Defining Marketing for the 21st Century

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

What is Marketed?
Goods Services Events & Experiences Persons

Places & Properties

Organizations Information Ideas

Figure 1.1 Structure of Flows in a Modern Exchange Economy

Figure 1.2 A Simple Marketing System

Demand States
Negative Nonexistent Latent

Declining

Irregular

Full

Overfull

Unwholesome

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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

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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 dont succeed Match the personality with the CMO type Make line managers marketing heroes Infiltrate the line organization Require right-brain and left-brain skills
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Core Marketing Concepts

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

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I want it, I need it

Five Types of Needs
Stated needs Real needs Unstated needs Delight needs Secret needs

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1-11

The marketplace isnt what it used to be

Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation
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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
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Company Orientations

Production

Product

Selling

Marketing

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Figure 1.4 Holistic Marketing Dimensions

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Figure 1.5 The Four Ps

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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 Social Responsibility Marketing
Social Initiatives Corporate social marketing Cause marketing Corporate philanthropy Corporate community involvement Socially responsible business practices

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

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Chapter 2

Developing Marketing Strategies and Plans

Three Vs Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

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Core Business Processes

Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management process

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Figure 2.1 A Holistic Marketing Framework

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Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service

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Figure 2.2 The Strategic Planning, Implementation, and Control Processes

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Major Competitive Spheres

Industry
Geographical Vertical channels Market segment
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Products

Competence

Table 2.3
Product Orientation vs. Market Orientation Company
Missouri-Pacific Railroad Xerox Standard Oil Columbia Pictures
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Product
We run a railroad We make copying equipment We sell gasoline We make movies

Market
We are a peopleand-goods mover We improve office productivity We supply energy We entertain people

Dimensions That Define a Business

Customer groups

Customer needs
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Technology

Figure 2.3 The Strategic Planning Gap

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Figure 2.4 Ansoffs Product-Market Expansion Grid

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Figure 2.5 The Business Unit Strategic Planning Process

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Figure 2.6 Opportunity Matrix

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Figure 2.6 Threat Matrix

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Porters Generic Strategies

Overall Cost Leadership

Differentiation
Focus

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Categories of Marketing Alliances

Product or Service Alliances
Promotional Alliances Logistics Alliances

Pricing Collaborations

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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