1 intro lecture

8/7/2019 1 INTRO LECTURE

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BUS 365 Principles of Marketing

Prof. A. Della Bitta Prof. A. Della Bitta


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The Text Marketing 2nd edition, 2011McGraw-Hill ISBN: 978-0-07-340487-5


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Wh at is Marketing?


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Wh at is Marketing?

It is much m ore thanadvertising or pro m otion


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Definition of Marketing by American MarketingAssociation :

Book- quoting AMA in 12-2008 : Marketing is theactivity, set of institutions, and processes for creating,capturing, communicating, delivering and exchanging

offerings that have value for customers, clients, partners,and society at large.

AMA Website 04-2010 : Marketing is an organizational

function and a set of processes for creating,communicating, and delivering value to customers and for managing customer relationships in ways that benefit theorganization and its stakeholders.

Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M


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Marketing Facilitates Exchanges

People giving up so m ething to

receive so m ething they would rather have.

Marketing Exchange


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A t least two parties

A willingness to deal withanother party

Involves so m ething perceivedto be of value

Co mm unication and delivery

Freedo m to accept or reject

Mini m u m

conditionsneeded for anexchange to

occur


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W hy Study Marketing?

Pl ays an important ro le in society

Vita l to business surviva l, profits and growth

Ha lf of every do llar spent by consumers is for marketing costs.

Become a better-informed consumer.

Offers career opportunities


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Marketing focuses on _________ and_______ consumers wants and needs

discoveringsatisfying


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W hat is a - -

C onsumer:

C ustomer:

Market:

Need:

Want:Market:


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Core A spects of Marketing


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Philosophy

Production

Sales

Marketing

Societal Mkt.

F ocus on satisfying customer needs & wantsfind out the needs/wants consumers & satisfy thoseif that are profitab le for us to do so 1955 - 1990s

2000s F ocus on satisfying certain needs/wants if it is profitab le and if it is consistent with enhancing

individua l and societa l we ll-being

F ocus on aggressive techniques to over-come customer resistance our warehouse isfull, we need to un load this stuff 1948 1955 or so

Key focus of the orientation

ProductF ocus on product features consumers wi ll want the highest qua lity products 1920s late 1930s

F ocus on efficiency of interna l operations better & cheaper products. Up to late 1920s

Philosophies of Doing Marketing


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O rganizations focus Fir m s pri m ary goalDefinition of fir m s business Tools used to achieveFor who m the product is directed those goals

These O rientations Differon the Following Characteristics

Focus FirmsBusiness

For Whom?

Primary Goal?

Tools toAchieve?

Sellinggoods andservices

EverybodyMaximumsalesvolume

Primarilypromotion

InwardSales

Orientation

Market Orientation

Outward Coordinateduse of allmarketingactivities

Customer satisfaction

Specificgroups of people

Satisfyingwants andneeds

Exam

ple


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R ecapitulation

Production W hat can we m ake or do best?

How can we sell m ore aggressively?

W hat do custo m erswant and need?

W hat do custo m ers want and need,and how can we satisfy those

wants/needs and benefit society?

O rientation Focus

Sales

Marketing

Societal


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The Marketing O rientation

F ocusing on customer wants and needs can be asource of competitive advantage by:

C reating customer va lue

Maintaining customer satisfaction

Bui lding long-term re lationships


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Custo m er Value

T he resu lt of eva luation of benefits tothe sacrifice necessary to obtain thosebenefits - it is in essence what you get for what you give up.

T he fundamenta l purpose of marketingis to create va lue for both the firm andcustomer .


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T he customers fee ling that a product hasmet or exceeded his/her expectations.

Custo m er Satisfaction


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Expectations

Product Perfor m ance

and


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R elationship Marketing

A strategy that entai ls deve loping long-termpartnerships with customers - - both individua ls andfirms.


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The Marketing ProcessOrganizational mission

Situationalanalysis

Marketing strategy(Segmentation, Targeting & Positioning

Marketing mix:productdistributionpromotionprice

Implementation

Evaluation

Environ-mentalscan


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A n organizations m arketing depart m entrelates to m any people, groups, and forces


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Marketings First Task:D iscov ering Consu m ers Needs

P otential consumers in the marketp lace

Customers words and behavior are suggestiveof their needs & wants

I dentification of actua l needs & wants


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Environ m ental scanning.

C ollecting and interpreting data about forces , eventsand re lationships in the external environment that have

re levance to the organizations marketing p lan and/or

its imp lementation.


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Environ m ental Scanning

E xamination of macroenvironmenta l forcesSocia lDemographicE conomicT echno logica lPolitica l / Lega lC ompetitive

He lps identify market opportunities

Provides guide lines for design of marketing strategy


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Marketings Second T ask:S atisfying C onsumer Needs


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An organization cant satisfy the needs of all consumers , so it must focus on one or more subgroups , which are its ____________.target markets


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A unique b lend of:product , distribution , promotion , andpricing strategies

designed to produce mutua lly satisfying

exchanges with a target market.

The Marketing Mix


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Marketing m ix: The four Ps

Promotion

Place

Price

Product

4Ps

Product

PricePlace

Pro m otion


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Product Strategies

T he starting point of the four PsI nc ludes physica l unit , package ,

warranty , service , brand , imageand va lue


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Pricing Strategies

T hey are typica lly based onviewing price as what isgiven up in an exchange toacquire a good or service.


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Distribution (Place) Strategies

Product avai labi lity where and when

customers want them

I nvo lves a ll activities from raw materia ls

to finished products

Impact of the

Internet


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Pro m otion Strategies

R ole is to bring about exchanges withtarget markets inform , persuade , remind

I nc ludes integration of persona l se lling , advertising , sa les promotion , and pub licre lations , direct marketing and I nternet

marketing


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T he fundamenta l purpose of Marketing is to he lpcreate va lue.

1. How does it do this?

2. What are the two ways that marketing canincrease va lue for customers?

A nswer these two questions

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