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Chapter. 1
Defining Marketing for the
New Realities
Korean Institute of Marketing Education
http://www.marketingkorea.org
Finance, operations, accounting, and other business
functions won’t really matter without sufficient
demand for products and services so the firm can
make a profit.
1.The Value of Marketing
CEOs recognize the role of marketing in building
strong brands and a loyal customer base,
intangible assets that contribute heavily to the
value of a firm.
1.The Value of Marketing
1) Marketing Decision Making
Skillful marketing is a never-ending pursuit, but
some businesses are adapting and thriving in these
changing times.
• BMW
• Corning
1.The Value of Marketing
2) Winning Marketing
Marketing is about identifying and meeting human
and social needs.
“meeting needs profitably.”
2.The Scope of Marketing
1) What is Marketing?
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.
American Marketing Association
2.The Scope of Marketing
1) What is Marketing?
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.
2.The Scope of Marketing
1) What is Marketing?
* Social Definition
Marketing is a societal process by which
individuals and groups obtain what they need and
want through creating, offering, and freely
exchanging products and services of value with
others.
2.The Scope of Marketing
1) What is Marketing?
* Managerial Definition
Managers sometimes think:
• Marketing is the art of selling products
But:
• Selling is not the most important part of marketing
• Selling is only the tip of the marketing iceberg
2.The Scope of Marketing
1) What is Marketing?
2.The Scope of Marketing
2) What is Marketed?
SERVICES
EXPERIENCES
PLACES
ORGANIZATIONS
IDEAS
GOODS
EVENTS
PERSONS
PROPERTIES
INFORMATION
A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect. If two parties are
seeking to sell something to each other, we call
them both marketers.
2.The Scope of Marketing
3) Who Markets?
◈ MARKETERS AND PROSPECTS
Eight Demand States
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand
2.The Scope of Marketing
3) Who Markets?
◈ MARKETERS AND PROSPECTS
• Traditionally, a market was a physical place
where buyers and sellers gathered to buy and
sell goods.
• Economists describe a market as a collection of
buyers and sellers who transact over a particular
product or product class
• Marketers use the term market to cover various
groupings of customers.
2.The Scope of Marketing
3) Who Markets?
◈ MARKETS
2.The Scope of Marketing
3) Who Markets?
◈ MARKETS
• Consumer Markets
• Business Markets
• Global Markets
• Nonprofit and Governmental Markets
2.The Scope of Marketing
3) Who Markets?
◈ KEY CUSTOMER MARKETS
3. Core Marketing Concepts
Impression and Engagement
Value and Satisfaction
Supply Chain
Competition
Marketing Environment
Needs,Wants, Demands
Target Markets, Positioning,
and Segmentation
Offerings and Brands
Marketing Channels
Paid, Owned, Earned Media
3. Core Marketing Concepts
1) Needs,Wants, and Demands
Needs
Wants
Demands
3. Core Marketing Concepts
1) Needs,Wants, and Demands
Five types of needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs
• Target markets
• Market offering
• Positions
3. Core Marketing Concepts
2) Target Markets, Positioning, and Segmentation
• Value proposition: a set of benefits that satisfy
those needs.
• Brand
3. Core Marketing Concepts
3) Offerings and Brands
Three kinds of marketing channels
• Communication channels
• Distribution channels
• Service channels
3. Core Marketing Concepts
4) Marketing Channels
• Paid media
• Owned media
• Earned media
3. Core Marketing Concepts
5) Paid, Owned, and Earned Media
3. Core Marketing Concepts
6) Impression and Engagement
Three “screen” to reach consumers:
• TV, Internet, Mobile
• Impressions occur when consumers view a
communication
• Engagement is the extent of a customer’s
attention and active involvement with a
communication.
• Value, a central marketing concept, is primarily
a combination of quality, service, and price
• Satisfaction reflects a person’s judgment of a
product’s perceived performance in relationship
to expectations
3. Core Marketing Concepts
7) Value and Satisfaction
• The supply chain is a longer channel stretching
from raw materials to components to finished
products carried to final buyers.
3. Core Marketing Concepts
8) Supply Chain
• Competition includes all the actual and potential
rival offerings and substitutes a buyer might
consider.
3. Core Marketing Concepts
9) Competition
• Task environment
• Broad environment
3. Core Marketing Concepts
10) Marketing Environment
4.The New Marketing Realities
Technology
Globalization
Social Responsibility
• 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
• Can actively interact with companies
• Can reject marketing they find inappropriate
5. Dramatically Changed Marketplace
1) New Consumer Capability
5. Dramatically Changed Marketplace
2) New Company Capability
• Can use the Internet as a powerful information
and sales channel, including for individually
differentiated goods
• Can collect fuller and richer information about
markets, customers, prospects, and competitors
• Can reach customers quickly and efficiently via
social media and mobile marketing, sending
targeted ads, coupons, and information
• Can improve purchasing, recruiting, and internal
and external communications
• Can improve cost efficiency
• Retail transformation
• Disintermediation
5. Dramatically Changed Marketplace
3) Changing Channels
• Private labels
• Mega-brands
• Deregulation
• Privatization
5. Dramatically Changed Marketplace
4) Heighten Competition
6. Marketing in Practice
Marketing Balance
Marketing Accountability
Marketing in the Organization
7. Company Orientation to the Marketplace
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept
7. Company Orientation to the Marketplace
8. Updating the Four Ps
8. Updating the Four Ps
9. Marketing Management Tasks
New
Company
Capability
New
Consumer
Capability
Globalization
Social
Responsibility
The New Marketing Realities
Integrated
Marketing
Internal
Marketing
Performance
Marketing
Relationship
Marketing
Technology
Four Fundamental Pillars of
Holistic Marketing
Three Major
Market Forces
Two Key
Market Outcomes
9. Marketing Management Tasks
Building Strong Brands
Communicating Value
Considering Marketing Responsibly for Long-term Success
Developing Marketing Strategies and Plans
Capturing Marketing Insights
Connecting with Customers
Creating Value
Delivering Value

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Kotler Keller - Marketing Management 15th edition, Chapter 01

  • 1. Chapter. 1 Defining Marketing for the New Realities Korean Institute of Marketing Education http://www.marketingkorea.org
  • 2. Finance, operations, accounting, and other business functions won’t really matter without sufficient demand for products and services so the firm can make a profit. 1.The Value of Marketing
  • 3. CEOs recognize the role of marketing in building strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm. 1.The Value of Marketing 1) Marketing Decision Making
  • 4. Skillful marketing is a never-ending pursuit, but some businesses are adapting and thriving in these changing times. • BMW • Corning 1.The Value of Marketing 2) Winning Marketing
  • 5. Marketing is about identifying and meeting human and social needs. “meeting needs profitably.” 2.The Scope of Marketing 1) What is Marketing?
  • 6. 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. American Marketing Association 2.The Scope of Marketing 1) What is Marketing?
  • 7. 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. 2.The Scope of Marketing 1) What is Marketing?
  • 8. * Social Definition Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. 2.The Scope of Marketing 1) What is Marketing?
  • 9. * Managerial Definition Managers sometimes think: • Marketing is the art of selling products But: • Selling is not the most important part of marketing • Selling is only the tip of the marketing iceberg 2.The Scope of Marketing 1) What is Marketing?
  • 10. 2.The Scope of Marketing 2) What is Marketed? SERVICES EXPERIENCES PLACES ORGANIZATIONS IDEAS GOODS EVENTS PERSONS PROPERTIES INFORMATION
  • 11. A marketer is someone who seeks a response— attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETERS AND PROSPECTS
  • 12. Eight Demand States • Negative demand • Nonexistent demand • Latent demand • Declining demand • Irregular demand • Full demand • Overfull demand • Unwholesome demand 2.The Scope of Marketing 3) Who Markets? ◈ MARKETERS AND PROSPECTS
  • 13. • Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. • Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class • Marketers use the term market to cover various groupings of customers. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETS
  • 14. 2.The Scope of Marketing 3) Who Markets? ◈ MARKETS
  • 15. • Consumer Markets • Business Markets • Global Markets • Nonprofit and Governmental Markets 2.The Scope of Marketing 3) Who Markets? ◈ KEY CUSTOMER MARKETS
  • 16. 3. Core Marketing Concepts Impression and Engagement Value and Satisfaction Supply Chain Competition Marketing Environment Needs,Wants, Demands Target Markets, Positioning, and Segmentation Offerings and Brands Marketing Channels Paid, Owned, Earned Media
  • 17. 3. Core Marketing Concepts 1) Needs,Wants, and Demands Needs Wants Demands
  • 18. 3. Core Marketing Concepts 1) Needs,Wants, and Demands Five types of needs • Stated needs • Real needs • Unstated needs • Delight needs • Secret needs
  • 19. • Target markets • Market offering • Positions 3. Core Marketing Concepts 2) Target Markets, Positioning, and Segmentation
  • 20. • Value proposition: a set of benefits that satisfy those needs. • Brand 3. Core Marketing Concepts 3) Offerings and Brands
  • 21. Three kinds of marketing channels • Communication channels • Distribution channels • Service channels 3. Core Marketing Concepts 4) Marketing Channels
  • 22. • Paid media • Owned media • Earned media 3. Core Marketing Concepts 5) Paid, Owned, and Earned Media
  • 23. 3. Core Marketing Concepts 6) Impression and Engagement Three “screen” to reach consumers: • TV, Internet, Mobile • Impressions occur when consumers view a communication • Engagement is the extent of a customer’s attention and active involvement with a communication.
  • 24. • Value, a central marketing concept, is primarily a combination of quality, service, and price • Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations 3. Core Marketing Concepts 7) Value and Satisfaction
  • 25. • The supply chain is a longer channel stretching from raw materials to components to finished products carried to final buyers. 3. Core Marketing Concepts 8) Supply Chain
  • 26. • Competition includes all the actual and potential rival offerings and substitutes a buyer might consider. 3. Core Marketing Concepts 9) Competition
  • 27. • Task environment • Broad environment 3. Core Marketing Concepts 10) Marketing Environment
  • 28. 4.The New Marketing Realities Technology Globalization Social Responsibility
  • 29. • 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 • Can actively interact with companies • Can reject marketing they find inappropriate 5. Dramatically Changed Marketplace 1) New Consumer Capability
  • 30. 5. Dramatically Changed Marketplace 2) New Company Capability • Can use the Internet as a powerful information and sales channel, including for individually differentiated goods • Can collect fuller and richer information about markets, customers, prospects, and competitors • Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information • Can improve purchasing, recruiting, and internal and external communications • Can improve cost efficiency
  • 31. • Retail transformation • Disintermediation 5. Dramatically Changed Marketplace 3) Changing Channels
  • 32. • Private labels • Mega-brands • Deregulation • Privatization 5. Dramatically Changed Marketplace 4) Heighten Competition
  • 33. 6. Marketing in Practice Marketing Balance Marketing Accountability Marketing in the Organization
  • 34. 7. Company Orientation to the Marketplace Production Concept Product Concept Selling Concept Marketing Concept Holistic Marketing Concept
  • 35. 7. Company Orientation to the Marketplace
  • 36. 8. Updating the Four Ps
  • 37. 8. Updating the Four Ps
  • 38. 9. Marketing Management Tasks New Company Capability New Consumer Capability Globalization Social Responsibility The New Marketing Realities Integrated Marketing Internal Marketing Performance Marketing Relationship Marketing Technology Four Fundamental Pillars of Holistic Marketing Three Major Market Forces Two Key Market Outcomes
  • 39. 9. Marketing Management Tasks Building Strong Brands Communicating Value Considering Marketing Responsibly for Long-term Success Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Creating Value Delivering Value