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What is Marketing?

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Marketing

Planning and executing the conception, pricing, and promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

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Five Conditions Exchange Must be at least 2 parties Each party must have something the

other values Each party must be able to

communicate with the other party and deliver the G or S

Each party must be able to accept or reject the other’s offer

Each party must want to deal with the other party

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Marketing Management Philosophies

Production Orientation Sales Orientation Market Orientation Societal Orientation

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Production Orientation Focuses on what the business think

they should make. Production orientation looks at internal

abilities of the firm rather than on the desires & needs of the marketplace.

AKA “Field of Dreams” orientation If we build it, they will come.

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Sales Orientation

People will buy more G & S if aggressive sales techniques are used and that high sales result in high profits.

To sales-oriented firms, marketing means selling things and collecting $.

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Societal Orientation Organization exists to satisfy

customers wants and needs and to meeting organization objectives, but also to preserve or enhance individual’s & society’s long-term best interests.

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Market Orientation States that social & economic

justification for an organization’s existence is the satisfaction of customer wants & needs while meeting organizational objectives.

What customers think they are buying—the perceived value—defines a business.

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Ideas that the social & economic justification for an organization’s existence is the satisfaction of customers wants and needs while meeting organizational objectives.

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Marketing Concept Goals Focus on customer wants & needs

so you can distinguish your G &S from the competition

Integrate all business activities (including production) to satisfy these wants

Achieve long- and short-term goals by satisfying customer wants & needs legally & responsibly

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M. C.—Customer Value Give consumers more than they

expect Avoid unrealistic pricing Give the buyer facts

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M. C.

Customer Satisfaction Feeling that a product has met or

exceeded the customer’s expectations

Building Relationships Forging long-term partnerships with

customers**Relationship Marketing

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Internet & M. C. Customer-Oriented Personnel

Role of Training Employee training in customer service is the

basis of relationship marketing Empowerment

Delegation of authority to solve customers’ problems quickly—usually by the 1st person that the customer notifies.

Teamwork Collaborative efforts of people to

accomplish common objectives

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Customer Value

The ratio of benefits to the sacrifice necessary to obtain those benefits

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Customer Value Requirements

Offer products that perform Give consumers more than they

expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment

in service and after-sales support

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The feeling that a product has met or exceeded the customer’s expectations.

Customer Satisfaction33

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Maintaining Customer Satisfaction

Meet or exceed customer’s expectations

Focus on delighting customers Provide solutions to customer’s

problems

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Relationship Marketing

The name of a strategy that entails forging

long-term partnerships with customers, both individuals and firms.

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Relationship Marketing’s Importance

Attracting a new customer may be

TEN TIMES the cost of keeping

an old customer

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Building Long-Term Relationships

Customer-oriented personnel

Effective training programs

Empowered employees

Teamwork

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Empowerment

Delegation of authority

to solve customers’ problems quickly.

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Learning Objective

Describe the marketing process andidentify the variables that make up

the marketing mix

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Marketing Process Activities

Understand the organization’s missionUnderstand the organization’s mission

Set marketing objectivesSet marketing objectives

Gather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” information

Develop a marketing strategyDevelop a marketing strategy

Implement the marketing strategyImplement the marketing strategy

Design performance measuresDesign performance measures

Evaluate marketing efforts--change if neededEvaluate marketing efforts--change if needed

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SWOT Activity Using the SWOT notes distributed,

select one of the products below and identify each “SWOT” letter for the product.

Jordan “Nike” Sneakers New Era Hat Uggs Name brand pocketbook

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Environmental Scanning

Collection and interpretation of information about forces, events and relationships in the external environment

that may affect the future of the organization or the

marketing plan implementation.

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Environmental Scanning Examination of macroenvironmental forces

SocialDemographicEconomicTechnologicalPolitical / LegalCompetitive

Helps identify market opportunities

Provides guidelines for design of marketing strategy

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Environmental Scanning Activity

Social—values of potential customers & the changing roles of families & women working outside the home.

Demographic—ages, birth & death rates, & locations of various groups of people

Economic—Changing incomes, inflation, & recession

Technological—Advanced communications & data retrieval capabilities

Political & legal—changes in laws & regulatory agency activities.

Competitive—Domestic & foreign-based firms

Using the information below create examples of each bullet.

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A unique blend of

product, distribution, promotion, and pricing strategies designed to

produce mutually satisfying exchanges with a target

market.

The Marketing Mix44

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PricePrice

Marketing Mix: The “Four Ps”

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PromotionPromotion

PlacePlace

ProductProduct

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Product Strategies

ProductProduct

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The starting point of the “4 Ps”

Includes physical unit, package, warranty, service, brand, image, and value

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Distribution (Place) Strategies

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PlacePlace

Product availability where and when customers want them.

Involves all activities from raw materials to finished products

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Promotion Strategies44

PromotionPromotion

Role is to bring about exchanges with target markets

Includes integration of 1. personal selling,2. advertising, 3. sales promotion, 4. public relations

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Pricing Strategies44

PricePrice

The most flexible of the “4 Ps”

Price X Units Sold = Total Revenue

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Pricing Strategies Cost-based—Cost to make + what

you want to make Demand-based—find out what your

customers are willing to pay Competition-based—base your

price on your competition.

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Learning Objective

Describe several reasonsfor studying marketing.

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Why Study Marketing? Plays an important role in society

Vital to business survival, profits and growth

Offers career opportunities

Affects your life every day

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Why Study Marketing?

“Marketing is too important to be left to the

marketing department.”

--David Packard Hewlett-Packard

“Marketing is too important to be left to the

marketing department.”

--David Packard Hewlett-Packard

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1/4th to 1/3rd of the entire civilian workforce in the U.S. performs marketing activities

Fastest route up the corporate ladder

• Professional Selling

• Marketing Research

• Advertising

• Retail Buying

• Distribution Management

• Product Management

• Product Development

• Wholesaling

• Professional Selling

• Marketing Research

• Advertising

• Retail Buying

• Distribution Management

• Product Management

• Product Development

• Wholesaling

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Half of every dollar spent by consumers pays for marketing costs

Become a better-informed consumer

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