Defining Marketing for 21st

Century

A Plan to Re-Invent the

Marketing we Need
Marketing Management
Some Definitions
“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”….. AMA

“ Marketing Management is the art and science of

choosing target markets and getting, keeping and
growing customers through creating,
creating communicating,
delivering and, superior customer value”
value
A Plan to Invent the Marketing we Need
 Rise of China, India and other emerging economies has
demanded new market strategies to reach developing
countries
 Technologies from the Internet to biotechnology are
fundamentally changing science and society
 Social concerns from environmental impact to corporate
social responsibility are changing the relationships
 Virtual worlds are giving new meaning to the concept of
“place” in marketing
 Collaborative projects such as open source software and
Wikipedia are transforming the consumer into a co-
creator
 Technological innovations have made the mass media
more customized, eliminating the predictability of
traditional advertising
A Plan to Invent the Marketing we Need:
The Changing Context
 Post-9/11 global terrorism
 Turbulent global economy
 Pervasive impact of the Internet and constant advances
in information and communication technologies
 Continued advances in science and technology-based
inventions
 Empowered consumer who expects customized products
and services, messages and distribution channels
 Reluctant consumer — with declining response rates,
increasingly negative attitudes toward marketing and
advertising
A Plan to Invent the Marketing we Need:
The Changing Context
 Decreased consumer and employee loyalty
 Vanishing mass market and increased fragmentation of
all markets
 A blurring of the line between B2B and B2C
 Rising importance of the developing world
 Opportunities for outsourcing and digital
outsourcing/off-shoring of marketing services (beyond
call centers)
 Increased focus on public/private cooperation
(nongovernmental organizations and others)
Empowering the Customer
 Make it mine….. Customization
 Let me be a part of it…. Communities
 Let me call, click or visit …. Multiple channels
 Give me more for my money …. Competitive value
 Give me search and decision tools… Choice

Era of the passive consumer is history

Shift in relationship between consumers and
companies is the most fundamental change in the
history of marketing
A Plan to Invent the Marketing we Need:
Seven Strategies
1. Bridge the disciplinary silos
2. Shift from traditional management to network
orchestration
3. Change the focus from CRM to CMR
4. Shift from company-branded products to customer-
branded solutions
5. Use analytics and metrics as the glue
6. Adopt the adaptive experimentation philosophy in all
your activities and strive for empirical generalizations
7. Challenge (and change) your mental models
Re-visiting 4 Ps 8 Ps ?:
People
Processes
Programs
Performance
New Marketing Realities

Information
Information technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Competition
Competition
Convergence
Convergence
Consumer
Consumer resistance
resistance
Retail
Retail transformation
transformation
 New Company Capabilities
Marketers can:
1. Use the Internet as a powerful information and sales channel
2. Collect fuller and riches information about markets,
customers, prospects and competitors
3. Tap into social media to amplify their brand message
4. Facilitate and speed external communication among
customers
5. Send Ads, coupons, samples and information to customers
6. Reach consumers on the move with mobile marketing
7. Make and sell individually differentiated goods
8. Improve purchasing, recruiting, training & internal and
external communications
9. Speed up internal communication among employees
10. Improve cost efficiency by skillful use of internet
Holistic Marketing Concept

 The Holistic Marketing Concept is based on the

development, design, and implementation of
marketing programs, process, and activities that
recognizes integrated perspective for companies to
operate and compete in a new marketing
environment.
 Four components of Holistic marketing are:
relationship marketing, integrated marketing,
internal marketing, and social responsibility
marketing
Holistic Marketing Dimensions
 Relationship Marketing: aims to build mutually
satisfying long term relationships with key
constituents in order to earn and retain their
businesses
 Integrated Marketing: occurs when the marketer
devises marketing activities and assembles
marketing programs to create, communicate and
deliver value for consumers such that “ the
whole is greater than the sum of its parts”. All
company communications must be integrated to
reinforce and complement each other
Holistic Marketing Dimensions
 Internal Marketing: task of hiring, training and
motivating able employees who want to serve
customers well
 Performance Marketing: understanding the
financial and non financial returns to business
and society from marketing activities and
programs, going beyond the Sales revenue to
examining the marketing scorecard and interpret
what is happening to market share, customer
loss rate, customer satisfaction, product quality
and other measures
Holistic Marketing Dimensions
Marketing Management Trends

 Marketers are fundamentally rethinking their

philosophies, concepts, and tools:
 From organizing by product units to organizing
by customer segment
 From emphasizing tangible assets to
emphasizing intangible assets, brand,
customer base, relationship marketing
 From focusing on profitable transaction to
focusing on customer lifetime value (customer
retention)
Marketing Management Tasks
 Capturing marketing insights:
insights marketers need
marketing information system to monitor task
environment and broad environment
 Building strong brands
 Developing marketing strategies
 Communicating value:
value about the brand they sell
 Shaping market offerings
 Delivering value
 Creating long term growth by initiating new
product development and global opportunities
and challenges
The New Economy

 Substantial increase in buying power

 A greater variety of goods and services
 A greater amount of information about
practically anything
 A greater ease in interacting and placing and
receiving orders
 An ability to compare notes on products and
services
Traditional Organizational Chart versus
Modern Customer-Oriented Company
Organization Chart
Ten Deadly Sins of Marketing
The Company:
1. Is not sufficiently market focused and customer driven
2. does not full understand its target customers
3. Needs to better define and monitor its competitors
4. Has not properly managed its relationships with its
stakeholders
5. Is not good at finding new opportunities
6. Marketing plans and planning processes are deficient
7. Product and services policies need tightening
8. Brand building and communication skills are weak
9. Not well organized for effective and efficient marketing
10. Has not made maximum use of technology
Ten Commandments of Marketing
The Company:
1. Segments the market, chooses the best segments, and
develops a strong position in each chosen segment
2. Maps its customers needs, perceptions, preferences
and behavior and motivates its stakeholders to obsess
about serving and satisfying the customers
3. Knows its major competitors and their strengths and
weaknesses
4. Builds partners out of its stakeholders and generously
rewards them
5. Develops systems for indentifying opportunities,
ranking them, and choosing the best ones
Ten Commandments of Marketing
The Company:
6. Manages a marketing planning system that leads to
insightful long-term and short-term plans
7. Exercises strong control over its product and service mix
8. Builds strong brands by using the most cost effective
communication and promotion tools
9. Builds marketing leadership and a team spirit among its
various departments
10. Constantly adds technology that gives it a competitive
advantage in the market place
Marketing in an age of Turbulence
 Secure market share from core customer segments
 Push aggressively for greater market share from
competitors
 Research customers more now because their needs and
wants are in flux
 Minimally maintain, but seek to increase your marketing
budget
 Focus on all that’s safe and emphasize core values
 Drop programs that aren't working quickly
 Don’t discount your best brands
 Save the strong, lose the weak