Cs and 4 As)
• 4 Cs [consumer perspective]
• Product – Customer solution
• Price – Customer cost
• Place – Customer convenience
• Promotion - Communication

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Rethinking the Marketing Mix
(4 Cs and 4 As)
• 4 As [perspective of BOP: Prahlad
(bottom of the pyramid) or developing
countries]
• Product – Acceptability [Halal, vegetarian, technology]
• Price – Affordability [Mini/ Sachet packs]
• Place – Accessibility [bkash]
• Promotion – Awareness [Sensodyne toothpaste
advertisement]
[4As are given by Jagdish and Sisodia]
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Copyright

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