What is Marketing?

1. What is Marketing? Chapter 1

2. Marketing Overview • Marketing- “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.”

3. How does Marketing Work within an Organization? • Marketing function • Communication with Customers • Marketing & Management • Goal-setting • Marketing & Finance • Budget-setting • Environmental issues • Marketing & Information Systems • RFID, GPS, etc. • Marketing & Production

4. Pre-existing Marketing Condition • Two or more parties • A desire and ability to satisfy these needs • A way for parties to communicate • Something to exchange

5. Marketing Formula • Find out what customers need and want- then give it to them!

6. Discovering Needs • Needs v. Wants • Need- Physiological necessities. • Examples: • Want- “A felt need that is shaped by a person’s knowledge, culture, and personality.” • Examples: • Which do we sell to? • Is creating a “need” ethical?

7. Discovering Needs • Market- Group of people who have the desire and ability to buy a specific product. • Are college students a good market for Lamborghinis? • Market research must be conducted in order to discover the viability of markets and choose target markets. • Examples:

8. Satisfying Customer Needs • Once the marketing department gathers the necessary information, it is ready to decide upon target markets. • Target market- “One or more specific groups of potential consumers toward which an organization directs its marketing program.”

9. Satisfying Needs • Now that the target market has been selected, the marketers must consider factors that will influence purchasing decisions in that market. • Controllable • Marketing Mix • Uncontrollable • Environmental Forces • Social • Economic • Technological • Competitive • Regulatory

10. Marketing & Customer Relationships • Customer Value- “Unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.”

11. Relationship Marketing • Supply Chain Management (SCM) • Involve “partners” through integrated systems • Reduces costs • Prevents duplication of effort

12. Relationship Marketing Manufacturer • SCM Example Wholesaler/ Warehouse Retailer Consumer

13. Marketing Program • A marketing plan integrates the marketing mix to provide a good, service, or idea to buyers in a particular segment.

14. The History of Marketing • Production Era (1800’s-1930’s) • “Products sell themselves” • Sales Era (1920’s-1960’s) • Overproduction led to the hiring of as many salespeople as possible

15. The History of Marketing • The Marketing Concept Era (1955-1990’s) • An organization should strive to meet consumer needs, while trying to achieve organizational goals. • Implement marketing ideas throughout the marketing process, from beginning to end.

16. The History of Marketing • The Market Orientation Era (1990’s- Present) • Larger in scope • Firms with market orientation: • Continuously collect information on competition and customers • Share information throughout the company • Use information to create customer value

17. ..and Finally • Buyers may not be the final users • Ultimate consumers vs. organizational buyers • Everyone benefits from marketing • Consumers gain utility and choice • Organizations become profitable • Society benefits from lower prices and better products