welcome to the world of marketing: create and deliver value ch 01 copyright © 2012 pearson...
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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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Marketing ConceptSatisfying consumer needs to ensure long-term profitability. Successful marketers first identify needs and then provide products to satisfy those needs.
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Form
Marketing Creates: Utility/Benefits
Place
Time Possession
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Marketing and ExchangeMarketing and Exchange
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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
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Production EraSuited to a sellers’ market where the buyer has to take what is available.
“If you build it they will come…”
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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
(Market Orientation) Focus on meeting buyers’ needs and wants for the long run
Relationship Era
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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
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Financial-profit
Social-communities
Environmental-green
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Consumer Goods
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Items purchased for personal or family use-- food, beverages, clothing, lessons, cars, haircuts, copy services, etc.
B2B GoodsB2B Goods
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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
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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
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A series of activities involved in designing, producing, marketing, delivering, and
supporting any product
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
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VALUE
Consumer Generated Value
Give input to product design
Give online reviews
Discuss product on social networking sites
Give online advice
tutorials
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Marketing activities influence the world
Society and Value
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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
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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
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A good, service, idea, place -whatever is offered for sale in the exchange
Price
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The amount the consumer must give to receive the product
Promotion
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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.