Defining Marketing for the Twenty-Defining Marketing for the Twenty-First CenturyFirst Century

Good Marketing is No Accident

The roaring success of four-wheeler Tata

Ace, in a market earlier dominated by three-wheeler load

carriers, was due to a deep understanding of the market needs

and customer requirements.

IMPORTANCE OF MARKETING

Backbone of any organization

The New Economy

Consumer benefits from the digital revolution include:– Increased buying power.– Greater variety of goods and services.– Increased information.– Enhanced shopping convenience.– Greater opportunities to compare product

information with others.

The New Economy

Firm benefits from the digital revolution include:– New promotional medium.– Access to richer research data.– Enhanced employee and customer

communication.– Ability to customize promotions.

What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas

Successful New Product Launches Require Careful

Planning

Marketing Can Promote Ideas

Marketing Defined

Kotler’s social definition: “Marketing is a societal process by

which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”

Marketing Defined

The AMA managerial definition: “Marketing is the process of

planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

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.

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

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

Core Marketing Concepts

Target markets and market segmentation

Marketplace, market-space, metamarkets

Marketers & prospects Needs, wants, demands Product offering and

brand Value and satisfaction

Exchange and transactions

Relationship and networks

Marketing channels Supply chain Competition Marketing environment Marketing program

Core Marketing Concepts

Target markets & segmentation– Differences in needs, behavior,

demographics or psychographics are used to identify segments.

– The segment served by the firm is called the target market.

– The market offering is customized to the needs of the target market.

Core Marketing Concepts

A Simple Marketing System

Core Marketing Concepts

Shopping can take place in a:– Marketplace (physical entity)– Marketspace (virtual entity)

Metamarkets refer to complementary goods and services that are related in the minds of consumers.

Marketers seek responses from prospects.

Core Marketing Concepts

Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment.

Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)

Demands are wants for specific products backed by an ability to pay.

Demand States

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

Core Marketing Concepts

A product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source.

When offerings deliver value and satisfaction to the buyer, they are successful.

Core Marketing Concepts

Marketers can enhance the value of an offering to the customer by:– Raising benefits.– Reducing costs.– Raising benefits while lowering costs.– Raising benefits by more than the

increase in costs.– Lowering benefits by less than the

reduction in costs.

Core Marketing Concepts

Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur.

Transactions involve at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

Core Marketing Concepts

Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.

Core Marketing Concepts

Marketing Channels

Communication channels

Distribution channels

Service channels

Deliver messages to and receive messages from target buyers.

Includes traditional media, non-verbal communication, and store atmospherics.

Core Marketing Concepts

Marketing Channels

Communication channels

Distribution channels

Service channels

Display or deliver the physical products or services to the buyer / user.

Core Marketing Concepts

Marketing Channels

Communication channels

Distribution channels

Service channels

Carry out transactions with potential buyers by facilitating the transaction.

Core Marketing Concepts

A supply chain stretches from raw materials to components to final products that are carried to final buyers.

Each company captures only a certain percentage of the total value generated by the supply chain.

Core Marketing Tools

Forces Impacting the Task Environment

Socio-cultural EnvironmentSocio-cultural EnvironmentTechnological EnvironmentTechnological EnvironmentLegal-Political EnvironmentLegal-Political Environment

Natural EnvironmentNatural EnvironmentDemographicsDemographics

EconomicsEconomics

Core Marketing Concepts

The Four P Components

of the Marketing Mix

Company Orientations

Societal Marketing Concept

The orientation of the firm typically guides marketing efforts

Marketing Concept Customer Concept

Product Concept Selling Concept

Production Concept

The Marketing Concept

Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value.

Four pillars of the marketing concept:– Target market– Customer needs– Integrated marketing– Profitability

HOLISTIC MARKETING CONCEPT

Relationship Marketing Integrated Marketing Internal Marketing Socially Responsible Marketing

Changes in the Marketplace

Globalization, technological advances, and deregulation have created many challenges:– Customers– Brand manufacturers– Store-based retailers

Both companies and marketers have been forced to respond and adjust.

Discussion

Does Marketing Create or Satisfy Needs?

CASELET : COCA-COLA

Each day, people in 200 countries around the world drink some 1.2 billion 8-ounce servings of the cola.

Coca-Cola which got its start in 1883, has successfully kept its brand relevant for over 100 years.

Revenues in 2003 topped $21 billion.

CASELET: COCA- COLA

COCA- COLA also expanded overseas.

During World- War II, when the armies shipped the Cokes to soldiers in Europe and Asia, Coke cemented its image as the “All-American Beverage”

CASELET:COCA-COLA

But over a period of time, Coke realized it needs to give a local flavour to the brand in each country.

Coca- Cola gets two third of its revenues from outside the United States.

CASELET- COCA COLA

Coke is not present in only Myanmar, Cuba and Syria.

Coca- Cola remains the topmost in brand value.

CASELET: COCA-COLA

What have been the key success factors for Coca- Cola?

Where is Coca- Cola vulnerable? What should they watch out for?

What recommendations would you make to their senior marketing executives going forward? What should they be sure to do with their marketing?