1

Defining Marketing
st
for the 21 Century

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 the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, 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

Scope of Marketing
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas

Marketing Can Promote Ideas

Positioning
Press ads of the
Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on emotional
benefits.

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

The automobile metamarket consists of

automobile manufacturers, new and
used car dealers, financing companies,
insurance companies, mechanics, spare
parts dealers, service shops, auto
magazines, classified auto ads in
newspapers, and auto sites on the
Internet.

A Simple Marketing System

The marketplace isnt what it used

to beThe realities are
Information
Information technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Competition
Competition
Convergence
Convergence
Consumer
Consumer resistance
resistance
Retail
Retail transformation
transformation

New Consumer Capabilities

A
A

substantial increase in buying power

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

Structure of Flows in a Modern

Exchange Economy

Company Orientations
(Philosophies)

Production

Product

Selling

Marketing

Production concept, which is based on the fact that

consumers favor products that are available and
affordable.Concentration on production efficiency
and effective distribution networks outweigh the
customers actual needs and wants.This is used
primarily when demand exceeds supply and the focus
is on finding production methods that can bring the
price down to attract more customers.
Product concept, which is based on ways to
improve the quality, performance, and features to
attract buyers.This philosophy tends to spend too
much time adding features to their products, rather
than thinking about what people actually need and
want.

Selling concept, which places the focus on

sales rather than what people actually need
or want.Most of the time the product is
misrepresented
which
results
in
high
customer dissatisfaction.

Marketing concept, which focuses on what

people need and want more than the needs of
the seller.This concept is about the
importance of satisfying the customers needs
to achieve company success.Products are
developed around those needs and wants.

Holistic Marketing Dimensions

Holistic Marketing
It is based on the development, design, and
implementation of marketing programs,
processes, and activities that recognizes
their breadth and interdependencies.
It is an approach that attempts to recognize
and reconcile the scope and complexities of
marketing activities,

Relationship Marketing
Customers
Employees
Marketing partners (channels, suppliers,
distributors, dealers, agencies)
Members
of
financial
community
(shareholders, investors, analysts)

Integrated Marketing:
The Four Ps

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

Performance Marketing
Financial

Social

Accountability

Responsibility Marketing (Societal

marketing concept: e.g. HP introduced
recyclable computers and printers)