Marketing 11 Introduction Part 2

Overview Key Questions (what you need to know) Explain the importance of understanding customers and the marketplace. Identify the five core marketplace concepts

Core Marketplace Concepts The core marketplace concepts are 1. Needs, Wants, and Demands 2. Marketing Offers(goods, services, and experiences) 3. Value and Satisfaction 4. Exchange, Transactions, and Relationships 5. Markets

Marketing Offers – Products, Services, and Experiences A Marketing Offer is some combination of goods, services, information, or experiences offered to a market to satisfy a need or want. Not just about physical products ‘Marketing Myopia’ - focusing only on the product and not the benefits/experiences

Mistake: focusing only on existing wants and ignoring customer needs. New products come along and can provide superior service Experience Companies like Coca-Cola and Nike offer Brand Experiences, not just products. E.G. Nike isn’t just a shoe, they promote benefits, lifestyle

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Value and Satisfaction Customers seek Value and Satisfaction for products and services Marketers must set right level of expectation

Exchange, Transactions, and Relationships Exchange: The act of obtaining a desired object from someone by offering something in return Transaction: A trade of values between two parties Marketing consists of maintaining desirable exchange relationships with target markets.

Markets Market: The set of all actual and potential buyers of a product or service. Markets are potential customers with a similar demand.

Customer-Driven Marketing Divide markets into segments Choose the right segment to target Offer a unique value proposition Differentiate your offer from competitor offers Build customer value and satisfaction Nurture long-term customer relationships

Q: What market, or markets, is Nike trying to capture with there ‘Leave Nothing’ advertisment? lXRengzZoc lXRengzZoc

Core Market Place Concepts

The Production Concept The idea the buyers will favour products that are widely available and highly affordable Good when demand exceeds supply OR costs are high and improved productivity will bring it down (Henry Ford and the Model T) Bad tends to lead towards Marketing Myopia

The Product Concept The idea that buyers will favour products that offer the most in quality, performance, and innovative features Focus is on continual product improvement Can lead to too narrow a focus Example: Railroads thought people wanted trains, when they really wanted cheap and convienient transportation

The Selling Concept The idea that the market will not buy enough of the firm’s products unless it undertakes a large-scale selling effort Usually practiced with unsought goods/services – e.g. insurance, blood donations

The Marketing Concept Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors Customer focus and value are the paths to sales and profits Reacting and adapting to market/customer needs

The Societal Marketing Concept A principle of enlightened marketing that holds that marketing strategy should deliver value to the organization’s customers in a way that maintains or improves the well-being of society Balances 3 considerations: society (human welfare), Consumers (want satisfaction), and Company (profits)

Example: Johnson & Johnson tainted Tylenol recall 8 Deaths due to product tampering Believed to be at the store, not factory level Recall cost J&J $240 Million in earnings Maintained and strengthened customer confidence and loyalty: cost:$?

Assignment With a partner, select an advertisment of a major company/brand on YouTube What product is being sold? What else are they ‘selling’? How? Who/What is the market?