Defining Marketing For The New Realities

Chapter
1
Defining
Marketing
for the
New Realities
Copyright © 2016 Pearson Education, Inc. 1-1

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
CopyrightEDUCATION,
COPYRIGHT © 2016 PEARSON © 2016 Pearson
INC.Education, Inc. 1-4 1-4
What is Marketed?
• Goods (products)
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
CopyrightEDUCATION,
COPYRIGHT © 2016 PEARSON © 2016 Pearson
INC.Education, Inc. 1-5 1-5
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 =
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-7

THE BASIC PROFIT EQUATION
Profit = Revenues – Costs
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 1-8

Fig. 1.2
A Simple Marketing System

Core Marketing Concepts
• Needs
• Wants
• Demands
Copyright EDUCATION,
COPYRIGHT © 2016 PEARSON © 2016 Pearson Education, Inc.
INC. 1-10 1-10
• 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
INC. 1-11 1-11
1-12
• Target markets
• Positioning
• Segmentation
INC. 1-13 1-13
• 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
INC. 1-14 1-14
• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE
INC. 1-15 1-15
• 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
INC. 1-16 1-16
• Impressions: occur when consumers view a
communication
• Engagement: the extent of a customer’s

attention and active involvement with a
communication
INC. 1-17 1-17
• Value: a combination of quality, service, and
price
• Satisfaction: a person’s judgment of a

product’s perceived performance in
relationship to expectations
INC. 1-18 1-18
• 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)
INC. 1-19 1-19
• Competition: all the actual and potential rival
offerings and substitutes a buyer might
consider
INC. 1-20 1-20
The New Marketing Realities
• Technology
• Globalization
• Social responsibility
INC. 1-21 1-21
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
INC. 1-22 1-22
A dramatically changed marketplace
• New consumer
capabilities
– Can actively interact

with companies
– Can reject marketing

they find inappropriate
INC. 1-23 1-23
Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING
INC. 1-24 1-24
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

Defining Marketing For The New Realities

Uploaded by

Copyright:

Available Formats

Defining Marketing For The New Realities

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Defining Marketing For The New Realities

Uploaded by

Copyright:

Available Formats

Chapter

Copyright © 2016 Pearson Education, Inc. 1-1

Copyright © 2016 Pearson Education, Inc. 1-2

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

Copyright © 2016 Pearson Education, Inc. 1-3

“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

• Wants: specific objects that might satisfy the

• Demands: wants for specific products backed

• Offerings: a combination of products,

• Brands: an offering from a known source

• Owned media: a company or brand brochure,

• Earned media: word of mouth, buzz, or viral

• Engagement: the extent of a customer’s

• Satisfaction: a person’s judgment of a

• 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

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

Copyright © 2016 Pearson Education, Inc. 1-27

You might also like