Marketing Management

Defining Marketing
for the 21st Century

Marketing
Management,
13th ed

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 Module Resources

• Useful Links for Marketers - and others!

Marketing Management – 13th Edition - Kotler &
Keller
• (Essentials of) Marketing Strategy – Blythe
• The Marketing Casebook – Cases and Concepts –
Sally Dibb & Lyndon Simkin
• Strategic Marketing Problems – Roger Kerin and
Robert Peterson

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 Chapter Questions
• What is Marketing?
• 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?
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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.
Marketing is meeting customers’ needs
profitably
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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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 Core Marketing Concepts
• Needs, wants, • Target markets,
and demands positioning,
segmentation
• Stated needs
• Offerings and brands
Five Types of Needs

• Customer wants an inexpensive car

• Real needs • Exchange of Value
• Wants a car with low operational
cost not the initial price
and satisfaction
• Unstated needs • Marketing channels
• Customer expects a good service
from dealer • Supply chain
• Delight needs
• Customer likes the dealer to include
• Competition
a sound system
• Marketing
• Secret needs.
• Customer wants his friends to see environment.
him as a savvy customer
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Need, Want, Demand Products (offers,
Due to Scarce Bundle of benefits),
resources people Marketing Myopia.
demand only for
max. satisfiers

Markets
* Set of present and potential buyers.
* Collection of present and potential
customers sharing a particular need
& want who might be willing and able
in exchange to satisfy the needs/ wants.
e.g. ·Resource markets (6 Ms)
·Electronic / Co nsumer markets
·Donor / Go vt. markets
·Geographic / Demo graphic markets

Value Worth of something,

Exchange, (One of different ways, (with perceived level of
With four conditions. usefulness/Image/status as
It Facilitates specialization) compared to others)
Transaction, (not necessarily with all Satisfaction State of
exchange conditions/satisfaction), contentment(Delightedness) ,
Relationship Quality (TQM) Quality
begins with customers
needs & ends with
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customers satisfaction
 For an exchange to occur…..
• There are at least two parties.
• Each party has something that might be of
value to the other party.
• Each party is capable of communication
and delivery.
• Each party is free to reject the exchange
offer.
• Each party believes it is appropriate or
desirable to deal with the other party.
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 Structure of Flows in a Modern Exchange
Economy

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 Figure 1.2 A Simple Marketing System

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 Demand States #10

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

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 Key Customer Markets

• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets.

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 THE NEW MARKETING REALITIES
The marketplace isn’t what it used to be…
Information technology

Globalization
Deregulation

Privatization
Competition
Convergence
Consumer resistance
Retail transformation

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Disintermediation
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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
(“Philosophies/Concepts”)

Production Product

Selling Marketing

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 Marketing management philosophies
• Production concept: Widely available products at lower cost.
Two conditions.
a) Demand > Supply
b) High cost (Economy of scale)
So production and distribution
efficiency is required.

• Product concept: Products with most quality,

performance & innovative features.

Marketing Myopia:
i.e. Love products not the customer’s needs.
No focus on other 3 Ps
and theother substitutes available Slide 17 of 24
• Selling concept: Customers, if left alone, will not buy
enough of the company’s products.
• Aggressive selling & promotion.
• Seller’s needs are more important than
buyer’s.
• Flaws of products are hidden.
• Effective for unsought products.

• Marketing concept:
• Finding customer needs & wants and fulfilling
them more efficiently & effectively.
• Products that provide desired satisfaction,better
than competitors.
• unlike the selling concept, customer’s needs-
satisfaction- are focussed rather than seller’s
needs-profits.

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• Societal Marketing concept:

• Finding customer needs & wants and interests

(welfare) and fulfilling them more efficiently &
effectively.
Products that provide desired satisfaction,
better than competitors, preserving /
enhancing the societal well being.

• This has three consideration

Society
(Human welfare)

Company Consumer
(Profit) (Satisfaction)
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 Relationship Marketing

Figure 1.4 Holistic Marketing Dimensions

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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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 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.

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 Improving CMO Success (fig1.3)

• 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.

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 Integrated marketing

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 Marketing Mix and the
Customer

Four Ps Four Cs
• Product • Customer solution
• Price • Customer cost
• Place
• Promotion • Convenience
• Communication.
• Physical Evidence
• People
• Process
• Packaging

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 What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas

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 Social Responsibility Marketing

• Corporate social marketing

• Cause 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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