Transcript Marketing

Chapter 1
Welcome to the World of
Marketing:
Create and Deliver Value
Chapter Objectives
1. Define Marketing and how customers are
created and retained.
2. Understand who marketers are, where they
work, and marketing’s role in a firm
3. Discuss the four eras in the history of marketing.
4. Introduce the concept of Relationship Marketing.
5. Describe the five types of nontraditional
marketing.
6. Briefly discuss E-marketing
7. Demonstrate the relationship between ethical
marketing practices and marketplace success.
1-2
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A Definition of Marketing
Marketing: the process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, services,
organizations, and events to create and
maintain relationships that will satisfy individual
and organizational objectives.
 Basic Goal of Marketing – to create and retain
customers
1-3
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How to Create and Retain Customers:
1. Identify customer needs
2. Develop goods, services, and ideas (Products)
that meet those needs
3. Communicate information about those goods
and services to prospective buyers (Promotion)
4. Make the goods or services available at times
and places that meet customers’ needs
(Distribution or Place)
5. Price goods and services to reflect costs,
competition, and customers’ ability to buy
6. Provide for the necessary service & follow-up to
ensure customer satisfaction after the purchase
1-4
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Figure 1.3
The Marketing Mix
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Marketing as a Process
Marketing planning - thinking carefully and
strategically about the big picture of marketing
1. Analyzing the marketing environment
2. Developing a marketing plan
3. Deciding on a market segment
4. Choosing the marketing mix—product, price,
promotion, and place
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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 an object, service, or idea that
satisfies a need
Seller receives something of value: Money
(usually), barter of services or goods, or tradeins or some combination
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Marketing Roles & Positions
Marketers:
 Are real people who make choices that affect
themselves, their companies, and millions of
consumers
 Work cross-functionally within the marketing
division and the firm as a whole
 Enjoy rewarding, diverse careers: See table
1.1 on pages 7-8
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Four Eras in the History of Marketing
Era
Approximate
Time Period
Prevailing
Attitude
Production
Prior to 1920s
“A good product will sell itself.”
Produce efficiently in volume
Sales
Prior to 1950s
Marketing
Since 1950s
“Creative advertising & selling will
convince customers to buy.” One
sale at a time
“The consumer is king!”
Find a need and fill it.
Relationship 1990s - recently “A Long-term relationship with
customers will lead to success.”
1-9
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A 5th Era is emerging:
The Triple Bottom Line Era
 Triple orientation means seeking to
maximize the financial, social, and
environmental bottom lines. Hmmmm….
 Focuses on building long-term bonds with
customers
 Make money and a contribution to society
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The World Has Evolved From
Transaction-Based Marketing
to Relationship Marketing
 Transaction–based marketing
(Simple exchanges)
 Relationship marketing
 Lifetime value (LTV) of a customer
 Converting new customers to
advocates or “evangelists”
1-11
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Relationship Marketing – Moving
Customers Though Stages
1.
2.
3.
4.
New Customers 
Regular Purchasers 
Loyal Supporters 
Advocates!
Q. Have you been moved through these stages
and are now an advocate for any product?
1-12
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What Can Be Marketed?
 All Products: Any good, service, or idea
Consumer goods/services
Business-to-business goods/services
Not-for-profit organizations and services
This course will focus on “traditional”
marketing, but we’ll touch upon
“nontraditional” marketing along the way
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Traditional vs. Nontraditional Marketing
 “Traditional” Marketing refers to product and
service marketing done by for-profit companies.
The majority of marketing done in the world
 “Nontraditional” Marketing refers to either forprofit or non-profit organizations marketing a…
1. Person
2. Place
3. Cause
4. Event
5. Organization
1-14
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5 Types of Nontraditional Marketing
1. Person Marketing
Efforts to cultivate the
attention, interest, and
preferences of a
target market toward a
celebrity or authority
figure
1-15
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2. Place Marketing
Attempt to attract
customers to
particular areas
Ex: Michigan ad
promotes the
State as a good
business
location
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An Example of Place
Marketing Advertisement
1-17
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3. Cause Marketing
Identification and marketing of a social issue,
cause, or idea to Selected target markets
2 Examples of Cause
Marketing Advertisements
1-18
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4. Event Marketing
The marketing of sporting, cultural, and
charitable activities to selected target
markets
1-19
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5. Organization
Marketing
Involves attempts
to influence other
to accept the
goals of, receive
the services of,
or contribute in
some way to an
organization.
 Boy Scouts of
America ad targets
volunteers as one of
its multiple publics
1-20
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 Nontraditional Marketing Summary Chart
1-21
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E-Marketing
 Online Shopping
 Auction sites (e-Bay)
 E-mail / database
marketing
 Online newsletters &
blogs
 Social Media such
as Facebook &
Twitter
1-22
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Marketing Ethics
Top Oxymorons of all time:
Government Organization
Tight Slacks
Pretty Ugly
Dodge Ram
Same Difference
Peace Force
Head Butt
Jumbo Shrimp
Q. Should “Marketing Ethics” be on this list?
1-23
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The Dark Side of Marketing
 Marketing is often criticized, especially personal
selling and advertising
 Some marketing activities have detrimental
effects on society (higher prices?)
 Illegal and immoral practices do occur
Deception and flat out lying!
Intrusion of privacy, online and in person
Annoying, both in person and via media
Pressure beyond reason; manipulation?
“Creating Demand”….especially kids,
seniors, and others not of full capacity
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It’s Debatable
Class Discussion Question
Some people feel that marketers
manipulate consumers, while others
argue that people should be held
responsible for their own choices. This
ad is critical of the current trend of
lawsuits brought against fast-food
companies by people who blame their
health problems on the fast food
industry. Where do you stand?
Visit ConsumerFreedom.com
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Why Behave Ethically?
Ethical Behavior Will Result in:
 Increased Customer Loyalty/Advocacy = $’s
 Increased Employee Morale/Loyalty = $’s
 Better Public Image = sales increases = $’s
 Feeling good about doing the right thing
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Marketing Ethics
Let’s play a Little Game…
1. Two people have $100 to divide
2. The first person decides how they would like
to divide the money. He/She can only make
one proposal.
3. The second person can either accept the
amount proposed or both parties get nothing
1-27
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