©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-0 Chapter 1 Welcome to the World of Marketing

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-1 Chapter Objectives  Know what marketing is all about  Define the marketing mix  Understand the basics of marketing planning  Describe the evolution of the marketing concept  Explain why marketing is important

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-2 What is Marketing?  Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-3 Marketing Satisfies Needs  Most successful firms practice the marketing concept –first identify consumer needs and then provide products that satisfy those needs

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-4 Marketing Satisfies Needs  A need is the difference between a consumer’s actual state and some ideal or desired state –physical needs –psychological needs

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-5 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 and socially influenced

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-6 Needs, 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

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-7 Marketing is an Exchange of Value  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

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-8 Anything Can Be Marketed  Consumer Goods and Services  Business-to-Business Marketing  Not-for-profit Organizations  Idea, Place, and People Marketing

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-9 The Marketing Mix  Product  Place  Price  Promotion

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-10 Marketing is a Process  Customer Relationship Management (CRM) emphasizes the importance of building long- term relationships with customers to keep them satisfied and coming back. –“Selling products that don’t come back to people that do.”

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-11 How?  Marketing planning  Finding and reaching the target market  Looking for customers

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-12 Marketing Planning  Analyze the organization’s current strengths, weaknesses, opportunities, and threats –How is our firm different from the competition? –Which customer groups should we pursue in the future? –How will changes in the environment affect our marketing mix?

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-13 Finding and Reaching a Target Market  Mass Market - all possible customers regardless of differences in their specific needs and wants  Market segments - distinct groups of customers within a larger market  A target market - an organization’s chosen segment

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-14 The Evolution of Marketing  Production Orientation  Selling Orientation  Consumer Orientation  New Era Orientation

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-15 Marketing Creates Utility  Form utility  Place utility  Time utility  Possession utility

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-16 Pop Culture and Myths  Popular Culture –Music, Movies, Sports, Books, Celebrities –Marketers provide the materials that become part of this culture

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition1-17 Marketing and Myths  Marketing messages communicate stories containing symbolic elements that may express shared emotions and ideas of a culture  Examples?