Defining Marketing for the 21 st Century

1. 1 Defining Marketing for the 21st Century

2. 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?

3. Chapter Questions • Does marketing create or satisfy needs?

4. How should the concept “marketing” be defined? Good definitions exhibit: • inclusivity • exclusivity • differentiability • clarity • communicability • consistency • parsimony

5. What is Marketing?

6. What is Marketing? American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

7. What is Marketing? American Marketing Association 2004 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.

8. What is Marketing? American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

9. Scope of Marketing Evolution American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association 2004 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. American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

10. What is Marketing Management? Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

11. Goods Services Events and experiences Persons Places and properties Organizations Information Ideas What is Marketed?

12. Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull Demand States

13. Key Customer Markets • Consumer markets • Business markets • Global markets • Nonprofit/Government markets

14. Company Orientations • Production • Product • Selling • Market vs. Marketing

15. Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Marketing Mix and the Customer

16. Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning Core Concepts

17. Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth Marketing Management Tasks

18. Functions of CMOs • Strengthening the brands • Measuring marketing effectiveness • Driving new product development based on customer needs • Gathering meaningful customer insights • Utilizing new marketing technology

19. Improving CMO Success • Make the mission and responsibilities clear • Fit the role to the marketing culture and structure • Ensure the CMO is compatible with the CEO • Remember that show people don’t succeed • Match the personality with the CMO type • Make line managers marketing heroes • Infiltrate the line organization • Require right-brain and left-brain skills

20. 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 • Co-generation of branding and advertising

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

22. Performance Marketing American Marketing Association 1985 Marketing is the process in society and organizations of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association 2004 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. American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

23. Financial Accountability Social Responsibility Marketing Social Initiatives Corporate social marketing Cause marketing Corporate philanthropy Corporate community involvement Socially responsible business practices Performance Marketing American Marketing Association 2007 Marketing is an organizational function and a set of societal institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value to customers and clients.

24. 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