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Lecture One:

Introduction to Marketing

Veronica Mak

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W at smarketing?

• Is Advertising = Marketing  ?

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W at smarketing?

• Marketing is a social andmanagerial process by whichindividuals and organizations

obtain what they need and want through creating and exchanging products and value with others.

 

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Marketing

• Goals:• Attract new customers b promising

superior value

• !eep and grow current customers bdelivering satis"action

1-4

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#orms o" Marketing

1-5

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$ %teps o" the Marketing &rocess

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%tep '( )*+,-%.A*+I*G ./,MA-!,.&LA0, A*+ 0)%.OM,-*,,+%

1-!

$ %teps o" the Marketing &rocess

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Marketofferings:Products,

services,ideas,

informationand  

experiences

Value [quality,service and price]  

and satisfaction[expectation] 

Needs, wants,and demands

Exchange,and relationships

[Customer equity] 

Markets

CoreMarketingConcepts

CoreMarketingConcepts

0ore customer and marketplace concepts

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 Maslow’s

 Hierarchy of Needs

I need food.

I wantMcDonald.

The market

demand fast food

chain.

*eeds1 Wants Vs +emand

.

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0ustomer *eeds1 Wants1and +emands

1-10

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Market O2erings3&roducts1%ervices1 and ,4periences

• *ot limited tophsicalproducts

• Include entitiessuch aspersons 1places 1

organi5ations1in"ormation1and ideas

•  .o satis" need

or want

 .he )(%( #orest %ervice markets

the idea o" reconnecting oungpeople with e4ploring the 6os o"

nature 7rsthand

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0ustomer Value and%atis"action

• 0ustomers "orm e4pectations aboutthe value and satis"action thatvarious market o2erings will deliver

• I" marketers set e4pectations too low1the ma satis" those who bu but "ailto attract enough buers

• I" marketers set e4pectations too high1buers will be disappointed

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,4changes and-elationships

• Exchange: .he act o" obtaining adesired ob6ect "rom someone bo2ering something in return

• Relationshis• Marketing actions build and maintain

e4change relationships with target

audiences involving an idea1 product1service1 or other ob6ect

• Marketers build strong relationships bconsistentl delivering superior

customer valueCopyright 2013, Pearson Education 1-14

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• 8( +,%IG*I*G A 0)%.OM,-9+-IV,*MA-!,.I*G %.-A.,G

1-1

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+esigning a 0ustomer9+rivenMarketing %trateg

• +esigning a winningmarketing strategre;uires answers to

the "ollowing;uestions:• What customers will

we serve <what=s our 

target market>?• /ow can we serve

these customers best<what=s our value

roosition>?Copyright 2013, Pearson Education 1-1!

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%electing 0ustomers to%erve

• Market segmentation 9 +ividing themarket into segments o" customers

•  .arget marketing 9 %electing one ormore segments to cultivate

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0hoosing a Value&roposition

• !alueroosition: .heset o" bene"ts or

values a companpromises to deliverto consumers tosatis" their needs

• Value propositionsdiferentiate onebrand "romanother(

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0hoosing a Value&roposition

• #acebook  helpsou connect andshare with the

people in our li"e@•  $outube providesa place "or peopleto connect1 in"orm1

and inspire othersacross the globe(@

• What=s ne4t?

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+esigning a 0ustomer9+rivenMarketing %trateg

• %electing customers to serve

• 0hoosing a value proposition

• Marketing management orientations• %roduction concet

• %roduct concet

• &elling concet

• Marketing concet• &ocietal marketing concet

1-22

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#igure '( 9 .he %elling andMarketing 0oncepts 0ontrasted

1-23

#i ' B .h 0 id i

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#igure '(B 9 .hree 0onsiderations)nderling the %ocietal Marketing

0oncept

1-24

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 .he %ocietal Marketing0oncept

• A compan=s marketing decisionsshould consider consumer=s wants1the compan=s desires1 consumers=

long9run interests and societ=s long9run interests

• '%&

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( %RE%ARI() A( I(*E)RA*E+MAR,E*I() %-A( A(+ %R)RAM

1-2

& i I t t d

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&reparing an IntegratedMarketing

&lan and &rogram• Marketing mi4 tools• &roduct

• &rice

• &lace <+istribution>

• &romotion

•  .he 7rm must blend each marketing

mi4 tool into a comprehensiveintegrated marketing program

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In90lass ,4ercise

In a group o" $9'C1 discuss the ad interms o" :

•7ve core marketplace concepts• what are the customers/ need and

want?

• What are the products <market o2erings>

• What are the value created ande4changed?

• /ow do the compan capturecustomers= value

1-2"

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0.1'I-+I() 2'&*MERRE-A*I(&3I%&

1-2#

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0ustomer %atis"action

• #or companiesinterested indelighting

customers1e4ceptionalvalue andservice becomepart o" theoverall companculture

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.he 0hanging *ature o"

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 .he 0hanging *ature o"0ustomer

-elationships'( -elating with more care"ullselected customers

8( -elating more deepl and

interactivel

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#igure '($ 9 0ustomer-elationship Groups

1-35

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0ustomer -elationships

• Loalt andretentionprograms to

buildrelationshipsinclude• #re;uenc

marketingprograms

• 0lub marketingprograms

 DetElue Airwas o2ers its .rueElue members "re;uent9Fer points the can use onan seat on an DetElueFight with no blackout dates

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.he 0hanging *ature o"

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 .he 0hanging *ature o"0ustomer

-elationships• 2ustomerro"tabilityanalysis 

eliminates losingcustomers andselects pro7tableones with whomrelationshipsshould bedeveloped

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0hanging *ature o"-elationships

• #irms interact withcustomers usingnew technologies

such as socialnetworking1e9mail1 Web sites1blogs1 cell phones1

and video sharing• 2ustomer4managedrelationshi

0old %tone 0reamer uses avariet o" social media toengage customers on a morepersonal1 interactive level

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0ustomer -elationship

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0ustomer -elationshipLevels

and .ools

1-3#

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0ustomer9,ngagementMarketing

• 0ustomer9engagement marketinginvolves "ostering direct and continuouscustomer involvement in shaping brand

conversations1 e4periences1 andcommunit(

• Greater consumer empowerment meansthat companies should rel on

marketing b attraction(•  .he ke is to 7nd was to enter

consumers= conversations withengaging and relevant brand messages(

1-40

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 Relationshi

0onsumer9Generated

Marketing• Erand e4changescreated bconsumers b

which consumerspla anincreasing role inshaping their

own brande4periences andthose o" otherconsumers

/arnessing consumer9generatedmarketing: /( D( /ein5 invitedconsumers to submit homemadeads "or its ketchup brand on ou.ube

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l i hi

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&artner -elationshipManagement

• Working closel with others insideand outside the compan to 6ointlbring more value to customers

• &artners inside the 7rm:• 0ross9"unctional teams

• &artners outside the 7rm:

• %uppl chain and channel partners

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0 i V l #

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0apturing Value #rom0ustomers

• %uperiorcustomer valueleads to highl

satis7ed loalcustomers whobu more

$te% Leonard&s custo'er ser(ice po)icye'phasi*es the i'portance o+ ringing

custo'ers ac to the stores +or repeat

sa)es

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%hare o" 0ustomer

• &ortion o" the customer=s purchasingthat a compan gets in its productcategories

• Increased b:• /aving good customer relationship

management

• O2ering greater variet to currentcustomers

• 0reating programs to cross9sell and up9sell to market more products and

services to e4isting customers 1-45

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0ustomer ,;uit

•  .otal combined customer li"etimevalues o" all o" the compan=scurrent and potential customers

• /elps to measure the "uture value o"the compan=s customer base

• Increases when the loalt o" the

7rm=s pro7table customers increases• Eetter measure o" a 7rm=s

per"ormance than current sales ormarket share

1-4

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0ustomer ,;uit

1-!"

 .o increase customer li"etimevalueand customer e;uit1 0adillacneeds to make the 0add coolagain btargeting a ounger

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In90lass ,4ercise

In a group o" $9'C1 discuss the ad interms o" :

•Identi" the ke elements o" a

customer9driven marketing strategand discuss the marketingmanagement orientations that guide

marketing strateg(

1-4"

.h 0h i M k i L d

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Emerging

Challenges

Emerging

Challenges

Growth of NonprofitMarketing [ASPCA]

ChangingEconomicEnvironment

[UNIQLO],

The Digital Age[Obama, 

Consumer-generated

marketing]

RapidGlobalization#$tar%uckMc&onaldCusto'er-

'anagedre)ationshipsSustainable Marketing

[Patagonia? McDonald?]

 .he 0hanging Marketing Landscape