buad 307—marketing fundamentals marketing overview
TRANSCRIPT
BUAD 307—MARKETING FUNDAMENTALS
MARKETING OVERVIEW
Perner 2BUAD 307MARKETING OVERVIEW
Perner 3BUAD 307MARKETING OVERVIEW
Perner 4BUAD 307MARKETING OVERVIEW
Learning Objectives
• Identifying– The scope and basic objectives of
the marketing function
– Customer value
– Relationship marketing
Perner 5BUAD 307MARKETING OVERVIEW
2007 American Marketing Association (AMA) Definition
Marketing: “The (1) activity, (2) set of institutions, and (3) processes for (4) creating, (5) capturing, (6) communicating, (7) delivering, (8) and exchanging (9) offerings that have (10) value for (11) customers, (12) clients, (13) partners, and (14) society at large.” (Numbering added.)
Definition
not needed
for the
exam!
Perner 6BUAD 307MARKETING OVERVIEW
MARKETING
ACTIVITY PROCESSESINSTITUTIONS
CREATION COMMUNICATION DELIVERY EXCHANGE
OFFERINGS VALUE
CUSTOMERS
CLIENTS
PARTNERS
SOCIETY
Perner 7BUAD 307MARKETING OVERVIEW
Marketing As an Exchange
• Each side receives something more valuable than what it gave up “win-win” deal
• Part of the value may be assurance of continued quality over time (value of the brand)
• In principle, money does not have to be exchanged. For goods and services, this is usually the most convenient way of trade. For ideas, there may be no monetary exchange as such.
Perner 8BUAD 307MARKETING OVERVIEW
Usage and Reach of Marketing
• Who markets?– Businesses
– Government units
– Non-profit organizations
– Cause related organizations
• What is marketed?– Goods
– Services
– Ideas
• Who buys?– Ultimate consumers
– Organizational buyers
• For internal use• For resale
(wholesalers, retailers)
• Manufacturers (components)
• Customer benefits?– Utility
• Consumption
• Convenience
Perner 9BUAD 307MARKETING OVERVIEW
Value
• Benefits—perceived by the customer (may not be objectively accurate)– Convenience
• In delivery• In usage
– Reliability– Durability– Performance– Style/aesthetics– Prestige– Service component
• Costs—examples– Money
– Time
– Risk
COSTRECEIVED BENEFITS
VALUE
Perner 10BUAD 307MARKETING OVERVIEW
CUSTOMER DESIRES
INSTINCTS
BELIEFS THE PRODUCT
BELIEFS ABOUT THE WORLD
PERCEIVED NEEDS OF OTHERS
SELLER OFFERINGS
COSTS OF OFFERINGS(NEGATIVE)
CUSTOMER VALUE
BELIEFS ABOUT WHAT IS “RIGHT”
Perner 11BUAD 307MARKETING OVERVIEW
Customer Value, Part I
• Value is the ratio of the benefits received (usually goods or services) to what is given up (usually money)
• For a transaction to take place, the benefits received must usually be greater than the sacrifice for both parties—usually
– The customer values the goods and services received more than the money spent
– The seller values the money received more than the goods or services given up (i.e., it is worthwhile to produce these in order to get this payment)
Perner 12BUAD 307MARKETING OVERVIEW
Customer Value, Part II
• A low priced product may not represent value to a customer if the benefits received are perceived to be low, too.
• Different customer segments will have different value perceptions
• A product which is adapted to the needs of a particular segment can be very valuable to that segment even if the overall “quality” is not seen as superior by most other consumers
• Cost may be in terms of money or other sacrifice
Perner 13BUAD 307MARKETING OVERVIEW
Tools to Provide Customer Value
• Product (both the tangible item and associated services)
• Price (different segments of customers will pay different amounts depending on their product needs and preferences)
• Place (distribution—making the product available where it is convenient to the customer)
• Promotion (advertising, sales promotion, publicity, selling, special events)
Perner 14BUAD 307MARKETING OVERVIEW
Example of Customer Value: Tivo
Perner 15BUAD 307MARKETING OVERVIEW
Customer Value: Ziploc Bags
Perner 16BUAD 307MARKETING OVERVIEW
Customer Value: iPhone 6
Perner 17BUAD 307MARKETING OVERVIEW
Value: Nordstrom’s
Perner 18BUAD 307MARKETING OVERVIEW
Value: Walmart
Perner 19BUAD 307MARKETING OVERVIEW
Perner 20BUAD 307MARKETING OVERVIEW
Customer Value: Soda Vending
Perner 21BUAD 307MARKETING OVERVIEW
Customer Value: Starbucks
Perner 22BUAD 307MARKETING OVERVIEW
Value: Implications
• A low quality, low price product represents poor value for many customers
• A very high benefit product at a high price can represent value for some segments
• Customer segments differ in what they find valuable
Perner 23BUAD 307MARKETING OVERVIEW
Relationship Marketing
• Selling (selling existing products with whatever methods are necessary) vs. marketing orientation (serving customer needs whether in current or new forms)
• Maintaining a relationship with the customer over time rather than just focusing on immediate sales
– Anticipating customer needs– Providing solutions – Investing in products and services
optimized for the customer