CHAPTER 1 World of Marketing: Creating and Delivering Value Real People, Real Choices CHAPTER 1 World of Marketing: Creating and Delivering Value

Chapter Objectives_1 Know who marketers are, where they work, and understand marketing’s role in the firm Define what marketing is and how it provides value to everyone involved in the marketing process Discuss the range of services and goods that are marketed

Chapter Objectives_1 Understand value from the perspectives of the customers, producers, and society Understand the basics of marketing planning and the marketing mix tools used in the marketing process Describe the evolution of the marketing concept

The Value of Marketing Marketing is the adaptive process, in society and organizations, of collaborating to communicate, create, provide, and sustain value for customers through exchange relationships while meeting the needs of diverse stakeholders.

Marketers do it to satisfy needs… Most successful firms practice the marketing concept identify consumer needs; provide products that satisfy those needs Need: difference between a consumer’s actual state and some ideal or desired state physical or psychological

Needs versus Wants A need is the difference between the actual and ideal states of being! A want is a desire for a particular product used to satisfy that need wants are culturally & socially influenced

Benefits, Demand, and Markets A product delivers a benefit when it satisfies a need or want Desire coupled with the resources to satisfy a want results in demand A market consists of all the consumers with that need and the resources to make the exchange

Exchange Relationships Exchange - the heart of every marketing act An exchange occurs when something is obtained for something else in return Value is in the eye of the beholder Marketers must create an attractive value proposition

What Can Be Marketed? Consumer Goods and Services Business-to-Business Goods and Services Not-for-Profit Marketing Idea, Place, and People Marketing

Analyzing the environment Marketing as a Process Marketing planning Analyzing the environment What product benefits will our customers be looking for in 5 years? What capabilities does our firm have that set it apart from the competition? What additional customer groups might provide important segments in the future? What legal issues may affect our business?

Target Markets Mass Market - all possible customers regardless of differences in their specific needs and wants developing a basic product & a single strategy for everyone Market segments - distinct groups of customers within a larger market A target market - an organization’s chosen segment

Two Different Target Markets?

Positioning the Product Plan how the target market should perceive the product in comparison to competitors’ brands - the market position What is the market position of Ford? BMW? Perceptual maps

The Marketing Mix (4Ps) Product Place Price Promotion

The Evolution of Marketing Production Era Selling Era Consumer Orientation New Era Orientation Customer relationships Social benefits Marketing metrics