Marketing 11

1. Marketing 11 Introduction Part 2

2. Key Questions (what you need to know) • Explain the importance of understanding customers and the marketplace. • Identify the five core marketplace concepts Overview

3. The core marketplace concepts are • 1. Needs, Wants, and Demands • 2. Marketing Offers(goods, services, and experiences) • 3. Value and Satisfaction • 4. Exchange, Transactions, and Relationships • 5. Markets Core Marketplace Concepts

4. Marketing Offers – Products, Services, and Experiences • A Marketing Offer is some combination of goods, services, information, or experiences offered to a market to satisfy a need or want. • Not just about physical products • ‘Marketing Myopia’ - focusing only on the product and not the benefits/experiences

5. Mistake: focusing only on existing wants and ignoring customer needs. • New products come along and can provide superior service • Experience • Companies like Coca-Cola and Nike offer Brand Experiences, not just products. • E.G. Nike isn’t just a shoe, they promote benefits, lifestyle

6. http://www.youtube.com/watch?v=ceUrljw3_EE

7. Customers seek Value and Satisfaction for products and services • Marketers must set right level of expectation Value and Satisfaction

8. Exchange: The act of obtaining a desired object from someone by offering something in return • Transaction: A trade of values between two parties • Marketing consists of maintaining desirable exchange relationships with target markets. Exchange, Transactions, and Relationships

9. Market: The set of all actual and potential buyers of a product or service. Markets are potential customers with a similar demand. Markets

10. Divide markets into segments • Choose the right segment to target • Offer a unique value proposition • Differentiate your offer from competitor offers • Build customer value and satisfaction • Nurture long-term customer relationships Customer-Driven Marketing

11. Q: What market, or markets, is Nike trying to capture with there ‘Leave Nothing’ advertisment? • http://www.youtube.com/watch?v=jlXRengzZoc

12. Core Market Place Concepts

13. The idea the buyers will favour products that are widely available and highly affordable • Good when demand exceeds supply OR costs are high and improved productivity will bring it down (Henry Ford and the Model T) • Bad tends to lead towards Marketing Myopia The Production Concept

14. The idea that buyers will favour products that offer the most in quality, performance, and innovative features • Focus is on continual product improvement • Can lead to too narrow a focus • Example: Railroads thought people wanted trains, when they really wanted cheap and convienient transportation The Product Concept

15. The idea that the market will not buy enough of the firm’s products unless it undertakes a large-scale selling effort • Usually practiced with unsought goods/services – e.g. insurance, blood donations The Selling Concept

16. Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors • Customer focus and value are the pathsto sales and profits • Reacting and adapting to market/customer needs The Marketing Concept

17. A principle of enlightened marketing that holds that marketing strategy should deliver value to the organization’s customers in a way that maintains or improves the well-being of society • Balances 3 considerations: society (human welfare), Consumers (want satisfaction), and Company (profits) The Societal Marketing Concept

18. Example: Johnson & Johnson tainted Tylenol recall • 8 Deaths due to product tampering • Believed to be at the store, not factory level • Recall cost J&J $240 Million in earnings • Maintained and strengthened customer confidence and loyalty: cost:$?

19. With a partner, select an advertisment of a major company/brand on YouTube • What product is being sold? • What else are they ‘selling’? • How? • Who/What is the market? Assignment