What’s Happening?

Marketing in Today’s World: Creating Customers for Life Chapter ONE

Defining Marketing – Your Words! If you were to tell a friend, “I’m taking a marketing class,” and the friend were to ask, “What’s marketing?” how would you answer?

What is Marketing? Attracting new customers by promising and delivering superior value. Building long-term relationships with customers by delivering continued customer satisfaction. Creating, building and managing these relationships profitably over time.

Defining Marketing,…. Marketing is an organizational function and 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 (AMA, 2004)

Marketing activities aimed to build long-term relationships with: a. the people (especially customers) b. organizations that contribute to the company’s success The sale is the beginning of the organization’s relationship with its customers Visit Exhibit 1-3, The Definition of Marketing: Three Examples (page 8) Relationship Marketing

Discussion Question We are all consumers. Every one of us makes purchases for our own use, and we’ve been doing so for many years. As consumers, we are exposed to the marketing efforts of the companies we buy from nearly every day. Think about this, and give examples of how you, as consumers encounter marketing.

What Is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships. A market includes people or groups with purchasing power who are willing to exchange their resources (money, time or something of equal value) for something else (product or service).

Segmentation and Targeting Segmentation divides the market into groups of customers with varying needs and wants. Targeting selects the right segment to nurture.

PRICE PRODUCT PLACEPROMOTION Controllable Variables The Marketing Mix: An Overview of the 4Ps

Uncontrollable variables that affect 1. the consumer’s behaviour 2. the organization’s development of an effective marketing mix These variables are grouped into six categories Environmental Forces

Environmental Forces ( Exhibit 1-5 (page 15)

Within each variable marketers identify trends Example – the Canadian population is aging  Marketers react to the changing trends by adjusting the marketing mix Environmental Forces

Production Orientation: Goal is to produce as much product as possible Henry Ford said, “You can have any colour of car, as long as it’s black” Sales Orientation: Maximize sales volume “Focus on Transaction” Market Orientation: “Establishing and Maintaining Relationships” The Marketing Concept: Focus and goal is on customer satisfaction, and this will lead to profit. “The Foundation of a Market Orientation” Business/Marketing Philosophies

The Marketing Concept The Marketing Concept is: A philosophy that emphasizes customer orientation and coordination of marketing activities to achieve both the organization's performance objectives and the consumers value proposition. An “outside – in” perspective