Transcript Marketing 12e - Pride and Ferrell

Defining Marketing
 Marketing
 The process of creating, distributing, promoting, and
pricing goods, services, and ideas to facilitate
satisfying exchange relationships with customers
in a dynamic environment.
 Practically speaking, what do you think is the most
important aspect of this definition?
 Customers
 The purchasers of organizations’ products; the focal
point of all marketing activities.
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Components
of Strategic
Marketing
What is the focus of marketing?
What can the marketer (not) control?
Why do marketers need to monitor the environment?
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Marketing Focuses on
Customers
 Target Market
 A specific group of customers on whom an
organization focuses its marketing efforts
 Large or small customer groups
 Single or multiple product markets
 Single or multiple products
 Local to global markets
 How would you describe the target
market for championship wrestling?
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Marketing Deals with
Products, Distribution,
Promotion, and Price
 The Marketing Mix
 Four marketing activities—product,
distribution, promotion, and pricing—that a
firm can control to meet the needs of
customers within its target market
Product
Distribution
Promotion
Pricing
Target
Market
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Marketing Mix Variables
Product
Distribution
Goods, services, or ideas that satisfy
customer needs
The ready, convenient, and timely
availability of products
Promotion
Activities that inform customers about
the organization and its products
Pricing
Decisions and actions that establish
pricing objectives and policies and set
product prices
Describe the marketing mix that Baylor is currently employing.
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Marketing Builds
Satisfying Exchange
Relationships
 Exchange: The provision or transfer of goods, services,
or ideas in return for something of value
 What do you give up & what do you get when you go to
a game?
FIGURE 1.26
Marketing Builds
Satisfying Exchange
Relationships (cont’d)
Why don’t some people go to games?
 Exchange Conditions
 Two or more participants have something of
value that the other party desires.
 Each party has confidence in the exchange
value of the other party’s offering.
 Each party must meet the expectations of the
exchange to become trusted by the other parties.
 Exchange provides mutual
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benefit/satisfaction.
Marketing Occurs in a
Dynamic Environment
 Marketing Concept
 A philosophy that an organization should try to
satisfy customers’ needs through a coordinated
set of activities that also allows the organization
to achieve its goals
 Customer satisfaction
 Analysis of customers’ current and long-term needs
 Analysis of competitors’ capabilities
 Integration of firm’s resources
 If a firm is using the marketing concept, what firm activities
does it affect?
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Evolution of the Marketing Concept
Product
Orientation
Late 19th century: efficient production of goods
allowed firms to meet strong customer demand.
Sales
Orientation
Mid-1920s–early 1950s: weakened demand
required that products would have to be “sold.”
(personal selling, advertising, and distribution
was the focus)
Marketing
Orientation
Early 1950s–2000s: adopting a customer focus
means a commitment to researching and
responding to customer needs.
Sports organizations are behind the curve…many still in sales era..
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Implementing the
Marketing Concept
 Becoming marketing oriented requires
 Generation of market intelligence pertaining
to current & future customer needs
 Dissemination of the intelligence across
departments, and
 Organization-wide responsiveness to it.
How do firms generate market
intelligence?
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Managing Customer
Relationships
 Relationship Marketing
 Establishing long-term, mutually satisfying
buyer-seller relationships allowing for
cooperation and mutual dependency
 Increased value of customer (loyalty) over time
results in increased profitability.
 How important is this in determining
where you shop or eat?
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Managing Customer
Relationships (cont’d)
 Customer Relationship Management (CRM)
 Using information about customers to create
marketing strategies that develop and sustain
desirable customer relationships
 Identifying buying-behavior patterns of customers
 Using behavioral information to focus on the most
profitable customers…
 What kinds of information would be critical for
sports marketing organizations to achieve its
CRM objectives?
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Value-Driven Marketing
 Value.…What do fans value about games?
 A customer’s subjective assessment of benefits
relative to the costs in determining the worth of a
product
 Customer value = customer benefits – customer costs
 Customer benefits: Anything desired by the customer that is
received in an exchange
 Customer costs: Anything a customer gives up in an
exchange for benefits
 Monetary price of the benefit
 Search costs (time and effort) to locate the product
 Risks associated with the exchange
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Marketing Management
 Marketing Management
 The process of planning, organizing,
implementing, and controlling marketing
activities to facilitate exchanges effectively
and efficiently
 Effectiveness: The degree to which an exchange helps an
organization achieve its objectives
 Efficiency: The process of minimizing the resources an organization
must spend to achieve a specific level of desired exchanges
 Has anyone seen some poor examples of marketing management
at work in Waco?
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Marketing Management
(cont’d)
Control
 Establishing performance
standards
 Comparing actual performance
to established standards
 Reducing the difference
between desired and actual
performance
 Why is it important to set
objectives?
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Effective Marketing
Control Process
 provides for quick detection of differences in
planned and actual performance.
 accurately monitors activities and is flexible
enough to accommodate changes.
 incurs low process costs relative to the costs of
a “no-control” situation.
 is understandable by both managers and
subordinates.
How should the process of control work in the
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classroom?
The end.
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Percentage of Sales Online
by Retail Segment
Source: Investor’s Business Daily, Wednesday, September 5, 2001, p. A6. Used with Permission.
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Starting Salaries for
College Graduates
Source: American Demographics, December 2000, p. 27. Adapted with permission.
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