Marketing “Marketing is Everything” - Regis McKenna, HBR, 1991 “The End of Marketing” - Regis McKenna, Business 2.0, 2000

An Introduction to Marketing Marketing defined: “ 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. - American Marketing Association (And hereafter regarding definitions)

Organizational Functions – What do firms really do? Theories: Economic - Financial Agency - Managerial Resource Allocation -Managerial Competitive Rationality - Marketing Adaptive Organization – Managerial Transaction Function - Economic Knowledge-Based – Cross-Functional – Information Processing – Learning/Teaching Where is MARKETING in all this?

Organizational Functions – What do firms really do? Theories: Economic - Financial Agency - Managerial Resource Allocation -Managerial Competitive Rationality - Marketing Adaptive Organization – Managerial Transaction Function - Economic Knowledge-Based – Cross-Functional Knowledge-Based – Cross-Functional Intelligence Cycle Learning/Teaching MARKETING

Knowledge-Based Theory of the Firm

An Introduction to Marketing Marketing defined: “ 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.

VISION The Fundamental ‘Model’ STRATEGYOPERATIONSTACTICS VALUE Loyalty/LoveBelief/BehaviorCustom/Habituation Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” Build FRANCHISE and “Heart Share” Process ServiceBranding Value Indicator IT/IM Research/DDDistribution/Logistics Segmentation Macro/Micro Methodology Targeting Size Dynamic LeveragePositioning Reason for Being Offering Four P’s (Concept/Creativity) Product/Promo/Price Place/ plus 1 + People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral)Differentiation Content (What) Context (How) Infrastructure (Enables) Value creation and destruction Value culture

An Introduction to Marketing Marketing defined: “ 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.

The Communication Process SENDERRECEIVER MEDIUM Sponsor (sender) encodes message properly (or NOT) Sponsor sends message through the channel (medium) to the consumer (receiver). Consumer receives the message and decodes it into meaningful information (or NOT) Attitude: Self-Referencing Issues Attitude: Cultural Filter Issues Firm Customer Intermediary; Customer Noise

An Introduction to Marketing Marketing defined: “ 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.

Value can be expressed several ways. Three of the clearest are: Benefits (total ‘get) Value = … or more specifically, Price (total ‘give’) Fb + Eb Value = … where, P + Oe Fb =Functional benefits (utility) Eb =Emotional benefits (psychology) P =Price (charged) for acquisition Oe =Other expenses/costs of acquisition … and finally Value =You answered my question! Solved my problem!

Classic Marketing Development Sequence Time/Space 1930’s Today

An Introduction to Marketing Marketing defined: “ 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.

customer relationship management A discipline in marketing combining database and computer technology with customer service and marketing communications. Customer relationship management (or CRM) seeks to create more meaningful one-on-one customer communications by applying customer data (demographic, industry, buying history, etc.) to every communications vehicle. At the simplest level, this would include personalizing or other communications with customer names. At a more complex level, CRM enables a company to produce a consistent, personalized marketing communication whether the customer sees an ad, visits a Web site, or calls customer service. C R M American Marketing Association

An Introduction to Marketing Marketing defined: stakeholders “ 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.

Stakeholders One of a group of publics with which a company must be concerned. Key stakeholders include consumers, employees, stockholders, suppliers, and others who have some relationship with the organization.

Overall Discussion and Questions Syllabus and assignments Textbook Objectives What marketing is Who is involved in the course ____________________