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Defining Marketing for the 21st Century
Marketing Management, 13th ed
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Enjang Dana Resi, ST, MBA
Further Information: Mobile: 081312626311 [email protected]
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What is Marketing?
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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.
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What is Marketing Management?
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Marketing management is theart and science
of choosing target markets and getting, keeping, and growing
customers throughcreating, delivering, and communicating
superior customer value.
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Selling is only the tip of the iceberg
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“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
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What is Marketed?
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GoodsGoods
ServicesServices
Events & ExperiencesEvents & Experiences
PersonsPersons
Places & PropertiesPlaces & Properties
OrganizationsOrganizations
InformationInformation
IdeasIdeas
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Marketing Can Promote Ideas
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Figure 1.1 Structure of Flows in a Modern Exchange Economy
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Figure 1.2 A Simple Marketing SystemA.K.A. The Exchange Process
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For an exchange to occur….
• There are at least two parties.• Each party has something that might be of
value to the other party.• Each party is capable of communication and
delivery.• Each party is free to reject the exchange
offer.• Each party believes it is appropriate or
desirable to deal with the other party.1-9
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Core Marketing Concepts
• Needs, wants, and demands
• Target markets, positioning, segmentation
• Offerings and brands
• Value and satisfaction
• Marketing channels• Supply chain• Competition• Marketing
environment
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• Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. i.e. I am thirsty.
• Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.
• Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.
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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
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Company Orientations
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Production
Selling Marketing
Product
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Figure 1.5 The Four P’s
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MarketingMix
ProductVarietyQualityDesignFeaturesBrand namePackagingSizesServicesWarrantiesReturns
PriceList priceDiscountsAllowancesPayment periodCredit terms
PromotionSales promotionAdvertisingSales forcePublic relationsDirect marketing
PlaceChannelsCoverageAssortmentsLocationsInventoryTransport
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Internal Marketing
Internal marketing is the task of hiring, training, and motivating able
employees who want to serve customers well.
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Performance Marketing
• Financial Accountability
• Social Responsibility Marketing
Social Initiatives• Corporate social
marketing• Cause marketing• Corporate philanthropy• Corporate community
involvement• Socially responsible
business practices
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Marketing Management Tasks
• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth
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Marketing Debate: Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs and wants of consumers?
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