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.