1. Introduction to Marketing
Mrs. Wonder
August 21-27, 2018

2. What is marketing?
‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ ‘The right product, in the right place, at the right time, and at the right price’ The American Marketing Association definition: “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.”

3. For an exchange to occur…..
There are at least two parties.
Each party has something that might be of value to the other party.
Each party is capable of communication and delivery.
Each party is free to reject the exchange offer.
Each party believes it is appropriate or desirable to deal with the other party

4. What is Marketed? Places Properties Organizations Information Ideas
Goods
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas

5. Key Customer Markets Consumer markets Business markets
International Markets/Global markets
Nonprofit/Government markets

6. Evolution of Marketing
Production Era
Sales Era
Marketing Concept Era
Societal Era

7. 1. Production Orientation
Focuses on internal capabilities of firm.
“ Field of Dreams” strategy
“If we build it, they will come”
Best used when
competition is weak
demand exceeds supply
generic products competing solely on price
Problem is that they don’t understand wants/needs of marketplace.

8. 2. Sales Orientation
People will buy more goods/services if aggressive sales techniques are used.
High sales will result in high profits.
Used with unsought products
life insurance
encyclopedias
Problem is that they don’t understand wants/needs of marketplace.
I can sell everything, if I know how to sell it

9. 3. Marketing Orientation
Marketing concept
The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meeting organizational objectives.
To put it a simpler way the Marketing concept is:
The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

10. 3. Marketing Orientation . . .
Focusing on customer wants so the organization can distinguish its products from competitors’ .
Integrating all the organization’s activities, including promotion, to satisfy these wants.
Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.

11. 3. Marketing Orientation . . .
Requires:
Top management leadership
A customer focus
Competitor intelligence
strengths
weaknesses
Interfunctional coordination to meet customer wants/needs and deliver superior values.

12. 4. Societal Marketing Orientation
Organization exists not only to satisfy customer wants/needs and to meet organizational objectives, but also to preserve and enhance individuals’ and society’s long-term best interests.
Extends marketing concept to serve one more customer - society as a whole.

13. Differences between Sales & Marketing Orientations
Production/Sales Focus
Organization’s needs
Producing/Selling goods/services
Everybody
Profit through max. sales volume
Intensive promotion
Marketing Focus
Customer’s needs
Satisfying customer wants/needs
Specific groups of people (target market)
Profit through customer satisfaction
Coordinated mktg. activities
(The 4 P’s)

14. Marketing Philosophies
Orientation
Key Ideas
Production
Focus on efficiency of internal operations –
if we make it, they will buy it
Sales
Focus on aggressive sales techniques and believe that high sales result in high profits
Marketing
Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it
Societal
Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables

15. Relationship Marketing
Forging long-term partnerships with customers and contributing to their success.
In customer relationship management, companies benefit from:
repeat sales/referrals that lead to increases in sales, market share and profits, and
decreased costs - it’s less expensive to serve existing customers than attract new ones.
CUSTOMER RELATIONSHIP MANAGEMENT = CRM

16. 3. Relationship Marketing. . .
Customers benefit from:
stable relationships with suppliers (especially in business-to-business)
greater value and satisfaction
discounts, (frequent flyer programs, loyalty program, etc.)

17. 3. Relationship Marketing . . .
Successful relationship marketers have:
customer-oriented personnel
effective training programs
employees with authority to make decisions and solve problems
teamwork

18. Marketing Mix and the Customer
Four Ps
Product
Price
Place
Promotion
Four Cs
Customer solution
Customer cost
Convenience
Communication

19. Core Concepts Needs, wants, and demands
Target markets, positioning, segmentation
Offerings and brands
Value and satisfaction
Marketing channels
Supply chain
Competition
Marketing environment
Marketing planning

20. Implications of marketing
Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these needs?
Can we offer a product/ service that the customer would value?
Can we communicate with our customers?
Can we deliver a competitive product of service?
Why should customers buy from us?

21. Successful marketing requires
Profitable
Offensive (rather than defensive)
Integrated
Strategic (is future orientated)
Effective (gets results)

22. Marketing management process
Analysis/Audit - where are we now?
Objectives - where do we want to be?
Strategies - which way is best?
Tactics - how do we get there?
Implementation - Getting there
Control - Ensuring arrival

23. CONTROLLABLE FACTORS AFFECTING MARKETING DECISIONS
The Four P’s
-the “arrow”
Price
Promotion
Place
Product

24. UNCONTROLLABLE FACTORS AFFECTING MARKETING DECISIONS
Social
Natural
Economic
Technologic
Political and Legal
Competitive
External
Environmental
Factors
Helps identify market opportunities

25. Marketing Environment
All the actors and forces influencing the company’s ability to transact business effectively with it’s target market

26. Market Environment Includes:
Microenvironment - forces close to the company that affect its ability to serve its customers.
Macroenvironment - larger societal forces that affect the whole microenvironment

27. Demographic Economic Cultural Company Natural Political Technological
Public
Suppliers
Competitors
Customers
Natural
Political
Intermediaries
Technological

28. The Company’s Microenvironment
Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc.
Suppliers - provide the resources needed to produce goods and services.
Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

29. Customers - five types of markets that purchase a company’s goods and services.
Competitors - those who serve a target market with similar products and services.
Public - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

30. The Company’s Macroenvironment
Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.
Economic - factors that affect consumer buying power and patterns.
Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

31. PEST analysis Political factors Economic factors
Socio-cultural factors
Technological factors

32. Political/legal Monopolies legislation Environmental protection laws
Taxation policy
Employment laws
Government policy
Legislation

33. Economic Factors Inflation Employment Disposable income
Business cycles
Energy availability and cost

34. Sociocultural factors
Demographics
Distribution of income
Social mobility
Lifestyle changes
Consumerism
Levels of education

35. Technological New discoveries and innovations
Speed of technology transfer
Rates of obsolescence
Internet
Information technology

36. Technological - forces that create new product and market opportunities.
Political - laws, agencies and groups that influence or limit marketing actions.
Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors

37. ADDED Value through Economic utilities
Utility is the usefulness of a product or service. There are 5 types:
1. Form Utility -- Making or Producing Things
(example: how is wheat changed into a more useful product?)
2. Place Utility – Usefulness increased because of location
(example: oranges from Florida)
3. Time Utility – Making a product available at right time of year or convenient time of day (example: seasonality)
4. Possession Utility – the ability to aid customers in purchasing goods (example -- store has a credit card)
5. Information Utility – usefulness added to the product through communication (example – packaging, labels, displays, signs)

38. 6 Elements of a Marketing Plan
I. Executive Summary
II. Situation Analysis
A. SWOT Analysis
B. Environmental Scan
(PEST and Market Analysis- Micro/Macro/Customers/Competitors/Industry)
III. Objectives (make them single-minded and S.M.A.R.T. goals)
A. Company’s Mission
B. Marketing Objectives (ex: What market share do you want to achieve?)
C. Financial Objectives
IV. Marketing Strategies
A. Positioning and Points of Difference (quality, non-gmo, creative, patented)
B. Marketing Mix (the 4 P’s – Product, Price, Promotion, Place)
V. Implementation
A. Organization
B. Activities and Responsibilities
C. Timetables
VI. Evaluation and Controls
A. Performance Standards & Measurements (Mktg & Fin. Obj./Mix strategies including sales forecasts)
B. Corrective Actions

39. SWOT analysis Strengths (internal) Weaknesses (internal)
Opportunities (external)
Threats (external)

40. Market Analysis (Environmental Scan)
For your Analysis you will consider 3 things:
Customers, Competitors, & Industry Structure
I. Customers Analysis
Segmentation
Motivation
Unmet Needs

41. Market Analysis II. Competitor Analysis
Who are our competitors (Rivals)?
What advantages do they have?
What are their goals?
What are their strategies?
What are their organizational structures?
What are their strengths and weaknesses?

42. Market Analysis III. Structural Analysis Industrial analysis
Actual and potential size of the industry
Growth of the industry
Cost structure of the industry
Distribution structure of the industry
Changes in the industry

43. 7 Functions of Marketing – the scope of marketing
1. Channel Management
2. Marketing Information Management
3. Market Planning
4. Pricing
5. Product/Service Management
6. Promotion
7. Selling

44. 7 Functions of Marketing
Channel Management
Channel Management, or distribution, is the process of deciding how to get goods into customer’s hands.
Example: Coca-Cola determines which distribution method they will use to get goods to places like Publix, QuikTrip, AMC Theaters etc.

45. 7 Functions of Marketing
Marketing Information Management
Gathering, recording, analyzing and disseminating information to aid in making marketing decisions.
Example: Amazon uses a variety of MGM to analyze consumers buying habits or spending, for example, did you know that
Walmart has ultimate customer information data stored on its customers.

46. 7 Functions of Marketing
Market Planning
Understanding the concepts and strategies used to develop and target specific marketing strategies to a specific audience.
Example: Forever 21 utilizes both in- store and online marketing strategies to encourage a certain age group of women to buy products. Their marketing campaigns are targeted to this customer demographic.

47. 7 Functions of Marketing
Pricing
Pricing decisions dictate how much to charge for goods and services in order to make a profit.
Example: Foot Locker is launching the new Air Jordan 5 Retro this month, they purchase the goods from a distributor for 105 dollars, and decide to sell for 190 dollars at the store. They are therefore making 85 dollars in gross profit.

48. 7 Functions of Marketing
Product/Service Management
Product/Service Management is obtaining, maintaining, and improving a product or a product mix in response to market opportunities.
Example: For the last 30 years, EA Sports has released a Madden Football game. Each release contains multiple updates and upgrades to the game to improve user interface, and has allowed for it to become the most popular sports video game of all time.

49. 7 Functions of Marketing
Promotion
Is the effort to inform, persuade, or remind current and potential customers about a business’s products or services.
Forms: TV ads, Print Ads, Internet Ads, Radio Ads, Coupons, Rebates
Example: American Eagle regularly sends out coupon codes to AE Rewards members to incentivize them to buy their clothing

50. 7 Functions of Marketing
Selling
Selling provides customers with the goods and services they want.
Example: One of the best examples of selling is Ebay. Ebay was created so that ANYONE with an address and a product could sell something globally by setting a price and allowing the market to dictate its market value. For over 25 years people across the world have used Ebay to sell products to each other or from business to business.
National account managers sell brands into major retail stores.