Defining Marketing

for the 21st Century

Mr. Ajit Arya

Faculty-Marketing
Department of Business Studies
C. U. Shah College of Engg. & Tech.
 Chapter Questions

Why is marketing important?

What is the scope of marketing?

What are some fundamental marketing concepts?

How has marketing management changed?

What are the tasks necessary for successful
marketing management?
 What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
Selling is only the tip of the iceberg

“There will always be a need for

some selling. But the aim of marketing is to
make selling superfluous. The aim of
marketing is to know and understand the
customer so well that the product or service
fits him and sells itself. Ideally, marketing
should result in a customer who is ready to
buy. All that should be needed is to make
the product or service available.”
Peter Drucker
American Marketing Association’s new official
definition of marketing released August 2004:

Marketing is an organizational function and a set

of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
 Social Definition of Marketing

“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.”
What is Marketing Management?

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.
 Exchange and Transactions

Marketing (Kotler
Kotler,, 1980
1980)): Human activity directed as satisfying
needs and wants through exchange processes
processes..

For exchange to occur, there must be

be::

Two parties

Each with something of value to the other

Capable of communication and delivery

Free to accept/reject the offer

Agreement to terms
The Scope Of Marketing - What is Marketed?

Goods

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
Goods Marketing
Services Marketing
Event Marketing
 Place Marketing
- Attempt to attract people and organizations to a
particular geographic area.
Organization Marketing
 Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

Markets - Structure of Flows in a Modern
Exchange Economy
A Simple Marketing System
 Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

 Marketplaces, Marketspaces,
Metamarkets

The marketplace is physical - Store

The marketspace is digital – Internet shopping

The metamarket is a cluster of complementary products
and services that are closely related in the consumer’s
mind but spread across a diverse set of industries.
Company Orientations

Production Product

Selling Marketing
Holistic Marketing Concept
The Four P’s Of Marketing
Marketing-Mix Strategy
 Core Concepts

Needs, Wants, & Target markets, Offerings &

Demands Positioning, & Brands
Segmentation

Value & Marketing

Satisfaction Channels

Supply Chain Marketing

Competition
Environment
 Major Societal Forces
Changing technology

Globalization
Deregulation

Privatization

Customer empowerment

Customization
Competition

Retail transformation
 New Consumer Capabilities

A substantial increase in buying power

Greater variety of goods and services

Great deal of information available

Greater ease in interacting and placing and
receiving orders

Ability to compare notes on products and services
 New Company Capabilities

Internet

Research

Speed of internal information

Speed of external information “buzz’

Better target marketing

Mobile marketing

Differentiated goods
 Marketing Management Tasks

Develop market strategies and plans

Capture marketing insights

Connect with customers

Build strong brands

Shape market offerings

Deliver value

Communicate value

Create long-term growth
Thank You!!!