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Marketing
What is Marketing?
• You already know a lot about marketing
• Marketing isn’t as easy as you might think– Cons
• Markets are always changing• Competition is always changing• Technology is always changing
• Marketing affects everyone– Individuals, organizations, industries,
countries
What is Marketing?
• According to the American Marketing Association, marketing is:– “An organizational function and a set of
processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
What is Marketing?
• Marketing has to serve both buyers and sellers– Discover wants and needs of potential
customers and satisfy them• Not an easy task• Consumers may not know how to tell you what
they want or need• New products
– ~33,000 consumable products are introduced each year in the US and about 94% don’t make it
What is Marketing?
• Exchange– How do you discover wants and needs? Must
understand the idea of exchange.• Exchange is the trade of things of value between
buyer and seller so that each is better off after the trade
– Doesn’t have to be money that is exchanged• Ex: Donations to non-profit organizations
Marketing – Who?
• Everyone markets• Cities, states, countries, individuals
Marketing – What?
• Goods– Principal objects– Ex: Nissan automobiles
• Services– Intangible items– Ex: Nashville Predators, Nashville Ballet
• Ideas– Thoughts about actions or causes– Ex: Click It or Ticket
Marketing – Who Buys?
• Ultimate consumers– The people who use the goods and services
purchased for a household
• Organizational buyers– Manufacturers, wholesalers, retailers, and
government agencies that buy good or services for their own use or for resale
Marketing – Who Benefits?• Consumers that buy
– Utility is benefits or customer value received by users of the product
• Form Utility – Production or alteration of a good or service– Ex: Granite countertops
• Time Utility – Having a good or service when needed– Ex: 24 hour Walgreens pharmacy
• Place Utility – Having a good or service available where needed
– Ex: Wal-Mart
• Possession Utility – Value of making an item easy to purchase
– Ex: www.amazon.com Recommendations, Others that purchased this, liked this too
Marketing – Who Benefits?
• Organizations that sell
• Society
Marketing Eras – Production Era
• Goods scarce, consumers would buy whatever they could get and make it work
• Marketing was of no concern because goods would pretty much sell themselves
• Lasted through the 1920’s
• Relatively no competition
• Ex: General Mercantile Stores, Ford automobiles
Marketing Eras – Sales Era
• Competition began to grow• Companies realized that they were
producing more products than their customers were buying
• Hire sales force to search out new customers
• Lasted through ~1950-1960’s• Ex: Growth of other car markets, more
stores in same area
Marketing Eras – Marketing Concept Era
• Marketing became important
• Began to focus on consumers needs and wants
• Idea of marketing concept– Organizations should satisfy consumer needs
while achieving the organization’s goals
• 1960’s – present
Marketing Eras – Customer Era
• Strongly emphasize the marketing concept– Market orientation
• Continuously gather information about customer needs• Share information with other departments• All departments use information to create customer value
• Customer Relationship Management (CRM)– Focus on potential customers, completely
understanding, and develop favorable long-term perceptions of the organization and offerings so that buyers will choose them
What Has to Happen for Marketing to Occur?
• Two or more parties (individuals or organizations) with unsatisfied needs
• A desire and ability from these parties to satisfy this need
• A way for the parties to communicate
• Something to exchange
Definitions
• Need– Occurs when a person feels deprived of basic
necessities such as food, clothing, and shelter– After you graduate from college, what new
needs will you have?
• Want– A need that is shaped by a person’s
knowledge, culture, and personality
Definitions
• You are thirsty, therefore you have a need for a drink.
• Based on previous experiences or what you’ve heard, you want a glass of milk.
Ethics
• Can marketing efforts persuade consumers into buying “bad” products or services?
• Government regulation?
Ethics and Social Responsibility Alert
Definitions
• Market– People with the desire and ability to buy a
specific product
• Target Market– One or more specific groups of potential
consumers toward which an organization directs its marketing program
Target Market?
Target Market?
Target Market?
Marketing Mix
• Controllable factors that can be used by a marketing manager to solve a marketing problem
Marketing Mix
• Referred to as the “4 Ps”– Product – Good or service that satisfies
consumers wants or needs– Price – What is exchanged for the product– Place – How the good or service gets to the
consumer– Promotion – The communication between the
buyer and seller
Marketing Mix
Uncontrollable/Environmental Factors
• The organization cannot control these• Sometimes these factors destroy organizations
marketing efforts, sometimes they help• Include
– Social– Economic– Technological– Competitive– Regulatory Forces
Customer Value
• The increase of global competition has many companies trying to find ways to be competitive
• Companies must focus on what they can do for their target market– You can’t win them all
Factors Affecting Marketing Program
Customer Value
• Customer value is the unique combination of benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and before-sale/after-sale services
• Areas that can be focused on:– Price (Dollar General, Wal-Mart, Southwest)– Product (Microsoft, Sony)– Service (Dillard’s, specialty boutiques)– Perception (Lexxus, Tylenol)
Relationship Marketing
• Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
Relationship Marketing
Relationship Marketing
• Low cost product, large stores, advanced technology make relationship marketing difficult
• Internet– www.amazon.com– www.hallmark.com
Marketing Program
• A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
• Doesn’t necessarily mean that the consumer purchases the good or service.
Social Responsibility
• Some ethics issues involve the complete society
• Social Responsibility– Idea that organizations are accountable to a
larger society
Social Responsibility
• Societal Marketing Concept– View that organizations should satisfy the needs
of consumers in a way that provides for society’s well-being
– Directly related to macromarketing • The study of the aggregate flow of a nation’s goods and
services to benefit society
• Broad issues
– Micromarketing• How an organization directs its marketing activities and
allocates its resources to benefit its customers