1. CHAPTER 1: Marketing: The Art and Science of Satisfying Customers
2 BASIC OPERATING FUNCTIONS OF EVERY ORGANIZATION 1. Production of a good, service, organization, person, or idea 2. Marketing of the good, service, organization, person or idea

2. Utility
want satisfying power of a good or service

3. 4 TYPES OF UTILITY 1. FORM created by production
convert raw materials into finished goods & services Ex. Metal Shelves, Ford Explorer

4. Utility (Cont.) 2. TIME created by marketing
availability of goods & services when consumers want to buy them Ex.: Dominos 30 minute guarantee Federal Express

5. Utility (Cont.) 3. PLACE 4. OWNERSHIP created by marketing
availability of goods & services where consumers want to buy them
Ex.: vending machines, Taco Bell Express
4. OWNERSHIP
transfer title time of purchase
Ex.: retail outlets (in exchange for $ or credit card payment)

6. WHAT IS MARKETING? American Marketing Assoc. (1985)
"process of planning & executing the conception, pricing, promotion, & distribution of ideas, goods, & services to create exchanges that will satisfy individual & organizational objectives"

7. Marketing does not begin at the end of the loading dock
Marketing does not begin at the end of the loading dock! Marketing should be involved from the conception of the product to the ultimate user.

8. 4 Eras in Marketing 1. PRODUCTION ERA:
"A good product will sell itself"
Prior to 1920's
production oriented: make product and then sell it (Henry Ford)

9. 2. SALES ERA:
"Creative advertising & selling will overcome customer resistance & convince them to buy”
between 1925 & early 1950's
selling was main focus of marketing

10. Emergence of the Marketing Concept
3. MARKETING ERA:
"The consumer is king! Find a need & fill it!”
early 1950's to early 1990’s
Emergence of the Marketing Concept
*CONSUMER ORIENTATION
Seller’s Market vs. Buyer’s Market

11. RELATIONSHIP MARKETING ERA
long-term, value added relationships developed over time with customers and suppliers
1990-Today
Strategic Alliances
Ex. UPS

12. 5. The Social Era: NOW
Connect with consumers via Internet and social media.

13. AVOIDING MARKETING MYOPIA
Management failure to recognize scope of its business
EX. Amtrak
AT&T
chart on pg 13 gives good examples of focusing on benefits

14. 5 Types of Nontraditional Marketing
1. Person Marketing
to cultivate attention, interest, & preference of a target market toward a person
Ex.: pro athletes
2. Place Marketing
attract visitors to a particular area
Ex.: “Wake Up to Missouri” or Pumpkin License Plate

15. 3. Cause Marketing Ex.: "Save the Whales" literacy Milk
identification & marketing of a social issue, cause, or idea to selected target markets
Ex.: "Save the Whales"
literacy
Milk

16. 5. Organizational Marketing
4. Event Marketing
mkt of sporting, cultural, & charitable activities to selected target markets
Ex. Visa & Olympics or TWA Dome
5. Organizational Marketing
seek to influence others to accept the goods of, receive the services of, or contribute in some way to an organization
- Ex.: “Be All that You Can Be”
Ex: “An Army of One”

17. ELEMENTS OF A MARKETING STRATEGY
1. THE TARGET MARKET
who firm will direct marketing efforts toward
Ex. Baby-boomers, children, women
Ex.: Stouffers Lean Cuisine
2. THE MARKETING MIX VARIABLES (4P’s)
Once target market is chosen, how these variables are "mixed" determines success of marketing.

18. Marketing Mix
A. PRODUCT: package design, branding, trademarks, warranties, product life cycles & new product development B. PRICING: one of most difficult marketing decisions

19. C. DISTRIBUTION: ensures that product arrives in right place, in right quantity at the right time D. PROMOTION: communications link between sellers & buyers Ex.: advertising, sales people, sales promotions

20. 3. THE MARKETING ENVIRONMENT
The marketing environment is important because it provides a framework for all marketing activity.
5 Forces
1. COMPETITION
2. POLITICAL-LEGAL
3. ECONOMIC
4. TECHNOLOGICAL
5. SOCIAL-CULTURAL

21. Strategic Alliances: partnership that creates competitive advantages
ex. Delta and Disney
UPS and Bradfield’s
Pepsi and Apple’s iTunes
Marketing Costs
creating time, place & ownership utility costs $
most estimate that marketing costs are % of overall product cost

22. Internet and Marketing
It was the future and is now the present!

23. ETHICS AND SOCIAL RESPONSIBILITY
Most business people are ethical but there are a few rotten ones.
Ex. ADM, Enron, Worldcom