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

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 –created by marketing –availability of goods & services where consumers want to buy them Ex.: vending machines, Taco Bell Express 4. OWNERSHIP –created by marketing –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 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. 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

11. 4. RELATIONSHIP MARKETING –long-term, value added relationships developed over time with customers and suppliers –Strategic Alliances Ex. UPS What era do you think is next??

12. AVOIDING MARKETING MYOPIA Management failure to recognize scope of its business –EX. Amtrak –AT&T and TCI chart on pg 15 gives good examples of focusing on benefits

13. 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

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

15. 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” http://www.dtic.mil/armylink/news/Jan2001/r20010110 armyadcampaignrel.html

16. 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.

17. Marketing Mix A. PRODUCT: activities involved in developing right product involves: package design, branding, trademarks, warranties, product life cycles & new product development B. PRICING: one of most difficult marketing decisions

18. 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

19. 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

20. Strategic Alliances: partnership that creates competitive advantages ex. Delta and Disney UPS and Bradfield’s Marketing Costs –creating time, place & ownership utility costs $ –most estimate that marketing costs are 40 - 60% of overall product cost

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

22. ETHICS AND SOCIAL RESPONSIBILITY Most business people are ethical but there are a few rotten ones. Ex. ADM