1. MARKETING
Week 6 Dr. Thomas Webb

2. Marketing - The Meaning Of Life
“Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view! Business success is not determined by the producer but by the consumer.” Peter Drucker
BUSINESS IS A CONSUMER SATIFYING PROCESS, NOT A GOOD PRODUCING PROCESS. IF YOU REALLY BELIEVE THIS AND LIVE THIS, THEN YOU WILL BE SUCCESSFUL! Theodore Levitt

3. The Marketing Concept! WHAT IS MARKETING NOT?
NOT advertising
NOT sales
NOT marketing research
NOT planning
NOT cute ads, a hustling salesman, a sex ad, a $2.99 price, a survey.
ALL OF THEM AND MORE
Marketing is not exploitive by nature only by those that want to exploit.
WHAT IS THE MARKETING CONCEPT?
It is a way of thinking
Everything starts with the consumer, user or client.
A way of defining the objectives of your business
At the heart of all organizational strategies
It is a way of thinking about YOU and your life
It is the business of every entity and every person in an organization, profit/non profit, political, education.

4. WEBB’S 10 CORE PREMISES OF MARKETING The marketing concept is a way to view the world and live your life!

5. Always start your thinking on the outside with the consumers, the competition and the environment.
Most problems arise because you forgetting this simple thought! It is a way to think!
Corollary Listen to the market. If you are hard of hearing you make big mistakes!
Corollary Consumer satisfaction is the defining premise.
Corollary The golden rule is wrong! “Do unto others as they want to be done unto.” Look outside, look at consumer needs and define your business around that!
Corollary 1.4 Don’t underestimate the consumer. They search for value with competence.

6. Buyers are value maximizers.
Corollary 1.4 Don’t underestimate the consumer. They search for value with competence
Buyers are value maximizers.
This concept has a lot going for it. It assumes reasoned decision-making. In most purchases people buy TOTAL VALUE. Choice based on information, problem solving, experimentation, etc.
The product must create perceived value to the buyer
Look at ALL THE INFLUENCES ON BENEFITS AND COSTS When you measure benefits and costs you MUST look at the ENTIRE transaction, look broadly at the benefits and costs to assess value – benefits and value can be in use, in perception, and acceptance.
TOTAL VALUE = Total Benefits – Total Costs
Benefits = Product + Service + Situation + Image + reactions
Costs = Money + time + energy + psychic + image + reactions

7. The Buying Center – Roles
There are many participants who have an impact on the buying decision
User
Buyer
Decision Maker
ACTION
Gatekeeper
Approver
Initiator
Influencer
KIBD Key Influencer

8. Define the real product based on the consumer needs being fulfilled and the benefits received, not the physical object.
This is the single most misunderstood and important concept in marketing.
As long as you define the product as the physical object you are selling you are at a significant competitive disadvantage.
Corollary 2.1 – The product is what is does NOT what it is!
Corollary 2.2 – The product is everything that goes into creating it!
Corollary In the end whether it is a physical product, a service, a consumer good or a business product, they are the same from a marketing perspective.

9. 3. You are in the business you say you are in, so define it very carefully. Look broadly. You may not be in the business you think you are in!
Roberto Goizueta came to Coke as CEO when everyone thought Cokes sales has maxed out, mature market. He reframed the view of Coke’s market share – Coca-Cola accounted for less than 2 ounces of the 64 ounces of fluid that each of the world’s 4.4 billion people drank on an average day. “The enemy is coffee, milk, tea and water.” He ushered in a huge period of growth.
Corollary The Great Buggy Whip Example!
Corollary How you define your business changes everything!
Corollary Understanding the real competition is key to strategic success

10. The Competitive Map A great way to avoid a big mistake!

11. 4. You have a position in the consumer’s mind. Know what it is
4. You have a position in the consumer’s mind. Know what it is. Don’t try to be something you are not! Know what it is.
Corollary Do you own a position, a place. Or not. Read Positioning Era
Corollary Lets define Market segmentation, targeting, positioning and differential advantage or competitive advantage or USP
My segments.com
LOHAS is a VALS – What is it!

12. 5. Understand the “expectation-reality gap” and you will make better decisions and be a better leader.
Perhaps the single most important concept in management, relationships and understanding behavior. And NO management class or book has ever said this.
Corollary 5.1 People almost always do what you would predict that they would do, it just isn’t want them to do something else.
The concept of trust is usually based on having accurate expectations.
Proper expectations are essential
Corollary 5.2 Expectations are not the key. Reality is not the key.
The gap is the key
You understand this and you understand a lot.
Corollary 5.3 – Buyer Satisfaction is also based on the difference between expectations and reality.
Satisfaction is NOT based on reality but on the Expectation-Reality gap.
Satisfaction is a function of the product’s perceived performance in relationship to the buyer’s expectations.
Expectations generated from past experience, friends, associates, information, ads – all wrapped up into your package of expectations.

13. 6. Go to the gap, avoid the crowd.
Corollary 6.1 Niches, targets, gaps, holes, that is where the action is. It is the passion for segmentation.
Corollary 6.2 Look at the holes in the channels, in pricing, in a product line, in what a product doesn’t do, in the parts the consumer does or could do.
Corollary 6.3 You must find a USP to succeed, differentiate every day
USP is the single most important sales concept I have.
Why us, why me, why select me, what is it about me that is different and the customer, company wants?
You, test USP out on you!

14. 7. Understanding the Diffusion of Innovation is critical to new product development and knowing where and how to compete.
Corollary 7.1 Diffusion Of Innovation –Adoption Process! People differ markedly in their propensity to try new products
Corollary 7.2 Product Life Cycle - Every product goes through a product life cycle, sometimes more than one. Strategy is different in each state of of the cycle because the environment is different.

15. Corollary 7.1 Diffusion Of Innovation
Innovators Early Early Late Laggards
Adopters Majority Majority
People differ markedly in their propensity to try new products

16. Corollary 7.1 Diffusion Of Innovation – The Stages
Innovators – Seek out pioneer products, venturesome, independent, not opinion leaders
Early adopters, Opinion leaders, legitimizes product, try new ideas, link to mass market
Early Majority – Given legitimization, they accept, prove success of mass market. Deliberate but innovative, determine success of product
Late Majority – Lag in adoption, when they get in it means slowdown in adoption rate and market saturation. Skeptical, harder to change
Laggards, Tradition bound, Ludites, laggards.
Three Key Participants
Change agents – tend to be outside the major groups, try to influence early adopters in acceptance - Tipping point, agricultural agents,
Translators. MUST have translators between Innovators and Early Adopters and Early adopters and Early Majority.
Gatekeepers. Key decision maker on when innovation accepted, housewife on food products

17. Corollary 7.2 Product Life Cycle
Market Market Market Market
Introduction Growth Maturity Decline
Strategy in each stage is different because the environment is different in each stage

18. 8. Always deal with the entire system. Never leave off the ends
8. Always deal with the entire system. Never leave off the ends. The opportunities are in the nocks and crannies – that is where the action is!
Corollary 8.1 Where does a channel start and end? The crux is to be inclusive. Look at the entire line from beginning to end and go back even further. The broader the view, the greater the opportunities.
Go to the very finest detail - what shelf is it on, how high is it.
Ask the question, where was it before this step and where is it going after this step.
Corollary 8.2 – A channel can define the product, it can determine your competition.
Corollary 8.3 Going into a new channel is often a failure. They just don’t know it and make major mistakes,

19. Notice I said communications not advertising.
9. You are communicating with your customers every day so look at what you are saying. Always consider an integrated marketing communications program.
Notice I said communications not advertising.
I also didn’t say TV ads which are very expensive. Ads are the least of the issue for most small businesses. BUT communications is KEY.
Corollary 9.1 It is essential to integrate all the elements of a communications program and have them reinforce the others
Corollary 9.2 Personal Influence Channels . Buzz doesn’t happen by accident.
Corollary 9.3 Personal Selling - The Hercules of Marketing. At the heart of personal sales is the marketing concept and knowing your USP.

20. Corollary 9.1 It is essential to integrate all the elements of a communications program and have them reinforce the others
Advertising
Sales Promotion
Events Experiences
Public Relations
Personal Selling
Direct Marketing
Print
Broadcast
Packaging
Motion Picture
Posters
Billboards
Displays
POP
Yellow Pages
Symbols
Internet
Contests
Sweepstakes
Lotteries
Premiums
Gifts
Fairs
Trade shows
Coupons
Rebates
Entertainment
Sports
Festivals
Arts
Causes
Tours
Company museums
Street fairs
Press kits
Speeches
Seminars
Annual reports
Charity
Publications
Community relations
Presentations
Meetings
Incentives
Door to door
Industrial
Government
Services
Catalogs
Mailings
Telemarketing
Electronics internet
TV shopping
Voice mail

21. 10. Price is a lot more than price
10. Price is a lot more than price. It generates revenue and represents all the elements of the product.
Corollary 10.1 “Pricing should be done last because it integrates the entire marketing strategy into a single number.” Sam Pardue, Lensbabies
Corollary Price is the only element that generates revenue and it is the easiest to adjust, BUT it is also a critical element of strategy with major communications and financial ramifications.
Corollary 10.3 Price is everywhere, name something that doesn’t have a price?

22. WEBB’S 10 PREMISES OF CREATIVE LIVING Here are some core principals that are related to marketing, management and life!

23. WEBB’S 10 PREMISES OF CREATIVE LIVING
Go outside the paradigm to find the answer. “Think sideways!” Greatness often is the ability to go outside the existing paradigm then the new idea becomes obvious.
Often things aren’t what they seem, don’t assume you know.
Never, ever base a decision on sunk costs. It has destroyed companies and countries.
Don’t forget what made you successful.
Usually it is the little things that make the difference. Big thinkers are worthless, if that is all they can do.
Allow failure in order to succeed.
Always have people around you who are better than you are
Fun and humor are important. Take yourself and everything around you with a grain of salt.
The ethics and morality of an organization do not come from marketing but from the leadership. Set clear values.
The marketing concept is a way to view the world and live your life everyday. If you do that, you will be successful.