1

Defining Marketing
for the 21st Century

Marketing Management, 13th ed

 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.

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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.

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 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

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 What is Marketed?
Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
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 Core Marketing Concepts

• Needs, wants, and • Value and

demands satisfaction
• Target markets, • Marketing channels
positioning, • Supply chain
segmentation • Competition
• Offerings and • Marketing
brands environment

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• Needs - states of felt deprivation including
physical needs for food, social needs for
belonging and individual needs for self-
expression. i.e. I am thirsty.

• Wants - form that a human need takes as shaped

by culture and individual personality. i.e. I want a
Coca-Cola.

• Demands - human wants backed by buying

power. i.e. I have money to buy a Coca-Cola.

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 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

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 Company Orientations

Production Product

Selling Marketing

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 Figure 1.5 The Four P’s

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 Internal Marketing

Internal marketing is the task of

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

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 Performance Marketing

• Financial Social Initiatives

Accountability • Corporate social
• Social marketing
Responsibility • Cause marketing
Marketing • Corporate philanthropy
• Corporate community
involvement
• Socially responsible
business practices

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 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

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 Marketing Debate:
Take a Position!

Does marketing shape consumer needs?

or
Does marketing merely reflect the needs
and wants of consumers?

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1-15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall