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Defining Marketing
for the 21st Century

Marketing Management, 14th ed

 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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 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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 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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 What is Marketed?
Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
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 Figure 1.1 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

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

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 Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

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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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 Figure 1.3 Improving CMO Success

• 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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 Core Marketing 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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 I want it, I need it…

Five Types of Needs

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

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 The marketplace isn’t what it used to be…

Information technology

Globalization
Deregulation

Privatization
Competition
Convergence
Consumer resistance
Retail transformation

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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

Production Product

Selling Marketing

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 Figure 1.4 Holistic Marketing Dimensions

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 Figure 13.5 Three Types of Marketing
in Service Industries

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Copyright as
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 Figure 1.5 The Four P’s

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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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 Performance Marketing

• Financial Social Initiatives

Accountability • Corporate social
• Social marketing
Responsibility • Cause marketing
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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 Marketing Debate:
Take a Position!

Does marketing shape consumer needs?

or
Does marketing merely reflect the needs
and wants of consumers?

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 Marketing Discussion

Consider the societal forces noted in

the chapter (e.g., information
technology, globalization, deregulation,
consumer resistance, retail
transformation).
How have marketing practices shifted
to accommodate and even leverage
these forces?

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