1

Defining Marketing
for the 21st Century

Marketing Management
A South Asian Perspective, 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?
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Good Marketing is No Accident

The roaring success
of four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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 2009 Dorling Kindersley (India) Pvt. Ltd.

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 2009 Dorling Kindersley (India) Pvt. Ltd.

Selling is only the tip of the iceberg

There will always be a need for
some selling. But the aim of marketing is to
make selling superfluous. The aim of
marketing is to know and understand the
customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer who
is ready to buy. All that should be needed
is to make the product or service
available.
Peter Drucker
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Successful New Product Launches

Require Careful Planning

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Marketing Can Promote Ideas

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 1.1 Structure of Flows in a Modern

Exchange Economy

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 1.2 A Simple Marketing System

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Demand States
Negative

Latent

Nonexistent

Declining

Full

Irregular

Overfull

Unwholesome

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

www.marutitruevalue.com

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Core Marketing Concepts

Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands

Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Positioning
Press ads of the
Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on emotional
benefits.

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

The marketplace isnt what it used to be

Information
Information technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Competition
Competition
Convergence
Convergence
Consumer
Consumer resistance
resistance
Retail
Retail transformation
transformation
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Company Orientations

Production

Product

Selling

Marketing

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 1.4 Holistic Marketing Dimensions

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

RBC emphasizes a
relationship marketing approach

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 1.5 The Four Ps

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able
employees who want to serve
customers well.

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Performance Marketing
Financial
Accountability
Social
Responsibility
Marketing

Social Initiatives
Corporate social
marketing
Cause marketing
Cause-related marketing
Corporate philanthropy
Corporate community
involvement
Socially responsible
business practices

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Marketing Discussion
Consider the societal forces noted in
the chapter (e.g., information
technology, globalization, deregulation,
consumer resistance, retail
transformation).
How have marketing practices shifted
to accommodate and even leverage
these forces?
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.