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FIGURE 1-1 A marketing department relates to many people, organizations, and environmental forces

WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR LO 1-1 Two + Parties with Unsatisfied Needs A Desire and Ability to be Satisfied A Way for the Parties to Communicate Something to Exchange Domino’s Pan Pizza

American Marketing Association’s new official definition of marketing released August 2004: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have values for customers, clients, partners, and society at large.

Ultimate Goal of Marketing The passion to understand and satisfy the needs of customers in well-defined target markets.

Core Concepts of Marketing (1 of 2) Needs Wants Demands Marketing Offers Value

Core Concepts of Marketing (2 of 2) Satisfaction Exchange Transaction Market Utility

Utility Production and marketing together create utility Utility - The want-satisfying power of a good or service

TABLE 1.1 Four Types of Utility

Six Eras of Marketing PRODUCT PRODUCTION SALES MARKETING SOCIETY RELATIONSHIP

Marketing Myopia Marketing myopia - Management’s failure to recognize the scope of its business Overcoming marketing myopia Developing broader marketing-oriented business ideas focusing on customer need satisfaction

Avoiding Marketing Myopia TABLE 1.2 Avoiding Marketing Myopia

AVOIDING MARKETING MYOPIA

Not-for-Profit Marketing Marketing in not-for-profit organizations Operate in both the public and private sector Adopt marketing strategies to meet service objectives Communicate their messages through advertisements relating to their goals Form alliances with for-profit firms to promote each other’s causes

Characteristics of Not-for-profit Marketing Focus is to generate revenue to support their causes and not on the bottom line May market tangible goods and services Markets to multiple audiences Often possess some degree of monopoly power in a given geographic region Service users have less control over the firm’s future

Categories of Nontraditional Marketing TABLE 1.3 Categories of Nontraditional Marketing

Nontraditional Marketing Person marketing – Efforts to cultivate the attention, interest, and preferences of a target market toward a person Celebrity endorsements Place marketing - Efforts to attract people and organizations to a particular geographic area Tourism enhancements

Nontraditional Marketing Cause marketing - Identification and marketing of a social issue, cause or idea to selected target markets Many profit-seeking firms link their products to social causes Strong support among customers and employees for cause-related marketing

Nontraditional Marketing Event marketing - Marketing of sporting, cultural, and charitable activities to selected target markets Also, includes sponsorship of such events by firms Event sponsorships have gained effectiveness in increasing brand recognition, enhancing image, boosting purchase volume

Nontraditional Marketing Organization marketing - Intended to persuade others to: Accept the organization’s goals Receive its services Contribute to the organization in some way Adopted by mutual-benefit organizations, service organizations, and government organizations

Converting New Customers to Advocates FIGURE 1.2 Converting New Customers to Advocates