MAKE MARKETING VALUE DECISIONS

What is Marketing ???

More than Selling and More than Selling and AdvertisingAdvertising

More than Selling or More than Selling or AdvertisingAdvertising

All Those All Those Bicycles!Bicycles!

Marketing—What’s It All About?

Analyze NeedsAnalyze NeedsAnalyze NeedsAnalyze Needs

Predict WantsPredict WantsPredict WantsPredict Wants

Estimate DemandEstimate DemandEstimate DemandEstimate Demand

Predict WhenPredict WhenPredict WhenPredict When

Determine WhereDetermine WhereDetermine WhereDetermine Where

Estimate PriceEstimate PriceEstimate PriceEstimate Price

Decide PromotionDecide PromotionDecide PromotionDecide Promotion

Estimate CompetitionEstimate CompetitionEstimate CompetitionEstimate Competition

Provide ServiceProvide Service

Things a Firm Should Do in Producing a Bike

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

MARKETING

Benefits a customer receives from buying a good or serviceComparison between benefit and cost

V = B-C or V = B/C

Consumer/customer will choose product (good or service) that offer more benefit than cost

VALUE

Marketing meets the needs of diverse stakeholders.

Stakeholders: refers to buyers, sellers, or investors in a company, community residents

Consumer: ultimate user of a good or service

MARKETING MEET NEEDS

A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability

Need: is the difference between a consumer’s actual state and some ideal or desired state. When the difference is big enough, consumers is motivated to take action to satisfy the need.

Want: a desire for a particular product we use to satisfy a need in specific ways that are culturally and socially influenced

MARKETING CONCEPT

Benefit: the outcome sought by a customer that motivates buying behavior-that satisfies a need or want.

Demand: customers’ desires for products coupled with the resources needed to obtain them.

Market: All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange

MARKETING CONCEPT

Form utility is the benefit provided by transforming raw materials into finished products. For example: transforming steel and plastic into a riding lawnmower.

Place utility is the benefit provided by making products available where customers want them. For example: popcorn at a movie theater.

Time utility is the benefit provided by storing products until they are needed. For example: providing TV episodes online so that a viewer can download them whenever they wish to watch.

Possession utility is the benefit provided by allowing the consumer to own, use, and enjoy the product. For example: a furniture store offering credit and disposal of an old sofa to make possessing a new one easier.

MARKETING CREATES UTILITY

Form

Marketing Creates Utility

Place

Time Possession

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MARKETING AND EXCHANGE

PRODUCTPRODUCT PAYMENTPAYMENT

Marketer Customer

Exchange

THE EVOLUTION OF MARKETING

Production Era

Triple Bottom Line Era

TIMELINE

Sales Era Relationship Era

Evolution of a Concept

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Production orientation, which works best in a seller’s market when demand is greater than supply because it focuses on the most efficient ways to produce and distribute products

Views market as a homogeneous group that will be satisfied with the basic function of a product

PRODUCE/SELL WHAT WE CAN MAKE!

1. PRODUCTION ERA

Selling orientation: management views marketing as a sales function or a way to move products out of warehouse so that inventories don’t pile up.

“hard sell”, salespeople aggressively push their wares

2. THE SALES ERA

Consumer orientation: a business approach that prioritizes the satisfaction of customers’ needs and wants

Total Quality Management: A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.

3. THE RELATIONSHIP ERA

Triple Bottom Line Era: This orientation focuses on building long-term bonds with customers

and emphasizes three bottom lines: Financial: profits to stakeholders. Social: contributions to the communities in which the firm operates. Environmental: doing business in a way that minimizes damage to

the environment.Many firms embrace the Social Marketing Concept--where the

marketer attempts to satisfy the consumer and benefit society at the same time.

4. THE TRIPLE BOTTOM LINE ORIENTATION

MARKETING AS A PROCESS

Marketing plan: A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

We can choose mass market or market segment

Mass market: All possible customers in a market, regardless of the differences in their specific needs and wants

Market segment: A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market

Target market: segment(s) on which an organization focuses

MARKETING PLANNING

4psProduct, Price. Place, Promotion

Marketing’s tools: the marketing mix

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Product

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Price

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Promotion

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

PlacePlaceCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall