I The New Marketing Realities
A Technology: widespread technology adoption has created new opportunities, promotes shared
information and customer relationship management.
B Globalization:
i Transportation, shipping, and communication technologies have made it easier
for us to know the rest of the world, to travel, to buy and sell anywhere.
ii Globalization has made countries increasingly multicultural.
iii U.S. minorities have much economic clout, and their buying power is growing
faster than that of the general population.
iv Globalization changes innovation and product development as companies take
ideas and lessons from one country and apply them to another.
II Social Responsibility
A The private sector is taking some responsibility for improving living conditions, and firms all
over the world have elevated the role of corporate social responsibility.
B Marketing 3.0 suggests three central trends that change the way companies do business:
increased consumer participation and collaborative marketing, globalization, and the rise of a
creative society.
C The organization’s task is to determine the needs, wants, and interests of target markets and
satisfy them more effectively and efficiently than competitors while preserving or enhancing
consumers’ and society’s long-term well-being.
D Companies may incorporate social responsibility as a way to differentiate themselves from
competitors, build consumer preference, and achieve notable sales and profit gains.
III A Dramatically Changed Marketplace
A New Consumer Capabilities
i Consumers are empowered through technology, like social media, and by
expanded information, communication and mobility.
ii Consumers can use the Internet as a powerful information and purchasing aid.
iii Consumers can search, communicate, and purchase on the move.
iv Consumers can tap into social media to share opinions and express loyalty.
v Consumers can actively interact with companies.
vi Consumers can reject marketing they find inappropriate.
B New Company Capabilities
iCompanies can use the Internet as a powerful information and
sales channel, including for individually differentiated goods.
ii Companies can collect fuller and richer information about
markets, customers, prospects, and competitors.
iii Companies can reach customers quickly and efficiently via
social media and mobile marketing, sending targeted ads,
coupons, and information.
iv Companies can improve purchasing, recruiting, training, and
internal and external communications.
vCompanies can improve cost efficiency.
CChanging Channels
iRetail transformation: increased competition from a variety of
formats has yielded more entertaining retail experiences.
ii Disintermediation: delivery of products and services by intervening in the
traditional flow of goods.
D Heightened Competition
iPrivate labels: Powerful retailers market their own store brands,
increasingly indistinguishable from any other type of brand.
ii Mega-brands: Many strong brands have become mega-brands and extended
into related product categories, including new opportunities at the intersection
of two or more industries.
iii Deregulation: Many countries have deregulated industries to create greater
competition and growth opportunities. In the United States, laws restricting
financial services, telecommunications, and electric utilities have all been
loosened in the spirit of greater competition.
iv Privatization: Many countries have converted public companies to private
ownership and management to increase their efficiency.
E Marketing Balance: Companies must always move forward (incorporate the Internet and
digital efforts into marketing plans), innovating products and services, staying in touch with
customer needs, and seeking new advantages rather than relying on past strengths.
F Marketing Accountability: Marketers are increasingly asked to justify their investments in
financial and profitability terms, as well as in terms of building the brand and growing the
customer base.
G Marketing in the Organization: Every employee has an impact on the customer, so marketers
now must properly manage all possible touch points: store layouts, package designs, product
functions, employee training, and shipping and logistics.
IV Company Orientation toward the Marketplace
A The Production Concept:
i Suggests consumers prefer products that are widely available and inexpensive.
ii Management aims for high production efficiency, low costs, and mass
distribution.
B The Product Concept:
i Consumers favor products offering the most quality, performance, or
innovative features.
ii Managers may commit the “better-mousetrap” fallacy, believing a better
product will by itself lead people to beat a path to their door.
C The Selling Concept:
i Consumers and businesses, if left alone, won’t buy enough of the
organization’s products.
ii It is practiced most aggressively with unsought goods—goods buyers don’t
normally think of buying such as insurance and cemetery plots—and when
firms with overcapacity aim to sell what they make, rather than make what the
market wants.
D The Marketing Concept:
i Find the right products for your customers.
ii The marketing concept holds that the key to achieving organizational goals is
being more effective than competitors in creating, delivering, and
communicating superior customer value to your target markets.
E The Holistic Marketing Concept:
i Based on the development, design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies.
ii Everything matters in marketing—and that a broad, integrated perspective is
often necessary.
F Relationship Marketing:
i Aims to build mutually satisfying long-term relationships with key constituents
in order to earn and retain their business.
ii Four key constituents for relationship marketing are customers, employees,
marketing partners (channels, suppliers, distributors, dealers, agencies), and
members of the financial community (shareholders, investors, analysts).
iii The ultimate outcome of relationship marketing is a unique company asset
called a marketing network consisting of the company and its supporting
stakeholders—customers, employees, suppliers, distributors, retailers, and
others—with whom it has built mutually profitable business relationships.
iv Companies develop personalized offers and focus on their most profitable
customers, products, and channels, to achieve profitable growth and capture a
larger share of each customer’s expenditures by building high customer loyalty.
G Integrated Marketing.
i Two key themes:
1 many different marketing activities can create, communicate, and
deliver value
2 marketers should design and implement any one marketing activity
with all other activities in mind.
ii The company must develop an integrated channel strategy.
iii The company must integrate communications to they reinforce and
complement each other.
HInternal Marketing
i Hiring, training, and motivating able employees who want to serve customers
well.
ii Marketing succeeds only when all departments work together to achieve
customer goals
iii Internal marketing requires vertical alignment with senior management and
horizontal alignment with other departments so everyone understands,
appreciates, and supports the marketing effort.
I Performance Marketing
i Requires understanding the financial and nonfinancial returns to business and
society from marketing activities and programs.
ii Top marketers are increasingly going beyond sales revenue to examine the
marketing scorecard and interpret what is happening to market share, customer
loss rate, customer satisfaction, product quality, and other measures.
iii They are also considering the legal, ethical, social, and environmental effects
of marketing activities and programs
V Updating the Four Ps
A The original four Ps: product, price, place and promotion
B The four As complement the four Ps:
i Acceptability: extent to which a firm’s total product offering exceeds customer
expectations
ii Affordability: extent to which customers in the target market are able and
willing to pay the product’s price.
1 Two dimensions: economic (ability to pay) and psychological
(willingness to pay)
2 Acceptability combined with affordability determines the product’s
value proposition
iii Accessibility: the extent to which customers are able to readily acquire the
product, has two dimensions: availability and convenience.
iv Awareness:
1 the extent to which customers are informed regarding the product’s
characteristics, persuaded to try it, and reminded to repurchase.
2 It has two dimensions: brand awareness and product knowledge.
C Modern marketing realities suggest a more representative set that encompasses modern
marketing realities: people, processes, programs and performance.
i People: reflects internal marketing and the fact that employees and
understanding consumers’ whole lives are critical to marketing success
ii Processes: reflects all the creativity, discipline, and structure brought to
marketing management.
iii Programs: reflects all the firm’s consumer-directed activities.
1 It encompasses the old four Ps as well as a range of other marketing
activities that might not fit as neatly into the old view of marketing.
2 These activities must be integrated such that their whole is greater than
the sum of their parts and they accomplish multiple objectives for the
firm.
iv Performance: captures the range of possible outcome measures that have
financial and nonfinancial implications (profitability as well as brand and
customer equity) and implications beyond the company itself (social
responsibility, legal, ethical, and community related)
VI Marketing Management Tasks
A Developing Marketing Strategies and Plans: identify potential long-run opportunities, given
its market experience and core competencies
B Capturing Marketing Insights:
i Develop a reliable marketing information system to closely monitor its
marketing environment so it can continually assess market potential and
forecast demand.
ii Develop a dependable marketing research system.
C Connecting with Customers
i Create value for its chosen target markets and develop strong, profitable,
long-term relationships with customers by understanding consumer markets.
ii Gain a full understanding of how organizational buyers buy. It needs a sales
force well trained in presenting product benefits.
D Building Strong Brands
i Divide the market into major market segments, evaluate each one, and target
those it can best serve
ii Understand the strengths and weaknesses of the brand as customers see it
iii Consider growth strategies while also paying close attention to competitors,
anticipating their moves and knowing how to react quickly and decisively.
E Creating Value
i Differentiate the service of product (the tangible offering to the market, which
includes the product quality, design, features, and packaging) to gain a
competitive advantage
ii Decide on wholesale and retail prices, discounts, allowances, and credit terms.
iii Price should match well with the offer’s perceived value; otherwise, buyers
will turn to competitors’ products.
F Delivering Value
i Deliver the value embodied in products and services to the target market.
ii Channel activities include those the company undertakes to make the product
accessible and available to target customers.
G Communicating Value
i Develop an integrated marketing communication program that maximizes the
individual and collective contribution of all communication activities
ii Set up mass communication programs consisting of advertising, sales
promotion, events, and public relations
iii Tap into online, social media, and mobile options to reach consumers whenever
and wherever it may be appropriate (see Chapter 20).
iv Plan personal communications, in the form of direct and database marketing, as
well as hire, train, and motivate salespeople
H Creating Successful Long-Term Growth
i Build a marketing organization capable of responsibly implementing the
marketing plan
ii Utilize feedback and control to understand the efficiency and effectiveness of
marketing activities and how they can be improved.