What is Marketing? 1.2 and 1.3

Marketing - defined “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” American Marketing Association creating, communicating, delivering and exchanging offerings that have value

Marketing – defined (2) “The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing: (1) identification, selection and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place, and (4) development and implementation of a promotional strategy.” Business Dictionary.com

Marketing – defined (3) For example, new Apple products are developed to include improved applications and systems, are set at different prices depending on how much capability the customer desires, and are sold in places where other Apple products are sold. In order to promote the device, the company featured its debut at tech events and is highly advertised on the web and on television. Marketing is based on thinking about the business in terms of customer needs and their satisfaction. "Selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs." Theodore C. Levitt, HBS

Create a Marketing Mix 4Ps 1) Product 2) Price 3) Promotion 4) Place (Distribution) Alone or with a small group (2 or 3 total) Take a few minutes to Think of the “Marketing Mix” for a Product.

Apple How has Apple been doing the past few years? Why is the stock price climbing this month? What is the historical context? How is this a marketing issue? (apply 4 P’s)

Marketing Where do we find marketing? Why is it so ubiquitous or found everywhere?

Product We start marketing process BEFORE we even have a product. What is the need that is unmet? This will answer the question: What is our USP? Unique Selling Proposition Buy this product, and you will get this specific benefit

Homework Read Chapter 1 Answer questions 1-5 on page 9 (in section 1-1) Answers questions 1-7 on page 20 (in section 1-3)

Homework Answers #1 Advertising and selling and _________? #2 examples of each Marketing info management – buyer cards Financing – 0% on car sales Pricing – BOGOF Promotion – coupons Product/Service Mgmt – R&D for new inventions Distribution – Amazon Selling - infomercials

Homework Answers (2) #3 Every business does marketing #4 it has become more complex to define #5 That they be satisfying

Closing Work/Homework For next class, consider this question: What is the potential downside to having so much choice available to consumers? Consider the downside for consumers and for producers.

Ads for today Humor – why do so many companies feature it in advertising? Atlantic Monthly article – read aloud and watch ads Volkswagon catch ad FedEx ad Apple HAL