buad 307—marketing fundamentals
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BUAD 307—MARKETING FUNDAMENTALS. MARKETING OVERVIEW. Learning Objectives. Understanding The scope and basic objectives of the marketing function Customer value Relationship marketing. 2007 American Marketing Association (AMA) Definition. - PowerPoint PPT PresentationTRANSCRIPT
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BUAD 307—MARKETING FUNDAMENTALS
MARKETING OVERVIEW
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Perner 2BUAD 307OVERVIEW AND STRATEGY
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Perner 3BUAD 307OVERVIEW AND STRATEGY
Learning Objectives
• Understanding– The scope and basic objectives of
the marketing function
– Customer value
– Relationship marketing
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Perner 4BUAD 307OVERVIEW AND STRATEGY
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!
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Perner 5BUAD 307OVERVIEW AND STRATEGY
MARKETING
ACTIVITY PROCESSESINSTITUTIONS
CREATION COMMUNICATION DELIVERY EXCHANGE
OFFERINGS VALUE
CUSTOMERS
CLIENTS
PARTNERS
SOCIETY
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Perner 6BUAD 307OVERVIEW AND STRATEGY
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)
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Perner 7BUAD 307OVERVIEW AND STRATEGY
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
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Perner 8BUAD 307OVERVIEW AND STRATEGY
Value
• Benefits—examples– Convenience
• In delivery
• In usage
– Reliability– Durability– Performance– Style/aesthetics– Prestige– Service component
• Costs—examples– Money
– Time
– Risk
COSTRECEIVED BENEFITS
VALUE
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Perner 9BUAD 307OVERVIEW AND STRATEGY
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
• Note that a high price product may be a good value to the customer even if a high price is paid if the perceived benefits received are higher
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Perner 10BUAD 307OVERVIEW AND STRATEGY
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
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Perner 11BUAD 307OVERVIEW AND STRATEGY
Example of Customer Value: Tivo
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Perner 12BUAD 307OVERVIEW AND STRATEGY
Customer Value: Ziploc Bags
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Perner 13BUAD 307OVERVIEW AND STRATEGY
Customer Value: iPad
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Perner 14BUAD 307OVERVIEW AND STRATEGY
Customer Value: Shellac
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Perner 15BUAD 307OVERVIEW AND STRATEGY
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Perner 16BUAD 307OVERVIEW AND STRATEGY
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Perner 17BUAD 307OVERVIEW AND STRATEGY
Customer Value: Soda Vending
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Perner 18BUAD 307OVERVIEW AND STRATEGY
Customer Value: Starbucks
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Perner 19BUAD 307OVERVIEW AND STRATEGY
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
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Perner 20BUAD 307OVERVIEW AND STRATEGY
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