Introduction to Marketing Market Oriented Approach

What is 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 to serve both buyers and sellers.

NeedsEat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer

Needs & Wants A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person’s knowledge, culture, and personality. What are the legal, ethical, and moral. implications of satisfying wants and needs?

Factors that influence marketing activities Organization itself (mission and goals) Customers Suppliers Shareholders Competitors Environmental forces Society

Summary of factors that affect an organization’s marketing program Promotion Competitive forces Regulatory forces Social forces Economic forces Place Price Product Environmental forces Consumer Marketing program Technological forces

Customers Relationships Environmental Forces Shareholders (owners) The Organization Society Suppliers SocialRegulatoryTechnologicalEconomicCompetitive Other Organizations Alliances Partnerships Ownership Human Resources Research and Development Information Systems Manufacturing FinanceMarketing Management

Requirements for Marketing to Occur For marketing to occur, at least 4 factors are required: 1.Two or more parties (individuals or organizations) with unsatisfied needs, 2.a desire and ability on their part to be satisfied, 3.a way for the parties to communicate, and 4.something to exchange.

First Task: Detect Needs

Organization’s marketing department Discover consumer needs Information about needs Potential consumers: The market Marketing’s first task: discovering consumer needs

What is a Market? Potential consumers make up a market, which is: 1.People 2.with the Desire and 3.with the Ability to Buy a specific product.

Organization’s marketing department Concepts for products Discover consumer needs Information about needs Potential consumers: The market Satisfy consumer needs Find the right combination of: Product Price Promotion Place Goods, services, ideas Marketing’s Second Task: Satisfying Consumer Needs Marketing’s Second Task: Satisfying Consumer Needs

The Target Market Because the organization obviously can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.

The Four Ps: Controllable Marketing Mix Factors Product Price Promotion Place

Building Customer Relationships

Customer value is.... the unique combination of benefits received by target buyers that includes quality price convenience on-time delivery before & after-sale service the unique combination of benefits received by target buyers that includes quality price convenience on-time delivery before & after-sale service

Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.

A marketing program is... a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

How Marketing became so important?

Production era Sales era Marketing concept era Market orientation era Four different orientations in the history of North American business

Definition of Market Orientation An organization that has a market orientation focuses its efforts on.... An organization that has a market orientation focuses its efforts on.... (1)Continuously collecting information about customers’ needs and competitors’ capabilities, (2)sharing this information across departments, and (3)using the information to create customer value. (1)Continuously collecting information about customers’ needs and competitors’ capabilities, (2)sharing this information across departments, and (3)using the information to create customer value.

Old Marketing Context

Ethics & Social Responsibility Ethics Social responsibility. Decisions should consider the well-being of society as a whole. Societal marketing concept. An organization should satisfy customers’ needs while providing for society’s well-being. Macromarketing Micromarketing

The Breadth & Depth of Marketing Marketing affects every person and organization Who markets? What do they market? Who buys and uses what is marketed? Who benefits from these marketing activities? How do they benefit?

Who buys and uses what is marketed? Ultimate Consumers Organizational Buyers (B to B)

Utility Form Place Time Possession Form Place Time Possession Examples of Marketing Actions that Create Utility Product design, packaging Distribution, store location Inventory management, warehouses, delivery Transactions, transfer of ownership Product design, packaging Distribution, store location Inventory management, warehouses, delivery Transactions, transfer of ownership How Do Consumers Benefit?