Contemporary Marketing
Nabeel Farooq
[email protected]
Defining Marketing for the 21st
Century
LECTURE 1
OBJECTIVES
Importance of Marketing
Scope of Marketing
Core Marketing Concepts
Changing Marketing Landscape
Company Orientation towards Marketplace
Why is marketing important?
Why is marketing important?
• Proliferation of products
• Most offerings have similar quality and features
• Shift in power
• Savvy customers
• Only way to dominate the market
• Economic stability and survival depend on carving out
such identities
What is Marketing and
Marketing Management?
What is Marketing?
Simplest definition: Marketing is managing profitable
customer relationships.
Two-fold goal:
Attract new customers --- promising superior value
Grow current customer base --- delivering satisfaction
Aim of marketing: to make selling unnecessary (Peter
Drucker)*
*Kotler, Philip and Keller, Kevin Lane: Marketing Management. 14th ed.
What is Marketing?
An organizational function and a set of processes by
which companies create, communicate, deliver value
to customers and build strong customer relationships
in order to capture value from customers in return.
Simple Marketing System
Who Is Responsible For Marketing
Entire Organization
Marketing Department
Chief Marketing Officer
(CMO)
Can anything be marketed?
Physical goods
Business-to-Business products
Services
Financial services
Professional services
Retailers & Distributors
Online products & Services
People
Organizations
Red Cross
Unicef
Can anything be marketed?
Sports
Arts
Entertainment
Movies
Geographical Locations
Malaysia – Truly Asia
Ideas and Causes
AIDS ribbons
Understanding Customer Needs
and Markets
Customers’ Needs, Wants, Demands
Needs
• States of felt deprivation – Physical, Social,
Individual
Wants
• Human needs shaped by Culture and
Individual Personality
Demands
• Wants backed by buying power
Marketing Offerings are some combination of
products, services, information or experiences
offered to a market to satisfy a need or want
Marketing Myopia is focusing more on a product
offering than to the benefits and experiences
produced by that product.
HP video and ad
Exchanges and Markets
Markets are the sets of actual and potential buyers of a
product service in which exchanges take place by
customers obtaining a desired object from someone by
offering something in return.
A Modern Marketing System
Marketing Management
Orientations
Marketing Management Orientations
Production Product Selling
Concept Concept Concept
Societal Holistic
Marketing
Marketing Marketing
Concept
Concept Concept
Marketing Management Orientations
Production
Concept
Consumers will favor those products that are available
and highly affordable
Organization should focus on
Focus on improving production and distribution efficiency
Marketing Management Orientations
Product
Concept
Consumers will favor those products offer the most quality,
Performance and features
Organization should focus on
Focus on improving production and distribution efficiency
Marketing Management Orientations
Selling
Concept
Consumers will not buy enough of the firm’s products unless,
the firm undertakes a large-scale selling and promotion effort
Organization should focus on
Aggressive promotions and sales
Marketing Management Orientations
Marketing
Concept
Knowing the needs and wants of target markets and
satisfying their needs better than competitors
Organization should focus on
Focus on customer and delivering value
Sense and respond
Outside-in perspective
Southwest Airlines – customer department
Marketing Management Orientations
Marketing
Concept
- When customers know what they want
- When customers do not know what they want
- Henry Ford
- 3M – our goal is to lead customers where they want to go
before they know where they want to go
Marketing Management Orientations
Societal
Marketing
Concept
Marketing decisions should consider consumers’ wants,
the company’s requirements, and consumers’ as well as society’s
long term interests
Organization should focus on
Sustainable marketing
Shared value
Marketing Management Orientations
Societal
Marketing
Concept
Society (Human Welfare)
Consumers (Satisfaction) Company (Profits)
Marketing Management Orientations
Holistic
Marketing
Concept
Acknowledges that everything matters in marketing and a broad,
integrated perspective is necessary
Four components of holistic marketing concept
Marketing Mix
Four Broad Groups – Four Ps
Product
Price
Place Four Cs
Promotion Customer Solution
Cost
Convenience Four Es
Communication Experience
Exchange
Everyplace
Evangelism
