Chapter 1

Defining Marketing for the

New Realities

If you see this on the right corner of a slide,

the contents are not from our textbook.
Learning Objectives

1. Why is marketing important?

2. What is the scope of marketing?
3. What are some core marketing concepts?
4. What forces are defining the new marketing realities?
5. What tasks are necessary for successful marketing management?
The Value of Marketing
• Financial success often depends on
marketing ability
• Successful marketing builds demand for
products and services, which, in turn, creates
jobs
The Scope of Marketing
• Marketing is about identifying and meeting
human and social needs

• AMA’s formal definition: Marketing is the activity,

set of institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large
Marketing Management
• The art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value
What is Marketed?
• Goods

• Services

• Events

• Experiences

• Persons
What is Marketed?
• Places

• Properties

• Organizations

• Information

• Ideas
What is marketed?_Place
• Before you check it out, guess whether or not Orlando is in
the list?

• See the link for the most popular destinations in 2015

• http://www.tripadvisor.com/TravelersChoice-Destinations
• http://www.nytimes.com/interactive/2015/01/11/travel/52-
places-to-go-in-2015.html
Who Markets?
• A marketer is someone who seeks a response—attention,
a purchase, a vote, a donation—from another party, called
the prospect
What is a Market?
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets
Core Marketing Concepts
• Needs: the basic human requirements such as for air, food,
water, clothing, and shelter

• Wants: How people communicate their needs.

• Specific objects that might satisfy the need
• A hungry person may want a hamburger, noodles, or cheese and bread.

• Demands: wants for specific products backed by an ability to

pay

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Distinguish the customer’s needs
and wants
 See the link on youtube
 https://www.youtube.com/watch?v=tcliR8kAbzc

 Think about the following

 Was there a customer orientation?
 Does this customer want a view or an ocean view?
 The answer is.. (take a moment to think about the answer and
when you are ready!!! See next!)
The answer is..
 She needed a view, but wanted the ocean view.
 Wants are more specific than needs.

 Now think more..

 What about bath? Room temperature? Radio? And etc.?
Core Marketing Concepts

• Target markets

• Positioning

• Segmentation

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Core Marketing Concepts
• Value proposition: a set of benefits that satisfy those
needs

• Offerings: a combination of products, services,

information, and experiences

• Brands: an offering from a known source

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Core Marketing Concepts
• Marketing channels

COMMUNICATION

DISTRIBUTION

SERVICE
Core Marketing Concepts
• Paid media: TV, magazine and display ads, paid search,
and sponsorships

• Owned media: a company or brand brochure, web site,

blog, facebook page, or twitter account

• Earned media: word of mouth, buzz, or viral marketing

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Core Marketing Concepts
• Impressions: occur when consumers view a
communication

• Engagement: the extent of a customer’s attention and

active involvement with a communication

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Core Marketing Concepts
• Value: a combination of quality, service, and price (qsp:
the customer value triad)

• Satisfaction: a person’s judgment of a product’s

perceived performance in relationship to expectations

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Core Marketing Concepts
• Supply chain: a channel stretching from raw materials to
components to finished products carried to final buyers

• Competition: all the actual and potential rival offerings and

substitutes a buyer might consider

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Core Marketing Concepts
• Marketing environment

• Task environment: the actors engaged in producing,

distributing, and promoting the offering

• Broad environment: demographic environment, economic

environment, social-cultural environment, natural
environment, technological environment, and political-legal
environment

• Marketers must pay close attention to the trends and

developments in these and adjust their marketing
strategies as needed.
The New Marketing Realities

• Technology

• Globalization

• Social responsibility
Company Orientation Toward
the Marketplace

PRODUCTION

PRODUCT

SELLING

MARKETING
Production orientation
• Production concepts
• Consumers will favor products that are available & highly affordable.

• Focus
• The efficiency of production and distribution

• Problems
• Result in the lack of customer orientation
• Limit customer choices
Production orientation
• Example..
• A hotel manager can force their employees to refresh guest
rooms in every two hours, regardless “Do not disturb” sign on
the door. This ignores customer orientation. Why the manager
does this? Because they are only focus on production, making
the room clean.
Product orientation
• Product concepts
• Consumers will favor products which offer the most in quality,
performance, and innovative features.

• Focus
• Maintaining product quality and making improvement

• Problems
• Result in
• Focusing on products rather than customers
Production orientation
• Examples
• Disney Paris did not think about customer needs and wants.
Because they make the world best theme park, they believe
customers will come anyway. Europeans like beer and wine. For
them, those are drinks, not alcohol. But the Disney ignored the fact
and focus on building the park. Thus, they failed to attract visitors.

 What if consumers change?

• B & B hotels may renovate their rooms, ignoring customer needs.
Let’s say.. The current customer needs are free Wi-Fi service. The
renovation is pointless and cause failing in customer retention.
Sales orientation
• Selling concepts
• Consumers will not buy enough of products
• Goal is to make every possible sale
• Contributes to the tendency “sell, sell, sell”
• Result in no consideration of customer satisfaction and the failure
of building long-term relationships

• Problems
• Overcapacity
• Mixing with incompatible customer segments
Marketing orientation
• Marketing concepts
• Goal is to make profits through long-term customer relationships
• Focusing on needs & wants of target markets
• Delivering the desired satisfaction more effectively and efficiently than
competitors
Societal marketing orientation
• Societal marketing concepts
• Societal pressures in the marketing
• Focusing on maintaining or improving the consumer’s and society’s
well-being/positive impact
• Environmental problem,
• resource shortages,
• rapid population growth,
• worldwide inflation, etc.
• Public-interest groups guide corporations to make decisions
that will benefit society over the long term.
 Societal marketing orientation
• Within the Hospitality Industry?
• Restaurant
• No smoking sections/ liability for serving excessive alcohol
• Fast-food industry
• Environmentally sound packaging
• Food with more natural value

• Hotels and resorts

• Environmental development & construction
• Eco-friendly management (Green practice)
• COCA COLA has programs for
• local water supply
• community developments

• McDONALDS have programs for

• local school sports support
• Scholarships for talents
See the link

• CSR-KLM
• https://www.youtube.com/watch?v=Is_HRAttonE&feature=related

• What activities does KLM do to become more socially responsible?

• How does being socially responsible help the company?
Holistic Marketing Concept
The holistic marketing concept is based on the development,
design, and implementation of marketing programs, processes, and
activities that recognize their breadth and interdependencies
Relationship Marketing
Relationship marketing aims to build mutually satisfying long-
term relationships with key constituents in order to earn and
retain their business.

CUSTOMERS

EMPLOYEES

MARKETING PARTNERS

FINANCIAL COMMUNITY
Internal Marketing
• The task of hiring, training, and motivating able
employees who want to serve customers well

• Failure to practice internal marketing

• High turn-over rate
• http://www.unitehere.org/
• http://www.youtube.com/watch?v=QqmRkxb-Qsg
Integrated Marketing
• Devise marketing activities and programs that create,
communicate, and deliver value such that “the whole
is greater than the sum of its parts.”

• Two key themes of integrated marketing are that (1) many

different marketing activities can create, communicate, and
deliver value and (2) marketers should design and
implement any one marketing activity with all other
activities in mind.
Performance Marketing

FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT

SOCIAL IMPACT
Marketing Mix Components (4 Ps)

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MODERN MARKETING MANAGEMENT

PEOPLE

PROCESSES

PROGRAMS

PERFORMANCE
The New Marketing Realities

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MARKETING MANAGEMENT TASKS

• Developing market strategies and plans

• Capturing marketing insights

• Connecting with customers

• Building strong brands

MARKETING MANAGEMENT TASKS

• Creating value

• Delivering value

• Communicating value

• Creating successful long-term growth