1. What is Marketing? Chapter 1

2. Marketing Overview Marketing- “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.” Marketing- “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.”

3. How does Marketing Work within an Organization? Marketing function Marketing function Communication with Customers Communication with Customers Marketing & Management Marketing & Management Goal-setting Goal-setting Marketing & Finance Marketing & Finance Budget-setting Budget-setting Environmental issues Environmental issues Marketing & Information Systems Marketing & Information Systems RFID, GPS, etc. RFID, GPS, etc. Marketing & Production Marketing & Production

4. Pre-existing Marketing Condition Two or more parties Two or more parties A desire and ability to satisfy these needs A desire and ability to satisfy these needs A way for parties to communicate A way for parties to communicate Something to exchange Something to exchange

5. Marketing Formula Find out what customers need and want- then give it to them! Find out what customers need and want- then give it to them!

6. Discovering Needs Needs v. Wants Needs v. Wants Need- Physiological necessities. Need- Physiological necessities. Examples: Examples: Want- “A felt need that is shaped by a person’s knowledge, culture, and personality.” Want- “A felt need that is shaped by a person’s knowledge, culture, and personality.” Examples: Examples: Which do we sell to? Which do we sell to? Is creating a “need” ethical? Is creating a “need” ethical?

7. Discovering Needs Market- Group of people who have the desire and ability to buy a specific product. Market- Group of people who have the desire and ability to buy a specific product. Are college students a good market for Lamborghinis? Are college students a good market for Lamborghinis? Market research must be conducted in order to discover the viability of markets and choose target markets. Market research must be conducted in order to discover the viability of markets and choose target markets. Examples: Examples:

8. Satisfying Customer Needs Once the marketing department gathers the necessary information, it is ready to decide upon target markets. Once the marketing department gathers the necessary information, it is ready to decide upon target markets. Target market- “One or more specific groups of potential consumers toward which an organization directs its marketing program.” Target market- “One or more specific groups of potential consumers toward which an organization directs its marketing program.”

9. Satisfying Needs Now that the target market has been selected, the marketers must consider factors that will influence purchasing decisions in that market. Now that the target market has been selected, the marketers must consider factors that will influence purchasing decisions in that market. Controllable Controllable Marketing Mix Marketing Mix Uncontrollable Uncontrollable Environmental Forces Environmental Forces Social Social Economic Economic Technological Technological Competitive Competitive Regulatory Regulatory

10. Marketing & Customer Relationships Customer Value- “Unique combination of benefits received by targeted buyers that includes quality, price, convenience, on- time delivery, and both before-sale and after-sale service.” Customer Value- “Unique combination of benefits received by targeted buyers that includes quality, price, convenience, on- time delivery, and both before-sale and after-sale service.”

11. Relationship Marketing Supply Chain Management (SCM) Supply Chain Management (SCM) Involve “partners” through integrated systems Involve “partners” through integrated systems Reduces costs Reduces costs Prevents duplication of effort Prevents duplication of effort

12. Relationship Marketing SCM Example SCM Example Manufacturer Wholesaler/ Warehouse Retailer Consumer

13. Marketing Program A marketing plan integrates the marketing mix to provide a good, service, or idea to buyers in a particular segment. A marketing plan integrates the marketing mix to provide a good, service, or idea to buyers in a particular segment.

14. The History of Marketing Production Era (1800’s-1930’s) Production Era (1800’s-1930’s) “Products sell themselves” “Products sell themselves” Sales Era (1920’s-1960’s) Sales Era (1920’s-1960’s) Overproduction led to the hiring of as many salespeople as possible Overproduction led to the hiring of as many salespeople as possible

15. The History of Marketing The Marketing Concept Era (1955-1990’s) The Marketing Concept Era (1955-1990’s) An organization should strive to meet consumer needs, while trying to achieve organizational goals. An organization should strive to meet consumer needs, while trying to achieve organizational goals. Implement marketing ideas throughout the marketing process, from beginning to end. Implement marketing ideas throughout the marketing process, from beginning to end.

16. The History of Marketing The Market Orientation Era (1990’s- Present) The Market Orientation Era (1990’s- Present) Larger in scope Larger in scope Firms with market orientation: Firms with market orientation: Continuously collect information on competition and customers Continuously collect information on competition and customers Share information throughout the company Share information throughout the company Use information to create customer value Use information to create customer value

17. ..and Finally Buyers may not be the final users Buyers may not be the final users Ultimate consumers vs. organizational buyers Ultimate consumers vs. organizational buyers Everyone benefits from marketing Everyone benefits from marketing Consumers gain utility and choice Consumers gain utility and choice Organizations become profitable Organizations become profitable Society benefits from lower prices and better products Society benefits from lower prices and better products