1. Welcome to the World of Marketing
Chapter 1
Welcome to the World of Marketing
Marketing: Real People, Real Choices 3rd edition

2. Chapter Objectives Know what marketing is all about
Define the marketing mix
Understand the basics of marketing planning
Describe the evolution of the marketing concept
Explain why marketing is important
Marketing: Real People, Real Choices 3rd edition

3. What is Marketing?
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.
Marketing: Real People, Real Choices 3rd edition

4. What is marketing??
Identify needs of consumers and fill them in the right place, time and way.
Consumer: the ultimate end user of a good or service.

5. Marketing Satisfies Needs
Most successful firms practice the marketing concept
first identify consumer needs and then provide products that satisfy those needs
Marketing: Real People, Real Choices 3rd edition

6. Marketing Satisfies Needs
A need is the difference between a consumer’s actual state and some ideal or desired state
physical needs (water)
psychological needs (looking good)
Marketing: Real People, Real Choices 3rd edition

7. Needs versus Wants
A need is the difference between the actual and ideal states of being
A want is a desire for a particular product used to satisfy that need
wants are culturally and socially influenced
Marketing: Real People, Real Choices 3rd edition

8. Needs, Benefits, Demand, and Markets
A product delivers a benefit when it satisfies a need or want
Benefit: the outcome sought by a consumer that motivates buying behavior to satisfy a need or want.
The challenge: identify what benefits people are looking for??
Marketing: Real People, Real Choices 3rd edition

9. Needs, Benefits, Demand, and Markets
Desire coupled with the resources to satisfy a want results in demand
A market consists of all the consumers with that need and the resources to make the exchange

10. Marketing is an Exchange of Value
Exchange - the heart of every marketing act
An exchange occurs when something is obtained for something else in return
“Value is in the eye of the beholder”
Marketing: Real People, Real Choices 3rd edition

11. Marketing is an Exchange of Value
Appropriate value exchange occurs when both parties are satisfied, making it more likely to continue business in the future.
Making marketing value decision (I)
Understanding consumer’s value needs (II)
Create value proposition (III)
Communicating the value proposition (IV)
Delivering the value proposition (V)

12. Anything Can Be Marketed!!
Consumer Goods and Services
Goods: Tangibles purchased for personal/family use (EXAMPLE??!)
Services: intangibles we pay for and use but never own (EXAMPLE??!)
Both must have value that come from competing goods and services
Business-to-Business Marketing
Industrial goods
Marketing: Real People, Real Choices 3rd edition

13. Anything Can Be Marketed!! Cont.
Not-for-profit Organizations
Organizations with charitable, educational, community and other public-service goals, that buy goods and services to support their functions and to attract and serve their members.
Museums, zoos, Gov,
Idea, Place, and People Marketing

14. Anything Can Be Marketed!! Cont.
Idea, Place, and People Marketing
Endorse ideas Change behavior (seat belts)
Places; tourism Ads, (Turkey)
People; “Stars are made, not born”, resumes, YOU

15. The Marketing Mix
It is a combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers

16. The Marketing Mix (4 P’s)
Product
Place
Price
Promotion
Marketing: Real People, Real Choices 3rd edition

17. Product Good, service, idea, place, person...etc
Design package, physical features, associated services, product design, developing new products, introducing new products, find new uses of old products, product identity, management of the product.

18. Price Price is the amount to exchange to receive the offering.
Price decisions, market conditions, people willingness to pay, price analysis, price will lure new customers to the product, price creates value.
Do people buy only for a lower price??!

19. Promotion
Is the coordination of a marketer's marketing communications efforts to influence attitudes or behavior; the coordination of efforts by marketer to inform or persuade consumers or organizations about goods, services, or ideas.

20. Promotion Cont. Personal selling Advertising & publicity (TV Ads)
Public relation (conferences)
Promotional activities (store coupons)

21. Place
Availability of the product to the customer at the desired time and location.
Channels of distribution, get the product from producer to consumer
Retailers, internet sites…

22. Marketing is a Process “Process of planning and executing”
Successful marketing exchanges occur continually over time.

23. Marketing is a Process cont.
Customer Relationship Management (CRM) emphasizes the importance of building long-term relationships with customers to keep them satisfied and coming back.
“Selling products that don’t come back to people that do.”
Marketing: Real People, Real Choices 3rd edition

24. How is marketing done? Marketing planning
Finding and reaching the target market
Looking for customers
Marketing: Real People, Real Choices 3rd edition

25. Marketing Planning
Analyze the organization’s current strengths, weaknesses, opportunities, and threats
How is our firm different from the competition?
Which customer groups should we pursue in the future?
How will changes in the environment affect our marketing mix?
Marketing: Real People, Real Choices 3rd edition

26. Finding and Reaching a Target Market
Mass Market - all possible customers regardless of differences in their specific needs and wants
Market segments - distinct groups of customers within a larger market
A target market - an organization’s chosen segment
Marketing: Real People, Real Choices 3rd edition

27. The Evolution of Marketing
Production Orientation
Selling Orientation
Consumer Orientation
New Era Orientation
The E-marketing era
Production concept
Selling concept
Product concept
Marketing concept
Societal marketing concept
Marketing: Real People, Real Choices 3rd edition

28. Production orientation
12/8/2018
Production orientation
Emphasize the most efficient ways to produce and distribute.
Ford’s T-model
Demand is greater than supply
Take whatever is available
No strong competition
Soviet Union (quotas, shoppers lines) 27

29. Production orientation Cont.
12/8/2018
Production orientation Cont.
Market is a homogeneous group
Satisfied with the basic functions
Example?? 28

30. 12/8/2018
Selling orientation
Managerial view of marketing as a sales function, or a way to move product out of warehouse to reduce inventory.
After world war II the race for consumer pockets started. 29

31. Selling orientation cont.
12/8/2018
Selling orientation cont.
Consumers don’t like to be pushed… right?
Will be successful in one-time sale, not building a relationship with the consumer.
Good for unsought goods.
Goods that we don’t tend to buy without prodding. 30

32. 12/8/2018
Consumer orientation
A management philosophy that focuses on ways to satisfy customers’ needs and wants.
Consumers don’t mind to pay more
Consumer are the most important 31

33. Consumer orientation cont.
12/8/2018
Consumer orientation cont.
Competition
Market segmentation
Tailoring products, customization, marketing messages,
More features
Better quality
Early 1990s TQM 32

34. 12/8/2018
New era orientation
A management philosophy in which marketing means a devotion to excellence in designing and producing products that benefit customers plus the firm’s employee, shareholders and communities. 33

35. New era orientation cont.
12/8/2018
New era orientation cont.
Customer is still No. 1
CRM
Social marketing concept (Customer VS. Society VS profit???)
Cleaner, safer, environment, sponsorship.
Why social marketing??!
DOES MARKETING HELP OR USE CONSUMER? 34

36. 12/8/2018
The E-marketing era
SIMPLY, using the internet to connect with consumers.
Connect:
Personalization
Products and new products
Advertising
News
Relationship 35

37. Marketing Creates Utility
Utility: usefulness or benefit consumers receive from a product.
Form utility (Raw -> products)
Place utility (availability of products)
Time utility (storing products)
Possession utility (own, use, enjoy!)
Marketing: Real People, Real Choices 3rd edition

38. Pop Culture and Myths Popular Culture
Music, Movies, Sports, Books, Celebrities
Marketers provide the materials that become part of this culture
TV at dinner, cosmetics made of natural materials
Marketing: Real People, Real Choices 3rd edition

39. Marketing and Myths
Marketing messages communicate stories containing symbolic elements that may express shared emotions and ideas of a culture
Examples?
Marketing: Real People, Real Choices 3rd edition

40. Exercise!!!
Copy or clip three advertisements from newspapers or magazines. What customer needs are the advertisers trying to meet?
Select two companies of your choice (in the same market), determine how they differ in their marketing mix elements!! How the different marketing mix elements are affecting each of the company’s business and “selling”.