01 Chapter PPT - Tagged

Chapter 1: Defining Marketing for the New Realities

Learning Objectives

  • 1.1 Define the scope of marketing.

  • 1.2 Describe the new marketing realities.

  • 1.3 Explain the role of marketing in the organization.

  • 1.4 Illustrate how to organize and manage a modern marketing department.

  • 1.5 Explain how to build a customer-centric organization.

The Scope of Marketing

  • Marketing Definition:

    • Focus on identifying and meeting human and social needs.

    • According to the AMA: marketing involves activities and processes for creating, communicating, delivering, and exchanging value offerings for various stakeholders (customers, clients, partners, and society).

Marketing Management

  • Described as both an art and science.

  • Involves choosing target markets and strategies to attract, retain, and grow customers through superior value.

What is Marketed?

  • Categories of Marketed Products:

    • Goods

    • Services

    • Events

    • Experiences

    • Persons

    • Places

    • Properties

    • Organizations

    • Information

    • Ideas

Who Markets?

  • A marketer is one who seeks responses (like purchases or votes) from other parties.

Five Basic Markets

  • Types of Markets:

    • Resource markets

    • Manufacturer markets

    • Consumer markets

    • Intermediary goods markets

    • Government markets

The Market Exchange

  • Industries viewed as groups of sellers with the term "market" used to describe customer groups.

The New Marketing Realities

  • Market Forces:

    • Shape relationships between market entities.

    • Define marketing outcomes.

    • Necessitate holistic marketing approaches for success.

  • Components:

    • Holistic marketing includes relationship marketing, integrated marketing, internal marketing, and performance marketing.

Major Market Forces

  • Key Forces Influencing Marketing:

    • Technology

    • Globalization

    • Physical environment

    • Social responsibility

A Dramatically Changed Marketplace

  • New Consumer Capabilities:

    • Utilize online resources for information and purchasing.

    • Engage and reject unwanted marketing.

    • Interact and express loyalty via social media.

  • New Company Capabilities:

    • Leverage the internet for differentiated offerings.

    • Collect extensive market data.

    • Utilize social media for targeted engagement.

  • New Competitive Environment:

    • Experience challenges from deregulation, privatization, retail transformation, disintermediation, and private labels.

What is Holistic Marketing?

  • An integrated approach to strategic management consisting of:

    • Relationship marketing

    • Integrated marketing

    • Internal marketing

    • Performance marketing

Relationship Marketing

  • Aims to develop long-term, mutually satisfying relationships with key stakeholders to retain business.

  • Key Stakeholders Include:

    • Customers

    • Employees

    • Marketing partners

    • Financial community

  • Outcome: A marketing network connecting the company and its stakeholders.

Integrated Marketing

  • Focus on activities that create and deliver value.

  • Emphasizes synergy where the sum is greater than its parts.

Internal Marketing

  • Concentrates on hiring, training, and motivating employees to enhance customer service.

Performance Marketing

  • Emphasizes accountability in marketing initiatives:

    • Financial impact

    • Environmental impact

    • Social impact

Defining the Role of Marketing in the Organization

  • Concepts:

    • Production concept

    • Product concept

    • Selling concept

    • Marketing concept

    • Market-value concept

Organizing the Marketing Department

  • Types of Organizational Structures:

    • Functional organization

    • Geographic organization

    • Product or brand organization

    • Market organization

    • Matrix organization

Managing the Marketing Department

  • Importance of CEO and CMO roles:

    • The CEO must ensure customer focus and support marketing initiatives.

    • The CMO is responsible for vision, talent acquisition, alignment with sales, and budget accountability.

Building a Customer-Oriented Organization

  • Focus on creating long-term customer value.

  • Employees at all levels must engage with customers and respond to their needs.

Becoming a Market-Driven Company

  • Establish a company-wide customer-centric focus.

  • Organize strategies around customer segments instead of products.

  • Conduct both qualitative and quantitative research to understand customer needs.

Characteristics of Customer-Centric Organizations

  • High vs Low Customer-Centricity:

    • Market-driven vs Product-driven

    • Customer-focused vs Mass market focused

    • Outcome-oriented vs Process-oriented

    • Value-driven vs Price driven

    • Teamwork vs Hierarchical organization

Discussion Questions

  • Starbucks Example:

    • Explore how technology transforms their customer interactions and the benefits/challenges involved.

  • Amazon Example:

    • Analyze how Amazon anticipates and fulfills customer needs while addressing trade-offs between convenience and sustainability issues.