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Marketing Management

Marketing Management. Basic Concepts. Trends in the new economy. Consumer benefits from the digital revolution include: Increased buying power. Greater variety of goods and services. Increased information. Enhanced shopping convenience.

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Marketing Management

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  1. Marketing Management Basic Concepts

  2. Trends in the new economy • Consumerbenefits from the digital revolution include: • Increased buying power. • Greater variety of goods and services. • Increased information. • Enhanced shopping convenience. • Greater opportunities to compare product information with others.

  3. The new economy CNET is one of many sites that provides shopping comparison tools

  4. The new economy • Firmbenefits from the digital revolution include: • New promotional medium. • Access to richer research data. • Enhanced employee and customer communication. • Ability to customize promotions.

  5. The new economy Amazon is known for customizing consumer promotions

  6. Definition of Marketing • “Customer satisfaction at a profit” • “Marketing is an organizationalfunction and a set of processes for: • creating, communicating and delivering value to customers and • for managing customer relationships in ways that benefit the organization and its stakeholders” - - - American Marketing Association

  7. What is a “Market”? A Simple Marketing System • Marketplace vs. Marketspace? • Meta-markets and Metamediaries?

  8. Common Metamarkets and Participants

  9. Traditional Online Seller Customer Warehouse E-tailer

  10. Metamediaries & VRMs (Source: William McDaniel Albritton) Customer Shipping Provider VRM System Metamediary VirtualMerchant(s)

  11. Ordering a Product Customer Order Shipping Provider VRM System Metamediary VirtualMerchant(s)

  12. Ordering a Product Customer Order Shipping Provider VRM System Metamediary Order VirtualMerchant(s)

  13. Ordering a Product Customer Order Shipping Provider VRM System Metamediary Order Notification and Shipping Label VirtualMerchant(s)

  14. Ordering a Product Customer Order Shipping Provider VRM System Metamediary Order Notification and Shipping Label Product VirtualMerchant(s)

  15. Ordering a Product Customer Order Product Shipping Provider VRM System Metamediary Order Shipping Information Notification and Shipping Label Product VirtualMerchant(s)

  16. Ordering a Product Customer Order Product Confirmation Number Shipping Provider VRM System Metamediary Order Shipping Information Notification and Shipping Label Product VirtualMerchant(s)

  17. Ordering a Product Customer Order Product Confirmation Number Confirmation Number Shipping Provider VRM System Metamediary Order Shipping Information Notification and Shipping Label Product VirtualMerchant(s)

  18. Ordering a Product • Benefits of VRM • Customer • only sees metamediary • Metamediary • no product inventory • no shipping • Virtual Merchants • no advertising • no web maintenance

  19. Goods Services Experiences Events Persons What can be marketed? • Places • Properties • Organizations • Information • Ideas

  20. Marketing Tasks Identify an unfulfilled need Proactive, Innovative Risk taking e..g, KFC Successful formula Stuck in a rut; jaded Vulnerable e.g., Many firms Entrepreneurial Stages of Marketing Formulated Intrepreneurial Rediscover/Re-invent Creative e.g., Apple, Motorola

  21. Company Orientations The orientation of the firm typically guides marketing efforts Production Concept Product Concept Selling Concept Marketing Concept Customer Concept Societal Marketing Concept

  22. The Marketing Concept • Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value. • Four pillars of the marketing concept: • Target market • Customer needs • Integrated marketing • Profitability

  23. Selling Concept Needs of SELLER Convert product to $$$$ “Inside out” Marketing Concept Needs of Buyer Satisfy customer needs “Outside in” Selling vs. Marketing Concepts

  24. The Customer Concept The Customer Concept

  25. Societal Marketing Concept Starkist...Dolphin Safe Tuna Actually more expensive than regular tuna, but is more appealing due to society's concerns

  26. Needs, Wants, and Demand • Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment. • Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food) • Demands are wants for specific products backed by an ability to pay.

  27. Segments & Target Markets • Target markets & segmentation • Differences in needs, behavior, demographics or psychographics are used to identify segments. • The segment served by the firm is called the target market. • The market offering is customized to the needs of the target market.

  28. The Marketing Mix The Four P Components of the Marketing Mix

  29. Products & Value • A product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source. • When offerings deliver value andsatisfaction to the buyer, they are successful. • Value = Benefits/Cost ($, time, energy, psych) • How can value be enhanced? • Raising benefits. • Reducing costs. • Raising benefits while lowering costs. • Raising benefits by more than the increase in costs. • Lowering benefits by less than the reduction in costs.

  30. The Concept of Utility • Utility: • Ability of a product to satisfy a customer’s desires. • Four Types of Utility: • Form Utility – endow products with attributes • Time Utility – available when needed • Place Utility – available where needed • Possession Utility - ownership

  31. Relationship Marketing • Relationship marketing aims to build long-term mutually satisfying relations with key stakeholders • Could be with individual customers or large business buyers • Ultimately results in marketingnetworkbetween the company and its supporting stakeholders.

  32. Transactional vs. Relationship Marketing

  33. Levels of Competition Four Levels of Competition Generic competition Form competition Industry competition Brand competition

  34. Discussion Scenario Suppose that you are a member of the ad agency team assigned to the Red Bull energy drink account. Identify key competitors at each level of competition.

  35. Marketing Strategy in Action • Increasing expansion into foreign markets is becoming a necessity to compete in the global marketplace. • What kinds of opportunities and threats are presented by the increasing global nature of the marketplace?

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