Learning issues for Chapter
Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
How has marketing management changed?
What are the tasks necessary for
successful marketing management?
What is Marketing?
The American Marketing Association:
“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”.
Marketing deals with identifying and meeting human
and social needs. It is essentially about “meeting
What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
creating, delivering, and communicating
superior customer value.
What is Marketed?
Events & Experiences
Places & Properties
Ten entities of marketing:
Marketing people are involved in marketing ten types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. A) Goods
Physical goods constitute the bulk of production and marketing efforts. B) Services
A growing portion of business activities are focused on the production of services. The U.S. economy today consists of a 70–30 services to goods mix. C) Events
Marketers promote time-based events such as trade shows, artistic performances, and the Olympics.
By orchestrating several services and goods, a firm can create and market experiences such as Walt Disney World’s Magic Kingdom.
Celebrity marketing is a major business.
Ten entities (cont’d)
Cities, states, regions, and whole nations compete actively to attract tourists, factories, and new residents.
Are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds).
Actively work to build a strong, favorable, and unique image in the minds of their target publics.
Can be produced and marketed as a product. Schools, universities, and others produce information and then market it.
Every market offering includes a basic idea. Products and services are platforms for delivering some idea or benefit.
Marketing of Places
The Eight Demand States
Question: What can marketers do to influence demand
through each of the situations described above? Give
examples to illustrate your points.
The concept of a ‘market’
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
groups of customers. The five basic markets are:
A) Resource Markets
B) Government Markets
C) Manufacturer Markets
D) Intermediary Markets
E) Consumer Markets
Figure 1.1 Structure of Flows in a Modern
The flows in a market system
Sellers and buyers are connected by flows:
Seller sends goods, services, and
communications to the market.
In return they receive money and information.
There is an exchange of money for goods and
There is an exchange of information.
Figure 1.2 : A Simple Marketing System
Key customer markets
A) Consumer Markets
Consumer goods and services such as soft drinks and cosmetics, spend a great deal of time trying to establish a superior brand image.
B) Business Markets
Companies selling business goods and services often face well-trained and wellinformed professional buyers who are skilled in evaluating competitive offerings. C) Global Markets
Companies face challenges and decisions regarding which countries to...