PowerPoint by

Milton M. Pressley
Creative Assistance by D. Carter and S. Koger
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Chapter 1 Defining Marketing for the st 21 Century

by

PowerPoint by Milton M. Pressley University of New Orleans

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Kotler on Marketing
The future is not ahead of us. It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations.

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Chapter Objectives
In this chapter we will address the following questions:
What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace? How are companies and marketers responding to the new challenges?
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The New Economy

Substantial increase in buying power A greater variety of goods and services A greater amount of information about practically anything A greater ease in interacting and placing and receiving orders An ability to compare notes on products and services
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The New Economy

Websites can provide companies with powerful new information and sales channels. Companies can collect fuller and richer information about markets, customers, prospects and competitors. Companies can facilitate and speed up communications among employees. Companies can have 2-way communication with customers and prospects
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The New Economy

Companies can send ads, coupons, samples, information to targeted customers. Companies can customize offerings and services to individual customers. The Internet can be used as a communication channel for purchasing, training, and recruiting. Companies can improve logistics and operations for cost savings while improving accuracy and service quality.
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The three major challenges faced by businesses today are globalization, advances in technology, and deregulation. Which of these affords the greatest opportunity for established businesses? Which affords the greatest opportunities for new businesses? Why?
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Marketing Task
Ten rules of radical marketing
The CEO must own the marketing function. Make sure the marketing department starts small and flat and stays small and flat. Get face to face with the people who matter most the customers. Use market research cautiously. Hire only passionate missionaries.

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Marketing Task
Love and respect your customers. Create a community of consumers. Rethink the marketing mix. Celebrate common sense. Be true to the brand.

Three stages of marketing practice

Entrepreneurial Marketing Formulated Marketing Intrepreneurial Marketing
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The Scope of Marketing

Marketing: typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses.

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Table 1.1 Demand States and Marketing Tasks

1. Negative demand

A major part of the market dislikes the product and may even pay a price to avoid itvaccinations, dental work, vasectomies, and gallbladder operations, for instance. Employers have a negative demand for ex-convicts and alcoholics as employees. The marketing task is to analyze why the market dislikes the product and whether a marketing program consisting of product redesign, lower prices, and more positive promotion can change beliefs and attitudes. Target consumers may be unaware of or uninterested in the product. Farmers may not be interested in a new farming method, and college students may not be interested in foreign-language courses. The marketing task is to find ways to connect the benefits of the product with peoples natural needs and interests.

2. No demand

See text for complete table

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Can you name a category of products for which your negative feelings have softened? What precipitated this change?

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The Scope of Marketing

Places Properties Organizations Information Ideas Goods Services Experiences Events Persons

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The Decisions Marketers Make

Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets

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Marketing Concepts and Tools

Defining Marketing
Marketing Marketing management

Core Marketing Concepts

Target Markets and Segmentation

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Figure 1-1: A Simple Marketing System

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Marketing Concepts and Tools

Marketplace, Marketspace, and Metamarket

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Figure 1-2: Structure of Flows in a Modern Exchange Economy

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Marketing Concepts and Tools

Marketers and Prospects Needs, Wants, and Demands Product, Offering, and Brand Value and Satisfaction
Customer value triad Value
Value = Benefits / Costs = (Functional benefits + Emotional benefits) / (Monetary costs + Time costs + Energy costs + Psychic costs)
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Marketing Concepts and Tools

Exchange and Transactions
Exchange Transaction Barter Transfer Behavioral response

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Figure 1-3: Two-Party Exchange Map Showing Want Lists of Both Parties

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Marketing Concepts and Tools

Relationships and Networks
Relationship marketing Marketing network

Marketing Channels Supply Chain Competition

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Figure 1-4: U.S. Steel Radar Screen

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Marketing Concepts and Tools

Brand competition Industry competition Form competition Generic competition

Marketing environment
Task environment Broad environment

Marketing Program
Marketing program Marketing mix
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Figure 1-5: The Four P Components of the Marketing Mix

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Figure 1-6: Marketing-Mix Strategy

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Company Orientations Toward the Marketplace

Production Concept Product concept Selling Concept Marketing Concept

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Figure 1-7: Contrasts Between the Sales Concept and the Marketing Concept

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Company Orientations Toward the Marketplace

Target Market Customer Needs
Stated needs Real needs Unstated needs Delight needs Secret needs

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Company Orientations Toward the Marketplace

Integrated Marketing
External marketing Internal marketing

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Figure 1-8: Traditional Organizational Chart versus Modern Customer-Oriented Company Organization Chart

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Company Orientations Toward the Marketplace

Profitability
Sales decline Slow growth Changing buying patterns Increasing competition Increasing marketing expenditures

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Company Orientations Toward the Marketplace

Figure 1-10: The Customer Concept

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Company Orientations Toward the Marketplace

Societal Marketing Concept
Cause-related marketing

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Can you identify the trends that have made the marketing concept, the customer concept, and the societal marketing concept more attractive models for contemporary marketing managers?

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How Business and Marketing are Changing

Customers Brand manufacturers Store-based retailers

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How Business and Marketing are Changing

Company responses and adjustments
Reengineering Outsourcing E-commerce Benchmarking Alliances Partner-suppliers Market-centered Global and local Decentralized

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How Business and Marketing are Changing

Marketer Responses and Adjustments
Customer relationship marketing Customer lifetime value Customer share Target marketing Customization Customer database Integrated marketing communications Channels as partners Every employee a marketer Model-based decision making
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