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A FRAMEWORK for
MARKETING MANAGEMENT
Chapter 1
Defining
Marketing
for the
21st Century
Kotler
Keller
Cunningham
Chapter Questions
• Why is marketing important?
• What is the scope of marketing?
• What are some fundamental
marketing concepts?
• What are the tasks necessary for
successful marketing management?
© Copyright 2008 Pearson Education Canada
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Profile: Canadian Marketing Excellence
KRAFT CANADA INC.
•Kraft Canada Inc. continues to operate in a
highly complex market
•Customers have more choice but less time for
shopping and preparing meals
•Retailers are ramping up the use of own-brands
•Using a newly developed consumer database,
Kraft adopted a set of customer relationship
management (CRM) initiatives, with the key aim
being:
“To help Kraft grow into a service provider that helps
consumers shop more efficiently, prepare quick meals
simply.”
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Profile: Canadian Marketing Excellence
KRAFT CANADA INC.
Kraft’s Strategy:
•
“Family. Food. Simple.”
The Results:
•
Kraft is now on the Marketing Magazine’s annual top ten list of “Marketers
that Mattered.”
•
Customer satisfaction is high, with thousands calling its 1-800 helpline for
cooking tips
Kraft’s What’s Cooking magazine is the largest
circulating magazine in Canada
•
•
Kraft also partnered with Food TV and created the
number one cooking show in Quebec
•
By combining marketing insight and leading edge
technologies, Kraft has developed unmatched
consumer relationships
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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.
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1-5
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.
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The Importance of Marketing
•Financial success often depends on good marketing
•Many companies have not understood this completely,
including
•Nortel, Bombardier, Sears, Kodak, Xerox
•Today’s market leaders, including Wal-Mart,
Nike, and Research In Motion (RIM), know
they can’t afford to relax
•Short term (transactional marketing) versus
long term (relationship marketing)
•Creation of Chief Marketing Officer (CMO)
position
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Big Rock Brewery
•Big Rock Brewery recognizes that meeting customer
needs is an infinite quest
•In 2005 the company found it necessary to differentiate
itself in Alberta’s crowded premium beer market:
•Using a combination of retro labels
(originally used 20 years ago) and the
rolling out of the largest-ever multimedia
campaign to promote its Grasshopper
brand, Big Rock was able to secure a
foothold as the beer of choice for many
Albertans
© Copyright 2008 Pearson Education Canada
1-8
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
© Copyright 2008 Pearson Education Canada
1-9
For an Exchange to Occur…..
• There must be at least two parties
• Each party has something that might be of value
to the other party
• Each party is capable of communication and
delivery
• Each party is free to accept or reject the
exchange offer
• Each party believes it is appropriate or desirable
to deal with the other party
© Copyright 2008 Pearson Education Canada
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Are Both Forms of Exchange?
Transactions
Transfers
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What Is Marketed?
Goods
87% of Canadian Exports (2005)
Services
69% of Canadian GDP (2005)
Events and experiences
Persons
Places and properties
Organizations
Information
Ideas
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Figure 1.1 A Simple Marketing System
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Company Orientations
Production
Product
Selling
Marketing
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Figure 1.2 Holistic Marketing Dimensions
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Figure 1.3 The Four P Components
of the Marketing Mix
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Key Themes of Integrated Marketing
Many different
marketing
activities
used to
communicate
and deliver value
All marketing
activities
coordinated
to maximize
their
joint effects
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Marketing Mix and the Customer
Four Ps
• Product
• Price
• Place
• Promotion
Four Cs
• Customer solution
• Customer cost
• Convenience
• Communication
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Figure 1.4 Marketing-Mix Strategy
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Internal Marketing
• Employees contribute to building longterm relationships with customers
• Step 1: Select employees with positive
attitudes
• Step 2: Train, motivate, and empower
employees
• Step 3: Establish standards for employee
performance
• Step 4: Monitor actions and reward good
performance
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Internal Marketing at Scotiabank
• Positioned as a “Client Centred” bank
• Plan put into action to align Scotiabank
around customer centricity;
•Key use was made of internal
incentive programs that rewarded
staff for spending time with clients
•Peer to peer awards program and
“Team Voice”, which let employees
communicate directly with senior
management
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Societal Marketing Concept
An organization’s task is to determine
the needs, wants, and interests
of target markets and to deliver
the desired satisfaction
more effectively and efficiently
than competitors in a way
that preserves or enhances the
well-being of both consumer and society.
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Fundamental Marketing Concepts
• Needs, wants, and
demands
• Target markets,
positioning,
segmentation
• Offerings and brands
• Value and satisfaction
•
•
•
•
Marketing channels
Supply chain
Competition
Marketing
environment
• Marketing planning
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I Want It, I Need It...
Five Types of Needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs
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Figure 1.5 Factors Influencing
Marketing Strategy
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Marketing Management Tasks
• Developing
marketing strategies
• Capturing marketing
insights
• Connecting with
customers
• Building strong
brands
• Shaping market
offerings
• Delivering value
• Communicating
value
• Creating long-term
growth
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For Discussion
How are demographic changes
in the Canadian population
affecting marketers?
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