Reading for Mkt 571 Week1

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UNDERSTANDING MARKETING MANAGEMENT

IN THIS CHAPTER, WE WILL ADDRESS THE FOLLOWING QUESTIONS: 1. Why is marketing important? 2. What is the scope of marketing? 3. What are some fundamental marketing concepts? 4. How has marketing management changed? 5. What are the tasks necessary for successful marketing management?

ISBN: 0-536-91520-2

Marketing Management, Twelfth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice-Hall. Copyright © 2006 by Pearson Education, Inc.

CHAPTER 1

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DEFINING MARKETING FOR THE 21ST CENTURY

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Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that could be called marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affects our day-to-day lives. It is embedded in everything we do—from the clothes we wear, to the Web sites we click on, to the ads we see:

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wo teenage girls walk into their local Starbucks. One goes to the counter and hands the barista cards for two free peppermint lattes and purchases some pastries. The other sits at a table and

opens her Apple PowerBook. Within a few seconds, she connects to the Internet courtesy of Starbucks’ deal with T-mobile to create wireless HotSpots at over a thousand Starbucks stores. Once on the Net, the girl “Googles” the name of the band that played the soundtrack of the movie she saw last night. A number of Web sites come up along with two ads—one for tickets to the band’s concert tour and another for the soundtrack CD and movie DVD at Amazon.com. When she clicks through to the Amazon ad, search engine giant Google rings up some money. (Through its adwords program, it gets paid whenever someone clicks on an advertiser’s ad.) Now her friend has returned with lattes in hand. Teen #2 is eager to show off her parents’ Sweet Sixteen gift to her—a ruby-red A220 Samsung cell phone created by a team of young Korean designers after...