AN OVERVIEW OF MARKETING

MARKET PLANNING UNIT ENDURING UNDERSTANDING STUDENTS WILL UNDERSTAND THAT……. Marketing is customer focused. Marketing is much more than advertising and selling. A marketing plan is a roadmap for all companies' business efforts.

ESSENTIAL QUESTIONS What is marketing? How do marketers find their customers? What makes marketing dynamic? What causes a business to "close its doors"?

REASONS FOR STUDYING MARKETING Why Study Marketing? Important to Society Important to Society Important to Business Good Career Opportunities Good Career Opportunities + Marketing affects you every day!

Marketing is the freedom to choose. Now I understand. Marketing is so much more than efficiently offering products and services to people that they want. Marketing is a fundamental process to a free society; it is a Right. Marketing and brands offer consumers choice; without choice, there is no freedom. Listen to how people described their experiences. About choice and availability: Cuba was a world of restrictions; here (in the US) we have possibilities. You had a ration card…one pair of shoes, so many panties; half a pound of meat every month (Cuba) You had to decrease your desires (Hungary) Sometimes you would even buy things you didn’t need just because it was available. (Soviet Union) Certain brands were available and were highly desired. For example, “We all wanted to buy Levi’s jeans because it symbolized freedom and a better way of life” (comment from a number of those interviewed).. Is being in Marketing a worthy profession? “Oh, you’re in marketing”, or “Oh, you’re in advertising?” (implied ‘ugh’ follows). Well, I beg to differ. Our most important rights are based on our freedom to make our own life choices which are activated daily by the options that marketing and media give us. Think about the force for democracy that Twitter (a marketer) was in Iran during the elections. Marketing is every bit as noble as the medical profession, or education, or being an environmental scientist. We are all equally essential to the human condition. Feel the stories of people who grew up in cultures without choice where daily existence was defined by deprivation rather than hope. Freedom is spelled C-H-O-I-C-E, and that is the importance of marketing and brands

WHAT IS MARKETING? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities/Functions Financing Selling Distribution Promotion Pricing Marketing Information Management Product Service Management

WHAT IS MARKETING ? Product Price Place Promotion Exchange A B Creating Value Customer value and beneficial relationships

MARKETING MANAGEMENT PHILOSOPHIES APPROACHES TO THE MARKETPLACE School Bag Activity

PRODUCTION ORIENTATION ’S  Internal capabilities of the firm.  Emphasis on producing and distributing new products  Holds that consumers will favor products that are available and affordable.  Implies work towards mass production and low cost  Implies firm should strive to continually upgrade product production

SELLING CONCEPT1930’S TO 1940’S Assumes people need to be sold on whatever it is the firm has decided to offer. 1st: Decide what to produce 2nd: Figure out how to get people to buy what you have.  Implies lots of selling/promotional activities are needed to move product 3 rd Aggressive sales techniques and belief that high sales result in high profits

MARKETING CONCEPT 1950’S -1970’S Means of achieving goals Knowing needs and wants  implies research and/or appropriate assumptions Target markets  implies clear target groups: people whose needs/want you will try to fill Customer Satisfaction Competitors acknowledged

MARKETING CONCEPT VS. SELLING CONCEPT Marketing Concept:  Begin with customer needs  Develop 4 Ps in light of customer needs  “Have what you can get rid of” Selling Concept  Begin with what firm wants to produce  Given products, persuade customers to buy  “Get rid of what you have.” Journal: Edsel

FAILURE TO SUCCESS

ACHIEVING A MARKETING ORIENTATION Obtain information about customers, competitors, and markets Examine the information from a total business perspective Determine how to deliver superior customer value Implement actions to provide value to customers

HOW SHOULD A BUSINESS BE DEFINED? CompanyProduct-Oriented Answer Market-Oriented Answer KodakWe make camerasWe help preserve memories VerizonWe sell cell phones CokeWe make soda LeviWe make jeans NikeWe design athletic shoes LexusWe build cars McDonald’sWe sell fast food

AVOIDING MARKETING MYOPIA Marketing myopia—Focusing on products/company rather than the customer. Results in failure to see and adjust to the rapid market changes.

BUILDING RELATIONSHIPS A strategy that focuses on keeping and improving Relationships with current customers. Relationship Marketing

BUILDING RELATIONSHIPS Customer-oriented personnel Employee training programs Empowered employees Teamwork ZZappos YouTube - The Zappos Family on Nightline

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests. Less toxic products More durable products Products with reusable or recyclable materials SOCIETAL MARKETING 1990-NOW Societal Marketing Orientation The Body Shop - Values and Campaigns

THE FOUR MARKETING MANAGEMENT PHILOSOPHIES Production Sales Marketing Societal What can we make or do best? How can we sell more aggressively? What do customers want and need? What do customers want and need, and how can we benefit society? OrientationFocus

Societal Marketing Assignment Handout 1-21