Defining Marketing for the New Realities PDF
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2016
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This document is a chapter from a textbook on marketing management, defining marketing and its importance in the modern world. It introduces several key marketing concepts and principles, from fundamental ideas like needs, wants, and demands, to company orientations toward the marketplace, integrated marketing strategies and internal marketing practices, and performance marketing.
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Chapter 1 Defining Marketing for the New Realities Copyright © 2016 Pearson Education Ltd. 1-1 Learning Objectives 1. Why is marketing important? 2. What is the s...
Chapter 1 Defining Marketing for the New Realities Copyright © 2016 Pearson Education Ltd. 1-1 Learning Objectives 1. Why is marketing important? 2. What is the scope of marketing? 3. What are some core marketing concepts? 4. What forces are defining the new marketing realities? 5. What new capabilities have these forces given consumers and companies? 6. What does a holistic marketing philosophy include? 7. What tasks are necessary for successful marketing management? Copyright © 2016 Pearson Education Ltd. 1-2 The Value of Marketing Financial success often depends on marketing ability Successful marketing builds demand for products and services, which, in turn, creates jobs Marketing builds strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm Copyright © 2016 Pearson Education Ltd. 1-3 The Scope of Marketing Marketing is about identifying and meeting human and social needs AMA’s formal definition: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Copyright © 2016 Pearson Education Ltd. 1-4 Marketing Management The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value COPYRIGHT © 2016Copyright PEARSON © EDUCATION, 2016 Pearson INC. Education Ltd. 1-5 1-5 What is Marketed? Goods Services Events Experiences Persons COPYRIGHT © 2016Copyright PEARSON © EDUCATION, 2016 Pearson INC. Education Ltd. 1-6 1-6 What is Marketed? Places Properties Organizations Information Ideas COPYRIGHT © 2016Copyright PEARSON © EDUCATION, 2016 Pearson INC. Education Ltd. 1-7 1-7 Who Markets? A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect COPYRIGHT © 2016Copyright PEARSON © EDUCATION, 2016 Pearson INC. Education Ltd. 1-8 1-8 8 Demand States Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull COPYRIGHT © 2016Copyright PEARSON © EDUCATION, 2016 Pearson INC. Education Ltd. 1-9 1-9 Fig. 1.1 Structure Of Flows In A Modern Exchange Economy COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-10 1-10 Fig. 1.2 A Simple Marketing System Copyright © 2016 Pearson Education Ltd. 1-11 Key Customer Markets Consumer markets Business markets Global markets Nonprofit & governmental markets COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-12 1-12 Core Marketing Concepts Needs: the basic human requirements such as for air, food, water, clothing, and shelter Wants: specific objects that might satisfy the need Demands: wants for specific products backed by an ability to pay COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-13 1-13 Types of Needs STATED REAL UNSTATED DELIGHT SECRET COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-14 1-14 Core Marketing Concepts Target markets Positioning Segmentation COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-15 1-15 Core Marketing Concepts Value proposition: a set of benefits that satisfy those needs Offerings: a combination of products, services, information, and experiences Brands: an offering from a known source COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-16 1-16 Core Marketing Concepts Marketing channels COMMUNICATION DISTRIBUTION SERVICE COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-17 1-17 Core Marketing Concepts Paid media: TV, magazine and display ads, paid search, and sponsorships Owned media: a company or brand brochure, web site, blog, Facebook page, or twitter account Earned media: word of mouth, buzz, or viral marketing COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-18 1-18 Core Marketing Concepts Impressions: occur when consumers view a communication Engagement: the extent of a customer’s attention and active involvement with a communication COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-19 1-19 Core Marketing Concepts Value: a combination of quality, service, and price (qsp: the customer value triad) Satisfaction: a person’s judgment of a product’s perceived performance in relationship to expectations COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-20 1-20 Core Marketing Concepts Supply chain: a channel stretching from raw materials to components to finished products carried to final buyers (Fig 1.3: The Supply Chain for Coffee) COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-21 1-21 Core Marketing Concepts Competition: all the actual and potential rival offerings and substitutes a buyer might consider COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-22 1-22 Core Marketing Concepts Marketing environment – Task environment – Broad environment COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-23 1-23 The New Marketing Realities Technology Globalization Social responsibility COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-24 1-24 A dramatically changed marketplace New consumer capabilities – Can use the internet as a powerful information and purchasing aid – Can search, communicate, and purchase on the move – Can tap into social media to share opinions and express loyalty COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-25 1-25 A dramatically changed marketplace New consumer capabilities – Can actively interact with companies – Can reject marketing they find inappropriate COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-26 1-26 A dramatically changed marketplace New company capabilities – Can use the internet as a powerful information and sales channel, including for individually differentiated goods – Can collect fuller and richer information about markets, customers, prospects, and competitors – Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-27 1-27 A dramatically changed marketplace New company capabilities – Can improve purchasing, recruiting, training, and internal and external communications – Can improve cost efficiency COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-28 1-28 A dramatically changed marketplace Changing channels – Retail transformation – Disintermediation COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-29 1-29 A dramatically changed marketplace Heightened competition – Private brands – Mega-brands – Deregulation – Privatization COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-30 1-30 Marketing in practice Marketing balance Marketing accountability Marketing in the organization COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-31 1-31 Company Orientation toward the Marketplace PRODUCTION PRODUCT SELLING MARKETING COPYRIGHT © 2016Copyright PEARSON © 2016 Pearson Education EDUCATION, INC. Ltd. 1-32 1-32 Fig. 1.4 Holistic Marketing Dimensions Copyright © 2016 Pearson Education Ltd. 1-33 Relationship marketing CUSTOMERS EMPLOYEES MARKETING PARTNERS FINANCIAL COMMUNITY Copyright © 2016 Pearson Education Ltd. 1-34 Integrated marketing Devise marketing activities and programs that create, communicate, and deliver value such that “the whole is greater than the sum of its parts.” Copyright © 2016 Pearson Education Ltd. 1-35 Internal marketing The task of hiring, training, and motivating able employees who want to serve customers well Copyright © 2016 Pearson Education Ltd. 1-36 Performance marketing FINANCIAL ENVIRONMENTAL ACCOUNTABILITY IMPACT SOCIAL IMPACT Copyright © 2016 Pearson Education Ltd. 1-37 Fig. 1.5 Marketing Mix Components (4 Ps) Copyright © 2016 Pearson Education Ltd. 1-38 MODERN MARKETING MANAGEMENT PEOPLE PROCESSES PROGRAMS PERFORMANCE Copyright © 2016 Pearson Education Ltd. 1-39 MARKETING MANAGEMENT TASKS Developing market strategies and plans Capturing marketing insights Connecting with customers Building strong brands Copyright © 2016 Pearson Education Ltd. 1-40 MARKETING MANAGEMENT TASKS Creating value Delivering value Communicating value Creating successful long-term growth Copyright © 2016 Pearson Education Ltd. 1-41 Copyright © 2016 Pearson Education Ltd. 1-42
