Marketing is NOT Easy

WHAT IS MARKETING?LO1

You Are a Marketing Expert Already

• Involved in 1,000s of Buying Decisions

• May Be Involved in Selling Decisions

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What is MARKETING?What is MARKETING?

“… the activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large”

• discover needs & wants of prospective customers, and

• satisfy those needs & wants

WHAT IS MARKETING?DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES

LO1

The Organization Itself and Its Departments

Society

Environmental Forces

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FIGURE 1-2FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces

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Parties withunsatisfied needs

Desire and abilityto be satisfied

Way for partiesto communicate

Somethingto exchange

What is needed for MARKETING to happenWhat is needed for MARKETING to happen

HOW MARKETINGDISCOVERS CONSUMER NEEDS

THE CHALLENGE: NEW PRODUCTSLO2

Consumers May Not Know or Cannot Describe What They Need or Want

Most New Products Fail

• “Focus on the Consumer Benefit”

• “Learn From the Past”

Strategies to avoid new product failure:

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Need Want

Does Marketing PersuadePeople to Buy the“Wrong” Things?

Market

HOW MARKETINGDISCOVERS CONSUMER NEEDS

NEEDS VS. WANTS

LO2

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FIGURE 1-3FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program

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HOW MARKETINGSATISFIES CONSUMER NEEDS

LO3

• Promotion

• Place

Target Market

The 4 Ps: Controllable Marketing Mix Factors

• Product

• Price $499

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HOW MARKETINGSATISFIES CONSUMER NEEDS

LO3

• Technological

• Regulatory

Uncontrollable Environmental Forces

• Social

• Economic

• Competitive

Customer Value Proposition

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THE MARKETING PROGRAMCUSTOMER VALUE AND RELATIONSHIPS

LO4

• Best Price • Best Service

Customer Value

• Best Product

Value Strategies

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HOW MARKETING BECAME IMPORTANTBREADTH AND DEPTH OF MARKETING

LO5

Who Markets?

What Is Marketed?

• Products(Goods)

• Services • Ideas

Hermitage

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HOW MARKETING BECAME IMPORTANTBREADTH AND DEPTH OF MARKETING

LO5

Who Benefits?

Who Buys & Uses What Is Marketed?

• Ultimate Consumers

• Organizational Buyers

How Do Consumers Benefit?: Utility

• Form Utility

• Place Utility

• Time Utility

• Possession Utility1-14

Marketing

Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders,and society at large.

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Exchange

Exchange is the trade of thingsof value between buyer and seller so that each is better off after the trade.

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Market

A market consists of people with both the desire and the ability to buy a specific offering.

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Target Market

A target market consists ofone or more specific groups of potential consumers towardwhich an organization directs its marketing program.

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Marketing Mix

The marketing mix consists of the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

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Customer Value Proposition

Customer value proposition is the cluster of benefits that an organization promises customers to satisfy their needs.

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Environmental Forces

Environmental forces consist of the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

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Customer Value

Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-saleand after-sale service at aspecific price.

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Relationship Marketing

Relationship marketing linksthe organization to its individual customers, employees, suppliers, and other partners for theirmutual long-term benefits.

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Marketing Program

A marketing program is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

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Marketing Concept

A marketing concept is theidea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

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Market Orientation

A market orientation occurs when an organization focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.

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Societal Marketing Concept

Societal marketing concept is the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

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Product

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

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Ultimate Consumers

Ultimate consumers consist of the people who use the goodsand services purchased for a household. Also called consumers, buyers, or customers.

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Organizational Buyers

Organizational buyers arethose manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

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Utility

Utility consists of the benefits or customer value received by users of the product.

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