Welcome to the World of Marketing Creating and Delivering Value

1. Welcome to the World of Marketing Creating andDeliveringValue

2. Chapter Objectives • who are marketers? • where they work, • marketing’s role • in the firm • Explain marketing

3. Chapter Objectives • Marketing’s value • to everyone involved in the marketing process • range of services & goods

4. Chapter Objectives • Understand value • Re: customers, producers, and society • marketing planning

5. Chapter Objectives • marketing mix tools • Product/price/promotion & • Place (distribution) • evolution of the marketing concept

6. CHAPTER CONCEPTS

7. Welcome to a Branded World “Brand You” • You are a product • You have “market value” • as a person

8. Welcome to a Branded World “Brand You” • You “position” yourself for a job • Don’t “sell yourself short” • You package & promote yourself

9. Who & Where of Marketing • Marketers: • Are real people • who make choices that affect • themselves, • their companies, & • millions of consumers

10. Who & Where of Marketing • Marketers: • Work cross-functionally • within the firm • Enjoy exciting, diverse careers

11. The Value of Marketing • Definition of marketing (AMA, 2004) • An organizational function • and a set of processes • for creating, communicating, and delivering • value to customers

12. The Value of Marketing • Definition of marketing (AMA, 2004) • andmanagescustomer relationships • in ways that • benefit the organization • and its stakeholders

13. Marketing = Meeting Needs • stakeholders • Buyers, • sellers, • investors, • community residents, • citizens

14. Marketing = Meeting Needs • Marketing concept • Identifying consumer needs & • providing products that satisfy those needs

15. Marketing = Meeting Needs • The modern marketplace • a mall, • mail-order catalog, • a TV shopping network, • an eBay auction, • or an e-commerce Web site

16. Marketing =Creating Utility • Utility: the sum of the benefits we receive from using a product/service • Form utility • Place utility • Time utility • Possession utility

17. Marketing Is aboutExchange Relationships • An exchange occurs when something is obtained for something elsein return, • like cash for goods or services • Buyer receives product that satisfies need • Seller receives something of equivalent value

18. The Evolution of Marketing • The Production Era • The Selling Era • The Consumer Era • The New Era

19. The Production Era • Focus = most efficient ways to make and distribute products, • like Henry Ford’s Model T & Ivory soap • Marketing plays an insignificant role

20. The Selling Era • Focus = one-time sales of goods • rather than repeat business • Marketing = a sales function

21. The Consumer Era • Focus = satisfying customers’ needs and wants • Marketing = more important • Total Quality Management (TQM) • widely followed in marketing community

22. The New Era: Profits & Ethics • Focus = building long-term bonds • with customers. • Marketing uses customer relationship management(CRM) • to track consumers’ preferences • tailor value proposition to each individual

23. The New Era: Focusing on Social Benefits • Social marketing concept: • satisfy customers’ needs and • also benefit society • Sustainability: • meeting present needs and • ensuring future generations can meet their needs

24. The New Era: Focusing on Accountability • Measuring how much value is created by marketing activities • ROI (Return on Investment) • direct financial impact of firm’s expenditure of resources • such as time or money

25. What Can Be Marketed? From serious goods and services to fun things • Goods and services • mirror changes in popular culture • Marketing messages • may communicate myths of a culture

26. What Can Be Marketed? Product: any good, service, or idea • Consumer goods/services • Business-to-business goods/services • Not-for-profit marketing • Idea, place, and people marketing

27. The Marketing of Value • Value: • the benefits a customer receives • from buying a good or service

28. The Marketing of Value Marketing communicates the value proposition: a marketplace offering that fairly and accurately sums up the value that the customer will realize if he/she purchases product/service

29. Value from the Customer’s Perspective • The ratio of costs to benefits • Value proposition includes: • whole bundle of benefits • the firm promises to deliver, • not just the benefits of the product itself

30. Value : Seller’s Perspective • takes many forms: • Making a profitable exchange • Earning prestige among rivals • Taking pride in doing what a company does well • Nonprofits: • motivating, educating, or delighting the public

31. Calculating the Value of a Customer • Single transactions • don’t provide companies with value they desire • Lifetime value of a customer: • How much profit a company expects from ONE customer’s purchases now and in the future • WalMart: LTV = $250,000

32. Providing Value to Stakeholders • Competitive advantage: • ability of a firm to outperform the competition • by providing customers with a benefit • the competition cannot provide

33. Adding Value throughthe Value Chain • a series of activities • involved in designing, producing, marketing, delivering, and supporting any product

34. Adding Value throughthe Value Chain • a series of activities: • Inbound logistics • Operations • Outbound logistics • Marketing final product • Service

35. Consumer-Generated Value:From Audience to Community • Everyday people generating value • instead of just buying it • People functioning • in marketing roles: • creating ads, • providing input into new products, or • serving as retailers

36. Value: Society’s Perspective • How marketing transactions • add or subtract value from society • Stressing ethics/social responsibility • is good business in long run

37. The Dark Side of Marketing * Marketers • Illegal activities • such as “bait and switch” • Products that encourage antisocial behavior

38. The Dark Side of Marketing *Consumers • Terrorism • Addictive consumption • Exploited people • Illegal activities • Shrinkage • Anticonsumption

39. Marketing as a Process • Marketing planning: • Analyzing the marketing environment • Developing a marketing plan • Deciding on a market segment • Choosing the marketing mix – • product, price, • promotion, place

40. THE END

41. Keeping It Real: Fast-Forward to Decision Time at Qode • Meet Rick Szatkowski of NeoMedia Technologies • Qode links your cell phone to the Web when you enter a keyword or click a SmartCode. • Example: A code on a movie poster plays a trailer for the movie

42. Chapter case study • Ron Jon’s Surf Shop • See handout

43. Ron Jon Surf Shop, Inc. How to advertise Ron Jon’s at airports? • Option 1: rental car advertising • Option 2: wall-mounted backlit photographs (dioramas) • Option 3: escalator “gateways”

44. How It Worked Out at Ron Jon Surf Shop Bill choose option 2: wall-mounted backlit photographs (dioramas) • Opened a small store in the Orlando Airport adjacent to the very busy food court • Surf and sales are up at Ron Jon!