MT 219 Marketing Unit One

Welcome!Course OverviewCreating Customer Value and Marketing Strategy

Note: This seminar will be recorded by the instructor.

Let’s Review: Overall Course Objectives

• The effect of the external environment on marketing strategy

• What influences consumer behavior?

• Segmentation, targeting, positioning

• The marketing mix – The Four P’s- our tool box

• The role of marketing in service firms

Let’s Review: Course Element Overview

Six Grading Elements- See your Syllabus for grading allocation-Discussions- Units 1-9-Assignments- Units 2 and 4-Writing Assignment- Reflection- Unit 10-Reviews- Units 1, 2, 3, 5, 7 and 9-Research Projects- Units 6 and 8-Simulations- Units 4, 5 and 8

This class has an e-text. Reading your e-text is important in order to complete all assignments.

Let’s Review: Discussions

• Make sure to follow discussion requirements in syllabus-Primary post by Saturday, a minimum of two posts to others

-Post on three days-Minimum of 100 words

• Opportunity to clarify concepts covered in unit

• Exchange ideas and ask questions to others

• They are fun!

Let’s Review: Working with the assignments

• Review the rubric in the syllabus for guidelines

• Use the templates that are available on the last assignment page

• Proof your work– grammar and spelling matter.

• Use APA as appropriate when citing sources- NO cutting and pasting from sources

• Apply the concepts and language of the course

• Answer all the questions thoroughly

• If something is confusing, check with your professor

Let’s Review: Reviews

• Multiple choice quizzes

• Think the question through

• ALWAYS read instructions- Some may have time limits or not allow you to take more than once.

• Keep aware of the deadline- system closes access automatically

Let’s Review: Research Projects

• Select only a brand that is on the list in the Unit 2 Discussion

• You must use the brand you select in your Research Projects.

• The projects will require research, application, and creativity as well as analysis

• Once you select your brand in the discussion, you should independently research in preparation for your Research Projects

• A few minutes of researching your brand every day or so will help ensure your Research Projects go smoothly.

Let’s Review- Simulations

• In Units 4, 5 and 8

• Follow the instructions

• Simulations see how well you have learned concepts

• Graded, so make sure to complete them before the Tuesday deadline

Let’s Review: Deadlines

• All units close midnight EST on Tuesdays

• If you are having a difficulty getting work in- Contact me BEFORE the deadline.

• Discussion threads, reviews and simulations will be closed at that time. Plan appropriately.

• See the syllabus for late policies for projects1-7 calendar days late = 20% penalty8-14 calendar days late = 30% penaltymore than 14 days = automatic zero

Let’s Review: Seminars

• Optional

• Fun and helpful

• Opportunity to ask questions and interact with classmates

• You can review the recording if you are unable to attend

What is Marketing?

• Kotler: “Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” (Kotler, 2010)

• Notice that there is a lot of emphasis on establishing value and relationships.

• Marketing, more than any other business function deals with the customer and creating value for them.

• Notice that there is a lot of emphasis on establishing value and relationships.

• Things that are marketed- Goods, services, ideas, personal images

The Marketing ProcessFigure 1.1 (Kotler, 2010)

The marketing orientation has evolved

• 1st Stage- The production orientation • 2nd Stage- The sales orientation• 3rd Stage- The marketing orientation• 4th Stage- The societal marketing orientation

History of Marketing

• First era in the history of marketing - “the production era”.

• Businesses focused efforts on increasing the efficiency of their production lines.

• Henry Ford was known by some as “The Godfather of the Production Era”.

• “You can have a car in any color you want…as long as it’s in black.” Henry Ford. What did he mean by that?

History of Marketing

• Second era- The “sales era”. Occurred prior to the 1950’s.

• Idea that creative advertising and selling would convince consumers to buy a product or service.

• Third era- The “marketing era” was the third era in the history of marketing.

• “Revolutionary idea.” Businesses focused on the needs and wants of the consumer.

• The last era might be called the “societal marketing era” Company must consider the different stakeholders of the company in developing their marketing strategies.

What is the marketing concept?

• A managerial philosophy involving

- The satisfaction of consumer needs and wants

- The coordination of activities

- Satisfaction of goals

- In a coordinated way

- The basic management process- plan, organize, lead, control

What is customer relationship marketing?

• Long term

• Creates value for the consumer greater than the cost of products

• Mutually satisfying

• Buyers and sellers both benefit

What is Value?

• Benefits minus costs = Value

• Benefits are what customers get out of a product

• Costs can take many forms-Money-Time-Risk-Aggravation-Other?

Marketing is Dynamic

• Marketers realize their relationships with consumers is always changing

• Importance of some customers- Careful relationships with selected customers

- Developing relationships that are deeper and more interactive than typical customers

•What companies might you feel a a deep and interactive link with?

Trends in the Marketing Environment

• Consider trends taking place in these areas:-The domestic and global economy-Changes in technology, including communications and computer-based technologies.

-Growth in importance of non-profits and NGOs-Trend towards sustainable marketing-Growing diversity and awareness of other cultures-Others?

Company and Marketing Strategy

• The process of establishing an organizational mission and formulating OVERALL goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

• Mission- What the company does currently.

• Vision- What the company aspires to do in the future.

What is a marketing strategy?

“The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.” (Kotler, 2010)

A process that includes three important things:

- Segmenting the market

- Targeting key segments

- differentiating and positioning products and brands

Marketing Mix or The Four P’s • Term used throughout the course. How products are differentiated.

• Four components- Product, Price, Promotion and Place (Distribution). What do each of these mean?

• Marketing Managers create and control the right mix of these elements to create value and satisfy customer’s needs for a general product type.

• They are synergistic and rely on one another for marketing success

• Example: A company could have the best product in the world, great price s and promotion. Without good distribution, it may fail.

• Figure 2.4 in text shows the importance of the marketing mix as an integral part of developing marketing strategy. (Kotler, 2010)

What is a marketing plan?

• A written document that specifies those activities to be performed to implement and control an organization’s marketing activities.

SWOT Analysis

• Internal

- Strengths

- Weaknesses

• External

-Opportunities

-Threats

Any Questions?

Thank you for attending!

See you next week!