1-1Copyright 2000 Prentice Hall Chapter 1 Welcome to the World of Marketing

1-2Copyright 2000 Prentice Hall What is Marketing? n n Marketing is 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. n n More simply: Marketing is all about satisfying needs.

1-3Copyright 2000 Prentice Hall The Marketing Concept n n The Marketing Concept is a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability objectives. n n A consumer is the ultimate user of a good or service.

1-4Copyright 2000 Prentice Hall Needs, Wants and Benefits Needs Wants Desire to Satisfy Needs in Ways That are Culturally and Socially Influenced. Let’s go eat a cheeseburger. Benefits Outcome Sought by a Consumer That Motivates Buying Behavior. Now I’m full; I feel better. Difference Between a Consumer’s Actual State and Some Ideal or Desired State. I’m Hungry!

1-5Copyright 2000 Prentice Hall Markets, Consumers and Demand Market Customers who share a common need that can be satisfied by a specific product AND who are willing, able and have the authority to make the exchange. Customers Potential Customers DEMAND

1-6Copyright 2000 Prentice Hall Social Marketing Concept Consumers Company Society Orientation that Focuses on Satisfying Consumers Needs While Also Addressing the Needs of the Larger Society.

1-7Copyright 2000 Prentice Hall Marketing is an Exchange of Value n n An exchange is the process by which some transfer of value occurs between a buyer and a seller. – – At least two people or organizations must be willing to make a trade, and – – Each must have something the other values. – – Most exchanges occur in the form of a monetary transaction.

1-8Copyright 2000 Prentice Hall (Almost) Anything Can be Marketed Consumer Goods and Services Consumer Goods and Services Business- to- Business Marketing Business- to- Business Marketing Idea, Place, People Marketing Idea, Place, People Marketing Not-For- Profit Marketing Not-For- Profit Marketing

1-9Copyright 2000 Prentice Hall Marketing’s Tools: The Marketing Mix Product Good, Service, Idea, Place, Person Product Good, Service, Idea, Place, Person Price Assignment of Value Price Assignment of Value Place Availability of Product Place Availability of Product Promotion Activities to Inform Consumers Promotion Activities to Inform Consumers Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers

1-10Copyright 2000 Prentice Hall Marketing is a Process n n “Marketing is a process of planning and executing...” n n The concept of Relationship Marketing sees marketing as a process of building long-term relationships with customers to keep them satisfied and to keep them coming back.

1-11Copyright 2000 Prentice Hall How is Marketing Done? Marketers Develop and Implement a Marketing Plan Based on the Following Information: Organization’s Strengths and Weaknesses Organization’s Strengths and Weaknesses Organization’s Overall Objectives Opportunities and Threats to the Organization in the Marketplace Opportunities and Threats to the Organization in the Marketplace

1-12Copyright 2000 Prentice Hall Finding and Reaching a Target Market n n Step 1. Segmenting the Market – – Divide the overall market into segments, in which consumers have similar characteristics. n n Step 2. Selecting a Target Market – – Evaluate the segments identified in the segmentation process; select target market(s). n n Step 3. Positioning the Product – – Marketer plans the product’s market position, which is how the target market perceives the product in comparison to competitors’ brands.

1-13Copyright 2000 Prentice Hall When Did Marketing Begin? Product Orientation Selling Orientation Customer Orientation Most Efficient Production & Distribution Seller’s Market Satisfies Customers’ Needs and Wants Total Quality New Era Orientation Benefits to Customers, Plus Firm’s Employees, Shareholders, and Communities. Marketing as a Sales Function Buyer’s Market

1-14Copyright 2000 Prentice Hall Why is Marketing Important? n n Marketing Creates Utility – – Form Utility – – Place Utility – – Time Utility – – Possession Utility n n Marketing’s Role in the Firm – – A firm’s marketing-related decisions must affect and be affected by its other operations such as accounting and manufacturing.

1-15Copyright 2000 Prentice Hall Why is Marketing Important? n n Marketing’s Role in Our Daily Lives – – Popular Culture – – Marketing and Myths n n Marketing’s Role in Society – – Ethical Behavior is Good Business – – Social and Ethical Criticisms of Marketing

1-16Copyright 2000 Prentice Hall Chapter Summary n n Define the marketing concept. n n Describe the marketing mix. n n Understand the basics of marketing planning. n n Describe the evolution of the marketing concept. n n Explain how marketing is important to consumers and business customers in the marketplace, in our daily lives, and in society. n n Explain marketing’s role within an organization.