Marketing in the 21st CenturyWeek 01

W. Rofianto

What is Marketing?

Marketing is the activity, set of institutions, and processesfor creating, communicating, delivering, and exchangingofferings that have value for customers, clients, partners,and society at large.

(American Marketing Association’s official definition of marketing released August 2007)

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

Marketing management

• Goods (products)• Services• Events• Experiences• Persons• Places• Properties• Organizations• Information• Ideas

What is Marketed?

Modern Exchange Economy

The Exchange Process

Needs, wants, and demands

Needs - states of felt deprivation including physicalneeds 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.

Segmentation, Target markets, positioning

Offerings and Brands

Value and Satisfaction

Value is the sum of the tangible and intangible benefits and costs

Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations

Communication

Distribution

Service

Marketing Channels

Marketing Environment

Task environment - includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers.

The broad environment consists of six components: (1)demographic environment, (2)economic environment, (3)social-cultural environment, (4)natural environment, (5)technologicalenvironment, and (6)political- legal environment.

Production

Product

Selling

Marketing

Company Orientations

Holistic Marketing

Financial Accountability

Social Responsibility Marketing

Performance Marketing

The Marketing Mix The Four Ps

Processes

People

Programs

Performance

The New Four Ps

Capture marketing insights

Develop market strategies and plans

Shape market offerings (Value Proposition)

Communicate value

Deliver value

Connect with customers

Build strong brands

Create long-term growth

Marketing Management Tasks