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Defining Marketing
for the 21st Century

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 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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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 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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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 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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What Is Marketed?
Goods
Services
Events
Experiences
Places

Copyright
2011 Pearson
Education,
Inc. Publishing
Prentice
Hall adaptation from
Copyright
2013 Dorling
Kindersley
(India) PvtasLtd.
Authorized
the United States edition of Marketing Management, 14e.

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What Is Marketed?
Persons
Properties
Organizations
Information
Ideas

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Demand States

Negative
Nonexistent
Latent
Declining

Irregular
Unwholesome
Full
Overfull

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Figure 1.1 Structure of Flows in


Modern Exchange Economy

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Figure 1.2
A Simple Marketing System

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Key Customer Markets

Consumer markets
Business markets
Global markets
Nonprofit/Government markets

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Rural Markets in South Asia

Rural markets offer immense potential for


market expansion and growth:
Consumption in rural markets predicted to
grow at a CAGR of 5% in the next two
decades.
Size and growth rate for many products
and product categories are very attractive.
48 percent of the rural population is below
20 years of age.

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Core Concepts

Needs, wants, and


demands
Target markets,
positioning,
segmentation
Offerings and
brands

Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Types of Needs
Stated
Real
Unstated
Delight

Secret

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Target Markets,
Positioning & Segmentation

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Offerings and Brands

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Value and Satisfaction

Quality

Service
Price

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Marketing Channels
Communication
Distribution
Service

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Marketing Environment
Demographic

Political-legal

Technological

Economic

Socio-cultural

Natural

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Major Societal Forces

Network information
technology
Globalization
Deregulation
Heightened competition
Industry convergence

Retail transformation
Disintermediation
Consumer buying power
Consumer information
Consumer participation
Consumer resistance

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Company Orientations
Production
Product
Selling
Marketing

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Figure 1.3
Holistic Marketing

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Relationship Marketing
Customers

Employees

Marketing Partners

Financial Community

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Integrated Marketing
Key themes:

(1) many different marketing activities can


create, communicate, and deliver value, and
(2) marketers should design and implement
any one marketing activity with all other
activities in mind.

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Internal Marketing

Internal marketing is the task of


hiring, training, and motivating able employees
who want to serve customers well.

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Performance Marketing

Financial
Accountability

Social Responsibility
Marketing

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Figure 1.4
The Marketing Mix

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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The New Four Ps


People
Processes
Programs
Performance

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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Marketing Management Tasks

Develop market strategies and plans


Assess market opportunities and customer
value
Choose value
Design value
Deliver value
Communicate value
Sustain growth and value

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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For Review

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 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

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