1
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?
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
What Is Marketed?
• Goods
• Services
• Events
• Experiences
• Places
Copyright © 2011 Pearson
Copyright Education,
© 2013 Dorling Inc. Publishing
Kindersley (India) PvtasLtd.
Prentice Hall adaptation from
Authorized 1-51-5
the United States edition of Marketing Management, 14e.
What Is Marketed?
• Persons
• Properties
• Organizations
• Information
• Ideas
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Demand States
Negative Irregular
Nonexistent Unwholesome
Latent Full
Declining Overfull
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Figure 1.1 Structure of Flows in
Modern Exchange Economy
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Figure 1.2
A Simple Marketing System
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Key Customer Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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.
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Core 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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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Types of Needs
Stated
Real
Unstated
Delight
Secret
1-13
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Target Markets,
Positioning & Segmentation
1-14
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Offerings and Brands
1-15
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Value and Satisfaction
Quality
Service
Price
1-16
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Marketing Channels
Communication
Distribution
Service
1-17
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Marketing Environment
Demographic Economic
Socio-cultural
Political-legal
Technological Natural
1-18
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Major Societal Forces
Network information Retail transformation
technology Disintermediation
Globalization Consumer buying power
Deregulation Consumer information
Heightened competition Consumer participation
Industry convergence Consumer resistance
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Company Orientations
Production
Product
Selling
Marketing
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Figure 1.3
Holistic Marketing
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Relationship Marketing
Customers
Employees
Marketing Partners
Financial Community
1-22
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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.
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
1-24
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Performance Marketing
Financial Social Responsibility
Accountability Marketing
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Figure 1.4
The Marketing Mix
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
The New Four Ps
People
Processes
Programs
Performance
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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
1-28
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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?
1-29
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
