, Chapter 01
Marketing in Today’s Business Milieu
LEARNING OBJECTIVES
LO 1-1 Identify typical misconceptions about marketing, why they persist, and the
resulting challenges for marketing management.
LO 1-2 Define what marketing and marketing management really are and how they
contribute to a firm’s success.
LO 1-3 Appreciate how marketing has evolved from its early roots to be practiced as it is
today. LO 1-4 Recognize the impact of key change drivers on the future of marketing.
CHAPTER OUTLINE
I. WELCOME TO MARKETING MANAGEMENT
II. MARKETING MISCONCEPTIONS
A. Behind the Misconceptions
1. Marketing Is Highly Visible by Nature
2. Marketing Is More Than Buzzwords
B. Beyond the Misconceptions and Toward the Reality of Modern Marketing
III. DEFINING MARKETING
A. Value and Exchange Are Core Marketing Concepts
B. A New Agenda for Marketing
IV. MARKETING’S ROOTS AND EVOLUTION
A. Pre-Industrial Revolution
B. Focus on Production and Products
C. Focus on Selling
D. Advent of the Marketing Concept
1. The Marketing Mix
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
smMwcaGngrnagwigi@HgimllaLil .cLoCm.
, Chapter 01
Marketing in Today’s Business Milieu
E. Post-Marketing Concept Approaches
1. Differentiation Orientation
2. Market Orientation
3. Relationship Orientation
4. One-to-One Marketing
V. CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETING
A. Shift to Product Glut and Customer Shortage
B. Shift in Information Power from Marketer to Customer
C. Shift in Generational Values and Preferences
D. Shift to Distinguishing Marketing (Big M) from marketing (little m)
1. Marketing (Big M)
2. marketing (little m)
E. Shift to Justifying the Relevance and Payback of the Marketing Investment
VI. YOUR MARKETING MANAGEMENT JOURNEY BEGINS
VII. SUMMARY
KEY TERMS
marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
marketing’s stakeholders Any person or entity inside or outside a firm with whom marketing
interacts, impacts, and is impacted by.
societal marketing The concept that, at the broadest level, members of society at large can be
viewed as a stakeholder for marketing.
sustainability The practicing of business that meet humanity’s needs without harming
future generations.
value A ratio of the bundle of benefits a customer receives from an offering compared to the
costs incurred by the customer in acquiring that bundle of benefits.
, Chapter 01
Marketing in Today’s Business Milieu
exchange The giving up of something of value for something desired.
production orientation The maximization of production capacity through improvements in
products and production activities without much regard for what is going on in the marketplace.
sales orientation The increase of sales and consequently production capacity utilization by
having salespeople “push” product into the hands of customers.
marketing concept Business philosophy that emphasizes an organization-wide customer
orientation with the objective of achieving long-run profits.
marketing mix (4Ps of marketing) Product, price, place, and promotion—the fundamental
elements that comprise the marketer’s tool kit that can be developed in unique combinations to
set the product or brand apart from the competition.
offering A product or service that delivers value to satisfy a need or want.
solution A bundle of benefits from an offering that solves a problem or fills a need of a
customer.
differentiation Communicating and delivering value in different ways to different customer
groups.
customer orientation Placing the customer at the core of all aspects of the enterprise.
market orientation The implementation of the marketing concept, based on the understanding
of customers and competitors.
relationship orientation Investing in keeping and cultivating profitable current customers
instead of constantly having to invest in gaining new ones.
one-to-one marketing Directing energy and resources into establishing a learning relationship
with each customer and connecting that knowledge with the firm’s production and service
capabilities to fulfill that customer’s needs in as custom a manner as possible.
mass customization Combining flexible manufacturing with flexible marketing to greatly
enhance customer choice.
Marketing (Big M) The dimension of marketing that focuses on external forces that affect the
organization and serves as the driver of business strategy.
strategic marketing The long-term, firm-level commitment to investing in marketing—
supported at the highest organization level—for the purpose of enhancing organizational
performance.
market creation Approaches that drive the market toward fulfilling a whole new set of needs
that customers did not realize was possible or feasible before.
Marketing in Today’s Business Milieu
LEARNING OBJECTIVES
LO 1-1 Identify typical misconceptions about marketing, why they persist, and the
resulting challenges for marketing management.
LO 1-2 Define what marketing and marketing management really are and how they
contribute to a firm’s success.
LO 1-3 Appreciate how marketing has evolved from its early roots to be practiced as it is
today. LO 1-4 Recognize the impact of key change drivers on the future of marketing.
CHAPTER OUTLINE
I. WELCOME TO MARKETING MANAGEMENT
II. MARKETING MISCONCEPTIONS
A. Behind the Misconceptions
1. Marketing Is Highly Visible by Nature
2. Marketing Is More Than Buzzwords
B. Beyond the Misconceptions and Toward the Reality of Modern Marketing
III. DEFINING MARKETING
A. Value and Exchange Are Core Marketing Concepts
B. A New Agenda for Marketing
IV. MARKETING’S ROOTS AND EVOLUTION
A. Pre-Industrial Revolution
B. Focus on Production and Products
C. Focus on Selling
D. Advent of the Marketing Concept
1. The Marketing Mix
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
smMwcaGngrnagwigi@HgimllaLil .cLoCm.
, Chapter 01
Marketing in Today’s Business Milieu
E. Post-Marketing Concept Approaches
1. Differentiation Orientation
2. Market Orientation
3. Relationship Orientation
4. One-to-One Marketing
V. CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETING
A. Shift to Product Glut and Customer Shortage
B. Shift in Information Power from Marketer to Customer
C. Shift in Generational Values and Preferences
D. Shift to Distinguishing Marketing (Big M) from marketing (little m)
1. Marketing (Big M)
2. marketing (little m)
E. Shift to Justifying the Relevance and Payback of the Marketing Investment
VI. YOUR MARKETING MANAGEMENT JOURNEY BEGINS
VII. SUMMARY
KEY TERMS
marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
marketing’s stakeholders Any person or entity inside or outside a firm with whom marketing
interacts, impacts, and is impacted by.
societal marketing The concept that, at the broadest level, members of society at large can be
viewed as a stakeholder for marketing.
sustainability The practicing of business that meet humanity’s needs without harming
future generations.
value A ratio of the bundle of benefits a customer receives from an offering compared to the
costs incurred by the customer in acquiring that bundle of benefits.
, Chapter 01
Marketing in Today’s Business Milieu
exchange The giving up of something of value for something desired.
production orientation The maximization of production capacity through improvements in
products and production activities without much regard for what is going on in the marketplace.
sales orientation The increase of sales and consequently production capacity utilization by
having salespeople “push” product into the hands of customers.
marketing concept Business philosophy that emphasizes an organization-wide customer
orientation with the objective of achieving long-run profits.
marketing mix (4Ps of marketing) Product, price, place, and promotion—the fundamental
elements that comprise the marketer’s tool kit that can be developed in unique combinations to
set the product or brand apart from the competition.
offering A product or service that delivers value to satisfy a need or want.
solution A bundle of benefits from an offering that solves a problem or fills a need of a
customer.
differentiation Communicating and delivering value in different ways to different customer
groups.
customer orientation Placing the customer at the core of all aspects of the enterprise.
market orientation The implementation of the marketing concept, based on the understanding
of customers and competitors.
relationship orientation Investing in keeping and cultivating profitable current customers
instead of constantly having to invest in gaining new ones.
one-to-one marketing Directing energy and resources into establishing a learning relationship
with each customer and connecting that knowledge with the firm’s production and service
capabilities to fulfill that customer’s needs in as custom a manner as possible.
mass customization Combining flexible manufacturing with flexible marketing to greatly
enhance customer choice.
Marketing (Big M) The dimension of marketing that focuses on external forces that affect the
organization and serves as the driver of business strategy.
strategic marketing The long-term, firm-level commitment to investing in marketing—
supported at the highest organization level—for the purpose of enhancing organizational
performance.
market creation Approaches that drive the market toward fulfilling a whole new set of needs
that customers did not realize was possible or feasible before.
