Lec 03- The new realities of marketing
Summary
TLDRThis module delves into the new realities of marketing, highlighting the transformation of the marketplace due to technology, globalization, the physical environment, and social responsibility. It outlines the four major market forces, three key market outcomes, and introduces holistic marketing with its four pillars: relationship, integrated, internal, and performance marketing. The script emphasizes the importance of adapting to these changes for successful marketing management.
Takeaways
- 🌐 The new marketing realities are shaped by four major forces: technology, globalization, the physical environment, and social responsibility.
- 📈 Technology has given rise to new business models and capabilities, influencing traditional marketing activities through data analytics, machine learning, and AI.
- 🌏 Globalization has shrunk the world, eroding geographical and political barriers, leading to multiculturalism and innovation in product development.
- 🌳 The physical environment's changes, notably climate change and global health conditions, have significant impacts on business models and operations.
- 🤝 Social responsibility encompasses issues like poverty, pollution, and climate change, with companies increasingly adopting CSR to differentiate themselves.
- 🛍️ New consumer capabilities include using online resources for information and purchases, social media interaction, and extracting more value from owned products.
- 🏢 New company capabilities involve using the internet for sales and communication, collecting comprehensive market data, and improving internal and external communications.
- 💼 The competitive environment is changing with deregulation, privatization, retail transformation, intermediation, private labels, and the rise of mega brands.
- 🔄 Holistic marketing is an integrated approach to managing marketing strategy and tactics, recognizing the complexities of marketing activities.
- 🤝 Relationship marketing focuses on building long-term, mutually satisfying relationships with key constituents to create a marketing network.
- 🔄 Integrated marketing ensures all marketing activities and programs are coordinated to deliver consistent value and messages to consumers.
- 🏭 Internal marketing emphasizes the importance of hiring, training, and motivating employees to serve customers well, recognizing that internal marketing activities can be as crucial as external ones.
- 📊 Performance marketing involves understanding the financial and non-financial returns from marketing activities, including social and environmental impacts.
Q & A
What are the three main categories of new marketing realities discussed in the script?
-The three main categories of new marketing realities are market forces that shape relationships among different market entities, marketing outcomes that stem from the interplay of these forces, and the emergence of holistic marketing as an essential approach to succeed in the rapidly evolving market.
What are the four major market forces defined in the script?
-The four major market forces are technology, globalization, the physical environment, and social responsibility.
How does technology influence new business models and marketing activities?
-Technology provides massive amounts of information and data to consumers and marketers, enabling the creation of new business models and capabilities. Advancements in data analytics, machine learning, and artificial intelligence allow companies to better understand and tailor offerings to consumer needs.
What is the impact of globalization on the business environment?
-Globalization has made the world a smaller place by eroding geographical and political barriers. It has created limitless opportunities for communication, collaboration, and data mining, making countries increasingly multicultural and affecting innovation and product development.
What are the two far-ranging changes in the physical environment that deserve special attention?
-The two far-ranging changes in the physical environment are climate change and changes in global health conditions.
What is the role of social responsibility in marketing today?
-Social responsibility includes addressing issues like poverty, pollution, water shortages, climate change, social injustice, and wealth concentration. It demands attention as the private sector takes on the role of improving living conditions and elevating the role of corporate social responsibility.
What are the three key marketing outcomes resulting from the four major market forces?
-The three key marketing outcomes are new consumer capabilities, new company capabilities, and a new competitive environment.
What are some examples of new consumer capabilities mentioned in the script?
-New consumer capabilities include using online resources for information and purchasing, searching and communicating on the move, tapping into social media, interacting with companies, and extracting more value from what they already own.
What are the key company capabilities that have emerged due to the market forces?
-Key company capabilities include using the internet for information and sales, collecting richer information about markets and customers, reaching consumers via social media and mobile marketing, and improving cost efficiency.
How has the competitive environment changed due to the new market forces?
-The competitive environment has changed through deregulation, privatization, retail transformation, intermediation, the rise of private labels, and the emergence of mega brands.
What are the four fundamental pillars of holistic marketing?
-The four fundamental pillars of holistic marketing are relationship marketing, integrated marketing, internal marketing, and performance marketing.
What is the purpose of relationship marketing in holistic marketing?
-The purpose of relationship marketing is to develop deep, enduring relationships with key constituents to earn and retain their businesses, creating prosperity among them and balancing the return to all key stakeholders.
How does integrated marketing contribute to a company's marketing strategy?
-Integrated marketing coordinates all marketing activities and programs to create, communicate, and deliver consistent value and a consistent message to all consumers, ensuring that the whole is greater than the sum of its parts.
What is the significance of internal marketing in holistic marketing?
-Internal marketing is significant as it focuses on hiring, training, and motivating employees who are willing to serve customers well. It recognizes that marketing activities within the company can be as important as those directed outside the company.
What does performance marketing entail in the context of holistic marketing?
-Performance marketing entails understanding the financial and non-financial returns to business and society from marketing activities and programs. It involves examining market share, customer loss rate, customer satisfaction, product quality, and considering the legal, ethical, social, and environmental effects of marketing activities.
Outlines
📈 Introduction to New Marketing Realities
This section introduces Module 3 of 'Marketing Essentials,' focusing on the new realities of marketing. It outlines the four major market forces—technology, globalization, physical environment, and social responsibility—that shape the relationships among market entities. The module aims to define these forces, understand three key market outcomes, and discuss the four pillars of holistic marketing. The marketplace has evolved significantly, presenting new behaviors, opportunities, and challenges. The forces lead to new consumer capabilities, company capabilities, and a competitive environment, culminating in the emergence of holistic marketing as a vital approach to adapt to these changes.
🌐 Impact of Transformative Forces on Marketing
The second paragraph delves into the transformative forces influencing the business environment: technology, globalization, the physical environment, and social responsibility. Technology has revolutionized data availability and business models, with advancements in analytics, machine learning, and AI enabling personalized consumer interactions. Globalization has shrunk the world, breaking down barriers and fostering multiculturalism, impacting innovation and product development. The physical environment, with climate change and global health conditions, poses challenges for all companies. Social responsibility encompasses a range of issues, with companies increasingly adopting CSR to differentiate themselves and contribute positively to society.
🛍️ New Consumer and Company Capabilities in Marketing
This paragraph discusses the new capabilities that consumers and companies possess due to the market forces. Consumers now have more power and access to information, enabling them to make informed choices and share opinions globally. Companies, in turn, can leverage the internet for sales, collect richer data, and use social media and mobile marketing to reach consumers efficiently. The competitive environment is also changing, with deregulation, privatization, retail transformation, intermediation, private labels, and the rise of mega-brands reshaping how businesses operate and compete.
🔄 The Concept of Holistic Marketing
The final paragraph introduces holistic marketing as an integrated approach to managing marketing strategy and tactics. It comprises four components: relationship marketing, integrated marketing, internal marketing, and performance marketing. Relationship marketing focuses on building long-term relationships with key stakeholders. Integrated marketing ensures consistent messaging across all activities. Internal marketing emphasizes the importance of aligning all company efforts towards customer goals. Performance marketing involves understanding the broader impacts of marketing activities, including financial, social, and environmental considerations. The holistic approach aims to create a cohesive marketing strategy that considers all aspects of the business and its interactions with the market.
Mindmap
Keywords
💡Market Forces
💡Holistic Marketing
💡Technology
💡Globalization
💡Physical Environment
💡Social Responsibility
💡Consumer Capabilities
💡Company Capabilities
💡Competitive Environment
💡Relationship Marketing
💡Integrated Marketing
💡Internal Marketing
💡Performance Marketing
Highlights
Introduction to Module 3 on the new realities of marketing, focusing on defining market forces, understanding market outcomes, and discussing holistic marketing approaches.
Marketplace has evolved significantly in the last decade with new behaviors, opportunities, and challenges shaping the new marketing realities.
Market forces are categorized into technology, globalization, physical environment, and social responsibility, impacting the relationships among market entities.
Three key market outcomes are new consumer capabilities, new company capabilities, and a new competitive environment.
Holistic marketing is presented as an essential approach to succeed in the rapidly evolving market, with four fundamental pillars.
Technology has given birth to new business models and capabilities, profoundly affecting traditional marketing activities.
Advancements in data analytics, machine learning, and AI enable companies to better understand and tailor offerings to consumer needs.
Globalization has made the world smaller, eroding geographical and political barriers, creating limitless opportunities for communication and collaboration.
The physical environment, including climate change and global health conditions, has a significant impact on business models.
Social responsibility encompasses issues like poverty, pollution, and climate change, with companies elevating their role in improving living conditions.
New consumer capabilities include using online resources for information and purchasing, social media interaction, and extracting more value from owned products.
New company capabilities involve using the internet for sales and information, collecting data about markets and competitors, and improving internal and external communications.
The competitive environment is changing with deregulation, privatization, retail transformation, and the rise of intermediation and private labels.
Holistic marketing's four broad components are relationship marketing, integrated marketing, internal marketing, and performance marketing.
Relationship marketing aims to build long-term, mutually satisfying relationships with key constituents to earn and retain their business.
Integrated marketing ensures consistent value and messaging across all marketing activities and programs.
Internal marketing focuses on hiring, training, and motivating employees to serve customers well, emphasizing the importance of internal company activities.
Performance marketing involves understanding the financial and non-financial returns of marketing activities, including the social and environmental impacts.
The concept of a 'triple bottom line' is introduced, measuring not only financial performance but also social and environmental impacts.
Transcripts
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introduction to marketing Essentials
now we'll talk about module 3. so as you
can see this module 3 is
on new realities of marketing in this
module we will Define the four major
Market forces one second we will
understand the three key Market outcomes
and the third is discuss the four
fundamental pillars of holistic
marketing that help to capture the new
marketing realities so to start the
marketplace is dramatically different
from even 10 years ago with new
marketing behaviors opportunities and
challenges emerging the new marketing
realities
can be divided into three main
categories
one category is the market forces that
shape the relationship among the
different Market entities the second is
the marketing outcome that stems from
the interplay of these forces
and the third is emergence of holistic
marketing as an essential approach to
succeed in the rapidly evolving market
so we are talking of an approach to
succeed in the rapidly evolving Market
in figure 3.1 we will summarize the four
major forces
three key Market outcomes and four
fundamental pillars of marketing of
holistic marketing that help to capture
the new marketing realities so we will
look at the four major forces three
Market outcomes and again four
fundamental pillars with these Concepts
in place we can identify a specific set
of tasks that makes up successful
marketing management and marketing lead
so this figure gives a picture of the
new marketing realities
so Market forces based on technology
globalization physical environment and
social responsibility it leads to
marketing outcomes new consumers
capabilities new company capabilities
and three new competitive
environment
and then this lead to holistic marketing
and the four arms of holistic marketing
are relationship marketing integrated
marketing internal marketing and
Performance Marketing now let us look at
the first block that is this a block so
the business environment today has been
profoundly influenced by
technology globalization physical
environment and social responsibility we
discuss these four transformative forces
in more detail next so the first one was
the technology massive amounts of
information and data about almost
everything is now available to Consumers
and marketers so technology development
has given birth to new business models
and take advantage of new capabilities
stemming from these Technologies
even traditional marketing activities
are profoundly affected by technology
advances in data analytics machine
learning and artificial intelligence
have enabled companies not only to
better understand their customers but
also to tailor their offerings to
Consumer needs so with this we are now
in a position to better understand the
consumers and therefore
tailor our offerings to the consumer
needs exponentially increasing computing
power coupled with
complex data analysis algorithms that
include natural language processing
object recognition and Effective
computing have provided marketers with
unprecedented knowledge about their
customers and enabled them to interact
with their customers on a one-to-one
basis so now this interaction with the
customer is on a one-to-one basis the
next is globalization the world has
become a smaller place geographies and
political barriers have been eroded as
advanced telecommunication Technologies
and workflow platforms that enable all
types of computers to work together
continue to create almost Limitless
opportunities to communicate collaborate
and data mining so these are the three
great outcomes of this globalization has
made countries increasingly
Multicultural and changes Innovation and
product development as companies take
ideas and lessons from one country and
apply them to another then comes the
physical environment the physical
environment in which the companies
operate has changed dramatically during
the past decades two particularly
far-ranging changes in the physical
environment deserves special attention
one is the climate change and second is
changes in global health conditions
climate change can have a profound
effect on the business models of
virtually all companies regardless of
their size
or the industry in which they operate
health conditions range from short-term
illnesses that are confined to a
particular geographic area to pandemics
that is spread across the globe so these
are the two different types of
problems health conditions that we are
now facing changing in health conditions
can influence not only the operations of
Pharmaceutical
biotechnology and Health Management
Companies but also companies that are
not directly related to the Health Care
social responsibility
that includes poverty pollution water
shortages climate change social
injustice and wealth concentration
they demand our attention the private
sector is taking some responsibility for
improving living conditions and firms
all over the world have
elevated the role of social Corporate
social responsibility because marketings
affect extend to society as a whole
marketers must consider the ethical
environmental legal and social context
of their activities the organization
task is just to determine the needs
wants and the interest of Target
marketing and satisfy them more
effectively and efficiently than the
competitors while preserving or
enhancing consumers and societies
long-term well-being as Goods have
become more commoditized and consumers
have grown more socially conscious some
companies including
The Body Shop Timberland Patagonia have
Incorporated social responsibility as a
way to differentiate themselves from
competitors
preferences and Achieve notable sales
and profits the three key marketing
outcomes four major forces shaping
today's markets
technology globalization physical
environment and social responsibility
are fundamentally changing the way
consumers and Company interact with each
other
these forces provide both consumers and
companies with new capabilities
while at the same time promoting a
competitive market environment so we
discuss these three Market outcomes in
more detail in the next slides one is
the cons new consumer capabilities
second is the company capabilities and
the third is the competitive environment
so what are these new consumer
capabilities
because he was today have more power at
their fingertips than they have ever had
in the past
expanded information communication
Mobility enables customers to make
better choices and share their
preferences and options with others
around the world so the new consumer
capabilities include several key aspects
including
using the online resources as a powerful
information and purchasing it searching
communicating and purchasing on the move
tapping into social media and share
opinion and express loyalty actively
interacting with companies rejecting
Market marketing that find inappropriate
rejecting marketing they find
inappropriate or annoying extracting
more value from what they already own
next is the new company capability so
what are now the new company
capabilities in addition to enabling
consumers globalization and social
responsibility and Technology have also
generated a new set of capabilities to
help companies create value for their
consumers collaborators and stakeholders
so the key company capabilities are as
follows using the internet as a powerful
information and sales Channel including
for individually differentiated products
collecting Fuller and richer information
about markets customers prospects and
competitors reaching consumers quickly
and efficiently via social media and
mobile marketing sending targeted ads
coupons and information
improving purchasing recruiting training
and internal external Communications and
increasing
improving cost efficiency how the new
competitive environment is changing so
New Market forces have not only changed
consumers and Company capabilities but
they have also dramatically changed the
Dynamics of competition and the
competitive landscape some of the key
changes in the competitive environment
are first deregulation
many countries have deregulated
Industries to create greater competition
and growth opportunities privatization
many countries have converted public
companies to private ownerships and
management to increase their efficiency
a retail transformation store based
retailers face competition from catalog
houses Direct Mail firms newspapers
magazine and TV director consumer ads
home shopping TV networks and e-commerce
in response
customer Centric companies such as
Amazon Best Buy and Target are building
entertainment into the S tools with
coffee bars
demonstrations and performances
marketing and experience rather than a
product assortment so this is what they
are doing another competitive another
change that is happening is this
intermediation
early.com such as amazon.coms and esar
trade successfully created this
intimidation in the delivery of products
and services by intervening in the
traditional flow of goods in response
traditional companies engaged in
intermediation and became brick and
click retailers adding online services
to their offerings Southwest plentiful
resources and established brand names
became stronger Contender for the pure
click forms another problem that is
happening is the coming up of private
labels brand manufacturers are further
buffeted by powerful retailers that
market their own store brands
increasingly indistinguishable from any
other type of brand then coming up of
Mega Brands many stores brands have
become Mega Brands and extended into
related product category including new
opportunities at the intersection of two
or more Industries computing
telecommunication consumer electronics
and converging with Apple and Samsung
releasing a stream of a state of Art
Mobile phones tablets and wearable
devices now let us look at what is
holistic marketing holistic marketing
recognizes
and reconciles the scope and
complexities of marketing activities and
offer an integrated approach to managing
the strategy and tactics so that is
what this holistic marketing is in the
following slide figure 3.2 provides a
schematic overview for four broad
components categorizing holistic
marketing so these four broad components
are relationship marketing
integrated marketing
internal marketing and Performance
Marketing internal so this is the
schematic the concept of holistic
marketing internal marketing integrated
marketing relationship marketing and
Performance Marketing so together they
they form holistic marketing now let us
look at the relationship marketing
increasingly a key goal of marketing is
to develop
deep
enduring relationships with people and
organizations
that directly or indirectly affect the
success of the firm's marketing
activities relationship marketing aims
to build mutually satisfying long-term
relationships with key constituents in
order to earn and retain their
businesses
four key constituents for relationship
marketing are
customers employees marketing Partners
including Channel suppliers Distributors
dealers and agencies and members of the
financial Community including
shareholders investors and analysts
marketers must create Prosperity among
these constituents and balance the
return to all key stakeholders
to develop a strong relationship with
them requires understanding their
capabilities and resources capabilities
and resources needs goal synthesize the
ultimate outcomes of relationship
marketing is a unique asset called as
the marketing Network that consists of
the company and its supporting
stakeholders who are customers employees
suppliers Distributors retailers and
others with whom it has built mutually
profitable
business relationships next is the
integrated marketing integrated
marketing coordinates all marketing
activities and marketing programs
towards creating communicating and
delivering consistent value and a
consistent message for all consumers
such that the whole is greater than the
sum of the its parts
this requires that marketer design and
Implement each marketing activity with
all other activities in mind so when a
hospital bias and MRI machine from
General Electric medical system division
for instance it expects good
installation maintenance and Training
Services to go with the purchase and
integrated Channel strategies should
assess each Channel option for its
direct effect on product sales and brand
equity
and also indirect effect on interaction
with other channel options all company
communication also must be integrated to
reinforce and complement one another
increasingly marketing is not relegated
only to the marketing department but
every employee has an impact on the
customers marketing is not relegated
only to the marketing department but
every employee has an impact on the
customers marketers now must properly
manage all possible touch points
for example store layouts package design
product functions employee trainings and
shipping and Logistics
creating a strong marketing organization
means that marketers most things think
like Executives in other departments and
Executives in other department must
think more like marketers what is
internal marketing internal marketing is
an element of holistic marketing and is
the task of hiring training and
motivating hiring training and
motivating able employees who want to
Serve customer well
smart marketers recognize that marketing
activities within the company can be
important or even more important than
those directed outside the company
it makes no sense to promise excellent
service why unless because the complete
staff is not ready to provide it
marketing succeeds only when all
departments work together to achieve
customer goals when engineering design
is a right product Finance furnishes the
right amount of funding purchasing buys
the right material and production makes
the right product in the right time
Horizon and accounting measures the
profitability in the right way
such inter-developmental Harmony can
truly collage however only when Senior
Management clearly communicates a vision
of how the company's marketing
orientation and philosophy serves
customers next is the Performance
Marketing
Performance Marketing requires
understanding the financial
and non-financial returns to business
and Society from marketing activities
and programs as marketers increasingly
go beyond sales revenues to examine
previously the marketing scorecard and
interpret what is happening with market
share customer loss rate customer
satisfaction product quality and other
measures they are also considering the
legal ethical social and environmental
effects of marketing activities and
programs when they founded Ben and
Jerry's Ben Cohen and Jerry Greenfield
embrace the Performance Marketing
Concept by dividing the traditional
Financial bottom line into double bottom
line that also measured the
environmental impact of their products
and processes that later expanded into
triple bottom line to represent the
social impact positive and negatives of
the firm's entire range of business
activities so to conclude in this module
we have discussed the new marketing
realities by defining the four major
Market forces that include technology
globalization and the physical
environment and the social
responsibility we have then discussed
the three key Market outcomes including
consumer capabilities
company's capabilities and competitive
environment next we have learned that
what are the four fundamental pillars of
holistic marketing and these are the
three books from which the material for
this module was taken thank you
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تصفح المزيد من مقاطع الفيديو ذات الصلة
MARKETING CH -1 ( PART -5) PHILIP KOTLER || HPSC PGT COMMERCE 2023, IBPS SO 2023 , NET COMMERCE 2023
Marketing Environment in marketing management, marketing environment micro and macro, BBA, MBA, BCom
Chapter 2: Marketing Environment | CA CAP II
Strategi Pemasaran | Rencana Pemasaran
Marketing Fundamentals
Membahas Piala Dunia untuk Perencanaan Komunikasi Pemasaran Terpadu | Planning in IMC
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