Lectures Marketing management: Chapter 1 - ThS. Nguyễn Tiến Dũng

CHAPTER 1
DEFINING MARKETING FOR THE 21ST CENTURY

Nguyen Tien Dung, MBA
Email:


Main Contents
1. The Importance of Marketing
2. The Scope of Marketing
3. Core Marketing Concepts
4. The New Marketing Realities
5. Company Orientation toward the

Marketplace
6. The New Four Ps
7. Marketing Management Tasks
© Nguyễn Tiến Dũng

2


1. The Importance of Marketing
● Financial success depends on
●
●
●
●
●

marketing ability

Chief Marketing Officer (CMO)
Marketing for business
organisations
Marketing for non-profit
organisations
Marketing for individuals
Discussion:
● Marketing is as important as other

departments
● Marketing is more important than
other departments

© Nguyễn Tiến Dũng

3


2. The Scope of Marketing
● What Is Marketing?
● What Is Marketed?
● Who Markets?

© Nguyễn Tiến Dũng

4


What is marketing?
● Managerial definition of marketing:

● 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
● Social definition of marketing:
● A societal process by which individuals and
groups obtain what they need and want through
creating, offering, and freely exchanging products
and services of value with others
© Nguyễn Tiến Dũng

5


What is marketing management?
● The art and science of choosing target

markets and getting, keeping and growing
customers through creating, delivering, and
communicating superior customer value.

© Nguyễn Tiến Dũng

6


What is marketed?
● Physical products
● Services

● Events
● Experiences
● Persons
● Places

● Properties
● Organizations
● Information
● Ideas

© Nguyễn Tiến Dũng

7


● The Rolling Stones have done a masterful job of marketing their

rebellious form of rock and roll to audiences of all ages.
© Nguyễn Tiến Dũng

8


Places Marketing

● For a city like Las Vegas that thrives on tourism, good marketing is essential.
© Nguyễn Tiến Dũng

9

Who markets?
● Who markets?
● Marketer
● Prospect
● States of demand:
● Negative demand: dislike
● Nonexistent demand: unaware
● Latent demand: unsatisfied
● Declining demand: falling
● Irregular demand: seasonal or uneven
● Full demand
● Overfull demand
● Unwholesome demand: negative social consequences
© Nguyễn Tiến Dũng

10


Idea Marketing

● One of the most important areas of marketing is the work that

social marketers do to promote socially desirable behaviors.
© Nguyễn Tiến Dũng

11


Structure of Flows in a Modern Exchange Economy

© Nguyễn Tiến Dũng

12


A Simple Marketing System

© Nguyễn Tiến Dũng

13


3. Core Marketing Concepts
● Needs, Wants, and Demands
● Market segmentation, target Markets,

Positioning
● Market places, market spaces, metamarkets
● Offerings and Brands
● Value and Satisfaction
● Marketing Channels
● Supply Chain
● Competition
● Marketing Environment
© Nguyễn Tiến Dũng

14

Five Types of Needs
● Stated needs
● Real needs
● Unstated needs
● Delight needs
● Secret needs

© Nguyễn Tiến Dũng

15


4. The New Marketing Realities
● Major Societal Forces
● New Company Capabilities
● Marketing in Practice

© Nguyễn Tiến Dũng

16


Major Societal Forces
●
●
●
●
●
●
●

●
●
●
●
●

Network information technology.
Globalization
Deregulation
Privatization
Heightened competition
Industry convergence
Retail transformation
Disintermediation
Consumer buying power
Consumer information
Consumer participation
Consumer resistance

© Nguyễn Tiến Dũng

17


Marketing in Practice*
New
Consumer
Capabilities

New

Marketing
Forces

New
Company
Capabilities
New
Marketing
Management
Practice

© Nguyễn Tiến Dũng

18


CMO: A challenging job*
● A well-publicized survey revealed that the average CMO tenure

at U.S. companies is about 28 months, well below the average
tenure of CEOs (54 months) or other C-level positions.
● Reasons:
● Management expectations vary
● Combined skills:
● Quantitative skills & well-honed qualitative skills
● Have an independent, entrepreneurial attitude & Be able to work in close
harmony with other departments such as sales
● Capture the consumers’ viewpoint & Have a keen bottom-line understanding of
how marketing creates value within their organization.

● One survey asked 200 senior-level marketing executives which

innate and learned qualities were most important
● Innated qualities
● Learned qualities

© Nguyễn Tiến Dũng

19


CMO*
● Innate Qualities

● Learned Qualities

● Risk taker

● Global experience

● Willingness to make

● Multichannel

decisions
● Problem-solving
ability
● Change agent
● Results-oriented

expertise
● Cross-industry
experience
● Digital focus
● Operational
knowledge

© Nguyễn Tiến Dũng

20


*Functions of CMOs
● Strengthening the brands
● Measuring marketing effectiveness
● Driving new product development based on

customer needs
● Gathering meaningful customer insights
● Utilizing new marketing technology

© Nguyễn Tiến Dũng

21


*Improving CMO Success
● Make the mission and responsibilities clear
● Fit the role to the marketing culture and structure
● Ensure the CMO is compatible with the CEO

● Remember that show people don’t succeed
● Match the personality with the CMO type
● Make line managers marketing heroes
● Infiltrate the line organization
● Require right-brain and left-brain skills

© Nguyễn Tiến Dũng

22


5. Company Orientation toward the Marketplace
● The Production Concept
● The Product Concept
● The Selling Concept
● The Marketing Concept
● The Holistic Marketing Concept

© Nguyễn Tiến Dũng

23


Production Concept
● Customers will buy inexpensive and widely

available products.
● Focus: cost cutting, cheap models and wide
distribution networks

© Nguyễn Tiến Dũng

24


Product Concept
● Customers will

prefer the products
with superior
performance.
● Focus: product
performance,
higher quality,
special features

© Nguyễn Tiến Dũng

25