Marketing

What is Marketing? You already know a lot about marketing Marketing isn’t as easy as you might think –Cons Markets are always changing Competition is always changing Technology is always changing Marketing affects everyone –Individuals, organizations, industries, countries

What is Marketing? According to the American Marketing Association, 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.”

What is Marketing? Marketing has to serve both buyers and sellers –Discover wants and needs of potential customers and satisfy them Not an easy task Consumers may not know how to tell you what they want or need New products –~33,000 consumable products are introduced each year in the US and about 94% don’t make it

What is Marketing? Exchange –How do you discover wants and needs? Must understand the idea of exchange. Exchange is the trade of things of value between buyer and seller so that each is better off after the trade –Doesn’t have to be money that is exchanged Ex: Donations to non-profit organizations

Marketing – Who? Everyone markets Cities, states, countries, individuals

Marketing – What? Goods –Principal objects –Ex: Nissan automobiles Services –Intangible items –Ex: Nashville Predators, Nashville Ballet Ideas –Thoughts about actions or causes –Ex: Click It or Ticket

Marketing – Who Buys? Ultimate consumers –The people who use the goods and services purchased for a household Organizational buyers –Manufacturers, wholesalers, retailers, and government agencies that buy good or services for their own use or for resale

Marketing – Who Benefits? Consumers that buy –Utility is benefits or customer value received by users of the product Form Utility – Production or alteration of a good or service –Ex: Granite countertops Time Utility – Having a good or service when needed –Ex: 24 hour Walgreens pharmacy Place Utility – Having a good or service available where needed –Ex: Wal-Mart Possession Utility – Value of making an item easy to purchase –Ex: Recommendations, Others that purchased this, liked this toowww.amazon.com

Marketing – Who Benefits? Organizations that sell Society

Marketing Eras – Production Era Goods scarce, consumers would buy whatever they could get and make it work Marketing was of no concern because goods would pretty much sell themselves Lasted through the 1920’s Relatively no competition Ex: General Mercantile Stores, Ford automobiles

Marketing Eras – Sales Era Competition began to grow Companies realized that they were producing more products than their customers were buying Hire sales force to search out new customers Lasted through ~ ’s Ex: Growth of other car markets, more stores in same area

Marketing Eras – Marketing Concept Era Marketing became important Began to focus on consumers needs and wants Idea of marketing concept –Organizations should satisfy consumer needs while achieving the organization’s goals 1960’s – present

Marketing Eras – Customer Era Strongly emphasize the marketing concept –Market orientation Continuously gather information about customer needs Share information with other departments All departments use information to create customer value Customer Relationship Management (CRM) –Focus on potential customers, completely understanding, and develop favorable long-term perceptions of the organization and offerings so that buyers will choose them

What Has to Happen for Marketing to Occur? Two or more parties (individuals or organizations) with unsatisfied needs A desire and ability from these parties to satisfy this need A way for the parties to communicate Something to exchange

Definitions Need –Occurs when a person feels deprived of basic necessities such as food, clothing, and shelter –After you graduate from college, what new needs will you have? Want –A need that is shaped by a person’s knowledge, culture, and personality

Definitions You are thirsty, therefore you have a need for a drink. Based on previous experiences or what you’ve heard, you want a glass of milk.

Ethics Can marketing efforts persuade consumers into buying “bad” products or services? Government regulation?

Ethics and Social Responsibility Alert

Definitions Market –People with the desire and ability to buy a specific product Target Market –One or more specific groups of potential consumers toward which an organization directs its marketing program

Target Market?

Marketing Mix Controllable factors that can be used by a marketing manager to solve a marketing problem

Marketing Mix Referred to as the “4 Ps” –Product – Good or service that satisfies consumers wants or needs –Price – What is exchanged for the product –Place – How the good or service gets to the consumer –Promotion – The communication between the buyer and seller

Marketing Mix

Uncontrollable/Environmental Factors The organization cannot control these Sometimes these factors destroy organizations marketing efforts, sometimes they help Include –Social –Economic –Technological –Competitive –Regulatory Forces

Customer Value The increase of global competition has many companies trying to find ways to be competitive Companies must focus on what they can do for their target market –You can’t win them all

Factors Affecting Marketing Program

Customer Value Customer value is the unique combination of benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and before-sale/after- sale services Areas that can be focused on: –Price (Dollar General, Wal-Mart, Southwest) –Product (Microsoft, Sony) –Service (Dillard’s, specialty boutiques) –Perception (Lexxus, Tylenol)

Relationship Marketing Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

Relationship Marketing

Low cost product, large stores, advanced technology make relationship marketing difficult Internet – –

Marketing Program A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers Doesn’t necessarily mean that the consumer purchases the good or service.

Social Responsibility Some ethics issues involve the complete society Social Responsibility –Idea that organizations are accountable to a larger society

Social Responsibility Societal Marketing Concept –View that organizations should satisfy the needs of consumers in a way that provides for society’s well-being –Directly related to macromarketing The study of the aggregate flow of a nation’s goods and services to benefit society Broad issues –Micromarketing How an organization directs its marketing activities and allocates its resources to benefit its customers