DEFINING MARKETING FOR THE 21ST CENTURY
WHAT IS MARKETING?
Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “ meeting needs profitably.”
3 ALTERNATIVE PHILOSOPHIES THAT CAN GUIDE ORGANIZATIONS IN THEIR EFFORTS TO CARRY OUT THEIR MARKETING GOAL(S)
THE PRODUCTION CONCEPT
The production concepts, one of the oldest concepts in business, holds that consumers prefer products that are widely available and inexpensive. Managers of production– oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. This orientation makes sense in developing countries such as China, where ...view middle of the document...
WHAT IS THE MARKETING CONCEPT?
The marketing concept emerged in the mid 1950s as a customer– centered, sense– and– respond philosophy. The job is to find not the right customers for your products, but the right products for your customers. 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. Harvard’s Theodore Levitt drew a perceptive contrast between the selling and marketing concepts: Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it. 20 Several scholars found that companies embracing the marketing concept at that time achieved superior performance.
WHAT ARE THE 4 PRINCIPLES OF THE MARKETING CONCEPT?
Product, Price, Place, Promotion
WHAT IS MARKETING MANAGEMENT?
With holistic marketing as a backdrop, we can identify a specific set of tasks that make up successful marketing management and marketing leadership.
* Developing marketing strategies and plans. The first task is to identify the organization’s long– run opportunities, given its market experience and core competencies. Chapter 2 discusses this process in some detail.
* Capturing marketing insights. Marketers must closely monitor the marketing environment to continually assess market potential and forecast demand. Chapter 3 looks at marketing information and research, market demand, and the marketing environment.
* Connecting with customers. The firm must determine how to best create value for its chosen target markets and develop strong, profitable, long– term relationships with customers, as discussed in Chapter 4. Chapters 5 and 6 explore the analysis of consumer and business markets. Next, marketers must divide the market into major market segments, evaluate each one, and target those it can best serve, as explained in Chapter 7.
* Building strong brands. Marketers need to understand how customers perceive their brands’ strengths and weaknesses, the subject of Chapter 8. In addition, they must develop a positioning strategy and plan ways of dealing with the competition, as discussed in Chapter 9.
* Shaping the market offerings. At the heart of the marketing program is the product— the firm’s tangible offering to the market, which includes the product quality, design, features, and packaging, all explored in Chapter 10. Chapter 11 explains how firms can market services, and Chapter 12 examines critical marketing decisions related to pricing.
* Delivering value. How can the firm deliver value to its target market? Chapter 13 discusses channel activities needed to make the product offering accessible and...