10/20/2015 What is Marketing?

10/20/2015 Marketing Planning and executing the conception, pricing, and promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

10/20/2015 Five Conditions Exchange Must be at least 2 parties Each party must have something the other values Each party must be able to communicate with the other party and deliver the G or S Each party must be able to accept or reject the other ’ s offer Each party must want to deal with the other party

10/20/2015 Marketing Management Philosophies Production Orientation Sales Orientation Market Orientation Societal Orientation

10/20/2015 Production Orientation Focuses on what the business think they should make. Production orientation looks at internal abilities of the firm rather than on the desires & needs of the marketplace. AKA “ Field of Dreams ” orientation If we build it, they will come.

10/20/2015 Sales Orientation People will buy more G & S if aggressive sales techniques are used and that high sales result in high profits. To sales-oriented firms, marketing means selling things and collecting $.

10/20/2015 Societal Orientation Organization exists to satisfy customers wants and needs and to meeting organization objectives, but also to preserve or enhance individual ’ s & society ’ s long-term best interests.

10/20/2015 Market Orientation States that social & economic justification for an organization ’ s existence is the satisfaction of customer wants & needs while meeting organizational objectives. What customers think they are buying—the perceived value—defines a business.

10/20/2015 Ideas that the social & economic justification for an organization ’ s existence is the satisfaction of customers wants and needs while meeting organizational objectives.

10/20/2015 Marketing Concept Goals Focus on customer wants & needs so you can distinguish your G &S from the competition Integrate all business activities (including production) to satisfy these wants Achieve long- and short-term goals by satisfying customer wants & needs legally & responsibly

10/20/2015 M. C.—Customer Value Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts

10/20/2015 M. C. Customer Satisfaction Feeling that a product has met or exceeded the customer ’ s expectations Building Relationships Forging long-term partnerships with customers **Relationship Marketing

10/20/2015 Internet & M. C. Customer-Oriented Personnel Role of Training Employee training in customer service is the basis of relationship marketing Empowerment Delegation of authority to solve customers ’ problems quickly—usually by the 1 st person that the customer notifies. Teamwork Collaborative efforts of people to accomplish common objectives

10/20/2015 Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits 3 3

10/20/2015 Customer Value Requirements Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support 3 3

10/20/2015 The feeling that a product has met or exceeded the customer ’ s expectations. Customer Satisfaction 3 3

10/20/2015 Maintaining Customer Satisfaction  Meet or exceed customer ’ s expectations  Focus on delighting customers  Provide solutions to customer ’ s problems 3 3

10/20/2015 Relationship Marketing The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms. 3 3

10/20/2015 Relationship Marketing ’ s Importance Attracting a new customer may be TEN TIMES the cost of keeping an old customer 3 3

10/20/2015 Building Long-Term Relationships  Customer-oriented personnel  Effective training programs  Empowered employees  Teamwork 3 3

10/20/2015 Empowerment Delegation of authority to solve customers ’ problems quickly. 3 3

10/20/2015 Learning Objective Describe the marketing process and identify the variables that make up the marketing mix 4 4

10/20/2015 Marketing Process Activities Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed 4 4

10/20/2015 SWOT Activity Using the SWOT notes distributed, select one of the products below and identify each “ SWOT ” letter for the product. Jordan “ Nike ” Sneakers New Era Hat Uggs Name brand pocketbook

10/20/2015 Environmental Scanning Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation. 4 4

10/20/2015 Environmental Scanning  Examination of macroenvironmental forces  Social  Demographic  Economic  Technological  Political / Legal  Competitive  Helps identify market opportunities  Provides guidelines for design of marketing strategy 4 4

10/20/2015 Environmental Scanning Activity Social—values of potential customers & the changing roles of families & women working outside the home. Demographic—ages, birth & death rates, & locations of various groups of people Economic—Changing incomes, inflation, & recession Technological—Advanced communications & data retrieval capabilities Political & legal—changes in laws & regulatory agency activities. Competitive—Domestic & foreign-based firms Using the information below create examples of each bullet.

10/20/2015 A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. The Marketing Mix 4 4

10/20/2015 Price Marketing Mix: The “ Four Ps ” 4 4 Promotion Place Product

10/20/2015 Product Strategies Product 4 4 The starting point of the “ 4 Ps ” Includes physical unit, package, warranty, service, brand, image, and value

10/20/2015 Distribution (Place) Strategies 4 4 Place Product availability where and when customers want them. Involves all activities from raw materials to finished products

10/20/2015 Promotion Strategies 4 4 Promotion Role is to bring about exchanges with target markets Includes integration of 1. personal selling, 2. advertising, 3. sales promotion, 4. public relations

10/20/2015 Pricing Strategies 4 4 Price The most flexible of the “ 4 Ps ” Price X Units Sold = Total Revenue

10/20/2015 Pricing Strategies Cost-based—Cost to make + what you want to make Demand-based—find out what your customers are willing to pay Competition-based—base your price on your competition.

10/20/2015 Learning Objective Describe several reasons for studying marketing. 5 5

10/20/2015 Why Study Marketing?  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day 5 5

10/20/2015 Why Study Marketing? “Marketing is too important to be left to the marketing department.” -- David Packard Hewlett-Packard “Marketing is too important to be left to the marketing department.” -- David Packard Hewlett-Packard 5 5

10/20/2015  1/4th to 1/3rd of the entire civilian workforce in the U.S. performs marketing activities  Fastest route up the corporate ladder Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling Why Study Marketing? 5 5

10/20/2015  Half of every dollar spent by consumers pays for marketing costs  Become a better-informed consumer Why Study Marketing? 5 5