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Defining Marketing for the 21st Century

Marketing Management, 13th ed

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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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.

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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.

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What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
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Figure 1.1 Structure of Flows in a Modern Exchange Economy

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Figure 1.2 A Simple Marketing System

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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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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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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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