Transcript Chapter 1: What is Marketing?

What is Marketing?
Chapter 1
Marketing Overview
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Marketing- “The process of planning and
executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create exchanges
that satisfy individual and organizational
objectives.”
How does Marketing Work within
an Organization?
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Marketing function
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Marketing & Management
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Budget-setting
Marketing & Information
Systems
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Goal-setting
Marketing & Finance
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Communication with Customers
RFID, GPS, etc.
Marketing & Production
Source: shop.mlb.com
Source: www.spellbrand.com
Source: www.makeaball.com
Source: www.gadgetgizmoo.com
Pre-existing Marketing Condition
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Two or more parties
A desire and ability to satisfy these needs
A way for parties to communicate
Something to exchange
Marketing Formula
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Find out what customers need and wantthen give it to them!
Discovering Needs
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Needs v. Wants
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Need- Physiological necessities.
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Examples:
Want- “A felt need that is shaped by a person’s
knowledge, culture, and personality.”
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Examples:
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Which do we sell to?
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Is creating a “need” ethical?
Discovering Needs
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Market- Group of people who
have the desire and ability to
buy a specific product.
 Are college students a
good market for
Lamborghinis?
Market research must be
conducted in order to discover
the viability of markets and
choose target markets.
 Examples:
Satisfying Customer Needs
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Once the marketing department gathers
the necessary information, it is ready to
decide upon target markets.
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Target market- “One or more specific groups
of potential consumers toward which an
organization directs its marketing program.”
Satisfying Needs
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Now that the target market has
been selected, the marketers
must consider factors that will
influence purchasing decisions in
that market.
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Controllable
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Marketing Mix
Uncontrollable
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Environmental Forces
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Social
Economic
Technological
Competitive
Regulatory
Marketing & Customer
Relationships
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Customer Value- “Unique combination of
benefits received by targeted buyers that
includes quality, price, convenience, ontime delivery, and both before-sale and
after-sale service.”
Relationship Marketing
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Supply Chain Management (SCM)
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Involve “partners” through integrated systems
Reduces costs
Prevents duplication of effort
Relationship Marketing
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SCM Example
Manufacturer
Wholesaler
Retailer
Consumer
Marketing Program
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A marketing plan integrates the marketing
mix to provide a good, service, or idea to
buyers in a particular segment.
The History of Marketing
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Production Era (1800’s-1930’s)
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“Products sell themselves”
Sales Era (1920’s-1960’s)
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Overproduction led to the hiring of as many
salespeople as possible
The History of Marketing
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The Marketing Concept Era (1955-1990’s)
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An organization should strive to meet
consumer needs, while trying to achieve
organizational goals.
Implement marketing ideas throughout the
marketing process, from beginning to end.
The History of Marketing
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The Market Orientation Era (1990’sPresent)
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Larger in scope
Firms with market orientation:
Continuously collect information on competition and
customers
 Share information throughout the company
 Use information to create customer value
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..and Finally
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Buyers may not be the final users
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Ultimate consumers vs. organizational buyers
Everyone benefits from marketing
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Consumers gain utility and choice
Organizations become profitable
Society benefits from lower prices and better
products