LECTURE-1

Defining Marketing
for the 21st Century
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?
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.
(American Marketing Association Formal Definition)
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.
(American Marketing Association Formal Definition)
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.
 What is Marketed?

Goods Places and properties

Services Organizations
Events and experiences Information
Persons Ideas
 Demand States
Negative Demand Irregular Demand
Consumers dislike the Consumers purchases vary on a
product e.g. Vaccination, Dental work seasonal, monthly, weekly, daily

Nonexistent Demand
or hourly e.g. Museums on week days,
Travelling Peak Off Peak time

Consumers may be unaware

of the product e.g. Foreign Language Unwholesome Demand
course Consumers attracted to
Latent Demand
products that have undesirable
social consequences e.g. Cigarettes,
Consumers may share a Alcohol, Drugs

strong need that cant be

satisfied with existing product Full Demand
e.g. Harm less cigarettes, Fuel Efficient cars Consumers are adequately
Declining Demand
buying all products.

Consumers begins to buy the Overfull Demand

product less frequently e.g.
churches, Govt. Schools
More consumers would like to
buy than can be satisfied.
Key Customer Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
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.
Core Marketing Concepts
Needs, wants, and Marketing channels
demands Communication Channels e.g.
Newspapers, Magazines Radio., Television, Mail,
Target markets, Telephone, Billboards, Posters, Fliers, CDs, Audio
Tapes & Internet
positioning, Distribution Channels e.g. Distributors,
segmentation Wholesalers, Retailers, & Agents

Supply chain
Offerings and brands
Competition
Value and
satisfaction Marketing environment
Customer value Triad Task Environment e.g. Company,
Quality, Service & Price (QSP) Suppliers, Distributors, Dealers & Target
Customers

Broad Environment e.g. Demographic,

PESTL

Marketing planning
The New Marketing Realities
Major Societal Forces
Network information technology
Globalization
Deregulation
Privatization
Heightened competition
Industry convergence
Consumer resistance
Retail transformation
Disintermediation
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.
Company Orientations Toward The
Market Place
The Production Concept
Consumers will prefer products that are widely available &
inexpensive e.g. Lenovo, Haier etc.

The Product Concept

Consumer favor products that offer the most quality,
performance, or innovative features e.g. Rolex etc.

The Selling Concept

Consumers & businesses, if left alone, wont buy enough of
the organizations products e.g. Insurance, Encyclopedias etc.

The Marketing Concept

Emerged in mid 1950s Customer-Centered Sense &
Respond e.g. Dell Computer etc.
Marketing Mix and the Customer
Four Ps
Product Four Cs
Product Variety/Quality/ Design/

Features/Brand Name/ Packaging/
Sizes/Services/Warranties/Returns Customer solution
Price Customer cost
List Price/Discounts/Allowances/
Payment Period/Credit Terms
Convenience
Place Communication
Channels/Coverage/Assortments/
Locations/Inventory/Transport

Promotion
Sales Promotion/Advertising/Sales
Force/Public relations/ Direct
Marketing
The Holistic Marketing Concept
Relationship Marketing
Relationship marketing is a strategy designed to foster
customer loyalty, interaction and long-term engagement.
Integrated Marketing Communication
Integrated marketing communication (IMC) is a process
for planning, executing and monitoring the brand
messages that create customer relationship.
Internal Marketing
Internal marketing is the task of hiring, training, and
motivating able employees who want to serve customers
well.
The Holistic Marketing Concept
Performance Marketing
Financial Accountability Corporate Social Initiatives

Social Responsibility Corporate social

Marketing marketing
Cause marketing
Corporate philanthropy
Corporate community
involvement
Socially responsible
business practices
References & Bibliography
Marketing Management A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.

Strategic Marketing Management Meeting The

Global Marketing Challenges by Carol H. Anderson &
Julian W. Vincze Published by Houghton Mifflin Company.

Principles of Advertising & IMC by Tom Duncan 2nd

Edition, Published by McGraw-Hill Irwin.

Principles of Marketing by Philip Kotler & Gary Armstrong

Thirteenth Edition, Published by Prentice Hall
"Unless you try to do something beyond what you have
already mastered, you will never grow."
- Ronald E. Osborn

The End