Introduction to MarketingManagement

chapter 01MARKETING IN TODAY’S BUSINESS MILIEU

chapter 02ELEMENTS OF MARKETING STRATEGY AND PLANNING

chapter 03UNDERSTANDING THE GLOBAL MARKETPLACE: MARKETING WITHOUT BORDERS

part ONE

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin

Information Drives Marketing Decision Making

chapter 04PERSPECTIVES ON CUSTOMER RELATIONSHIP MANAGEMENT

chapter 05MANAGING MARKETING INFORMATION

chapter 06UNDERSTANDING COMPETITORS: ANALYSIS TO ACTION

chapter 07UNDERSTANDING CUSTOMERS – BUSINESS TO CONSUMER MARKETS

chapter 08UNDERSTANDING CUSTOMERS – BUSINESS TO BUSINESS MARKETS

part TWO

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Developing the Value Offeringchapter 09SEGMENTATION, TARGET MARKETING, AND POSITIONING

chapter 10THE PRODUCT EXPERIENCE – PRODUCT STRATEGY

chapter 11THE PRODUCT EXPERIENCE – BUILDING THE BRAND

chapter 12THE PRODUCT EXPERIENCE – NEW PRODUCT DEVELOPMENT

chapter 13SERVICE AS THE CORE OFFERING

chapter 14MANAGING PRICING DECISIONS

part THREE

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Communicating and Delivering the Value Offering

chapter 15MANAGING MARKETING CHANNELS AND THE SUPPLY CHAIN

chapter 16POINTS OF CUSTOMER INTERFACE – BRICKS AND CLICKS

chapter 17INTEGRATED MARKETING COMMUNICATIONS: ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS

chapter 18INTEGRATED MARKETING COMMUNICATIONS – PERSONAL SELLING, DIRECT AND INTERACTIVE MARKETING

chapter 19THE MARKETING DASHBOARD: METRICS FOR MEASURING MARKETING PERFORMANCE

part FOUR

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CHAPTERCHAPTERCHAPTER

MARKETING IN TODAY’S BUSINESSMILIEU

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LEARNING OBJECTIVES

Identify typical misconceptions about marketing, why they persist, and the resulting challenges for marketing management

Define what marketing and marketing management really are and how they contribute to firm success

Appreciate how marketing has evolved from its early roots to be practiced as it is today

Recognize the impact of key change drivers on the future of marketing

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WELCOME TO MARKETING MANAGEMENTMarketing is the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

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MARKETING MISCONCEPTIONS

Catchy and entertaining advertisements

Pushy salespeople

Famous brands and their celebrity spokespeople

Product claims that turn out to be overstated or just plain false

Marketing departments “own” marketing initiative

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MARKETING MISCONCEPTIONS

1. Marketing is all about advertising.

2. Marketing is all about selling.

3. Marketing is all about the sizzle.

4. Marketing is inherently unethical and harmful to society.

5. Only marketers market.

6. Marketing is just another cost center in a firm.

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BEHIND THE MISCONCEPTIONS

Marketing is Highly Visible by Nature

Marketing is More Than Buzzwords

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TOWARD THE REALITY OF MODERN MARKETINGMarketing is a central function and set

of processes essential to any enterprise.

Leading and managing the facets of marketing is a core business activity.

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DEFINING MARKETING

Peter Drucker, circa 1954

◦ “There is only one valid definition of business purpose: to create a customer.”

Peter Drucker, circa 1973

◦ “Marketing is so basic that it cannot be considered a separate function (i.e., a separate skill or work) within the business...”

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DEFINING MARKETING

AMA OFFICIAL DEFINITION - 1948; REAFFIRMED 1960

◦ Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers.

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DEFINING MARKETING

AMA OFFICIAL DEFINITION - 1985

◦ Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

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DEFINING MARKETING

When compared to the earlier definitions of Marketing, the 2007 definition:

◦ Focuses on the more strategic aspects of marketing

◦ Recognizes marketing is not just a “department” in an organization

◦ Shifts the areas of central focus of marketing

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DEFINING MARKETING

Marketing’s Stakeholders

Societal Marketing

Sustainability

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CORE MARKETING CONCEPTS

Value is the ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.

Exchange occurs when a person gives up something of value to them for something else they desire to have.

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FOR EXCHANGE TO TAKE PLACE

There must be at least two parties.

Each party has something that might be of value to the other party.

Each party is capable of communication and delivery.

Each party is free to accept or reject the exchange offer.

Each party believes it is appropriate or desirable to deal with the other party.

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MARKETING’S ROOTS AND EVOLUTION

Pre-Industrial Revolution

Focus on Production and Products

Focus on Selling

Advent of the Marketing Concept

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BEYOND THE MARKETING CONCEPT

Differentiation Orientation

Market Orientation

Relationship Orientation

One-to-One Marketing

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CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETINGShift to product glut and customer

shortage

Shift in information power from marketer to customer

Shift in generational values and preferences

Shift to demanding return on marketing investment

Shift to Marketing (“Big M”) and marketing (“little m”)

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SHIFT TO PRODUCT GLUT AND CUSTOMER SHORTAGEThe balance of power is shifting

between marketers and their customers, both in B2C and B2B markets.

Not only is a customer orientation desirable, but also in today’s market it is a necessity for survival

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NEW MARKET REALITIES

Competitors Proliferate

All Secrets Are Open Secrets

Innovation Is Universal

Information Overwhelms

And Depreciates

Easy Growth Makes Hard

Times

Customers Have Less Time

Than Ever

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SHIFT IN INFORMATION POWER FROM MARKETER TO CUSTOMERCustomers of all kinds have nearly

limitless access to information about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies.

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SHIFT IN GENERATIONAL VALUES AND PREFERENCESImpacts the firm’s message and the

method by which that message is communicated.

Impacts marketing in terms of human resources.

Generational changes are nothing new.

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SHIFT TO DISTINGUISHING MARKETING (“BIG M”) AND MARKETING (“LITTLE M”)

Marketing (Big M)

◦ Strategic marketing, means a long-term, firm-level commitment to investing in marketing – supported at the highest organization level – for the purpose of enhancing organizational performance.

marketing (little m)

◦ Tactical marketing, which serves the firm and its stakeholders at a functional or operational level.

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SHIFT TO JUSTIFYING THE RELEVANCE AND PAYBACK OF THE MARKETING INVESTMENT

How can management effectively measure and assess the level of success a firm’s investment in various aspects of marketing has had.

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MARKETING METRICS

Marketing is a fuzzy field

If it can’t be measured, it can’t be managed

Is marketing an expense or an investment?

CEOs and stockholders expect marketing accountability

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