2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2

nd
Edition Slide 0 in Chapter 1
Chapter 1
Defining Marketing for
the Twenty-First
Century

PowerPoint by Karen E. James
Louisiana State University - Shreveport
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 1 in Chapter 1
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major
concepts and tools of marketing.
Understand the orientations
exhibited by companies.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 2 in Chapter 1
Objectives
Learn how companies and
marketers are responding to
new challenges.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 3 in Chapter 1
The New Economy
Consumer benefits from the digital
revolution include:
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product
information with others.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 4 in Chapter 1
The New Economy
Firm benefits from the digital
revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer
communication.
Ability to customize promotions.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 5 in Chapter 1
Marketing Tasks
Marketing practices may pass
through three stages:
Entrepreneurial marketing
Formulated marketing
Intrepreneurial marketing
As marketing becomes more
formulated, creativity is inhibited.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 6 in Chapter 1
What Can Be Marketed?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 7 in Chapter 1
Marketing Defined
Kotlers social definition:
Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
services of value with others.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 8 in Chapter 1
Marketing Defined
The AMA managerial definition:
Marketing is the process of
planning and executing the
conception, pricing, promotion,
and distribution of ideas, goods,
and services to create exchanges
that satisfy individual and
organizational objectives.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 9 in Chapter 1
Core Marketing Concepts
Target markets and
market segmentation
Marketplace, market-
space, metamarkets
Marketers & prospects
Needs, wants, demands
Product offering and
brand
Value and satisfaction
Exchange and
transactions
Relationship and
networks
Marketing channels
Supply chain
Competition
Marketing environment
Marketing program
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 10 in Chapter 1
Core Marketing Concepts
Target markets & segmentation
Differences in needs, behavior,
demographics or psychographics
are used to identify segments.
The segment served by the firm is
called the target market.
The market offering is customized
to the needs of the target market.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 11 in Chapter 1
Core Marketing Concepts
Shopping can take place in a:
Marketplace (physical entity, Lowes)
Marketspace (virtual entity, Amazon)
Metamarkets refer to complementary
goods and services that are related
in the minds of consumers.
Marketers seek responses from
prospects.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 12 in Chapter 1
Core Marketing Concepts
Needs describe basic human
requirements such as food, air, water,
clothing, shelter, recreation, education,
and entertainment.
Needs become wants when they are
directed to specific objects that might
satisfy the need. (Fast food)
Demands are wants for specific
products backed by an ability to pay.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 13 in Chapter 1
Core Marketing Concepts
A Product is any offering that can
satisfy a need or want, while a brand
is a specific offering from a known
source.
When offerings deliver value and
satisfaction to the buyer, they are
successful.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 14 in Chapter 1
Enhancing Value
Marketers can enhance the value of
an offering to the customer by:
Raising benefits.
Reducing costs.
Raising benefits while lowering costs.
Raising benefits by more than the
increase in costs.
Lowering benefits by less than the
reduction in costs.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 15 in Chapter 1
Core Marketing Concepts
Exchange involves obtaining a desired
product from someone by offering
something in return. Five conditions
must be satisfied for exchange to occur.
Transaction involves at least two things
of value, agreed-upon conditions, a time
of agreement, and a place of agreement.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 16 in Chapter 1
Core Marketing Concepts
Relationship marketing aims to
build long-term mutually satisfying
relations with key parties, which
ultimately results in marketing
network between the company and
its supporting stakeholders.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 17 in Chapter 1
Core Marketing Concepts
Marketing Channels

Communication
channels
Distribution
channels
Service channels
Deliver messages to
and receive
messages from
target buyers.
Includes traditional
media, non-verbal
communication, and
store atmospherics.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 18 in Chapter 1
Core Marketing Concepts
Marketing Channels

Communication
channels
Distribution
channels
Service channels
Display or deliver
the physical
products or
services to the
buyer / user.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 19 in Chapter 1
Core Marketing Concepts
Marketing Channels

Communication
channels
Distribution
channels
Service channels
Carry out
transactions with
potential buyers
by facilitating the
transaction.


2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 20 in Chapter 1
Core Marketing Concepts
A supply chain stretches from raw
materials to components to final
products that are carried to final
buyers.
Each company captures only a
certain percentage of the total value
generated by the supply chain.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 21 in Chapter 1
Core Marketing Concepts
Four levels of competition can be
distinguished by the level of product
substitutability:
Brand competition
Industry competition
Form competition
Generic competition
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 22 in Chapter 1
Core Marketing Concepts
The following forces in the broad
environment have a major impact on
the task environment:
Demographics
Economics
Natural environment
Technological environment
Political-legal environment
Social-cultural environment
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 23 in Chapter 1
Core Marketing Concepts
The marketing program is developed
to achieve the companys objectives.
Marketing mix decisions include:
Product: provides customer solution.
Price: represents the customers cost.
Place: customer convenience is key.
Promotion: communicates with customer.

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 24 in Chapter 1
Company Orientations
The orientation or philosophy of the
firm typically guides marketing efforts.
Several competing orientations exist:
Production concept
Product concept
Selling concept
Marketing concept
Customer concept
Societal marketing concept

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 25 in Chapter 1
The Marketing Concept
Achieving organizational goals requires
that company be more effective than
competitors in creating, delivering, and
communicating customer value.
Four pillars of the marketing concept:
Target market
Customer needs
Integrated marketing
Profitability
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2
nd
Edition Slide 26 in Chapter 1
Changes in the Marketplace
Globalization, technological
advances, and deregulation have
created many challenges:
Customers
Brand manufacturers
Store-based retailers
Both companies and marketers have
been forced to respond and adjust.