Defining
Marketing for the 21st
Century
Marketing in a Changing World: Creating
Customer Value and Satisfaction
What is Marketing?
Social and managerial process by
which individuals and groups obtain
what they need and want through
creating and exchanging products
and value with others.
Simply put: Marketing is the delivery
of customer satisfaction at a profit.
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What is Marketing?
“Aim of marketing
know & understand customer so well
product fits him & sells itself…”
Eg: When Sony designed PlayStation
Swamped with orders – WHY?
“Right” product – marketing
What is Marketing?
Marketing
An organizational function & processes
to create, communicate & deliver
value to customers
& manage customer relationships
to benefit organization & stakeholders
Core Marketing Concepts
Products
Needs, wants,
and
and demands Services
Core
Marketing
Concepts
Markets
Value, satisfaction,
Exchange, transactions,
and quality
and relationships
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What Motivates a Consumer
to take Action?
Needs - state of felt deprivation for basic
items such as food and clothing and
complex needs such as for belonging. i.e. I
am hungry.
Wants - form that a human need takes as
shaped by culture and individual
personality. i.e. I want a hamburger,
French fries, and a soft drink.
Demands - human wants backed by buying
power. i.e. I have money to buy this meal.
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What Will Satisfy Consumer’s
Needs and Wants?
Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Experiences Persons Places Events
Organizations Information Ideas Properties
Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything
Scope of
Marketing goods
experiences
persons
What is
Marketed?
services events
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entities
ideas places
information properties
organizations
How Do Consumers Choose
Choose Among Products and
Services?
Value Gained From Owning a Product and
Costs of Obtaining the Product is
Customer Value
Product’s Perceived Performance in Delivering Value
Relative to Buyer’s Expectations is
Customer Satisfaction
Total Quality Management Involves Improving the
Quality of Products, Services, and
Marketing Processes
VALUE AND SATISFACTION
Value
Perceived tangible & intangible benefits &
costs to customers
Value = quality + service + price (QSP)
“customer value triad”
Satisfaction
Comparative judgments from perceived
performance compared to expectations
How Do Consumers Obtain
Products and Services?
Exchanges Transactions
Relationships
Building a Marketing
Network Consisting of
The Company and All
Its Supporting
Stakeholders
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Exchange and Transactions
Exchange
Process to obtain desired
product from someone
by offering
something in return
Exchange and Transactions
For exchange potential to exist,
5 conditions:
1. At least 2 parties
2. Each has thing of value to the other
3. Capable of communication & delivery
4. Free to accept/reject offer
5. Believes it desirable to deal with the
other
Who Purchases Products and
Services?
People Who
Exhibit Need Market – Actual
Ethical
Buyers who
Factors Buyers
share a
Situational
Unexpected
Resources to particular need
Exchange or want that
can be satisfied
Attitudes
through
of Potential
exchange
Others or Buyers
Willingness to relationships.
Exchange
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Who Markets?
KEY CUSTOMER MARKETS
Consumer Markets
Sell mass consumer goods & services
Business Markets
Sell business goods & services
Global Markets
Sell goods & services in global market
Non-profit & Governmental Markets
Sell goods to nonprofit organizations
Company Orientations Toward
the Marketplace
What philosophy should guide a
company’s marketing efforts?
What relative weights should be given to
the interests of organization, customers
& society?
Very often these interests conflict
Marketing Management Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept Customer Concept
Societal Marketing Concept Green Marketing
Societal MarketingConcept
Concept
Relationship Marketing
Societal Marketing Concept
Concept Holistic Marketing Concept
Marketing Management
Philosophies
•Consumers favor products that are
Production Concept available and highly affordable.
•Improve production and distribution.
•Consumers favor products that offer
Product Concept the most quality, performance, and
innovative features.
Selling Concept •Consumers will buy products only if
the company promotes/ sells these
products.
Marketing Concept •Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
Societal Marketing Concept •Focuses on needs/ wants of target
markets & delivering superior value.
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Company Orientations Toward the
Marketing Concept
Customer-centered
“Sense-&-respond” philosophy
Right products for customers
Not right customers for products
Better than competitors
Create, deliver & communicate superior
value to target markets
Customer Concepts
Starting Point Focus Means Ends
One-to-one Profitable
Customer marketing growth
Individual integration through
needs
and value capturing
Customer customer
and value share, loyalty
chain and lifetime
value
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Societal Marketing Concept
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers Company
(Want Satisfaction) (Profits)
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Green Marketing Concept
External environments influence on
firm’s marketing program.
Realisation comes that there are finite
limits to our natural resources.
Increasing emphasis on the management
of human resources.
Environmentally friendly product
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Relationship Marketing Concept
Focus on long term relationships with
customers based on consistent value and
customer satisfaction
An attempt to build personal, long-term
bonds with customers.
Relationship marketing has expanded to
include all groups an organisation interacts
with: suppliers, employees, unions,
government, and even competitors.
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Company Orientations Toward the Marketplace
- The Holistic Marketing Concept
Holistic marketing
Develop, design & implement
marketing programs, processes & activities
that recognize breadth & interdependencies
Holistic marketing recognizes that
“everything matters”
Figure Holistic Marketing Dimensions
Goals of Marketing
Maximize Consumption
Maximize Consumer Satisfaction
Maximize Choice
Maximize Life Quality
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The Importance of Marketing
Financial success depends on marketing
No demand - no business
Marketing decisions tough
– What to design
– What prices to offer
– Where to sell
– How much to spend on advertising…
MARKETERS AND PROSPECTS
8 demand states of consumers
1 Negative demand Dislike product & pay to avoid it
2 Non-existent Not aware/interested in product
demand
3 Latent demand Need not satisfied by existing product
4 Declining demand Buy less often or none
5 Irregular demand Purchase vary on periodic basis
6 Full demand Adequately buy all products in market
7 Overfull demand More want product than can be
satisfied
8 Unwholesome
demand
Attracted to products- undesirable
social consequences
Figure A Simple Marketing System
Developing the Marketing Mix
A set of controllable tactical
marketing tools that the firms
blends to produce the response it
wants in the target market.
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Figure The 4 P Components of the Marketing Mix
The Components of the Marketing Mix
Four Ps Four Cs
–McCarthy -Robert Lauterborn Four As
-Jogodish Sheth
Product Customer
Acceptability
Price solution
Affordability
Place Customer cost
Accessibility
Promotion Convenience
Awareness
Communication
Figure Marketing-Mix Strategy
Trends & Tasks – Core Concepts
MARKETING PLANNING
The marketing planning process
Analyze marketing opportunities
Select target markets
Design marketing strategies
Develop marketing programs &
Manage marketing effort
Figure Factors Influencing Company Marketing Strategy
