marketing chapter 1
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marketing for beginnersTRANSCRIPT
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Chapter 1Welcome to the
World of Marketing
Creating and Delivering Value
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Objectives for Chapter 1
Know who marketers are and where they work and understand the role of marketing in the company.
1
2 Define what marketing is, and describe how it provides value to everyone involved in the marketing process.
3 Discuss the range of services and goods that are marketed.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Objectives for Chapter 1 (continued)
Understand value from the perspectives of the customers, producers, and society.
4
5 Understand the basics of marketing planning and the marketing mix tools used in the marketing process.
6 Describe the evolution of the marketing concept.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Who and Where of Marketing
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Role of Marketing
Some companies take a broader view.
Others take a more limited view.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
What is Marketing?
Marketing is about delivering value to everyone who is affected by a transaction.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Meeting the Needs of Stakeholders
Any person or organisation that has a ‘stake’ in the outcome.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Consumers – Needs and Wants
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Marketing Concept
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Benefits Create Demand
Customers’ desire for products coupled with
the resources to obtain them.
The outcome sought by a
customer that motivates buying
behaviour.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
What is a Market?
The Market:The Market:All current 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.
MarketplaceMarketplace = Any location or medium used to conduct an exchange
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Marketing Creates Utility
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Exchange
ExchangeThe process by which some transfer of value occurs between a buyer and a
seller.
An exchange occurs when something is obtained for something else in return.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Exchange Relationship
At least 2 people
Agreed value of exchange
Willing to trade
Free to accept or reject deal
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
What are Products?
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Types of Products
Consumer goodsThe (tangible) goods purchased
by individual consumers for personal or family use.
ServicesIntangible products that are
exchanged directly from the producer to the customer.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
More Types of Products
Business-to-businessFrom one organisation to another
Industrial goods are bought for use in business operations
Business-to-businessFrom one organisation to another
Industrial goods are bought for use in business operations
Not-for-profit
Includes charities, zoos, churches,
museumsAlso includes governments
Not-for-profit
Includes charities, zoos, churches,
museumsAlso includes governments
Ideas, places and people
Ideas include community behaviour (e.g. Don’t drink and drive)
Places includes tourist locations and attractions
People includes musicians, models, athletes and other celebrities
Ideas, places and people
Ideas include community behaviour (e.g. Don’t drink and drive)
Places includes tourist locations and attractions
People includes musicians, models, athletes and other celebrities
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Not-for-Profit Marketing
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Marketing of Value
ValueThe tangible and intangible
benefits a customer receives from buying a product or service
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Value of a Customer
Shift in focus – to see customers as “partners”Shift in focus – to see
customers as “partners”
Some companies calculate
the lifetime value of a customer
Some companies calculate
the lifetime value of a customer
This is the profit they expect to make from a
customer in the future
This is the profit they expect to make from a
customer in the future
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Focus on Customer Relationships
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Competitive Advantage
Differential BenefitProperties of products that set them apart from competitors’ products by providing unique
benefits
Competitive AdvantageA company’s ability to outperform the competition, thereby providing customers with a benefit the competition cannot
provide
Distinctive Competency
A company’s superior capability in comparison to
its direct competitors
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Value Chain
Inbound logistics
Outbound logistics
Marketing and sales ServiceOperations
A series of activities involved in designing, producing, marketing,
delivering and supporting any products
Each link in the chain has the potential to add or to remove
value from the product
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Making and Delivering Value (Figure 1.2)
Making marketing value decisions
Understanding consumers’ needs
Communicating the value proposition
Delivering the value proposition
Creating the value proposition
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Let’s View Some TVC’s
Australian Tourism
“Where the bloody hell are you?”
Ad highlighting reasons to holiday in Australia – where Australia itself is the product being marketed.
Unfortunately, the Aussie sense of humour did not travel well to other markets where some found the tag-line offensive.
Selling Beer
The Big Beer ad
Tied to an internet and cyber buzz campaign. Not designed to tell you much about the beer – instead tries to lift awareness and liking through media attention and word-of-mouth.
Australia – Where the bloody hell are you?
Carlton – Big Ad
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Marketing Planning
What other customer groups might
become market segments for us in
the future?
What capabilities does our company
have?
What product benefits will our
customers be looking for in the future?
How will changes in technology affect us?
How will changes in social values affect us in future years?
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Marketing Plan
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Market Segments
Mass MarketAll possible customers in a market, regardless of the differences in their specific needs and wants.
Market SegmentA distinct group of customers within a larger market who are similar to each other in some
way and whose needs differ from other customers in the larger market.
Target MarketThe market segments upon which an
organisation focuses its marketing plan and towards which it directs its marketing
efforts.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Marketing Mix (the 4 Ps)
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Variables - Product
The product – the item being offered for exchange.
It includes:•The design and
packaging•Physical features•Any associated
services
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Variables - Price
The price – the value the customer gives up or exchanges in order to
obtain the desired product.
Can be used to:•Increase interest in a product
•Indicate quality
Non-monetary elements:•Time cost•Social cost
•Lifestyle cost
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Variables – Place (distribution)
Place – the availability of the product to the customer at the desired time
and location.
Related to the channel of distribution – the set of
companies of working together to get a product from a producer
to a consumer.
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
The Variables – Promotion
Promotion – all the activities marketers undertake to inform
customers about their products and to encourage potential consumers
to but those products.
Promotion includes:
•Personal selling•Advertising
•Sales promotion •Public relations
•Direct marketing •Online marketing
•Sponsorship•Word-of-mouth
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Focus on Customer Relationships
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Evolution of Marketing
Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition
Lecture Recap
Who marketers are, where they work and marketing’s role in the company
What marketing is and how it provides value to everyone involved in the marketing process
The range of services and goods that are marketed
Value from the perspectives of the customers, producers, and society
The basics of marketing planning and the marketing mix tools used in the marketing process
Describe the evolution of the marketing concept