1. Chapter. 1
Defining Marketing for the
New Realities
Korean Institute of Marketing Education
http://www.marketingkorea.org

2. Finance, operations, accounting, and other business
functions won’t really matter without sufficient
demand for products and services so the firm can
make a profit.
1.The Value of Marketing

3. CEOs recognize the role of marketing in building
strong brands and a loyal customer base,
intangible assets that contribute heavily to the
value of a firm.
1.The Value of Marketing
1) Marketing Decision Making

4. Skillful marketing is a never-ending pursuit, but
some businesses are adapting and thriving in these
changing times.
• BMW
• Corning
1.The Value of Marketing
2) Winning Marketing

5. Marketing is about identifying and meeting human
and social needs.
“meeting needs profitably.”
2.The Scope of Marketing
1) What is Marketing?

6. 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.
American Marketing Association
2.The Scope of Marketing
1) What is Marketing?

7. 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.
2.The Scope of Marketing
1) What is Marketing?

8. * Social Definition
Marketing is a societal process by which
individuals and groups obtain what they need and
want through creating, offering, and freely
exchanging products and services of value with
others.
2.The Scope of Marketing
1) What is Marketing?

9. * Managerial Definition
Managers sometimes think:
• Marketing is the art of selling products
But:
• Selling is not the most important part of marketing
• Selling is only the tip of the marketing iceberg
2.The Scope of Marketing
1) What is Marketing?

10. 2.The Scope of Marketing
2) What is Marketed?
SERVICES
EXPERIENCES
PLACES
ORGANIZATIONS
IDEAS
GOODS
EVENTS
PERSONS
PROPERTIES
INFORMATION

11. A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect. If two parties are
seeking to sell something to each other, we call
them both marketers.
2.The Scope of Marketing
3) Who Markets?
◈ MARKETERS AND PROSPECTS

12. Eight Demand States
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand
2.The Scope of Marketing
3) Who Markets?
◈ MARKETERS AND PROSPECTS

13. • Traditionally, a market was a physical place
where buyers and sellers gathered to buy and
sell goods.
• Economists describe a market as a collection of
buyers and sellers who transact over a particular
product or product class
• Marketers use the term market to cover various
groupings of customers.
2.The Scope of Marketing
3) Who Markets?
◈ MARKETS

14. 2.The Scope of Marketing
3) Who Markets?
◈ MARKETS

15. • Consumer Markets
• Business Markets
• Global Markets
• Nonprofit and Governmental Markets
2.The Scope of Marketing
3) Who Markets?
◈ KEY CUSTOMER MARKETS

16. 3. Core Marketing Concepts
Impression and Engagement
Value and Satisfaction
Supply Chain
Competition
Marketing Environment
Needs,Wants, Demands
Target Markets, Positioning,
and Segmentation
Offerings and Brands
Marketing Channels
Paid, Owned, Earned Media

17. 3. Core Marketing Concepts
1) Needs,Wants, and Demands
Needs
Wants
Demands

18. 3. Core Marketing Concepts
1) Needs,Wants, and Demands
Five types of needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

19. • Target markets
• Market offering
• Positions
3. Core Marketing Concepts
2) Target Markets, Positioning, and Segmentation

20. • Value proposition: a set of benefits that satisfy
those needs.
• Brand
3. Core Marketing Concepts
3) Offerings and Brands

21. Three kinds of marketing channels
• Communication channels
• Distribution channels
• Service channels
3. Core Marketing Concepts
4) Marketing Channels

22. • Paid media
• Owned media
• Earned media
3. Core Marketing Concepts
5) Paid, Owned, and Earned Media

23. 3. Core Marketing Concepts
6) Impression and Engagement
Three “screen” to reach consumers:
• TV, Internet, Mobile
• Impressions occur when consumers view a
communication
• Engagement is the extent of a customer’s
attention and active involvement with a
communication.

24. • Value, a central marketing concept, is primarily
a combination of quality, service, and price
• Satisfaction reflects a person’s judgment of a
product’s perceived performance in relationship
to expectations
3. Core Marketing Concepts
7) Value and Satisfaction

25. • The supply chain is a longer channel stretching
from raw materials to components to finished
products carried to final buyers.
3. Core Marketing Concepts
8) Supply Chain

26. • Competition includes all the actual and potential
rival offerings and substitutes a buyer might
consider.
3. Core Marketing Concepts
9) Competition

27. • Task environment
• Broad environment
3. Core Marketing Concepts
10) Marketing Environment

28. 4.The New Marketing Realities
Technology
Globalization
Social Responsibility

29. • Can use the internet as a powerful information
and purchasing aid
• Can search, communicate, and purchase on the
move
• Can tap into social media to share opinions and
express loyalty
• Can actively interact with companies
• Can reject marketing they find inappropriate
5. Dramatically Changed Marketplace
1) New Consumer Capability

30. 5. Dramatically Changed Marketplace
2) New Company Capability
• Can use the Internet as a powerful information
and sales channel, including for individually
differentiated goods
• Can collect fuller and richer information about
markets, customers, prospects, and competitors
• Can reach customers quickly and efficiently via
social media and mobile marketing, sending
targeted ads, coupons, and information
• Can improve purchasing, recruiting, and internal
and external communications
• Can improve cost efficiency

31. • Retail transformation
• Disintermediation
5. Dramatically Changed Marketplace
3) Changing Channels

32. • Private labels
• Mega-brands
• Deregulation
• Privatization
5. Dramatically Changed Marketplace
4) Heighten Competition

33. 6. Marketing in Practice
Marketing Balance
Marketing Accountability
Marketing in the Organization

34. 7. Company Orientation to the Marketplace
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept

35. 7. Company Orientation to the Marketplace

36. 8. Updating the Four Ps

37. 8. Updating the Four Ps

38. 9. Marketing Management Tasks
New
Company
Capability
New
Consumer
Capability
Globalization
Social
Responsibility
The New Marketing Realities
Integrated
Marketing
Internal
Marketing
Performance
Marketing
Relationship
Marketing
Technology
Four Fundamental Pillars of
Holistic Marketing
Three Major
Market Forces
Two Key
Market Outcomes

39. 9. Marketing Management Tasks
Building Strong Brands
Communicating Value
Considering Marketing Responsibly for Long-term Success
Developing Marketing Strategies and Plans
Capturing Marketing Insights
Connecting with Customers
Creating Value
Delivering Value