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Defining Marketing

for the 21stCentury

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What is Marketing?

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Marketingis an organizational function

and a set of processes for creating,

communicating, and delivering valueto 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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Marketingmanagementis the

art and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicating

superior customer value.

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What is Marketed?

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Goods (products)

Services

Events

Experiences

Persons

Places

Properties

Organizations

Information

Ideas

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Selling is only the tip of the iceberg

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 understandthe 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 beneeded is to make the product or

service available.

Peter Drucker

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The Basic Profit Equation

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Profit =

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The Basic Profit Equation

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Profit = Revenues Costs

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Figure 1.1 Structure of Flows in

Modern Exchange Economy

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Figure 1.2

A Simple Marketing System

A.K.A. The Exchange Process

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Core Concepts

Needs, wants, and

demands

Target markets,

positioning,segmentation

Offerings and

brands

Value and

satisfaction

Marketing channels

Supply chain

Competition

Marketing

environment

Marketing planning

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Needs- states of felt deprivation including physicalneeds for food, social needs for belonging andindividual needs for self-expression.

i.e. I am thirsty.

Wants- form that a human need takes asshaped 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.

Needs. Wants. Demands.

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Target Markets,

Positioning & Segmentation

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Offerings and Brands

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Value and Satisfaction

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Marketing Channels

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Communication

Distribution

Service

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Broad Marketing Environment

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Demographic Economic

Socio-cultural

NaturalTechnological

Political-legal

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Company Orientations

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Production

Product

Selling

Marketing

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Holistic Marketing

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Performance Marketing

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Financial

Accountability

Social Responsibility

Marketing

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The Marketing Mix

The Four Ps

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The NewFour Ps

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Processes

People

Programs

Performance

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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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