Marketing Fundamentals for the 21st Century

Defining Marketing for the 21st Century

• Marketing is a societal process where individuals and groups obtain their needs and wants through creating, offering, and exchanging valuable products and services with others.
• Learning outcomes include explaining marketing's importance, describing its scope, and identifying fundamental marketing concepts.
• Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges satisfying individual and organizational goals.

What is Marketed?

• Goods: Physical products like furniture, cars, etc.; a significant part of most countries' production and marketing.
• Services: As economies develop, more activities are focused on services such as law, medicine, and education.
• Experiences: Combining goods and services to offer events like theme parks, concerts.
• Events: Time-based events like festivals and trade shows.
• Persons: Promoting individuals, like celebrities, in business or professional fields.
• Places: Attracting tourists, business, or residents to a region, state, or city.
• Properties: Intangible ownership rights to physical or financial properties such as land and stocks.
• Organizations: Actively building strong reputations for public image within their communities.
• Information: Production, packaging, and distribution of information; e.g. schools, universities, and encyclopedias.
• Ideas: Products and services that deliver ideas or benefits to fulfil a core need.

Demand Management by Marketers

• Marketers manage various demand states including:
  • Negative demand: Avoidance of a product,
  • No demand: Lack of interest,
  • Latent demand: Strong unmet needs,
  • Declining demand: Lower demand,
  • Irregular demand: Fluctuating demand,
  • Full demand: Satisfactory demand level,
  • Overfull demand: Exceeding handling capacity, and
  • Unwholesome demand: Desire for harmful products.
• Marketing managers seek to influence the level, timing, and composition of demand.

Simple Marketing System

• A simple marketing system consists of an industry (collection of sellers) and a market (collection of buyers).
• Communication, flow of goods/services, money, and information flow between the two.

Satisfying Diverse Customer Needs

• Market segmentation analyzes demographic, psychographic, and behavioral differences among buyers.
• For each segment, a tailored market offering is developed to benefit the company.
  • Different segmentation types exist, including geographic, demographic, psychographic, and behavioral.

Key Customer Markets

• Four main customer markets are identified: global, consumer, business, and government.

Markets

• Marketplace: Physical shopping locations.
• Marketspace: Digital shopping areas, like online commerce.
• Metamarket: Bundled products and services, closely-related in the consumer's mind, but sold by different businesses.

Marketing Mix & the Customer

• The "Four Ps" (Product, Price, Place, Promotion) interact with the "Four Cs" (Customer solution, Customer cost, Convenience, Communication) to influence customer behavior.

Core Marketing Concepts

• Needs: Basic human requirements (food, shelter, water).
• Wants: Needs directed towards specific objects to fulfill the need.
• Demands: Wants coupled with the ability to pay, desires for specific products with financial capability.
• Brand: A recognizable offer from a known source, carrying specific product/brand associations (e.g., McDonald's, burgers). A successful brand delivers value and satisfaction.
• Communication Channels: Delivering messages through various channels (newspapers, magazines, radio).
• Distribution Channels: Delivering physical products (warehouses, transportation).
• Selling Channels: Facilitating transactions (retailers, banks).
• Supply Chain: A longer channel, stretching from raw materials to final products delivered to consumers.
• Competition: Actual and potential rival offerings and substitute products (brand competition, industry competition, form competition, generic competition).

Explore the essential concepts of marketing in the context of the 21st century. This quiz covers the definition of marketing, its importance, and various elements such as goods, services, experiences, and events. Understand how marketing management contributes to fulfilling individual and organizational goals.