Transcript Consumers Rule

Welcome to the World of
Marketing
Creating and Delivering
Value
Chapter Objectives
1.
2.
3.
4.
5.
6.
Understand who marketers are, where they work,
and marketing’s role in the firm
Explain what marketing is and how it provides
value to everyone involved in the marketing
process
Understand the range of services and goods that
are marketed
Understand value from the perspectives of
customers, producers, and society
Explain the basics of marketing planning and the
marketing mix tools used in the marketing process
Explain the evolution of the marketing concept
2
Real People, Real Choices: Decision
Time at Ron Jon Surf Shop, Inc.
How to advertise Ron Jon’s at airports?
 Option 1: rental car advertising
 Option 2: wall-mounted backlit photographs
(dioramas)
 Option 3: escalator “gateways”
3
Welcome to a Branded World
“Brand You”
• You are a product and have “market value” as
a person
• You “position” yourself for a job
• Don’t “sell yourself short”
• You package & promote yourself
4
The Who & Where of Marketing
• Marketers:
 Are real people who make choices that affect
themselves, their companies, & millions of consumers
(see “Real People, Real Choices”)
 Work cross-functionally within the firm
 Enjoy exciting, diverse careers
5
The Value of Marketing
• Definition of marketing (AMA, 2004)
 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
6
Marketing Is about Meeting Needs
• Meeting the needs of diverse stakeholders
 Buyers, sellers, investors, community residents,
citizens
• Marketing concept
 Identifying consumer needs and providing products
that satisfy those needs
• The modern marketplace
 a mall, a mail-order catalog, a TV shopping network,
an eBay auction, or an e-commerce Web site
7
Marketing Is about Creating Utility
• Utility: the sum of the benefits we receive
from using a product/service
 Form utility
 Place utility
 Time utility
 Possession utility
8
Marketing Is about Exchange
Relationships
• An exchange occurs when something is
obtained for something else in return, like
cash for goods or services
 Buyer receives product that satisfies need
 Seller receives something of equivalent value
9
The Evolution of Marketing
•
•
•
•
The Production Era
The Selling Era
The Consumer Era
The New Era
10
The Production Era
• Focus on the most efficient ways to make
and distribute products, like Henry Ford’s
Model T & Ivory soap
• Marketing plays an insignificant role
11
The Selling Era
• Focus on one-time sales of goods
rather than repeat business
• Marketing viewed as a sales function
12
The Consumer Era
• Focus on satisfying customers’ needs and
wants
• Marketing becomes more important in the
firm
• Total Quality Management (TQM) widely
followed in marketing community
13
The New Era: Make Money
and Act Ethically
• Focus on building long-term bonds with
customers.
• Marketing uses customer relationship
management (CRM) to track consumers’
preferences and tailor the value
proposition to each individual
14
The New Era:
Focusing on Social Benefits
• Social marketing concept: satisfy
customers’ needs and also benefit society
• Sustainability: meeting present needs and
ensuring that future generations can meet
their needs
15
The New Era:
Focusing on Accountability
* Measuring how much value is created by
marketing activities
• ROI (Return on Investment) is the direct
financial impact of a firm’s expenditure of
resources such as time or money
16
What Can Be Marketed?
From serious goods and services to fun things
 Goods and services mirror changes in popular culture
 Marketing messages may communicate myths of a
culture
Product: any good, service, or idea
 Consumer goods/services
 Business-to-business goods/services
 Not-for-profit marketing
 Idea, place, and people marketing
17
The Marketing of Value
• Value: the benefits a customer receives
from buying a good or service
• Marketing communicates the value
proposition: a marketplace offering that
fairly and accurately sums up the value
that the customer will realize if he/she
purchases product/service
18
Value from the Customer’s Perspective
• The ratio of costs to benefits
• Value proposition includes the whole
bundle of benefits the firm promises to
deliver, not just the benefits of the product
itself
19
Value from the Seller’s Perspective
• Value for the seller takes many forms
 Making a profitable exchange
 Earning prestige among rivals
 Taking pride in doing what a company does well
 Nonprofits: motivating, educating, or delighting the
public
20
Calculating the Value of a Customer
• Single transactions don’t provide
companies with the value they desire
• Lifetime value of a customer: How much
profit a company expects from a
customer’s purchases now and in the
future
21
Providing Value to Stakeholders
• Competitive advantage: The ability of a
firm to outperform the competition by
providing customers with a benefit the
competition cannot provide
22
Adding Value through
the Value Chain
• Value chain: a series of activities involved
in designing, producing, marketing,
delivering, and supporting any product
 Inbound logistics
 Operations
 Outbound logistics
 Marketing final product
 Service
23
Consumer-Generated Value:
From Audience to Community
• Everyday people generating value instead
of just buying it
 People functioning in marketing roles: creating ads,
providing input into new products, or serving as
retailers
24
Value from Society’s Perspective
• How marketing transactions add or
subtract value from society
• Stressing ethics/social responsibility is
often good business in the long run
25
The Dark Side of Marketing
* Marketers
 Illegal activities such as “bait and switch”
 Products that encourage antisocial behavior
*Consumers
 Terrorism
 Addictive consumption
 Exploited people
 Illegal activities
 Shrinkage
 Anticonsumption
26
Marketing as a Process
• Marketing planning
 Analyzing the marketing environment
 Developing a marketing plan
 Deciding on a market segment
 Choosing the marketing mix -- product, price,
promotion, and place
27
How It Worked Out
at Ron Jon Surf Shop
Bill choose option 2: wall-mounted backlit
photographs (dioramas)
 Opened a small store in the Orlando Airport adjacent
to the very busy food court
 Surf and sales are up at Ron Jon!
28
Keeping It Real:
Fast-Forward to Decision Time at Qode
• Meet Rick Szatkowski of NeoMedia
Technologies
• Qode links your cell phone to the Web when you
enter a keyword or click a SmartCode.
• Example: A code on a movie poster plays a
trailer for the movie
29