welcome to the world of marketing: create and deliver value ch 01 copyright © 2012 pearson...

Welcome to the World of Marketing: Create and Deliver Value

Ch 01Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Objectives

• Understand who marketers are, where they work and marketing’s role in the firm

• Explain what marketing is and how it provides value to everyone involved in the marketing process

• Explain the evolution of the marketing concept

• Understand the range of services and goods that organizations market

• Understand value from the perspectives of customers, producers, and society

• Explain the basics of market planning and the marketing mix tools we use in the marketing process 2

What is Marketing?

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Marketing is about delivering value to everyone who is affected by a transaction

Definition of Marketing

•Definition of Marketing (AMA, 2007)

•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.

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MARKETINGMARKETING

Attempts to meet the needs of… stakeholders

Buyers

Sellers

Investors

General Public

Marketing Meets Needs5

Need Want

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Need: difference between an actual state and an ideal state

Want: desire for a particular product used to meet a need

Needs, Wants, and Benefits

•Needs: Can be physical or psychological

•Wants: Desire to satisfy needs in specific ways

•Benefits: Outcome sought by consumer that satisfies need or want and motivates buying behavior

•Demand: Customers’ desires for products coupled with the resources needed to obtain them

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Want Need9

Marketing ConceptSatisfying consumer needs to ensure long-term profitability. Successful marketers first identify needs and then provide products to satisfy those needs.


Form

Marketing Creates: Utility/Benefits

Place

Time Possession


Marketing and ExchangeMarketing and Exchange


GOODSGOODS PAYMENTPAYMENT

Marketer Customer

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Exchange

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Marketing and Exchange• An exchange occurs when something is obtained for something else in return, like cash for goods or services

• Buyer receives an object, service, or idea that satisfies a need

• Seller receives something of equivalent value

• An “exchange” relationship is at the heart of every marketing act.

• Exchange might not take place EVEN if conditions are met.

• An agreement must be reached.

• Marketing occurs even if exchange does not take place.

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Note: Marketing & Exchange

Production Era

Triple Bottom Line Era

TIMELINE

Sales Era Relationship Era

Evolution of a Concept


Production EraSuited to a sellers’ market where the buyer has to take what is available.

“If you build it they will come…”


http://www.youtube.com/watch?v=7SB16il97yw&feature=relmfu



Sales Era

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What the firm makes Inward looking Disregards market needs/consumer demand Despite the quality of sales force, often cannot convince people to buy what is not wanted/needed

http://www.youtube.com/watch?v=Uundu-aPiBQ

Versus “Relationship or Marketing Focus” What the market wants Outward lookinghttp://www.youtube.com/watch?v=62kxPyN

ZF3Q

Hard-sell approach when product availability exceeds demand



http://www.youtube.com/watch?v=62kxPyNZF3Q

http://www.youtube.com/watch?v=62kxPyNZF3Q

(Market Orientation) Focus on meeting buyers’ needs and wants for the long run

Relationship Era


Focusing on customer wants and needs to distinguish products from competitors’ offerings

Integrating the organization’s activities to satisfy these wants

Achieving the organization’slong-term goals by satisfying customer wants and needs legally and responsibly

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(Societal Orientation) An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.

Focus is on maximizing 3 components:

Triple Bottom Line Era


Financial-profit

Social-communities

Environmental-green

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Products: What are they?


Consumer Goods


Items purchased for personal or family use-- food, beverages, clothing, lessons, cars, haircuts, copy services, etc.

B2B GoodsB2B Goods


Industrial goods such as raw materials or component parts. May also include finished goods sold for resale, or goods and supplies used in operating a business.

Museums, zoos, religious organizations, etc.

Not-for-Profit MarketingCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 21

To the Consumer

To the Seller

Marketing of Value


Value- Factors such as quality, price, convenience, service, etc.

Buyers weigh the importance of each element differently. Marketers need to understand which factors are important to their customers so that they can provide strong value..There is also value to sellers-profit and satisfaction of outperforming competitors and doing a job well.

Competitive Advantage


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A firm’s distinct competency.The ability to provide their customers with a benefit that their competitors cannot.

Netflix developed the convenient mail/return approach to DVD distribution and later online streaming of movies to effectively compete with traditional video rental outlets.

Value Chain


A series of activities involved in designing, producing, marketing, delivering, and

supporting any product

Figure 1.2Steps in the Value Chain

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Value (supply) ChainInbound Logistics

Bring in raw materials

Operations

Make final product

Outbound Logistics

Ship out final product

Marketing/ Sales

Sell the final product

Service

Provide needed

customer support


VALUE

Consumer Generated Value

Give input to product design

Give online reviews

Discuss product on social networking sites

Give online advice

tutorials


Marketing activities influence the world

Society and Value


Marketing can add or subtract value from society. Socially responsible marketing is good business in the long run.

Dark Side of Marketing

Deceptive advertising

Sweatshops, Shoplifting

Addictive consumption


Marketing Is a Process

• Marketing planning is a major portion of the process and involves:• Analyzing the marketing environment • Developing a marketing plan• Deciding on a market segment• Choosing the marketing mix—product, price, promotion, and place

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Figure 1.3The Marketing Mix

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• What the firm uses to create a desired response among its target market

• Referred to as the 4 Ps

• Each of the 4 Ps is a piece of the puzzle needed to successfully market the product

Product


A good, service, idea, place -whatever is offered for sale in the exchange

Price


The amount the consumer must give to receive the product

Promotion


All activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products. Includes advertising, selling, publicity, and sales promotion.

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

…AND finally, the availability of the product to the customer at the desired time and location.

Relates to a supply chain- or firms that work to get products from producers to consumers

welcome to the world of marketing: create and deliver value ch 01 copyright © 2012 pearson...

Documents

marketing exchange slide

prentice hall slide

marketing concept

need slide

marketing process

form marketing

marketing attempts

world of marketing