Transcript Marketers

Chapter 1
Defining
Marketing for
the Twenty-First
Century
PowerPoint by Yu Hongyan
Business School of Jilin University
Course/Text Organization
Part I

Understanding Marketing Management
Part II

Analyzing Marketing Opportunities
Part III

Making Marketing Decisions
Part IV

Managing & Delivering Marketing Programs
Agenda
1. Understand the new economy.
2. Core Concepts of Marketing
3. Marketing Mix
4. Understand the orientations exhibited(ig`zibit)
by companies.
1. The New Economy
Consumer benefits from the digital revolution
include:
Increased buying power.
 Greater variety of goods and services.
 Increased information.
 Enhanced shopping convenience.
 Greater opportunities to compare product
information with others.

1. The New Economy (cont’d)
Firm benefits from the digital revolution
include:
New promotional medium.
 Access to richer research data.
 Enhanced employee and customer
communication.
 Ability to customize promotions.

2. Core Concepts of Marketing
Is it Marketing？
2. Core Concepts of Marketing (cont’d)
Marketing Definition

Marketing is a social
process by which
individuals and group
obtain what they need and
want through creating,
offering, and freely
exchanging products and
services of value with
others
2. Core Concepts of Marketing (cont’d)
American Marketing Association Definition
was adopted August, 2004.
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and
its stakeholders.
2. Core Concepts of Marketing (cont’d)
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
2. Core Concepts of Marketing (cont’d)
Target markets & segmentation
Differences in needs, behavior, demographics
or psychographics are used to identify segments.
 The segment served by the firm is called the
target market.
 The market offering is customized to the needs
of the target market.
 TOYAT1 TOYOTA2

2. Core Concepts of Marketing (cont’d)
Shopping can take place in a:
Marketplace (physical entity, Wal-Mart)
 Marketspace (virtual entity, Amazon)

Metamarkets refer to complementary goods
and services that are related in the minds of
consumers.
Marketers seek responses from prospects.
2. Core Concepts of Marketing (cont’d)
Needs, want and demands

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Needs describe basic human requirements such as
food, air, water, clothing, shelter, recreation,
education, and entertainment.
Needs become wants when they are directed to
specific objects that might satisfy the need. (Fast
food)
Demands are wants for specific products backed by
an ability to pay.
Beer
2. Core Concepts of Marketing (cont’d)
Marketers create need?
Marketers get people to buy things they
don’t want?
Needs preexist marketers
Marketers might promote the idea that a
Mercedes would satisfy a persons’s need for
social status, they don’t , however, create
the need for social status.
2. Core Concepts of Marketing (cont’d)
Product




A product is any offering that can satisfy a need or want
while a brand is a specific offering from a known
source.
The buyer of a drill is really buying a hole
Charley Revson of Revlon observed: in the factory, we
make cosmetics, in the store we sell hope
2. Core Concepts of Marketing (cont’d)
Physical Goods
Service
Benefit
Jetta
Physical Goods:
Service :
Benefit
Any
others????
2. Core Concepts of Marketing (cont’d)
Value and satisfaction

When offerings deliver value and satisfaction to the
buyer, they are successful.
Benefits
Value 
Costs
Functionalbenefits  emotionalbenefit

monetaryC  timeC  energyC  psychicC
2. Core Concepts of Marketing (cont’d)
Exchange


Exchange involves obtaining a desired product from
someone by offering something in return.
Five conditions must be satisfied for exchange to
occur.
2. Core Concepts of Marketing (cont’d)
At Least Two
Parties
Necessary
Conditions
for
Exchange
Something of
Value
Ability to
Communicate
Offer
Freedom to
Accept or Reject
Desire to Deal
With Other Party
2. Core Concepts of Marketing (cont’d)
Relationship Marketing

Relationship marketing aims to build longterm mutually satisfying relations with key
parties, which ultimately results in marketing
network between the company and its
supporting stakeholders.
2. Core Concepts of Marketing (cont’d)
Marketing Channels
Communication
channels
Distribution channels
Service channels
Deliver messages to and
receive messages from
target buyers.
Includes traditional
media, non-verbal
communication, and
store atmospherics.
2. Core Concepts of Marketing (cont’d)
Marketing Channels
Communication
channels
Distribution channels
Service channels
Display or deliver the
physical products or
services to the buyer /
user.
2. Core Concepts of Marketing (cont’d)
Marketing Channels
Communication
channels
Distribution channels
Service channels
Carry out transactions
with potential buyers by
facilitating the
transaction.
2. Core Concepts of Marketing (cont’d)
Supply Chain
A supply chain stretches from raw materials to
components to final products that are carried to
final buyers.
 Each company captures only a certain
percentage of the total value generated by the
supply chain.

2. Core Concepts of Marketing (cont’d)
Four Levels of Competition
Generic competition
Form competition
Industry competition
Brand competition
2. Core Concepts of Marketing (cont’d)
Discussion Scenario



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Suppose that you are a member of the beverages
company
Identify key competitors at each level of competition
COCA COLA
PEPSI
The same segment, similar features, substitutable
Definition, competitors, needs satisfied
2. Core Concepts of Marketing (cont’d)
Forces Impacting the Task Environment
Economics
Demographics
Natural Environment
Legal-Political Environment
Technological Environment
Socio-cultural Environment
2. Core Concepts of Marketing (cont’d)
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
3. Marketing Mix
Figure 1-3:
The Four P Components
of the Marketing Mix
McCarthy
4 Ps and 4 Cs
R.Lauterborn(1990)指出： 4P代表了销售者的观点，即4P是卖方用于影响买方
的有效的营销工具。他提出了4C组合的观点。他认为4C代表了从顾客出发的
观点，即每一个营销工具是用来为顾客提供利益的。并指出销售者的4P组合必
须对应好顾客的4C组合。
Marketing
Mix
Place
Product
Customer
Solution
Price
Customer
Cost
ConvenPromotion Ience
Communication
3. Marketing Mix (cont’d)
Philip Kotler
Talk about 10p’s
4. Company Orientations
The orientation of the firm typically guides
marketing efforts
Production Concept
Product Concept
Selling Concept
Marketing Concept Customer Concept
Societal Marketing Concept
The Marketing Concept

Concept


Achieving organizational goals requires that company be more
effective than competitors in creating, delivering, and
communicating customer value.
Four pillars of the marketing concept:




Target market
Customer needs
Integrated marketing
Profitability
4. Company Orientations (cont’d)
Figure 1-4: The Customer Concept
Review

Marketing is an organizational function and
a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
Review (cont’d)
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
4 Ps and 4 Cs
R.Lauterborn(1990)指出： 4P代表了销售者的观点，即4P是卖方用于影响买方
的有效的营销工具。他提出了4C组合的观点。他认为4C代表了从顾客出发的
观点，即每一个营销工具是用来为顾客提供利益的。并指出销售者的4P组合必
须对应好顾客的4C组合。
Marketing
Mix
Place
Product
Customer
Solution
Price
Customer
Cost
ConvenPromotion Ience
Communication
Review (cont’d)
Marketing concept


Achieving organizational goals requires that company be
more effective than competitors in creating, delivering, and
communicating customer value.
Four pillars of the marketing concept:




Target market
Customer needs
Integrated marketing
Profitability