Lec 03- The new realities of marketing

Summary

This 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

00:00

📈 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.

05:02

🌐 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.

10:02

🛍️ 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.

15:03

🔄 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.

Keywords

💡Market Forces

Market Forces refer to the various elements that influence the dynamics of a market, shaping the relationships among different market entities. In the video, market forces are defined as technology, globalization, the physical environment, and social responsibility. These forces are pivotal as they drive the new realities of marketing, affecting how consumers and companies interact and compete in the marketplace.

💡Holistic Marketing

Holistic Marketing is an integrated approach to managing marketing strategy and tactics, recognizing the scope and complexities of marketing activities. The concept is central to the video's theme, emphasizing the need for a comprehensive understanding of marketing in the face of rapidly evolving market realities. It includes four fundamental pillars: relationship marketing, integrated marketing, internal marketing, and performance marketing.

💡Technology

Within the context of the video, Technology is one of the four major market forces. It encompasses the development of new business models and capabilities stemming from technological advances. The script mentions how technology, particularly data analytics, machine learning, and artificial intelligence, has enabled companies to better understand and tailor offerings to consumer needs, exemplified by the exponential increase in computing power and complex data analysis algorithms.

💡Globalization

Globalization is highlighted as a transformative force that has made the world a smaller place by eroding geographical and political barriers. It has led to multiculturalism and changes in innovation and product development, as companies adopt ideas from one country and apply them elsewhere. The script discusses how globalization creates limitless opportunities for communication, collaboration, and data mining.

💡Physical Environment

The Physical Environment is noted as a significant market force that has changed the business landscape, with a focus on climate change and global health conditions. The video script points out that these environmental factors can profoundly affect business models and operations, emphasizing the importance of companies adapting to and addressing these challenges.

💡Social Responsibility

Social Responsibility is portrayed as a critical market force that includes issues like poverty, pollution, water shortages, climate change, social injustice, and wealth concentration. The script explains that companies are increasingly taking on social responsibilities and incorporating ethical, environmental, legal, and social considerations into their marketing activities to differentiate themselves and align with consumer values.

💡Consumer Capabilities

Consumer Capabilities refer to the new powers and abilities that consumers possess due to the influence of market forces. The video describes how today's consumers have more access to information and communication tools, enabling them to make better choices and share their preferences globally. Examples from the script include using online resources for information and purchases, social media interaction, and extracting more value from owned products.

💡Company Capabilities

Company Capabilities denote the new strengths that companies have developed in response to market forces. The script outlines these capabilities, such as using the internet for information and sales, collecting comprehensive data about markets and customers, and improving internal and external communications for increased cost efficiency.

💡Competitive Environment

The Competitive Environment has been reshaped by the new market forces, leading to changes in the dynamics of competition. The video script discusses deregulation, privatization, retail transformation, intermediation, private labels, and the rise of mega brands as key changes that have influenced how companies compete in the market.

💡Relationship Marketing

Relationship Marketing is one of the four pillars of holistic marketing, aiming to build long-term, mutually satisfying relationships with key constituents. The video script explains that this involves understanding the needs and goals of customers, employees, marketing partners, and financial community members, and creating a marketing network that fosters profitable business relationships.

💡Integrated Marketing

Integrated Marketing is another pillar of holistic marketing, which focuses on coordinating all marketing activities to deliver consistent value and messages. The script from the video illustrates this concept by emphasizing the importance of designing each marketing activity with all other activities in mind, ensuring that all company communications are integrated to complement one another.

💡Internal Marketing

Internal Marketing is the aspect of holistic marketing that deals with hiring, training, and motivating employees who are committed to serving customers well. The video script points out that marketing activities within a company can be as crucial as external marketing, and it is essential for all departments to work together to achieve customer goals.

💡Performance Marketing

Performance Marketing is the final pillar of holistic marketing, which involves understanding the financial and non-financial returns from marketing activities. The video script discusses how marketers are now considering a broader range of measures, including market share, customer loss rate, and product quality, and also evaluating the legal, ethical, social, and environmental impacts of their activities.

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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