Transcript THE CHANGE IN MARKETING

What is Marketing?
Professor Chip Besio
Cox School of Business
Southern Methodist University
What Is Marketing?
 Advertising?
 Selling?
 Sales
promotion?
What Is Marketing?
 Marketing
is [the] “process by
which individuals and groups
obtain what they need and want
through creating, offering, and
exchanging products of value with
others [Italics mine].”
***Philip Kotler
What Is Marketing?
 Marketing
is so basic that it cannot be
considered a separate function. It is
the whole business seen from the point
of view of its final result, that is, from
the customer’s point of view [Italics
mine].
***Peter Drucker
The Evolution of Marketing
 Production
 Sales
orientation
orientation
 Marketing
orientation
Production
Orientation
Persuade customer to
want what firm has
Marketing
Orientation
Persuade firm to
have what the
customer wants
Generic
Product
Differentiated
Lowest Cost
Competitive
Advantage
Quality and
Volume,
Margins
Objectives
Market Position,
Customer
Satisfaction
Short-term
Time Horizon
Long-term
Service
What Is Marketing?
Core Concepts
Needs, wants,
and demands
Products
and
Services
Markets
Exchange,
transactions,
and relationships
Value,
satisfaction,
and quality
Source: Prentice Hall
The Marketing Concept

Focus on customers’ needs and wants

Orient activities of the firm toward them

Achieve long-term goals by offering
customer value, generating customer
satisfaction and developing relationships
with customers
Adapted from Prentice Hall
What Motivates Consumers?
 Needs
- state of felt deprivation for basic
items such as food and clothing and
complex needs such as for belonging
“I am thirsty”
 Wants - form that a human need takes as
shaped by culture and individual
personality. “I want a Coca-Cola”
 Demands - human wants backed by
buying power
“I can buy a Coca-Cola”
Adapted from Prentice Hall
This Is a Need
Needs - state of felt
deprivation
including physical,
social, and
individual needs.
This Is a Want
Wants - form that
a human need
takes, as
shaped by
culture and
individual
personality.
This Is Demand
Wants
Buying Power
“Demand”
Need / Want Fulfillment

Needs and Wants
Fulfilled through a
Marketing Offer :

Some combination of
products, services,
information, or
experiences offered to a
market to satisfy a need
or want.
What Satisfies Consumer’s
Needs and Wants?
 Products
- anything  Services - activities
that can be offered to or benefits offered
a market for attention, for sale that are
acquisition, use or
essentially
consumption and that intangible and don’t
might satisfy a need or result in the
want
ownership of
anything
 Examples: food,
electronics, cars,
 Examples: banking,
jewelry, clothing, and
airlines, haircuts,
machinery
and hotels
Adapted from Prentice Hall
How Consumers Choose
Products and Services
Customer
Value - benefit that the
customer gains from owning and
using a product compared to the cost
of obtaining it
Customer Satisfaction - depends
on the product’s perceived
performance in delivering value
relative to a buyer’s expectations
Source: Prentice Hall
How Consumers Obtain
Products and Services
 Exchanges
and Transactions - trade
of values between parties, usually
involving money
 Development
of Relationships building long-term relationships with
consumers, distributors, dealers, and
suppliers
Source: Prentice Hall
The Marketing Concept -Major Goals
By:
 focusing on satisfying consumer needs and
wants
 generating customer value and satisfaction
 developing relationships with customers
 The result:
The firm creates a sustainable
competitive advantage over its rivals
Emerging Challenges for
Marketers
Information
Technology
Nonprofit
Marketing
Ethical
Concerns
Globalization
Changing
World
Economy
Source: Prentice Hall
Marketing Mix -- The Four P’s
RICE
ROMOTION
LACE
RODUCT
The Marketing Mix - Product
 Product
line breadth and depth
 Product characteristics (e.g., quality,
features, design, reliability)
 Brand
 Packaging
 Services
 Return and/or warranty policies
The product is much more than the
tangible item that the customer sees
The Marketing Mix - Price
 List
price
 Discounts
 Bundling
 Terms (e.g., 2/10, net 30)
 Credit
Price includes the tools that determine
how much and when the customer pays
The Marketing Mix - Promotion
 Advertising
 Sales
promotion
 Direct marketing
 Public relations
 Personal selling
 Promotion (what many people commonly think of
as marketing) includes all communications with
potential customers that are intended to influence
their attitudes, beliefs and purchase decisions
The Marketing Mix - Place
 Shelf
location
 Display
 Inventory
 Distribution channels
 Transportation
 Territory or coverage
Place involves how and when the
customer gets the product
Marketing Mix - Summary
Marketers have many more tools at
their disposal to achieve company
objectives than you might have
thought