Objectives Course Organization Tasks of Marketing Major Concepts & Tools of Marketing Marketplace Orientations Marketing’s Responses to New Challenges

Course/Text Organization Part I - Marketing Management Part II - Analyzing Marketing Opportunities Part III - Developing Marketing Strategies Part IV - Shaping the Market Offering Part V - Managing & Delivering Marketing Programs

Defining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. - Philip Kotler (p. 7)

What is Marketed? Goods Services Events Experiences Persons Places Properties Organizations Information Ideas

Core Concepts of Marketing Product or Offering Value and Satisfaction Needs, Wants, and Demands Exchange and Transactions Relationships and Networks Target Markets & Segmentation Marketing Channels Supply Chain Competition Marketing Environment

The macro-environment The micro-environment Political factors Economic factors Technological factors Socio-cultural factors The Internal environment Men Money Machinery Materials Minutes Consumers Stakeholders Suppliers The Marketing Environment

For an exchange to occur….. There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.

Demand & Need States I want... Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull I need… Stated needs Real needs Unstated needs Delight needs Secret needs

Simple Marketing System Industry (a collection of sellers) Market (a collection of Buyers) Goods/services Money Communication Information

The New Player Order The marketplace isn’t what it used to be…. Changing technology Globalization Deregulation Privatization Empowerment Customization Convergence Disintermediation Or?

Manufacturer markets Services,money Government markets Services,money Services Services,money Taxes Taxes,goods Taxes,goods Taxes,goods MoneyMoney Consumer markets Intermediary markets Goods, services ResourcesResources Resource markets MoneyMoney Structure of Flows

Marketing Mix - The Four Ps Marketing Mix Product Price Promotion Place & The Four Cs Customer Solution Customer Cost Communication Conven- ience

Four Ps ProductPricePromotionPlace Product variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns List price Discounts Allowances Payment period Credit terms Sales promotion Advertising Sales force Public relations Direct marketing Channels Coverage Assortments Locations Inventory Transport

Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Company Orientations Towards the Marketplace

Market Integrated marketing Profits through customer satisfaction Customer needs (b) The marketing concept Factory Existing products Selling and promotion Profits through sales volume Starting point FocusMeansEnds (a) The selling concept Customer Delivered Value

Customers Front-line people Middle Management Top Management Traditional Organization Chart

Customer-Oriented Organization Chart Customers Front-line people Middle management Top manage- ment Customers

Evolving Views of Marketing’s Role a. Marketing as an equal function Finance Production Marketing Human resources b. Marketing as a more important function Finance Human resources Marketing Production

Evolving Views of Marketing’s Role c. Marketing as the major function Marketing Finance Human resources Production d. The customer as the controlling factor Customer Human resources Finance Production Marketing

Evolving Views of Marketing’s Role e. The customer as the controlling function and marketing as the integrative function Customer Marketing Production Human resources Finance

Review Course Organization Tasks of Marketing Major Concepts & Tools of Marketing Marketplace Orientations Marketing’s Responses to New Challenges