Marketing

1. Marketing “Marketing is Everything” - Regis McKenna, HBR, 1991 “The End of Marketing” - Regis McKenna, Business 2.0, 2000

2. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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 (And hereafter regarding definitions)

3. Organizational Functions– What do firms really do? Theories: • Economic - Financial • Agency - Managerial • Resource Allocation -Managerial • Competitive Rationality - Marketing • Adaptive Organization – Managerial • Transaction Function - Economic • Knowledge-Based – Cross-Functional • Information Processing • Learning/Teaching • Where is MARKETING in all this?

4. Organizational Functions– What do firms really do? Theories: • Economic - Financial • Agency - Managerial • Resource Allocation -Managerial • Competitive Rationality - Marketing • Adaptive Organization – Managerial • Transaction Function - Economic • Knowledge-Based –Cross-Functional Intelligence Cycle Learning/Teaching MARKETING

5. Knowledge-Based Theory of the Firm

6. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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.

7. The Fundamental ‘Model’ VISION Value culture Value creation and destruction STRATEGY OPERATIONS TACTICS Build FOCUS and “Mind Share” Build TRUST and “Access Share” Build CAPABILITY and “Market Share” IT/IM Research/DD Distribution/Logistics Four P’s (Concept/Creativity) Product/Promo/Price Place/ plus 1 + People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables) Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering VALUE Build FRANCHISE and “Heart Share” Process Service Branding Value Indicator Loyalty/Love Belief/Behavior Custom/Habituation

8. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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.

9. The Communication Process SENDER RECEIVER MEDIUM Firm Intermediary; Customer Noise Attitude: Self-Referencing Issues Attitude: Cultural Filter Issues • Sponsor (sender) encodes message properly (or NOT) • Sponsor sends message through the channel (medium) to • the consumer (receiver). • Consumer receives the message and decodes it into • meaningful information (or NOT)

10. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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.

11. Value can be expressed several ways. Three of the clearest are: Benefits (total ‘get) Value = ---------- … or more specifically, Price (total ‘give’) Fb + Eb Value = --------- … where, P + Oe Fb =Functional benefits (utility) Eb =Emotional benefits (psychology) P =Price (charged) for acquisition Oe =Other expenses/costs of acquisition … and finally Value =You answered my question! Solved my problem!

12. Classic Marketing Development Sequence Time/Space 1930’s Today

13. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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.

14. customer relationship management A discipline in marketing combining database and computer technology with customer service and marketing communications. Customer relationship management (or CRM) seeks to create more meaningful one-on-one customer communications by applying customer data (demographic, industry, buying history, etc.) to every communications vehicle. At the simplest level, this would include personalizing e-mail or other communications with customer names. At a more complex level, CRM enables a company to produce a consistent, personalizedmarketing communication whether the customer sees an ad, visits a Web site, or calls customer service. C R M American Marketing Association

15. AnIntroduction to Marketing Marketing defined: “Marketing is an organizational function 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.

16. Stakeholders One of a group of publics with which a company must be concerned. Key stakeholders include consumers, employees, stockholders, suppliers, and others who have some relationship with the organization.

17. Overall Discussion and Questions • Syllabus and assignments • Textbook • Objectives • What marketing is • Who is involved in the course • ____________________ • ____________________ • ____________________