1. Business Essentials, 7th Edition Ebert/Griffin
Understanding Marketing Processes
Business Essentials, 7th Edition Ebert/Griffin
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
© 2009 Pearson Education, Inc.

2. © 2009 Pearson Education, Inc.
What’s in It for Me?
Why does marketing matter to you?
By grasping this chapter’s presentation of marketing methods and ideas, you’ll benefit in two ways:
You’ll be better prepared to use marketing in your career as both employee and manager
You’ll be a more informed consumer with greater awareness of how businesses use marketing to gain your purchases
What’s in it for you? Why does marketing matter to you?
By grasping this chapter’s presentation of marketing methods and ideas, you’ll benefit in two ways:
First, you will be better prepared to use marketing in your career as both employee and manager.
Second, you will be a more informed consumer with greater awareness of how businesses use marketing to gain your purchases.
Teaching Tips:
In your student teams, choose one of these two benefits we have just reviewed. Please discuss in your teams how you believe you will achieve the benefit.
Answers will vary. Your responses can wait until later in the class once the material has been covered.
© 2009 Pearson Education, Inc.

3. What Is Marketing? Marketing Providing Value and Satisfaction
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.
Providing Value and Satisfaction
Consumers buy products that offer the best value when it comes to meeting their needs and wants.
Finding a need and fulfilling it.
Marketing is “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,” according to the American Marketing Association.
This means finding a consumer need and fulfilling that need with a new product or service.
Market also provides value and satisfaction. Consumers buy products that offer the best value when it comes to meeting their needs and wants.
Teaching Tips:
In your student teams, please define a consumer need. Then define a consumer want. What is the difference between the two? We will share our ideas with the class.
A need, if we refer back to Maslow’s Hierarchy of Needs, is something the consumer needs in order to live or function in his life or career. This could mean food, shelter, clothing, transportation, shoes, etc. What separates consumer need from want is money. Here is an example: I need a coat because it is cold outside. I want a fake fur coat that will look trendy in the clubs.
© 2009 Pearson Education, Inc.

4. Relative comparison of a product’s benefits with its costs. Benefits
Value
Relative comparison of a product’s benefits with its costs.
Benefits
Value =
Cost
Value and Benefits
Value compares a product’s benefits with its costs.
Benefits include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing, or possessing it.
Marketing provides value and benefits.
Value compares a product’s benefits with its costs.
Benefits include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing or possessing the product.
There are four types of value and utility:
Form utility: Designing products customers want.
Time utility: Creating sales contracts that stipulate when the product will be delivered.
Place utility: Creating contracts that stipulate where the products will be delivered to the consumer.
Ownership utility: Arranging to transfer product ownership to customers by providing and setting sales prices, setting payment terms and providing ownership documents.
Teaching Tips:
In your student teams, please select a product that you buy or use. Then please describe its value and benefits. We will share our examples with the class.
Answers will vary but should relate back to the value and benefit statements above.
© 2009 Pearson Education, Inc.

5. Ability of a product to satisfy a human want or need.
Utility
Ability of a product to satisfy a human want or need.
Value and Utility
Form utility
Time utility
Place utility
Ownership utility

6. Goods, Services, and Ideas
Consumer goods: products purchased by consumers for personal use.
Consumer marketing
Industrial goods: Products purchased by companies to produce other products.
Industrial marketing
Services: Intangible products, such as time, expertise, or an activity that can be purchased.
Service marketing
Relationship Marketing
Marketing strategy that emphasizes building lasting relationships with customers and suppliers.
Marketing products includes goods, services and ideas.
Consumer goods are tangible goods that consumers may buy for personal use.
Consumer marketing is used to inform people about these goods.
Industrial goods are physical items used by companies to produce other products.
Industrial marketing is used to inform companies about these products.
Services are products with intangible or nonphysical features.
Service marketing is used to inform the public about these intangibles.
Relationship marketing emphasizes building lasting relationships with customers and suppliers.
Teaching Tips:
In your student teams, choose one of the three types of goods and services we just discussed. Please provide a brief description to the class about two examples of your choice.
Answers will vary.
© 2009 Pearson Education, Inc.

7. THE MARKETING ENVIRONMENT
External Marketing environment consists of outside factors that influence marketing programs by posing opportunities or threats.
The Marketing Environment
Political-legal environment
Sociocultural environment
Technological environment
Economic environment
Competitive environment
Substitute products
Brand competition
International competition
As we discussed in earlier sessions, the external business environment is important for firms. The external marketing environment plays a big role in the marketing of products and services as well.
Let’s look at the external marketing environment. It includes the:
Political-legal environment.
Sociocultural environment.
Technological environment.
Economic environment.
Competitive environment.
This can include substitute products, brand competition and international competition.
Teaching Tips:
In your student teams, choose one of the five external marketing environments. Then please develop two examples of how factors within that external environment could impact the marketer of the product or service you discussed in your teams a few moments ago.
Answers will vary but will include elements from our prior chapter discussion about external business environments.
© 2009 Pearson Education, Inc.

8. Substitute Product- Product that is dissimilar to those of competitors but that can fulfill the same need.
Brand Competition- Competitive Marketing that appeals to consumer perceptions of similar products.
International Competition- Competitive marketing of domestic products against foreign products.
Marketing Manager- Manager who plans and implements the marketing activities that result in the transfer of products from product to consumer.

9. Marketing Plan Marketing Mix
A detailed strategy for focusing marketing efforts on consumer needs and wants
Marketing Mix
The combination of product, pricing, promotion and distribution strategies used to market products.
Product
Differentiating a product
Pricing
Selecting the best price at which to sell a product
Place
Distributing a product through the proper channels
Promotion
Communicating information about a product
In order to sell our products and services, we must develop a strategy for each of the elements in the marketing mix. A marketing plan is developed for our product or service, which is a detailed strategy for focusing marketing efforts on consumer needs and wants.
The elements of the marketing mix include:
Product: Differentiating the product, positioning it in the marketplace, packaging the product and providing a product warranty.
Price: Selecting the best pricing strategy at which to sell a product. The lowest cost for which we can successfully sell a product is its cost and the highest price for which we can sell a product is what the market will pay.
Place: Distributing a product through the proper channels to get to the consumer.
Promotion: Communicating information about a product to its potential consumers. This includes advertising, sales promotion, public relations, etc.
Teaching Tips:
In your student teams, please once again refer back to the product or service you used as an example earlier in this class session. Please describe that product in terms of each of the four elements of the marketing mix. We will share our answers with the class.
Answers will vary, but should relate to the basic information provided about the 4 Ps.
© 2009 Pearson Education, Inc.

10. PRODUCT DIFFERENTIATION
Good, service or idea that is marketed to fill consumer needs and wants.
PRODUCT DIFFERENTIATION
Creation of a product or product image that differs enough from existing products to attract consumers.
PRICING
Pricing a product is the process of selecting the best price at which to sell it.
© 2009 Pearson Education, Inc.

11. PLACE (DISTRIBUTION) PROMOTION
In the Marketing mix place refers to distribution. It is concerned with getting products from producers to consumers.
PROMOTION
The most highly visible component of the marketing mix is no doubt promotion. Which refers to techniques for communicating information about products. The most important promotional tools include:
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations

12. ADVERTISING PERSONAL SELLING
Advertising is any form of paid non personal communication used by an identified sponsor to persuade or inform potential buyers about a product.
PERSONAL SELLING
Personal selling refers to person-to-person sales. Many products for example, insurance, clothing and real estate are best promoted through personal selling.

13. SALES PROMOTION PUBLIC RELATIONS
Relatively inexpensive items are often marketed through sales promotions, which involve one-time direct inducements to buyers. The sales promotions are meant to tempt consumers to buy products.
PUBLIC RELATIONS
Public relations includes all communication efforts directed at building goodwill. It seeks to build favorable attitudes toward the organization and its products.