Slides prepared by Petra Bouvain University of Canberra

1. Slides prepared by Petra Bouvain University of Canberra

2. Chapter 1An overview of marketing

3. Learning objectives 1Define the term marketing 2 Explain the marketing exchange conditions and their influence on marketing 3 Discuss the differences between the sales and marketing concept orientations 4 Give several reasons for studying marketing 5 Describe the marketing process

4. Learning objective 1 Define the term marketing

5. 1 What is marketing? • Personal selling? • Advertising? • Making products available in stores? • Maintaining inventories? All of the above, plus much more

6. 1 What is marketing? (cont.) • A set of activities, including: • products • pricing • promotion • distribution. • A philosophy • An attitude • A perspective • A management orientation plus

7. 1 What is marketing? (cont.) Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and servicesto create exchanges that satisfy individual and organisational goals. American Marketing Association definition

8. Learning objective 2 Explain the marketing exchange conditions and their influence on marketing Describe four marketing management philosophies.

9. 2 Five conditions of a marketing exchange • At least two parties • Something of value • Desire to deal with other party • Ability to communicate offer • Freedom to accept or reject

10. Learning objective 3 Discuss the differences between the sales and marketing concept orientations Describe four marketing management philosophies.

11. 3 Marketing management philosophies Competing marketing management philosophies: • Production • Sales • Marketing • Relationship.

12. 3 Marketing management philosophies (cont.) Philosophy Key ideas Production Focus on efficiency of internal operations –better and cheaper products Sales Focus on aggressive techniques for overcoming customer resistance Marketing Sale depends on customer’s decision to purchase product Relationship Focus on keeping existing customers and suppliers

13. 3 Competitive advantage The idea that a product can solve a set of customer problems better than any competitors product.

14. 3 Market orientation requirements • Top management leadership • A customer focus • Competitor intelligence • Inter-functional coordination • Customer relationships

15. 3 Societal marketing orientation Marketing that preserves or enhances an individual’s and society’s long-term best interests. • Less toxic products • More durable products • Products with reusable or recyclable materials

16. 3 The marketing concept The idea that the social and economic justification for an organisation’s existence is the satisfaction of customer wants and needs while meeting organisational objectives.

17. 3 The marketing concept (cont.) Focusing on customer wants and needs can be a source of competitive advantage by: • creating customer value • maintaining customer satisfaction • building long-term relationships.

18. 3 Customer value The ratio of benefits to the sacrifice necessary to obtain those benefits.

19. 3 Customer value requirements • Offer products that perform. • Give consumers more than they expect. • Avoid unrealistic pricing. • Give the buyer facts. • Offer organisation-wide commitment in service and after-sales support.

20. 3 Customer satisfaction The feeling that a product has met or exceeded the customer’s expectations.

21. 3 Maintaining customer satisfaction • Meet or exceed customer’s expectations. • Focus on delighting customers. • Provide solutions to customer’s problems.

22. 3 Relationship marketing The name of a strategy that entails forging long-term partnerships with customers and which is based on the marketing orientation.

23. 3 Relationship marketing’s importance Attracting a new customer may be ten times the cost of keeping an old customer.

24. 3 Building long-term relationships • Customer-oriented personnel • Effective training programs • Empowered employees • Teamwork

25. Learning objective 4 Describe several reasonsfor studying marketing

26. 4 Why study marketing? • Plays an important role in society • Vital to business survival, profits and growth • Offers career opportunities • Affects your life every day

27. 4 Why study marketing? (cont.) ‘Marketing is too important to be left to the marketing department.’ David Packard, Hewlett-Packard

28. 4 Why study marketing? (cont.) • Global opportunities • Fastest route up the corporate ladder • Important in all business sectors • Understanding everyday life • Professional selling • Marketing research • Advertising • Retail buying • Distribution management • Product management • Product development • Wholesaling

29. 4 Why study marketing? (cont.) • Half of every dollar spent by consumers pays for marketing costs. • Become a better-informed consumer.

30. Learning objective 5 Describe the marketing process

31. 5 The marketing process Organisation mission Market opportunity analysis Marketing strategy Target market selection Marketing objectives Environ- mental scan • Marketing mix • product • distribution • promotion • price Implementation Evaluation

32. 5 Marketing process activities • Understand the organisation’s mission. • Set marketing objectives. • Gather, analyse, interpret ‘SWOT’ information. • Develop a marketing strategy. • Implement the marketing strategy. • Design performance measures. • Evaluate marketing efforts – change if needed.

33. 5 Environmental scanning Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organisation or the marketing plan implementation.

34. 5 Environmental scanning (cont.) • Examination of macro-environmental forces, including: • social • demographic • economic • technological • political/legal • competitive. • Helps identify market opportunities. • Provides guidelines for design of marketing strategy.

35. 5 The marketing mix • A unique blend of: • product, • distribution, • promotion, and • pricing strategies • designed to produce mutually satisfying exchanges with a target market.

36. 5 Marketing mix: The ‘four Ps’ • Product • Place • Promotion • Price

37. 5 Product strategies • The starting point of the ‘four Ps’ • Includes physical unit, package, warranty, service, brand, image and value

38. 5 Distribution (place) strategies • Product availability – where and when customers want them • Involves all activities from raw materials to finished products • Impact of the Internet

39. 5 Promotion strategies • Role is to bring about exchanges with target markets • Includes integration of personal selling, advertising, sales promotion, and public relations, direct marketing and Internet marketing

40. 5 Pricing strategies What is given up in an exchange to acquire a good or service.