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Chapter 1 Defining Marketing for the 21st Century by: It has already happened.
Unfortunately, it is unequally distributed among companies, industries and nations. Kotler on Marketing Chapter Objectives: What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace?
How are companies and marketers responding to the new challenges? Companies can collect fuller and richer information about markets, customers, prospects and competitors. Companies can facilitate and speed up communications among employees. Companies can have 2-way communication with customers and prospects The New Economy: Companies can customize offerings and services to individual customers.
The Internet can be used as a communication channel for purchasing, training, and recruiting. Companies can improve logistics and operations for cost savings while improving accuracy and service quality. Which of these affords the greatest opportunity for established businesses? Which affords the greatest opportunities for new businesses?
Discussion Question Marketing Task: Make sure the marketing department starts small and flat and stays small and flat. Get face to face with the people who matter most — the customers.
Use market research cautiously. Hire only passionate missionaries. Create a community of consumers. Rethink the marketing mix.
Be true to the brand. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it—vaccinations, dental work, vasectomies, and gallbladder operations, for instance. Employers have a negative demand for ex-convicts and alcoholics as employees.
The marketing task is to analyze why the market dislikes the product and whether a marketing program consisting of product redesign, lower prices, and more positive promotion can change beliefs and attitudes. No demand Target consumers may be unaware of or uninterested in the product.
Farmers may not be interested in a new farming method, and college students may not be interested in foreign-language courses. See text for complete table PowerPoint Presentation: What precipitated this change?
Discussion Question The Scope of Marketing: A Simple Marketing System: What are the major forces driving the New Economy? How are business and marketing practices changing as a result of the New Economy?
How are marketers using the Internet, customer databases, and customer relationship management in the New Economy? Adapting Marketing to the New Economy: New Economy Old Economy New Economy Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromiseoverdeliver Adapting Marketing to the New Economy: B2B Business to Business Figure Search the world's information, including webpages, images, videos and more.
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