CHAPTER

LEARNING OBJECTIVES In this chapter, we will address the following questions: 1. Why is marketing important? 2. What is the scope of marketing? 3. What are some fundamental marketing concepts? . !ow has marketing management changed? ". What are the tasks necessary for successful marketing management? SUMMARY 1. #arketing is an organi$ational function and a set of processes for creating, communicating, and deli%ering %alue to customers and for managing customer relationships in ways that &enefit the organi$ation and its stakeholders. #arketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, deli%ering, and communicating superior customer %alue. 2. #arketers are skilled at managing demand: they seek to influence its le%el, timing, and composition for goods, ser%ices, e%ents, e'periences, persons, places, properties, organi$ations, information, and ideas. (hey also operate in four different marketplaces: consumer, &usiness, glo&al, and nonprofit. 3. #arketing is not done only &y the marketing department. It needs to affect e%ery aspect of the customer e'perience. (o create a strong marketing organi$ation, marketers must think like e'ecuti%es in other departments, and e'ecuti%es in other departments must think more like marketers. 4. (oday)s marketplace is fundamentally different as a result of ma*or societal forces that ha%e resulted in many new consumer and company capa&ilities. (hese forces ha%e created new opportunities and challenges and changed marketing management significantly as companies seek new ways to achie%e marketing e'cellence. 5. (here are fi%e competing concepts under which organi$ations can choose to conduct their &usiness: the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. (he first three are of limited use today.

DEFINING MARKETING FOR THE 21ST CENTURY

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6. (he holistic marketing concept is &ased on the de%elopment, design, and implementation of marketing programs, processes, and acti%ities that recogni$e their &readth and interdependencies. !olistic marketing recogni$es that e%erything matters in marketing and that a &road, integrated perspecti%e is often necessary. 3our components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and socially responsi&le marketing. 7. (he set of tasks necessary for successful marketing management includes de%eloping marketing strategies and plans, capturing marketing insights, connecting with customers, &uilding strong &rands, shaping the market offerings, deli%ering and communicating %alue, and creating long4term growth. OPENING THOUGHT #arketing is too often confused and identified with ad%ertising or selling techniques, and our practices and theories are all too often in%isi&le to the a%erage consumer. (he instructor should spend some class time differentiating &etween ad%ertising5promotion techniques and marketing. /tudents who are not marketing ma*ors will ha%e some difficulty accepting the encompassing role that marketing has on the other functional disciplines within a firm. 3or those students who ha%e ne%er &een e'posed to marketing and its components, the instructor)s challenge is to educate the students a&out the world of marketing. (he in4class and outside of class assignments noted in this te't should help &oth educate and e'cite the students a&out the 6world of marketing.7 TEACHING STRATEGY AND CLASS ORGANIZATION PROJECTS 1. Se e!"e#$L%&' M(#)e"*&' P+(& P#%,e-" 0n effecti%e way to help students learn a&out marketing management is through the actual creation of a marketing plan for a product or ser%ice. (his pro*ect is designed to accomplish such a task. 8i%iding the class into groups, ha%e each group decide on a 6fictional7 consumer product or ser%ice they wish to &ring to market. 8uring the course of the semester, each of the elements of the marketing plan, coordinating with the te't chapter, will &e due for the instructor)s re%iew. (he instructor is encouraged to re%iew each su&mission and suggest areas for impro%ement, for more detailed study, or if accepta&le to allow the students to proceed to the ne't phase in de%elopment. /tudents can use the computer program #arketing -lan -ro in creating their proposals and su&missions and in their final presentation9s:. 0t the end of the semester, each group is to present their entire marketing plan to the class.

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(he following is an outline of this process: C.(/"e# 0 1 2 3 T*"+e 8efining #arketing for the 21st +entury 8e%eloping #arketing /trategies and -lans =athering Information and /canning the .n%ironment +onducting #arketing >esearch and 3orecasting 8emand +reating +ustomer ?alue, /atisfaction, and 1oyalty 0naly$ing +onsumer #arkets 0naly$ing Business #arkets Identifying #arket /egments and (argets +reating Brand .quity E+e e&" %1 ".e M(#)e"*&' P+(& D2e ;one, group formation and &egin the process of selecting the product or ser%ice. 3ormation of groups< first presentation of 6product7 to instructor for appro%al. +ompetiti%e information and en%ironmental scanning pro*ect9s: completed and presented for instructor)s re%iew. Initial marketing research parameters completed< demand forecasted and target market selections defined. /tudents should ha%e completed their %alue proposition for the fictional product, defined how they will deli%er satisfaction, and maintain customer loyalty. 8efiniti%e data on the consumer for the product5ser%ice including all demographic and other pertinent information o&tained and ready for instructor)s appro%al. ;o report due for this chapter< allows students and instructor to 6catch up7 on the pro*ect. /pecific market segmentation, targeting, and positioning statements &y the students due. 0t this point in the semester, students are to ha%e their 6&randing7 strategy de%eloped for their pro*ect. Euestions to ha%e &een completed include the &rand name, its equity position, and the decisions in de%eloping the &rand strategy. 0t this point in the semester, student pro*ects should &e completed to include their fictional product or ser%ice)s &rand positioning. In relationship to the material contained in the chapter, students should ha%e delineated and designed a differentiated &rand positioning for their pro*ect.

"

A C D

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+rafting the Brand -ositioning

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11

+ompetiti%e 8ynamics

12

/etting -roduct /trategy

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8esigning and #anaging /er%ices

8e%eloping -ricing /trategies and -rograms

1"

8esigning and #anaging #arketing +hannels and ?alue ;etworks

1@

#anaging >etailing, Wholesaling, and 1ogistics

0t this point in the semester4long pro*ect, students should &e prepared to present their competiti%e analysis. Who are the market leaders for their chosen product or ser%ice? What niche ha%e they identified for their product5ser%ice? Is their product or ser%ice going to &e a leader, follower, or challenger to well4esta&lished products or &rands? 0t this point in the semester4long pro*ect, students should ha%e set their group pro*ect)s product or ser%ice strategy. Instructors are to e%aluate their su&missions on the product 9or ser%ice: features, quality, and price and other considerations of 6product7 found in this chapter. 0t this point in the semester4long pro*ect, those students who ha%e selected a 6ser%ice7 idea for the marketing plan must su&mit their offering. /tudents whose pro*ect is a 6product4 &ased7 component do not ha%e anything to su&mit for this chapter. 0t this point in the semester4long pro*ect, students should &e prepared to hand in their pricing strategy decisions for their fictional product5ser%ice. In re%iewing this section, the instructor should make sure that the students ha%e addressed all or most of the material concerning pricing co%ered in this chapter. 0t this point in the semester4long pro*ect, students should present their channel decisions for getting their product or ser%ice to the consumer. In e%aluating this section, the instructor should e%aluate the completeness of the pro*ects to the material contained in this chapter. 0t this point in the semester4long pro*ect for the 6fictional7 product or ser%ice, students should &e directed to turn in their retailing, wholesaling, and logistical marketing plans. (hose students who are acting in the role of pro%iding a new 6ser%ice7 should include here their plans for locations, hours of operations, and how their 6ser%ice7 plans on managing demand and capacity issues.

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8esigning and #anaging Integrated #arketing +ommunications

1C

1D

22

21

22

0t this point in the semester4long pro*ect, students should ha%e agreed upon their integrated marketing communications matri'. (he instructor is encouraged to e%aluate the su&missions %is4F4%is the material presented in this chapter. In re%iewing the su&missions, the instructor should e%aluate the continuity of the message across all possi&le communication media 9students will tend to concentrate their media on tele%ision or on the Internet and e'clude other forms such as personal selling and radio:. #anaging #ass 0t this point in the semester4long pro*ect, +ommunications: students should su&mit their ad%ertising 0d%ertising, /ales program complete with o&*ecti%es, &udget, -romotions, .%ents, ad%ertising message, and creati%e strategy, and -u&lic >elations media decisions, and sales and promotional materials. #anaging -ersonal 0t this point in the semester4long pro*ect, +ommunications: students who ha%e decided to market their 8irect product5ser%ice through direct market channels #arketing and should su&mit their proposals. 0ll other groups -ersonal /elling must decide at this point if they will use a direct sales force, and if so, to outline the specifics 9including financials: for this option. Introducing ;ew 0t this point in the semester4long pro*ect, in this #arket Gfferings section should &e a &rief write up &y the students as to the consumer4adoption process for their new product. !ow will the consumer learn a&out their new product and how quickly will they adopt it? Will the product first &e targeted to hea%y users and early adopters, then to early and late ma*orities? What is their estimated time for full adoption? (apping into =lo&al If the pro*ect is to &e e'ported to another #arkets country, then students) su&missions regarding how the product is to &e distri&uted should &e included here< otherwise this &egins the presentation phase of the pro*ect< student groups should &egin their presentations to the class. #anaging a !olistic /econd phase of the presentations of the pro*ect< #arketing students should ensure that their marketing Grgani$ation plans contains a holistic %iew of the marketing process.

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Hnder the pro*ects heading for each chapter will &e a reminder of the material due when that chapter is scheduled to &e discussed in class. ASSIGNMENTS In small groups, ask the students to comment on 0ir0sia)s 6ma%erick7 approach to marketing and discuss their %iews on how the company communicates with consumersI%isually through its we&site, social media, print ads, sponsorship, e%ents etc.< &y sound, or %ia %er&al communication? 0ssign students the task of %isiting some companies We& sites to see if they feel that the company is responding to the changes in marketing today, namely, customer4orientated marketing. /uggestions include firms like 0ma$on.com and Jrispy Jreme. !a%e the students comment on what they find there of particular interest to them. /tudents can choose a firm of their preference, inter%iew key marketing management mem&ers and ask the firm how they are reacting to the changes in marketing management for the 21st +entury 9students should ask and ha%e answers to all of the points listed in the chapter in (a&le 1.1:. !a%e the students read >yan !uang)s 63eature phone ads still a draw,7 ZDNet, Kuly 12, 2212 9http:55www.$dnet.com: and comment on how effecti%e they &elie%e cell phone ad%ertisements will &e in the future. !a%e the students reflect upon their fa%orite product and5or ser%ice. (hen ha%e the students collect marketing e'amples from each of these companies. (his information should &e in the form of e'amples of printed ad%ertising, copies of tele%ision commercials, Internet ad%ertising, or radio commercials. 8uring class, ha%e the students share what they ha%e collected with others. Euestions to ask during the class discussion should focus on why this particular e'ample of ad%ertising elicits a response from you. What do you like5dislike a&out this marketing message? 8oes e%eryone in the class like5dislike this ad%ertising? END$O3$CHAPTER SUPPORT MAR4ETING DEBATE5D%e! M(#)e"*&' C#e("e %# S("*!16 Nee7!8 #arketing has often &een defined in terms of satisfying customers) needs and wants. +ritics, howe%er, maintain that marketing does much more than that and creates needs and wants that did not e'ist &efore. 0ccording to these critics, marketers encourage consumers to spend more money than they should on goods and ser%ices they really do not need. Take a Position: #arketing shapes consumer needs and wants %ersus marketing merely reflects the needs and wants of customers.

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Suggested Response -ro: With the %ast amount of information a%aila&le to marketers today and the emphasis on relational marketing, marketers are in more of a position to suggest needs and wants to the pu&lic. +ertainly, not all consumers ha%e all the needs and wants suggested &y society today. !owe%er, with the %ast amount of e'posure to these societal needs and wants %ia the media, a su&stantial amount of consumers will, through mere e'posure, decide that they 6ha%e7 the same needs and wants of others. #arketers &y their efforts increase peer pressure, and group thinking, &y showing e'amples of what others may ha%e that they do not. 0n indi%idual)s freedom to choose is su&stantially weakened &y constant and consistent e'posure to a range of needs and wants of others. #arketers should understand that when it comes to resisting the pressure to conform, that indi%iduals are and can &e weak in their resol%e. #arketers must take an ethical position to only market to those consumers a&le to purchase their products. +on: #arketing merely reflects societal needs and wants. (he perception that marketers influence consumers) purchasing decisions discounts an indi%idual)s freedom of choice and their indi%idual responsi&ility. With the ad%ent of the Internet, consumers ha%e greater freedom of choice and more e%aluati%e criteria than e%ery &efore. +onsumers can and do make more informed decisions than pre%ious generations. #arketers can &e rightly accused of influencing wants, along with societal factors such as power, influence, peer pressure, and social status. (hese societal factors pre4e'ist marketing and would continue to e'ist if there was no marketing efforts e'pended. MAR4ETING DISCUSSION +onsider the &road shifts in marketing. 8o any themes emerge in them? +an you relate the shifts to ma*or societal forces? Which force has contri&uted to which shift? Suggested Response (he ma*or themes that emerge in these &road shifts are technology, decentrali$ation, and empowerment. 0s companies face increased glo&al competition, they are &eginning to increase their attention to all aspects of marketing and are &eginning to encompass marketing as a corporate goal and not *ust a departmental function. (he ma*or societal forces at work: two4income families, increased technology, fewer firms, increased consumer education, and empowerment are forcing companies and marketers to shift their thinking a&out marketing and rethink their &est &usiness practices. M(#)e"*&' Le!!%&9 N*)e 1. What are the pros, cons, and risks associated with ;ike)s core marketing strategy? Suggested Answer: Gne of ;ike)s core marketing strategies is their &elief in the 6pyramid of influence7 and its dependency on a core group of athletes to influence shoe purchases. While this may ha%e worked in the past, there is no guarantee that future athletes will command such influence on the shoe purchaser in the future. 0thlete influence9s: can and could decrease due to changing consumer preferences and changes in consumer tastes and priorities. 0thletic +opyright , -earson .ducation /outh 0sia -te 1td 2213

influence could &e ad%ersely affected &y the actions5inactions &y ;ike)s chosen spokespersons. 2. If you were 0didas, how would you compete with ;ike? Suggested Answer: I would emphasi$e my 6international7 scope of producing great soccer shoes and could also e'tend my marketing to emphasi$e my 6e%eryday 5 e%eryone7 usage for my products. +reating a point of difference for 0didas %ersus ;ike is key to a sustaina&le ad%antageI0didas) soccer shoes for e'ample are a good starting point to differentiate one &rand %ersus another. M(#)e"*&' Le!!%&9 GOOGLE 1. With a portfolio as di%erse as =oogle)s, what are the company)s core &rand %alues? Suggested Answer: =oogle)s core &rand %alues: 1: 6(o organi$e the world)s information and make it uni%ersally accessi&le and useful7 as stated &y =oogle. (his means that =oogle is trying to pro%ide its ad%ertisers &etter tools to target their ads and understand the effecti%eness of their ad%ertising. 2: 6#ake the We& a more personali$ed e'perience.7 =oogle)s management &elie%es that information should &e shared amongst all peoples, at all times, from all platforms. 2. What)s ne't for =oogle? Is it doing the right thing taking on #icrosoft with its cloud computing, 0pple in the fight for smart phones, and the +hinese go%ernment on censorship search? /tudent answers will %ary depending upon the 6allegiance7 to 0pple products, &ut for the most part, =oogle is pro%iding 5 can pro%ide credi&le competition to &oth #icrosoft and 0pple for and in mo&ile computing which seems to &e the future of and use for the personal computer. 0s for taking on the +hinese go%ernment on censorship search, =oogle is simply standing &y its core %alues. DETAILED CHAPTER OUTLINE 3ormally or informally, people and organi$ations engage in a %ast num&er of acti%ities we could call marketing. =ood marketing has &ecome increasingly %ital for success. But what constitutes good marketing is constantly e%ol%ing and changing. (he success of 0ir0sia is attri&uted largely to the adoption of new marketing practices. =ood marketing is no accident, &ut a result of careful planning and e'ecution using state4 of4the4art tools and techniques. It &ecomes &oth an art and a science as marketers stri%e to find creati%e new solutions to often4comple' challenges amid profound changes in the 21st +entury marketing en%ironment.

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THE IMPORTANCE O3 MAR4ETING (he first decade of the 21st +entury challenged firms to prosper financially and e%en sur%i%e in the face of an unforgi%ing economic en%ironment. #arketing is playing a key role in addressing those challenges. 3inance, operations, accounting, and other &usiness functions won)t really matter without sufficient demand for products and ser%ices so the firm can make a profit. In other words, there must &e a top line for there to &e a &ottom line. #arketing)s &roader importance e'tends to society as a whole. #arketing has helped introduce and gain acceptance of new products that ha%e eased or enriched people)s li%es. +.Gs recogni$e the role of marketing in &uilding strong &rands and a loyal customer &ase, intangi&le assets that contri&ute hea%ily to the %alue of a firm. #arketers must decide what features to design into a new product or ser%ice, what prices to set, where to sell products or offer ser%ices, and how much to spend on ad%ertising, sales, the Internet, or mo&ile marketing. THE SCOPE O3 MAR4ETING (o prepare to &e a marketer, you need to understand what marketing is, how it works, who does it, and what is marketed. What Is Marketing? #arketing is a&out identifying and meeting human and social needs. Gne of the shortest good definitions of marketing is 6meeting needs profita&ly.7 0: (he 0merican #arketing 0ssociation offers the following formal definition: 6#arketing is the acti%ity, set of institutions, and processes for creating, communicating, deli%ering, and e'changing offerings that ha%e %alue for customers, clients, partners, and society at large.7 B: #arketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, deli%ering, and communicating superior customer %alue. +: We can distinguish &etween a social and managerial definition of marketing. 0 social definition of marketing is that 6marketing is a societal process &y which indi%iduals and groups o&tain what they need and want through creating, offering, and freely e'changing products and ser%ices of %alue with others.7 8: #anagers sometimes think of marketing as 6the art of selling products,7 &ut many people are surprised when they hear that selling is not the most important part of marketingL /elling is only the tip of the marketing ice&erg.

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What Is Marketed? #arketers market 12 main types of entities: goods, ser%ices, e%ents, e'periences, persons, places, properties, organi$ations, information, and ideas. 1et)s take a quick look at these categories. 0: =oods -hysical goods constitute the &ulk of most countries) production and marketing efforts. B: /er%ices 0s economies ad%ance, a growing proportion of their acti%ities focus on the production of ser%ices. (he H./. economy today produces a A2M32 ser%ices4to4goods mi'. +: .%ents #arketers promote time4&ased e%ents, such as ma*or trade shows, artistic performances, and company anni%ersaries. 8: .'periences By orchestrating se%eral ser%ices and goods, a firm can create, stage, and market e'periences. Walt 8isney World)s #agic Jingdom allows customers to %isit a fairy kingdom or a pirate ship. .: -eople 0rtists, musicians, +.Gs, physicians, high4profile lawyers and financiers, and other professionals all get help from cele&rity marketers. 3: -laces +ities, states, regions, and whole nations compete to attract tourists, residents, factories, and company headquarters. =: -roperties -roperties are intangi&le rights of ownership to either real property 9real estate: or financial property 9stocks and &onds:. !: Grgani$ations Grgani$ations work to &uild a strong, fa%ora&le, and unique image in the minds of their target pu&lics. I: Information (he production, packaging, and distri&ution of information are ma*or industries. K: Ideas .%ery market offering includes a &asic idea. -roducts and ser%ices are platforms for deli%ering some idea or &enefit.

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Who Markets? #arketers and -rospects 0 marketer is someone who seeks a responseIattention, a purchase, a %ote, a donationI from another party, called the prospect. 0: #arketers are skilled at stimulating demand for their products B: #arketing managers seek to influence the le%el, timing, and composition of demand to meet the organi$ation)s o&*ecti%es. .ight demand states are possi&le: 1. ;egati%e demandI+onsumers dislike the product and may e%en pay to a%oid it. 2. ;on4e'istent demandI+onsumers may &e unaware of or uninterested in the product. 3. 1atent demandI+onsumers may share a strong need that cannot &e satisfied &y an e'isting product. . 8eclining demandI+onsumers &egin to &uy the product less frequently or not at all. ". Irregular demandI+onsumer purchases %ary on a seasonal, monthly, weekly, daily, or e%en hourly &asis. @. 3ull demandI+onsumers are adequately &uying all products put into the marketplace. A. G%erfull demandI#ore consumers would like to &uy the product than can &e satisfied. C. Hnwholesome demandI+onsumers may &e attracted to products that ha%e undesira&le social consequences. #arkets (raditionally, a 6market7 was a physical place where &uyers and sellers gathered to &uy and sell goods. .conomists descri&e a market as a collection of &uyers and sellers who transact o%er a particular product or product class. (he fi%e &asic markets are: 0: >esource #arkets B: =o%ernment #arkets +: #anufacturer #arkets 8: Intermediary #arkets .: +onsumer #arkets

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0: /ellers and &uyers are connected &y flows: 1: /eller sends goods, ser%ices, and communications to the market. 2: In return they recei%e money and information. 3: (here is an e'change of money for goods and ser%ices. : (here is an e'change of information. #arketers use the term market to co%er %arious grouping as customers. (hey %iew sellers as constituting the industry and &uyers as constituting the market. (hey talk a&out need markets, product markets, demographic markets, and geographic markets< or they e'tend the concept to co%er %oter markets, la&or markets, and donor markets. /ellers and &uyers are connected &y four flows 93igure 1.2:. /ellers send goods and ser%ices and communications such as ads and direct mail to the market: in return they recei%e money and information such as customer attitudes and sales data. Jey +ustomer #arkets 0: +onsumer #arkets +onsumer goods and ser%ices, such as soft drinks and cosmetics, spend a great deal of time trying to esta&lish a superior &rand image. B: Business #arkets +ompanies selling &usiness goods and ser%ices often face well4informed professional &uyers skilled at e%aluating competiti%e offerings. +: =lo&al #arkets +ompanies in the glo&al marketplace must decide which countries to enter< how to enter each< how to adapt product and ser%ice features to each country< how to price products in different countries< and how to design communications for different cultures. 8: ;on4profit and =o%ernmental #arkets +ompanies selling to nonprofit organi$ations with limited purchasing power need to &e price careful. #arketplaces, #arketspaces, #etamarkets 0: (he marketplace is physical, B: (he marketspace is digital, and +: #etamarkets are the result of marketers packaging a system that simplifies carrying out these related products5ser%ice acti%ities.

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CORE MAR4ETING CONCEPTS Nee7!: ;(&"!: (&7 De (&7! ;eedsI&asic human requirements, needs &ecome wants when they are directed to specific o&*ects that may satisfy the need. #arketers do not create needs, needs pre4e'ist marketers. #arketers influence wants. We distinguish fi%e types of needs: 0: /tated needs B: >eal needs +: Hnstated needs 8: 8elight needs .: /ecret needs (arget markets, -ositioning and /egmentation 0: #arketers start &y di%iding the market into segments. Identify and profile distinct groups of &uyers who might prefer or require %arying products5ser%ices mi'es &y e'amining: 1: 8emographic information 2: -sychographic information 3: Beha%ioral information B: (arget market M which group presents the greatest opportunity +: #arket offering M de%elops an offering to satisfy the wants of the target market 8: Gffering and Brands I: ?alue proposition: a set of &enefits they offer to customers to satisfy their needs II: Brand: is an offering from a known source .: ?alue and /atisfaction I: (he &uyer chooses the offering he or she percei%es to deli%er the most a!ue, the sum of the tangi&le and intangi&le &enefits and costs to her. II: ?alue is a central marketing concept III: +ustomer a!ue triad is the com&ination of quality, ser%ice, and prices. ?alue perceptions increase with quality and ser%ice &ut decrease with price. 3: #arketing +hannels: (o reach a target market, the marketer uses three kinds of marketing channels. I: +ommunication channels II: 8istri&ution channels III: /er%ice channels +opyright , -earson .ducation /outh 0sia -te 1td 2213

=: /upply +hain I: (he supply chain is a longer channel stretching from raw materials to components to finished products carried to final &uyers. !: +ompetition: includes all the actual and potential ri%al offerings and su&stitutes a &uyer might consider. I: #arketing en%ironment I: (ask en%ironment: includes the actors engaged in producing, distri&uting, and promoting the offering. II: Broad en%ironment: a. 8emographic &. .n%ironment c. .conomic d. -hysical e. (echnological f. -olitical41egal g. /ocial4+ultural THE NE; MAR4ETING REALITIES #a*or societal forces affecting marketing: 0: ;etwork information B: =lo&ali$ation +: 8egregulation 8: -ri%ati$ation .: !eightened +ompetition 3: Industry +on%ergence =: >etail (ransformation !: 8isintermediation I: +onsumer &uying power K: +onsumer information J: +onsumer participation 1: +onsumer resistance

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;ew +onsumer +apa&ilitiesI(hese ma*or societal forces create comple' challenges for marketers, &ut they ha%e also generated a new set of capa&ilities to help companies cope and respond. 0: #arketers can use the Internet as a powerful information and sales channel B: >esearchers can collect fuller and richer information a&out markets, customers, and prospects and competitors +: #arketers can tap into social media to amplify their &rand message 8: #arketers can facilitate and speed e'ternal communication among customers .: #arketers can send ads, coupons, samples, and information to customers who ha%e requested them or gi%en the company permission to send them 3: #arketers can reach consumers on the mo%e with mo&ile marketing =: +ompanies can produce indi%idually differentiated goods !: +ompanies can impro%e purchasing, recruiting, training, and internal and e'ternal communications I: +ompanies can facilitate and speed up internal communication among their employees &y using the Internet as a pri%ate Intranet K: +ompanies can impro%e their cost efficiency &y skillful use of the Internet MAR4ETING IN THE ORGANIZATION 0lthough an effecti%e +#G is crucial, increasingly marketing is not done only &y the marketing department. Because marketing must affect e%ery aspect of the customer e'perience, marketers must properly manage all possi&le touch points. #arketing must also &e influential in key general management acti%ities. COMPANY ORIENTATIONS TO;ARD THE MAR4ETPLACE >e%iew of the e%olution of earlier marketing ideas: (he -roduction +oncept 0: (he production concept holds that consumers will prefer products that are widely a%aila&le and ine'pensi%e. (he product concept holds that consumers will fa%or those products that offer the most quality, performance, or inno%ati%e features. (he selling concept holds that consumers and &usinesses, will ordinarily not &uy enough of the organi$ation)s products, therefore, the organi$ation must undertake aggressi%e selling and promotion effort.

(he -roduct +oncept 0:

(he /elling +oncept 0:

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(he #arketing +oncept 0: (he marketing concept holds that the key to achie%ing organi$ational goals consists of the company &eing more effecti%e than competitors in creating, deli%ering, and communicating superior customer %alue to your chosen target markets. (he !olistic #arketing +oncept (he holistic marketing concept is &ased on the de%elopment, design, and implementation of marketing programs, processes, and acti%ities that recogni$e their &readth and interdependencies. !olistic marketing acknowledges that e%erything matters in marketingI and that a &road, integrated perspecti%e is often necessary. !olistic marketing recogni$es and reconciles the scope and comple'ities of marketing acti%ities. !olistic marketing: 0: >elationship marketing B: Integrated marketing +: Internal marketing 8: -erformance marketing Re+("*%&!.*/ M(#)e"*&'Ia key goal of marketing is to de%elop deep, enduring relationships with people and organi$ations that directly or indirectly affect the success of the firm)s marketing acti%ities. >elationship marketing aims to &uild mutually satisfying long4term relationships with key constituents in order to earn and retain their &usiness. 3our key constituents of relationship marketing are: a. +ustomers &. .mployees c. #arketing partners d. 0nd mem&ers of the financial community (he ultimate outcome of relationship marketing is a unique company asset called a (#)e"*&' &e"<%#): consisting of the company and its supporting stakeholders. (he operating principle is simple: &uild an effecti%e network of relationships with key stakeholders and profits will follow. +ompanies are also shaping separate offers, ser%ices, and messages to indi idua! "ustomers, &ased on information a&out past transactions. Because attracting a new customer may cost fi%e times as much as doing a good enough *o& to retain an e'isting one, relationship marketing also emphasi$es customer retention.

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I&"e'#("e7 M(#)e"*&' Integrated marketing occurs when the marketer de%ises marketing acti%ities and assem&les marketing programs to create, communicate, and deli%er %alue for consumers such that 6the whole is greater than the sum of its parts.7 (wo key themes are: 1: #any different marketing acti%ities can create, communicate, and deli%er %alue 2: #arketers should design and implement any one marketing acti%ity with all other acti%ities in mind 0ll company communications must &e integratedIintegrated communication strategy means choosing communication options that reinforce and complement each other. (he company must also de%elop an integrated channel strategy. Gnline marketing acti%ities are increasingly prominent in &uilding &rands and sales. I&"e#&(+ M(#)e"*&' Internal marketing, an element of holistic marketing, is the task of hiring, training, and moti%ating, a&le employees who want to ser%e customers well. #arketing is no longer the responsi&ility of a single departmentIit is a company4wide undertaking that dri%es the company)s %ision, mission, and strategic planning. Pe#1%# (&-e M(#)e"*&' -erformance marketing requires understanding the financial and non4financial returns to &usiness and society from marketing acti%ities and programs. 1: 3inancial accounta&ility: marketers are increasingly &eing asked to *ustify their spending in terms of &rand &uilding and growing the customer &ase. 2: /ocial responsi&ility marketing: #arketers must consider the ethical, en%ironmental, legal, and social conte't of their role and acti%ities. THE NE; 4 P=S Gld -)s -roduct -lace -romotion -rice ;ew -)s -eople -rocesses -rograms -erformance

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Peop!e reflect internal marketing and the fact that employees are critical to marketing success. Pro"esses reflect all the creati%ity, discipline, and structure &rought to marketing management. Programs reflect all of the firm)s consumer4directed acti%ities. Per#orman"e is holistic marketing to capture the range of possi&le outcomes5measures that ha%e financial and non4financial implications, and implications &eyond the company itself. MAR4ETING MANAGEMENT TAS4S With the holistic marketing philosophy as a &ackdrop, we can identify a specific set of tasks that make up successful marketing management and marketing leadership. MAR4ETING MANAGEMENT TAS4S9 EMPEROR INC. 0: 8e%eloping marketing strategies and plans 9+hapter 2:. B: +apturing #arketing Insights 9+hapters 3 and :. +: +onnecting with +ustomers 9+hapters ", @, A:. 8: Building strong &rands 9+hapters D, 12, and 11:. .: /haping the market offerings 9+hapters 12 and 13:. 3: 8eli%ering %alue 9+hapters 1" and 1@:. =: +ommunicating %alue 9+hapters 1A, 1C, and 1D:. !: +reating 1ong4(erm =rowth 9+hapters 22, 21, and 22:. M(#)e"*&' e %9 M(#)e"e#=! 1#e>2e&"+6 (!)e7 >2e!"*%&!

1ists the 1 most commonly asked questions in preparing a marketing plan.

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