Transcript Consumers Rule - Lampung University

Welcome to the
World of Marketing
Creating and
Delivering Value
1.
Chapter Objectives
who are marketers?
1.
2.
where they work,
marketing’s role
1.
2.
in the firm
Explain marketing
2
Chapter Objectives
1.
2.
Marketing’s value
1. to everyone involved in the
marketing process
range of services & goods
3
Chapter Objectives
1.
Understand value
1. Re: customers, producers,
and society
2.
marketing planning
4
Chapter Objectives
1. marketing mix tools
1. Product/price/promotion &
2. Place (distribution)
2.
evolution of the
marketing concept
5
CHAPTER CONCEPTS
6
Welcome to a Branded World
“Brand You”

You are a product

You have “market value”

as a person
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Welcome to a Branded World
“Brand You”

You “position” yourself for a job

Don’t “sell yourself short”

You package & promote yourself
8
Who & Where of Marketing

Marketers:

Are real people

who make choices that affect
themselves,
 their companies, &
 millions of consumers

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Who & Where of Marketing

Marketers:

Work cross-functionally


within the firm
Enjoy exciting, diverse careers
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The Value of Marketing

Definition of marketing (AMA, 2004)
An organizational function
 and a set of processes
 for creating, communicating,
and delivering


value to customers
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The Value of Marketing

Definition of marketing (AMA, 2004)

and manages customer relationships

in ways that
benefit the organization
 and its stakeholders

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Marketing = Meeting Needs

stakeholders
Buyers,
 sellers,
 investors,
 community residents,
 citizens

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Marketing = Meeting Needs

Marketing concept
 Identifying consumer needs
&
 providing products that
satisfy those needs
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Marketing = Meeting Needs

The modern marketplace
a mall,
 mail-order catalog,
 a TV shopping network,
 an eBay auction,
 or an e-commerce Web site

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Marketing =Creating Utility

Utility: the sum of the benefits we
receive from using a product/service
Form utility
 Place utility
 Time utility
 Possession utility

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Marketing Is about
Exchange Relationships

An exchange occurs when something
is obtained for something else in
return,



like cash for goods or services
Buyer receives product that satisfies need
Seller receives something of equivalent value
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The Evolution of Marketing
The
 The
 The
 The

Production Era
Selling Era
Consumer Era
New Era
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The Production Era

Focus = most efficient ways to make
and distribute products,


like Henry Ford’s Model T & Ivory soap
Marketing plays an insignificant role
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The

Focus = one-time sales of goods


Selling Era
rather than repeat business
Marketing = a sales function
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The
Consumer Era

Focus = satisfying customers’
needs and wants
Marketing = more important

Total Quality Management (TQM)


widely followed in marketing community
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The New Era: Profits & Ethics

Focus = building long-term bonds


with customers.
Marketing uses customer relationship
management (CRM)


to track consumers’ preferences
tailor value proposition to each individual
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The New Era:
Focusing on Social Benefits

Social marketing concept:


satisfy customers’ needs and
also benefit society


Sustainability:


meeting present needs and
ensuring future generations can meet their needs
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The New Era:
Focusing on Accountability
•

Measuring how much value is created by
marketing activities
ROI (Return on Investment)

direct financial impact of firm’s expenditure of
resources

such as time or money
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What Can Be Marketed?
From serious goods and services
to fun things
 Goods and services


mirror changes in popular culture
Marketing messages

may communicate myths of a culture
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What Can Be Marketed?
Product: any good, service, or idea
Consumer goods/services
 Business-to-business goods/services
 Not-for-profit marketing
 Idea, place, and people marketing

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The Marketing of Value
Value:
 the benefits a customer receives
 from buying a good or service

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The Marketing of Value
Marketing communicates the value
proposition:
a marketplace offering that
fairly and accurately sums up the value
that the customer will realize
if he/she purchases product/service
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Value from the Customer’s
Perspective
ratio of costs to benefits

The

Value proposition includes:
whole bundle of benefits
 the firm promises to deliver,


not just the benefits of the product itself
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Value : Seller’s Perspective

takes many forms:
Making a profitable exchange
 Earning prestige among rivals
 Taking pride in doing what a company
does well
 Nonprofits:


motivating, educating, or delighting the public
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Calculating the Value of a
Customer

Single transactions


don’t provide companies with value they desire
Lifetime value of a customer:


How much profit a company expects from ONE
customer’s purchases now and in the future
WalMart: LTV = $250,000
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Providing Value to
Stakeholders

Competitive advantage:

ability of a firm to outperform the
competition

by providing customers with a benefit

the competition cannot provide
32
Adding Value through
the Value Chain


a series of activities
involved in designing, producing,
marketing, delivering, and supporting
any product
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Adding Value through
the Value Chain

a series of activities:
 Inbound logistics
 Operations
 Outbound logistics
 Marketing final product
 Service
34
Consumer-Generated Value:
From Audience to Community


Everyday people generating value
instead of just buying it

People functioning
 in marketing roles:
 creating ads,
 providing input into new products, or
 serving as retailers
35
Value: Society’s Perspective

How marketing transactions


add or subtract value from society
Stressing ethics/social responsibility

is good business in long run
36
The Dark Side of Marketing
* Marketers

Illegal activities


such as “bait and switch”
Products that encourage antisocial
behavior
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The Dark Side of Marketing
*Consumers
Terrorism
 Addictive consumption
 Exploited people
 Illegal activities
 Shrinkage
 Anticonsumption

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
Marketing as a Process
Marketing planning:
Analyzing the marketing environment
 Developing a marketing plan
 Deciding on a market segment
 Choosing the marketing mix –

product,
 promotion,

price,
place
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THE END
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Keeping It Real:
Fast-Forward to Decision
Time at Qode



Meet Rick Szatkowski of NeoMedia
Technologies
Qode links your cell phone to the Web
when you enter a keyword or click a
SmartCode.
Example: A code on a movie poster
plays a trailer for the movie
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Chapter case study
Ron Jon’s Surf Shop
See handout

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Ron Jon Surf Shop, Inc.
How to advertise Ron Jon’s at
airports?
Option 1: rental car advertising
 Option 2: wall-mounted backlit
photographs (dioramas)
 Option 3: escalator “gateways”

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How It Worked Out
at Ron Jon Surf Shop
Bill choose option 2: wall-mounted
backlit photographs (dioramas)
Opened a small store in the Orlando
Airport adjacent to the very busy food
court
 Surf and sales are up at Ron Jon!

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