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Chapter 1
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.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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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.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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What is Marketed?
Goods (products)
Services
Events (Disney)
Experiences (Bunzi)
Persons
Places (Lankawei)
Properties
Organizations
Information (XRAY, MRI)
Ideas (Amir Khan and Awareness)

Who Markets?

Marketers and Prospects: A MARKETER is someone who

seeks a response from another party, called PROSPECT.
Marketer possesses the skill to stimulate demand:
Negative Demand: Pay a price to avoid it (Environmentally
friendly products)
Nonexistent Demand: Consumer may be unaware or
uninterested in the product.
Latent Demand: Share a strong need that can not be
satisfied with current product.
Irregular Demand: Seasonal, Monthly or Weekly
Full Demand: Consumers are adequately buying all products
put into the marketplace.
Overfull Demand: Would like to buy more than can be
satisfied.
Unwholesome Demand: Attracted to products that have
undesirable social consequences. Tobacco, Drug etc.
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Key Markets?

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Consumer Markets: Selling consumer goods and services.

Such as; drinks, cosmetics, air tickets
Business Markets: Companies selling business goods and
sevices. Such as; Caterpillar, Elevator etc.
Global Markets: Companies selling goods and services in
the global marketplace. Such as; Pamper-Japan and cultural
impact
Non-Profit and Governmental market: Companies selling
their goods to nonprofit organization. Like; universities,
mosque, charitable organization (Medicine to Lion Eye
Hospital)

Marketplaces, Marketspaces and

Metamarkets

Marketplace: It is physical..When we shop in the

store.
Marketspace: It is digitalWhen we shop on the
internet.
Metamarket: A cluster of complementary products
and services that are close related in the minds of
consumers but are spread across a diverse set of
industries.
Like; automobile manufacturers, new car and used car
dealers, financing companies, insurance companies,
mechanics, spare parts dealers, service shops, auto
magazines etc.

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Core Concepts

Needs, wants, and

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

Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning

2. Understanding the Marketplace

and Customer Needs
Customer Needs, Wants, and Demands

2. Understanding the Marketplace

and Customer Needs

Market offerings are some combination of

products, services, information, or experiences
offered to a market to satisfy a need or want
Brand is offering from a known source. A
brand name such as McDonald carries many
associations in people minds that make up
image of..BURGER, CLEANLINESS,
CONVENIENCE, COURTEOUS SERVICE.

2. Understanding the Marketplace

and Customer Needs
Customer Value and Satisfaction
Expectations

3. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve

Market segmentation refers to dividing the

markets into segments of customers
Target marketing refers to which segments to
go after

3. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve

Demarketing is marketing to reduce demand

temporarily or permanently; the aim is not to
destroy demand but to reduce or shift it

3. Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition

The value proposition is the set of benefits

or values a company promises to deliver to
customers to satisfy their needs

What is Value/ Worth?

Value reflects the perceived tangible and

intangible benefits and costs to customers.
Value can be seen as primarily a combination
of quality, service, and price (qsp), called the
"customer value triad."
Value increases with quality and service and
decreases with price, although other factors
can also play an important role.

3. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Production concept is the idea that

consumers will favor products that are
available or highly affordable

Product concept is the idea that consumers

will favor products that offer the most quality,
performance, and features. Organizations
should therefore devote its energy to making
continuous product improvements.
Marketing myopia is focusing only on existing wants and
losing sight of underlying consumer needs

Selling concept is the idea that consumers will

not buy enough of the firms products unless
it undertakes a large scale selling and
promotion effort

Marketing concept is the idea that achieving

organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better
than competitors do

Societal marketing concept is the idea that a

company should make good marketing
decisions by considering consumers wants,
the companys requirements, consumers
long-term interests, and societys long-run
interests

Marketing Channels
Communication
Distribution
Service

Holistic Marketing:

Holistic marketing recognizes that everything matters with

marketing. There are four components:
Relationship Marketing: Aim of building mutually satisfying
long-term relationships with key parties-customers,
suppliers, distributors etc. Create marketing
network.among the stakeholders.
Integrated Marketing: Fully integrated marketing programs to
create, communicate and deliver value for consumers.
Internal Marketing: Internal marketing is the task of hiring,
training, and motivating able employees who want to serve
customers well. The sales force thinks product managers set
prices or sales quotas too high.
Social Responsibility Marketing: Ethical, environmental, legal
and social context of marketing activities and programs.
McDonals add healthy items.paper
wraps..environmental friendly papers.

Performance Marketing

Financial
Accountability

Social Responsibility
Marketing

Holistic Marketing

The Marketing Mix

The Four Ps

The New Four Ps

People
Processes
Programs
Performance