CONTENT
• CHAP 1:OVERVIEW
• CHAP 2: DEVELOPING MARKETING
STRATEGIES AND PLANS
• CHAP 3:CRAFTING THE BRAND
POSITIONING
• CHAP 4: ADDRESSING COMPETITION
AND DRIVING GROWTH
• CHAP 5 – 9: 4P STRATEGY
Chapter
1
Defining
Marketing
for the
New Realities
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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
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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
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Marketing Management
• 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
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What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas
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Who Markets?
• A marketer is someone who seeks a
response—attention, a purchase, a vote, a
donation—from another party, called the
prospect
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8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
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Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets
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Core Marketing Concepts
• 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
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Types of Needs
STATED
REAL
UNSTATED
DELIGHT
SECRET
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Core Marketing Concepts
• Target markets
• Positioning
• Segmentation
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Core Marketing Concepts
• 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
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Core Marketing Concepts
• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE
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Core Marketing Concepts
• 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
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Core Marketing Concepts
• Impressions: occur when consumers view a
communication
• Engagement: the extent of a customer’s
attention and active involvement with a
communication
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Core Marketing Concepts
• Value: a combination of quality, service, and
price (qsp: the customer value triad)
• Satisfaction: a person’s judgment of a
product’s perceived performance in
relationship to expectations
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Core Marketing Concepts
• 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)
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Core Marketing Concepts
• Competition: all the actual and potential rival
offerings and substitutes a buyer might
consider
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Core Marketing Concepts
• Marketing
environment
– Task environment
– Broad environment
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The New Marketing Realities
• Technology
• Globalization
• Social responsibility
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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
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A dramatically changed marketplace
• New consumer
capabilities
– Can actively interact
with companies
– Can reject marketing
they find
inappropriate
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A dramatically changed marketplace
• New company capabilities
– 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
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A dramatically changed marketplace
• New company capabilities
– Can improve purchasing, recruiting, training, and
internal and external communications
– Can improve cost efficiency
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A dramatically changed marketplace
• Changing channels
– Retail
transformation
– Disintermediation
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A dramatically changed marketplace
• Heightened competition
– Private brands
– Mega-brands
– Deregulation
– Privatization
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Marketing in practice
• Marketing balance
• Marketing accountability
• Marketing in the organization
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Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING
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Fig. 1.4
Holistic Marketing Dimensions
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Relationship marketing
CUSTOMERS
EMPLOYEES
MARKETING PARTNERS
FINANCIAL
COMMUNITY
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Integrated marketing
• Devise marketing activities and programs that create,
communicate, and deliver value such that “the whole is
greater than the sum of its parts.”
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Internal marketing
• The task of hiring, training, and motivating
able employees who want to serve customers
well
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Performance marketing
FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT
SOCIAL IMPACT
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Fig. 1.5
Marketing Mix Components (4 Ps)
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MODERN MARKETING
MANAGEMENT
PEOPLE
PROCESSES
PROGRAMS
PERFORMANCE
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MARKETING
MANAGEMENT TASKS
• Developing market strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
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MARKETING
MANAGEMENT TASKS
• Creating value
• Delivering value
• Communicating value
• Creating successful long-term growth
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