part ONE

Introduction to Marketing Management

chapter 01
MARKETING IN TODAYS BUSINESS MILIEU

chapter 02
ELEMENTS OF MARKETING STRATEGY AND PLANNING

chapter 03
UNDERSTANDING THE GLOBAL MARKETPLACE: MARKETING WITHOUT BORDERS

McGraw-Hill/Irwin

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved

part TWO Information Drives Marketing Decision Making

chapter 04
PERSPECTIVES ON CUSTOMER RELATIONSHIP MANAGEMENT

chapter 05
MANAGING MARKETING INFORMATION

chapter 06
UNDERSTANDING COMPETITORS: ANALYSIS TO ACTION

chapter 07
UNDERSTANDING CUSTOMERS BUSINESS TO CONSUMER MARKETS

chapter 08
UNDERSTANDING CUSTOMERS BUSINESS TO BUSINESS MARKETS 1-2

part THREE Developing the Value Offering

chapter 09
SEGMENTATION, TARGET MARKETING, AND POSITIONING

chapter 10
THE PRODUCT EXPERIENCE PRODUCT STRATEGY

chapter 11
THE PRODUCT EXPERIENCE BUILDING THE BRAND

chapter 12
THE PRODUCT EXPERIENCE NEW PRODUCT DEVELOPMENT

chapter 13
SERVICE AS THE CORE OFFERING

chapter 14
MANAGING PRICING DECISIONS

1-3

part FOUR Communicating and Delivering the Value Offering

chapter 15
MANAGING MARKETING CHANNELS AND THE SUPPLY CHAIN

chapter 16
POINTS OF CUSTOMER INTERFACE BRICKS AND CLICKS

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

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

chapter 19
THE MARKETING DASHBOARD: METRICS FOR MEASURING MARKETING PERFORMANCE

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CHAPT 01 ER

MARKETING IN TODAYS BUSINESS MILIEU

CHAPTER 01

1-5

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

CHAPTER 01

1-6

WELCOME TO MARKETING MANAGEMENT

Marketing 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.

CHAPTER 01

1-7

MARKETING MISCONCEPTIONS

Catchy and entertaining advertisements Pushy salespeople Famous brands and their celebrity spokespeople

CHAPTER 01

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

Marketing departments own marketing initiative
1-8

MARKETING MISCONCEPTIONS
1. 2. 3.

Marketing is all about advertising. Marketing is all about selling. Marketing is all about the sizzle. Marketing is inherently unethical and harmful to society. Only marketers market.

CHAPTER 01

4.

5.

6.

Marketing is just another cost center in a firm.

1-9

BEHIND THE MISCONCEPTIONS

Marketing is Highly Visible by Nature Marketing is More Than Buzzwords

CHAPTER 01

1-10

TOWARD THE REALITY OF MODERN MARKETING

Marketing is a central function and set of processes essential to any enterprise.

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

CHAPTER 01

1-11

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...

CHAPTER 01

1-12

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.

CHAPTER 01

1-13

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.

CHAPTER 01

1-14

DEFINING MARKETING

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

Focuses on the more strategic aspects of marketing

CHAPTER 01

Recognizes marketing is not just a department in an organization Shifts the areas of central focus of marketing

1-15

DEFINING MARKETING

Marketings Stakeholders Societal Marketing Sustainability

CHAPTER 01

1-16

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.

CHAPTER 01

1-17

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.

CHAPTER 01

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.
1-18

MARKETINGS ROOTS AND EVOLUTION

Pre-Industrial Revolution Focus on Production and Products

CHAPTER 01

Focus on Selling

Advent of the Marketing Concept

1-19

BEYOND THE MARKETING CONCEPT

Differentiation Orientation

Market Orientation

CHAPTER 01

Relationship Orientation

One-to-One Marketing

1-20

CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETING

Shift to product glut and customer shortage Shift in information power from marketer to customer Shift in generational values and preferences

CHAPTER 01

Shift to demanding return on marketing investment

Shift to Marketing (Big M) and marketing (little m)
1-21

SHIFT TO PRODUCT GLUT AND CUSTOMER SHORTAGE

The 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 todays market it is a necessity for survival

CHAPTER 01

1-22

NEW MARKET REALITIES

Competitors Proliferate

All Secrets Are Open Secrets

Innovation Is Universal

CHAPTER 01

Information Overwhelms And Depreciates

Easy Growth Makes Hard Times

Customers Have Less Time Than Ever

1-23

SHIFT IN INFORMATION POWER FROM MARKETER TO CUSTOMER

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

CHAPTER 01

1-24

SHIFT IN GENERATIONAL VALUES AND PREFERENCES

Impacts the firms message and the method by which that message is communicated.

Impacts marketing in terms of human resources.

Generational changes are nothing new.

CHAPTER 01

1-25

SHIFT TO DISTINGUISHING MARKETING (BIG M) AND MARKETING (LITTLE M) M) Marketing (Big

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

CHAPTER 01

marketing (little m)
Tactical marketing, which serves the firm and its stakeholders at a functional or operational level.
1-26

SHIFT TO JUSTIFYING THE RELEVANCE AND PAYBACK OF THE MARKETING INVESTMENT

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

CHAPTER 01

1-27

MARKETING METRICS
Marketing is a fuzzy field If it cant be measured, it cant be managed

CHAPTER 01

Is marketing an expense or an investment? CEOs and stockholders expect marketing accountability

1-28