Defining Marketing For The New Realities

Chapter
1
Defining
Marketing
for the
New Realities
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The Value of Marketing
• Financial success often depends on marketing
ability
• Successful marketing builds demand for
products and services, which, in turn, creates
jobs
• Marketing builds strong brands and a loyal
customer base, intangible assets that contribute
heavily to the value of a firm

The Scope of Marketing
• Marketing is about identifying and meeting
human and social needs
• AMA’s formal definition: Marketing is the activity,

set of institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large

Marketing Management
• 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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What is Marketed?
• Goods (products)
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
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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
1-6
THE BASIC PROFIT
EQUATION
Profit =
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THE BASIC PROFIT
EQUATION
Profit = Revenues – Costs
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Fig. 1.2
A Simple Marketing System

Core Marketing Concepts
• Needs
• Wants
• Demands
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• Needs: the basic human requirements
such as for air, food, water, clothing, and
shelter
• Wants: specific objects that might satisfy

the need
• Demands: wants for specific products

backed by an ability to pay
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1-12
• Target markets
• Positioning
• Segmentation

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• Value proposition: a set of benefits that
satisfy those needs
• Offerings: a combination of products,

services, information, and experiences
• Brands: an offering from a known source

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• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE

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• Paid media: TV, magazine and display
ads, paid search, and sponsorships
• Owned media: a company or brand

brochure, web site, blog, facebook page,
or twitter account
• Earned media: word of mouth, buzz, or

viral marketing
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• Impressions: occur when consumers
view a communication
• Engagement: the extent of a customer’s

attention and active involvement with a
communication

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• Value: a combination of quality, service,
and price
• Satisfaction: a person’s judgment of a

product’s perceived performance in
relationship to expectations

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• Supply chain: a channel stretching from raw materials
to components to finished products carried to final
buyers (Fig 1.3: The Supply Chain for Coffee)

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• Competition: all the actual and potential
rival offerings and substitutes a buyer
might consider

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The New Marketing Realities
• Technology
• Globalization
• Social
responsibility

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A dramatically changed marketplace
• New consumer capabilities
– Can use the internet as a powerful information

and purchasing aid
– Can search, communicate, and purchase on

the move
– Can tap into social media to share opinions

and express loyalty
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A dramatically changed marketplace
• New consumer
capabilities
– Can actively interact

with companies
– Can reject marketing

they find inappropriate

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Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING

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Fig. 1.4
Holistic Marketing Dimensions

The Marketing Mix
The Four Ps

MARKETING MANAGEMENT TASKS
• Develop market strategies and plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Create value
• Deliver value
• Communicate value
• Create successful long-term growth


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Chapter

Copyright © 2016 Pearson Education, Inc. 1-1

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• AMA’s formal definition: Marketing is the activity,

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COPYRIGHT © 2016 PEARSON

COPYRIGHT © 2016 PEARSON

“There will always be a need for

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7

Profit = Revenues – Costs

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-8

Copyright © 2016 Pearson Education, Inc. 1-9

COPYRIGHT © 2016 Copyright

• Wants: specific objects that might satisfy

• Demands: wants for specific products

COPYRIGHT © 2016 Copyright

• Offerings: a combination of products,

• Brands: an offering from a known source

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COPYRIGHT © 2016 Copyright

• Owned media: a company or brand

• Earned media: word of mouth, buzz, or

• Engagement: the extent of a customer’s

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• Satisfaction: a person’s judgment of a

COPYRIGHT © 2016 Copyright

COPYRIGHT © 2016 Copyright

COPYRIGHT © 2016 Copyright

COPYRIGHT © 2016 Copyright

• New consumer capabilities

– Can use the internet as a powerful information

– Can search, communicate, and purchase on

– Can tap into social media to share opinions

– Can actively interact

– Can reject marketing

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COPYRIGHT © 2016 Copyright

Copyright © 2016 Pearson Education, Inc. 1-25

Copyright © 2016 Pearson Education, Inc. 1-26

• Capture marketing insights

• Connect with customers

• Build strong brands

• Create successful long-term growth

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