Marketing in the 21st Century

• Marketing is a vast number of activities that people and organizations engage in.
• Good marketing is increasingly vital for success; it is constantly evolving and changing.
• Good marketing is no accident, but a result of careful planning and execution utilizing modern tools and techniques.
• Marketing is both an art and science; marketers struggle to find creative new solutions to often-complex challenges in the 21st century.

Marketing in the 21st Century

• The first decade of the 21st century challenged firms to prosper and survive.
• Marketing addresses these challenges and is key to ensuring demand.
• Without sufficient demand, finance, operations, and accounting are irrelevant.
• Financial success depends on marketing ability.
• Marketers are responsible for deciding which features to design into a new product or service.
• They also determine prices, sales locations, and advertising spending.
• These decisions must be made in an internet-fueled environment where consumers, competition, technology, and economic forces change rapidly.
• Consequences of marketing actions can multiply quickly.

Definition of Marketing

• Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value.
• It is for customers, clients, partners, and society at large.
• eBay recognized that people couldn't find items and created an online auction clearinghouse.
• IKEA noticed people wanted good furnishings at lower prices and created knockdown furniture.

Marketing Management Defined

• Marketing management involves choosing target markets while getting, keeping, and growing customers.
• This is achieved through creating, delivering, and communicating superior customer value.

Importance of Marketing Management

• Marketing creates demand, which drives revenue for a product.
• Greater demand creates new jobs.
• Top-line revenue results in bottom-line profits, which allow a company to engage in socially responsible activities.

Importance of Marketing From Different Perspectives

• Marketing can be understood in 4 different perspectives
• Global
• Domestic
• Organization
• Personal

Global Perspective

• Trade agreements boost marketing opportunities but can stiffen competition for domestic firms from outside.
• PNG firms look abroad and conclude that they must combine domestic with international marketing for the best growth.

Domestic Perspective

• Aggressive, effective marketing practices have largely contributed to the high standard of living in PNG.
• The efficiency of mass marketing makes products readily available to consumers through rapid communication and extensive media and distribution systems.

Domestic Perspective Detail

• A large percentage of the PNG civilian labor force is engaged in marketing activities in a variety of industries.
• Employment in marketing has increased much faster than in production.

Creating Utility

• Customers purchase products to receive satisfaction
• Utility is the want-satisfying power of a product, in many forms.
• Much of a product's utility is created through marketing.
• Form utility changes the product (i7 Processor).
• Place utility makes the product readily available (iPhones).
• Time utility makes the product available when wanted.
• Information utility means information about a product existence (websites).
• Possession utility is created when a customer buys (super electronic products).

Organizational Perspective

• The success of any business relies on satisfying its customers’ wants, which is the social and economic basis for all organizations.
• Marketing is the only activity that directly produces revenue.

Personal Perspective

• Many marketers view us a part of their market.
• Firms such as Nike, Microsoft, VISA, etc., design products, set prices, create advertisements, and decide how to make products available to us.

Scope of Marketing

• To be a marketer, one must understand what marketing is, how it works, who does it, and what is marketed.
• "Meeting needs profitably" is the goal of marketing.
• What is Marketed: Persons, Servies, Goods, Experience, Events, properties, organizations, Information, Ideas.
• Experiences include trips to Disney World, Fantasy baseball camp, and tours.
• Events include trade shows, the Olympics, and the Super Bowl.
• Properties include real estate, stocks, and bonds.
• Organizations use marketing to connect with their target market.
• Information is marketed by universities, textbook publishers, newspapers, etc.
• Ideas being marketed include "Friends don't let friends drive drunk".

Who Markets?

• Marketers are individuals, groups, associations, or companies that seek a response from another party called the prospect, responses such as attention, purchase, donation, vote, etc.

Types of Demand

• Negative: consumers dislike a product and may pay to avoid it.
• Nonexistent: consumers are unaware of or uninterested in the product or service.
• Latent: there is no product on the market that can satisfy consumer needs.
• Declining: consumers purchase a product less and less frequently or not at all.
• Irregular: product demand varies by time, such as on a seasonal basis.
• Full: consumers are buying all the products that enter into the market.
• Overfull: there are more buyers than the product available.
• Unwholesome: consumers are attracted to products that have undesirable social consequences.
• Marketers identify underlying causes of the demand state and determine a plan to shift demand to a desired state.

Key Customer Markets

• Global Markets
• Consumer Market
• Business Markets
• Government Market

Markets

• Marketplace: physical locations (such as retail store).
• Market space: digital location (online retailer).
• Metamarkets: clusters of complementary products/services related in consumers' minds, but spread across diverse industries.

Core Marketing Concepts

• Needs, Wants and Demand
• Target Markets, Positioning and Segmentation
• Offerings and Brands
• Value and Satisfaction
• Marketing Channels
• Supply Chain
• Competition
• Marketing Environment.

Needs, Wants, and Demands

• Needs are basic human requirements like food, air, water, education, etc.
• Needs become wants when directed to specific objects that might satisfy the need (wanting a hamburger when hungry).
• Demands are wants for specific products, and are backed by the willingness and ability to pay.

Products

• Products are any offerings that can satisfy a need or want.
• Major types of basic offerings: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
• Customers must choose which product will deliver the most total satisfaction
• Cost plays a secondary role in this decision.

Marketing Channels

• Communication channel: marketers deliver and receive messages from target buyers.
• Dialogue channels include email and toll-free numbers.
• Distribution channels: display and delivery of physical goods.
• Include warehouses, transportation vehicles, distributors, wholesalers, retailers, and more.
• Selling channels: include distributors and retailers, as well as banks and insurance companies that facilitate transactions.
• Supply chain: a value delivery system; companies aim to capture a higher percentage of supply chain value by moving upstream or downstream.

Competition

• Competition includes all the actual and potential rival offerings and substitutes considered by a buyer.
• Brand competition involves similar products or services to the same customers at similar prices.
• Industry competition involves all companies making the same product or class of product.
• Form competition involves all companies manufacturing products to supply the same service.
• Generic competition involves all companies that compete for the same consumer dollars.

Environment

• Marketing Environment: a task environment with broad environment factors.
• Task environment includes the immediate actors involved in producing, distributing, and promoting the offering.
• Task environment includes company, suppliers, distributors, dealers, and the target customers.
• The supplier group includes material and service suppliers such as marketing and advertising agencies.
• The distributor and dealer group includes agents, brokers, manufacturer representatives, and others who facilitate finding and selling to consumers.
• The broad environment includes 6 components: demographic, economic, natural, technological, political-legal, and social-cultural environments.
• These environments contain forces that can major impact the actors in the task environment.
• Trends and developments in the environments require timely responses and marketing strategy adjustments.

New Marketing Realities

• Major societal forces like information technologies, globalization, increased competition, and more informed consumers have greatly changed the marketplace.
• New Company Capabilities: information technologies, globalization, increased competition
• Improved communication with customers
• Better collection of information
• Differentiated Goods

New Consumer Capabilities

• These major societal forces create complex challenges and a new skill set to cope and respond.
• The Internet has become a powerful information and sales channel.
• Marketers can gather fuller information about markets and prospects.
• Social media can amplify brand messages.
• External communications with customers can be faster and easier.
• Marketers can send custom ads, coupons, samples, and information.
• Reaching consumers on the move through mobile marketing is now possible.
• Companies can make and sell individually differentiated goods.
• Improves purchasing and communications both internally and externally
• Facilitate and speed internal communication among employees using the Internet as a private Intranet; and improve cost efficiency.

Marketing Concepts and Company Orientations

• Marketing concepts are Production, Product, Selling, Marketing, and Holistic marketing.
• Production philosophy: the company seeks to mass-produce products and widely distribute them as consumers prefer widely available and inexpensive products.
• Product concept: proposes consumers prefer products with higher quality, performance, or innovation.
• The selling concept argues members of a market will not purchase enough product on their own.
• The selling concept utilizes the hard-sell to increase demand
• Marketing concept: emerged in the 1950s, it focuses on the customer with a "sense-and-respond" attitude.
• The Holistic concept takes a philosophy that everything matters in marketing.

Holistic Marketing Dimensions

• Internal marketing
• Integrated Marketting
• Performance marketing
• Relationship marketing

Relationship Marketing

• Seeks to build mutually beneficial, long-term relationships to retain their business
• The four key constituents are: customers, employees, partners, and members of the financial community.
• Attracting a new customer can cost five times as much as retaining current ones.
• Marketing networks consist of the company and its supporting stakeholders.
• It is important they have built a mutually profitable business relationship.

Who is Responsible for Marketing?

• Entire Organization
• Marketing Department
• Cheif Marketing Officer (CMO)

Marketing Management Tasks

• Developing market strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth

Marketing Management Tasks Detail

• Develop marketing plans based on long-run opportunities and core competencies.
• Maintain a marketing information system to assess market potential and forecast demand.
• Assess the micro and macro environment.
• Create value for the chosen target markets.
• Develop proper delivery of value to a target market through products and services.
• Make the product accessible and available to target customers.
• Identify, recruit, and link marketing facilitators to supply products and services.
• Communicate value adequately to the targeted market.
• Utilize an integrated marketing communication program to maximize individual and collective contribution of communication activities.
• Set up mass and personal communication programs.
• Base the product positioning on Atlas initiating product development, testing, and launching as part of the long-term view.