1. Welcome to the World of Marketing Creating and Delivering Value

2. Chapter Objectives who are marketers? Explain marketing
where they work,
marketing’s role
in the firm
Explain marketing

3. Chapter Objectives Marketing’s value range of services & goods
to everyone involved in the marketing process
range of services & goods

4. Understand value Re: customers, producers, and society
Chapter Objectives
Understand value
Re: customers, producers, and society
marketing planning

5. evolution of the marketing concept
Chapter Objectives
marketing mix tools
Product/price/promotion &
Place (distribution)
evolution of the marketing concept

6. CHAPTER CONCEPTS

7. Welcome to a Branded World
“Brand You”
You are a product
You have “market value”
as a person

8. Welcome to a Branded World
“Brand You”
You “position” yourself for a job
Don’t “sell yourself short”
You package & promote yourself

9. Who & Where of Marketing
Marketers:
Are real people
who make choices that affect
themselves,
their companies, &
millions of consumers

10. Who & Where of Marketing
Marketers:
Work cross-functionally
within the firm
Enjoy exciting, diverse careers

11. The Value of Marketing An organizational function
Definition of marketing (AMA, 2004)
An organizational function
and a set of processes
for creating, communicating, and delivering
value to customers

12. The Value of Marketing benefit the organization and its stakeholders
Definition of marketing (AMA, 2004)
and manages customer relationships
in ways that
benefit the organization
and its stakeholders

13. Marketing = Meeting Needs
stakeholders
Buyers,
sellers,
investors,
community residents,
citizens

14. Marketing = Meeting Needs
Marketing concept
Identifying consumer needs &
providing products that satisfy those needs

15. Marketing = Meeting Needs
The modern marketplace
a mall,
mail-order catalog,
a TV shopping network,
an eBay auction,
or an e-commerce Web site

16. Marketing =Creating Utility
Utility: the sum of the benefits we receive from using a product/service
Form utility
Place utility
Time utility
Possession utility

17. 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

18. The Evolution of Marketing
The Production Era
The Selling Era
The Consumer Era
The New Era

19. The Production Era
Focus = most efficient ways to make and distribute products,
like Henry Ford’s Model T & Ivory soap
Marketing plays an insignificant role

20. The Selling Era Focus = one-time sales of goods
rather than repeat business
Marketing = a sales function

21. The Consumer Era Focus = satisfying customers’ needs and wants
Marketing = more important
Total Quality Management (TQM)
widely followed in marketing community

22. The New Era: Profits & Ethics
Focus = building long-term bonds
with customers.
Marketing uses customer relationship management (CRM)
to track consumers’ preferences
tailor value proposition to each individual

23. The New Era: Focusing on Social Benefits
Social marketing concept:
satisfy customers’ needs and
also benefit society
Sustainability:
meeting present needs and
ensuring future generations can meet their needs

24. The New Era: Focusing on Accountability
Measuring how much value is created by marketing activities
ROI (Return on Investment)
direct financial impact of firm’s expenditure of resources
such as time or money

25. What Can Be Marketed? From serious goods and services to fun things
mirror changes in popular culture
Marketing messages
may communicate myths of a culture

26. What Can Be Marketed? Product: any good, service, or idea
Consumer goods/services
Business-to-business goods/services
Not-for-profit marketing
Idea, place, and people marketing

27. The Marketing of Value Value: the benefits a customer receives
from buying a good or service

28. The Marketing of Value 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

29. Value from the Customer’s Perspective
The ratio of costs to benefits
Value proposition includes:
whole bundle of benefits
the firm promises to deliver,
not just the benefits of the product itself

30. Value : Seller’s Perspective
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

31. Calculating the Value of a Customer
Single transactions
don’t provide companies with value they desire
Lifetime value of a customer:
How much profit a company expects from ONE customer’s purchases now and in the future
WalMart: LTV = $250,000

32. Providing Value to Stakeholders
Competitive advantage:
ability of a firm to outperform the competition
by providing customers with a benefit
the competition cannot provide

33. Adding Value through the Value Chain
a series of activities
involved in designing, producing, marketing, delivering, and supporting any product

34. Adding Value through the Value Chain
a series of activities:
Inbound logistics
Operations
Outbound logistics
Marketing final product
Service

35. 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

36. Value: Society’s Perspective
How marketing transactions
add or subtract value from society
Stressing ethics/social responsibility
is good business in long run

37. The Dark Side of Marketing
* Marketers
Illegal activities
such as “bait and switch”
Products that encourage antisocial behavior

38. The Dark Side of Marketing
*Consumers
Terrorism
Addictive consumption
Exploited people
Illegal activities
Shrinkage
Anticonsumption

39. 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, place

40. THE END

41. 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

42. Chapter case study
Ron Jon’s Surf Shop
See handout

43. 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”

44. 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!