Introduction to Marketing

1. Introduction to Marketing chapter 1 Harcourt, Inc.

2. Objectives • To develop an appreciation for the historical perspective of how markets have evolved • To appreciate both views of the evolution of marketing. • To introduce marketing as an exchange process Dr. Rosebloom

3. Objectives • To understand the societal implications of marketing • To comprehend marketing as an organizational process • To introduce the fundamentals of marketing strategy Dr. Rosebloom

4. Spontaneous Economic Combustion • Labor Specialization • Consumption Satiation Dr. Rosebloom

5. The Evolution of Marketing Production Era Sales Era Relationship Marketing Era Marketing Era Dr. Rosebloom

6. The Evolution of Marketing Production Era Orientation: Dominant time period: • Business philosophy focusing on manufacturing efficiency; demand exceeds supply = seller’s market • Prior to the 1920s Dr. Rosebloom

7. The Evolution of Marketing Sales Era Orientation: Dominant time period: • Business philosophy focusing on selling existing products; supply exceeds demand = buyer’s market • Prior to the 1950s Dr. Rosebloom

8. The Evolution of Marketing Marketing Era Orientation: Dominant time period: • Business philosophy focusing on consumer wants and needs; any supply/demand situation • Last half of 20th century Dr. Rosebloom

9. The Evolution of Marketing Relationship Marketing Era Orientation: Dominant time period: • Business philosophy focusing on reinforcing the customer-oriented focus of the marketing era • Last decade of 20th century Dr. Rosebloom

10. AMA Definition of Marketing • Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives Dr. Rosebloom

11. Broader Definition of Marketing The definition of marketing includes the non-profit sector of society (homeless shelter) Dr. Rosebloom

12. Broader Definition of Marketing Oakland Museum Hal Riney and Partners Dr. Rosebloom

13. Broader Definition of Marketing The definition of marketing includes the non-profit sector of society (U.S. Army) Dr. Rosebloom

14. Broader Definition of Marketing Drug Free America The Martin Agency Dr. Rosebloom

15. Broader Definition of Marketing The definition of marketing includes the non-profit sector of society (societal cause) Dr. Rosebloom

16. Broader Definition of Marketing The definition of marketing includes the non-profit sector of society (forest protection) Dr. Rosebloom

17. Exchange Process Process by which one or more parties give something of value to each other to satisfy perceived needs Dr. Rosebloom

18. Exchanges Learning Environment Tuition Promised Action Votes Dr. Rosebloom

19. Exchanges Fee Consulting Products/services Money Dr. Rosebloom

20. Exchanges Producer Wholesaler Retailer Consumer Dr. Rosebloom

21. Activities of Marketing Dr. Rosebloom

22. Buying - seeking and evaluating alternatives • Selling - promotion of alternatives to consumers Activities of Marketing Exchange Dr. Rosebloom

23. Activities of Marketing Dr. Rosebloom

24. Transporting - movement of goods and services • Storing - holding of goods and services Activities of Marketing Logistical Dr. Rosebloom

25. Activities of Marketing Dr. Rosebloom

26. Financing - facilitating exchange • Risk-taking - holding title • Providing information - understanding markets (consumer and industrial) • Standardizing and grading - sorting by size and quality Activities of Marketing Facilitating Dr. Rosebloom

27. The Marketing Concept • Customer orientation • Coordinated effort by all departments of the firm to satisfy customers • Emphasis on long term profit Dr. Rosebloom

28. Strategic Marketing Concept Corporate mission is to seek • Sustainable competitive advantage • Meet customer needs Dr. Rosebloom

29. Societal Marketing Concept • Adoption of Marketing Concept • Considering the needs of society as a whole • Environment • Health • Safety Dr. Rosebloom

30. Marketing Myopia • Short sightedness by business firms causing management to define their business too narrowly Dr. Rosebloom

31. Marketing Myopia Examples Myopic Description: • Railroad company • Electricity company • Television network Broad Description: • Transportation company • Power company • Entertainment provider Dr. Rosebloom

32. The Marketing Mix Variables Distribution Product Target Market Price Promotion Dr. Rosebloom

33. Group(s) of potential customers toward which a firm directs its marketing mix(es) The Marketing Mix Variables Target Market Dr. Rosebloom

34. Identifying consumer needs and wants • New product development • Designing the product • Branding • Packaging The Marketing Mix Variables Product Strategy Dr. Rosebloom

35. Physical distribution • Channel management The Marketing Mix Variables Distribution Strategy Dr. Rosebloom

36. Pricing objectives • Price determination • Pricing policies The Marketing Mix Variables Pricing Strategy Dr. Rosebloom

37. Advertising • Personal selling • Sales promotion • POP, sponsorships, PR The Marketing Mix Variables Promotion Strategy Dr. Rosebloom

38. Microenvironment Objectives and resources Macroenvironment Competitive environment Legal/political environment Socio-cultural environment Economic environment Technological environment The Marketing Environment Dr. Rosebloom

39. Environmental Scanning • Identification of important trends • Analysis of impact on the firm Dr. Rosebloom

40. Separations Between Producers and Consumers Separations naturally exist between producers and consumers, buyers and sellers, and any other parties who enter into exchanges Dr. Rosebloom

41. Separations Between Producers and Consumers Spatial Separation • Producers and consumers are generally separated by space or geography Dr. Rosebloom

42. Functions Of Advertising Henry Weinhard Hal Riney and Partners Dr. Rosebloom

43. Separations Between Producers and Consumers Temporal Separation • Producers and consumers want to produce and consume at different times. Sales of skis generally occur during the winter but producers want to manufacture them all year Dr. Rosebloom

44. Separations Between Producers and Consumers Perceptual Separation • Producers may lack information about the whereabouts of consumers and consumers may lack information about the producer’s offerings Dr. Rosebloom

45. Separations Between Producers and Consumers Ownership Separation • There is a separation between producers and consumers in reference to title. Producers pass (exchange) title of product/services for title to the money the consumer holds Dr. Rosebloom

46. Separations Between Producers and Consumers Values Separation • There is a separation between producers and consumers because producers value the costs and prices of their products while consumers value the utility of the product Dr. Rosebloom

47. Four Types of Utility Utility Dr. Rosebloom

48. Four Types of Utility Form Utility • Transformation of raw materials and/or labor into a finished good and/or service that the consumer desires Dr. Rosebloom

49. Four Types of Utility Form Utility Ping The Martin Agency Dr. Rosebloom

50. Four Types of Utility Form Utility • Transformation of raw materials and/or labor into a finished good and/or service that the consumer desires Dr. Rosebloom