Transcript What Is Marketing?

Chapter One
Marketing: Managing Profitable
Customer Relationships
Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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What Is Marketing?
Simple Definition:
Marketing is managing profitable
customer relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
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Marketing Defined
 A social and managerial process by
which individuals and groups obtain
what they need and want through
creating and exchanging products and
value with others.
OLD View
of Marketing:
Making a Sale –
“Telling & Selling”
NEW
New View
View
of
ofMarketing:
Marketing:
Satisfying
Satisfying
Customer
customerNeeds
needs
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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The Marketing Process
 A simple model of the marketing process:
– Understand the marketplace and customer needs
and wants.
– Design a customer-driven marketing strategy
(4 Ps – Marketing Mix).
– Construct a marketing program that delivers
superior value.
– Build profitable relationships and create customer
delight.
– Capture value from customers to create profits
and customer quality.
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Needs, Wants, & Demands
 Need:
State of felt deprivation including
physical, social, and individual needs.
– Physical needs:
• Food, clothing, shelter, safety
– Social needs:
• Belonging, affection
– Individual needs:
• Learning, knowledge, self-expression
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Needs, Wants, & Demands
 Wants:
Form that a human need takes, as
shaped by culture and individual
personality.
 Wants + Buying Power = Demand
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Need / Want Fulfillment
 Needs and wants are fulfilled through a
Marketing Offer:
Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.
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Need / Want Satisfiers
 Products:
– Persons
– Places
– Organizations
– Information
– Ideas
 Services
– Activity or benefit
offered for sale
that is essentially
intangible and
does not result in
ownership.
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Marketing Myopia
 Marketing myopia occurs when sellers
pay more attention to the specific
products they offer than to the benefits
and experiences produced by the
products.
 They focus on the “wants” and lose
sight of the “needs.”
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Value & Satisfaction
 Care must be taken when setting
expectations:
– If performance is lower than expectations,
satisfaction is low.
– If performance is higher than expectations,
satisfaction is high.
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Exchange vs. Transaction
 Exchange:
– Act of obtaining
a desired object
from someone
by offering
something in
return.
 Transaction:
– A trade of
values between
two parties.
– One party gives
X to another
party and gets Y
in return. Can
include cash,
credit, or check.
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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What Is a Market?
 The set of actual and potential buyers
of a product.
 These people share a need or want that
can be satisfied through exchange
relationships.
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Modern Marketing Systems
 Main elements in a modern marketing
system include:
– Suppliers
– Company (marketer)
– Competitors
– Marketing intermediaries
– Final users
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Lecture Plan
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Marketing Management
 The art and science of choosing target
markets and building profitable
relationships with them.
– Requires that consumers and the
marketplace be fully understood
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Marketing Management
 Designing a winning marketing
strategy requires answers to the
following questions:
1. What customers will we serve?
What is our target market?
2. How can we best serve these
customers?
What is our value proposition?
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Marketing Management
 Demand
Management
– Finding and
increasing
demand, also
changing or
reducing
demand, as in
demarketing.
 Demarketing
– Temporarily or
permanently
reducing the
number of
customers or
shifting their
demand.
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Lecture Plan
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9.
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Value Proposition
 The set of benefits or values a
company promises to deliver to
consumers to satisfy their needs.
– Value propositions dictate how firms will
differentiate and position their brands in
the marketplace.
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Lecture Plan
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4.
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9.
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What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
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Marketing Management
Philosophies
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
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The Marketing Plan
 Transforms the marketing strategy into
action
 Includes the marketing mix and 4 P’s of
marketing:
– Product
– Price
– Place (Distribution)
– Promotion
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