Defining Marketing for the 21st Century1Marketing ManagementA South Asian Perspective, 13th ed

Chapter QuestionsWhy 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?

Good Marketing is No AccidentThe 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.

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.

What is Marketing Management?Marketing management is theart and science of choosing target markets and getting, keeping, and growing customers throughcreating, delivering, and communicatingsuperior customer value.

Selling is only the tip of the icebergThere 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

What is Marketed?

Successful New Product Launches Require Careful Planning

Marketing Can Promote Ideas

Figure 1.1 Structure of Flows in a Modern Exchange Economy

Figure 1.2 A Simple Marketing System

Demand StatesNonexistentLatentDecliningIrregularFullUnwholesomeOverfullNegative

Key Customer Markets

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Functions of CMOsStrengthening the brandsMeasuring marketing effectivenessDriving new product development based on customer needsGathering meaningful customer insightsUtilizing new marketing technology

Figure 1.3 Improving CMO SuccessMake the mission and responsibilities clearFit the role to the marketing culture and structureEnsure the CMO is compatible with the CEORemember that show people dont succeedMatch the personality with the CMO typeMake line managers marketing heroesInfiltrate the line organizationRequire right-brain and left-brain skills

Core Marketing Concepts

Needs, wants, and demandsTarget markets, positioning, segmentationOfferings and brands

Value and satisfactionMarketing channelsSupply chainCompetitionMarketing environment

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

The marketplace isnt what it used to be

New Consumer CapabilitiesA substantial increase in buying powerA greater variety of available goods and servicesA great amount of information about practically anythingGreater ease in interacting and placing and receiving ordersAn ability to compare notes on products and servicesAn amplified voice to influence public opinion

Company OrientationsProductionSellingMarketingProduct

Figure 1.4 Holistic Marketing Dimensions

RBC emphasizes arelationship marketing approach

Figure 1.5 The Four Ps

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

Performance Marketing Financial AccountabilitySocial Responsibility MarketingSocial InitiativesCorporate social marketingCause marketingCause-related marketingCorporate philanthropyCorporate community involvementSocially responsible business practices

Marketing Management TasksDevelop market strategies and plansCapture marketing insightsConnect with customersBuild strong brandsShape market offeringsDeliver valueCommunicate valueCreate long-term growth

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

Marketing DiscussionConsider 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?