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Defining Marketing
for the 21st Century

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?

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THE MARKET REVOLUTION:

CRASH COURSE US HISTORY #12
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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AMAs Official Definition of Marketing and How It Has Changed Over Time
AMERICAN MARKETING
ASSOCIATIONS DEFINITION

FOCUS OF DEFINITION

Marketing is the performance of business

activities that direct the flow of goods, and
services from producers to consumers.
AMA 1935

1.

Marketing is the process of planning and

executing the conception, pricing,
promotion, and distribution of ideas, goods,
and services to create exchanges that
satisfy individual and organizational
objectives. AMA 1985

1.

Marketing is an organizational function and

a set of processes for creating,
communicating and delivering value to
customers and for managing customer
relationship in ways that benefit the
organization and its stakeholders (2004)

1.

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. (Approved July 2013)

1.

2.

3.

2.
3.

2.
3.

2.
3.

The managerial function of

coordinating demand and supply
Production of goods and services
Marketing is a business activity
Marketing as a managerial function
Purpose of marketing is objective
satisfying exchanges
Marketing is both an individual and
organizational function
Marketing is once again an
organizational function, not an
individual function
Marketings purpose is to create value
The importance of managing
relationships with all stakeholders
The activity, set of institutions, and
process
Marketings purpose is to create value
Not only organizational function but it
is themselves involved institutions

THE HISTORY OF
ADVERTISING IN 60 SECONDS

History of Marketing

Production era - 1850s - 1920s

production creates its own demand Pillsbury
major concern of business was production
good products sell themselves

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History of Marketing

Sales Era - 1920s - 1960s

Firms could produce more than their
customers could buy
Competition became significant
We must hire salespeople to sell it just as
we hire accountants to keep our books

History of Marketing

Marketing Concept Era - 1960s - 1990s

We are in the business of satisfying needs
and wants of the consumer Pillsbury
Satisfy the needs of consumers - product
lines expand
Achieve the organizations goals (more
sales) and a happy (faithful) consumer

History of Marketing

Market Orientation Era - 1980s

Total quality management
Continuously collect information on
customers needs and competitors
capabilities
Share the information across departments
Use the information to create customer
value (promote customer retention)

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The Three Stages of a New Marketing Paradigm

from Marketing Moves, Philip Kotler, Dipak C. Jain, Suvit Maesincee

Name

Starting
Point

Focus

Means

Ends

Selling
concept

Factory

Products

Selling and
promoting

Profits through
sales volume

Marketing
concept

Customers
varying needs

Appropriate
offerings and
marketing
mixes

Market
segmentation,
targeting, and
positioning

Profits through
customer
satisfaction

Holistic
marketing
concept

Individual
customer
requirements

Customer
value,
companys core
competencies,
and
collaborative
network

Database
management
and value chain
integration
linking
collaborators

Profitable
growth through
capturing
customer share,
customer
loyalty, and
customer
lifetime value

What is Marketing?
Kotlers Social Definition:
Marketing is a societal process by which
individuals and groups obtain what they need
and want through creating, offering, and freely
exchanging products and services of value
with others

Marketing is NOT synonymous with sales or

advertising

What is Marketing?

The American Marketing Association:

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

Kotlers Social Definition:

Marketing is a societal process by which individuals and
groups obtain what they need and want through
creating, offering, and freely exchanging products and
services of value with others

Marketing is NOT synonymous with sales or

advertising

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What is Marketing Management?

Kotler and Keller:

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

What is Marketed?
Goods
Services
Events
Experiences
Persons

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What is Marketed?
Places
Properties

Organizations
Information
Ideas

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Demand States

Negative
Nonexistent
Latent
Declining

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Irregular
Unwholesome
Full
Overfull

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Figure 1.1 Structure of Flows in

Modern Exchange Economy

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Figure 1.2
A Simple Marketing System

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Key Customer Markets

Consumer markets
Business markets
Global markets
Nonprofit/Government markets

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Core Concepts

Needs, wants, and

demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction

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Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning

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Types of Needs
Stated
Real
Unstated
Delight
Secret

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Target Markets,
Positioning & Segmentation

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Offerings and Brands

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Value and Satisfaction

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Marketing Channels
Communication
Distribution
Service

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Marketing Environment
Demographic

Economic

Socio-cultural

Political-legal

Technological

Natural

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Major Societal Forces

Network information
technology
Globalization
Deregulation
Privatization
Heightened competition

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Industry convergence
Retail transformation
Disintermediation
Consumer buying power
Consumer participation
Consumer resistance

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Company Orientations
Production

Product
Selling
Marketing

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Holistic Marketing

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Relationship Marketing
Customers

Employees

Marketing Partners

Financial Community

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Integrated Marketing

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

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Performance Marketing

Financial
Accountability

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Social Responsibility
Marketing

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Types of
Corporate Social Initiatives

Corporate social marketing

Cause marketing
Cause-related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices

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The Marketing Mix

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Marketing-Mix Strategy
Communication mix
Advertising
Sales
promotion

Offering mix
Company

Products
Services
Prices

Events and
experience
Public
relations

Distribution
channels

Target
customers

Direct
marketing
Personal
selling

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The New Four Ps

People
Processes

Programs
Performance

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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

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For Review

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 2012 Pearson Education

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