Understanding Marketing: Strategies, Philosophies, and Customer Value

1. CHAPTER ONE AN OVERVIEW OF MARKETING Prepared by: Jack Gifford, Miami University (Ohio) • 2000 South-Western College Publishing

2. WHAT IS MARKETING? • Personal selling? • Advertising? • Making products available in stores? • Maintaining inventories? It is all the above, plus much more! 2000 South-Western CollegePublishing

3. WHAT IS MARKETING? A set of activities, such as: products & services, pricing, promotion, and distribution A philosophy plus An attitude plus A perspective plus A management orientation + = Marketingis 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 goals. 2000 South-Western CollegePublishing

4. THE CONCEPT OF EXCHANGEWhat do we mean by the exchange process? • Two or more parties • Each party must have something the other party values • Communications and ability to deliver • Freedom to accept or reject offer • Want to deal with each other • Authority and means to make transaction • Medium of exchange 2000 South-Western CollegePublishing

5. Marketing Management Philosophies • Production orientation • Sales orientation • Marketing orientation • Societal orientation 2000 South-Western CollegePublishing

6. THE ORGANIZATON’S FOCUSCustomer Value • Ratio of values/benefits to necessary sacrifices • A core business strategy • Determination of consumer’s definition and measurement of value? • Sacrifices may be financial, psychological, sociological, level of perceived risk, time, etc. BENEFITS SACRIFICES 2000 South-Western CollegePublishing

7. THE ORGANIZATION’S FOCUS Customer value • Offer products that perform • Give consumers more than they expect • Avoid unrealistic pricing • Give the buyer facts • Offer organization-wide commitment in service and after-sales support 2000 South-Western CollegePublishing

8. THE ORGANIZATON’S GOALCustomer Satisfaction • Hygiene Factors • Satisfiers • “Exceed customer expectations” 2000 South-Western CollegePublishing

9. Relationship Marketing to Stakeholders • Forging long-term partnerships with customers • Share of customer vs share of market concept • Long-run over short run • Loyalty programs • Frequent flyerprograms But who are these stakeholders? 2000 South-Western CollegePublishing

10. WHO ARE THESE STAKEHOLDERS? • Stakeholders are any person(s) or organization(s) that has an interest in the decisions and actions of the marketer: • Shareholders • Management • Employees • Customers • Supply chain partners • Communities in which marketers operate …… and many others 2000 South-Western CollegePublishing

11. TO SUCCEED IN RELATIONSHIP MARKETING, A MARKETER MUST... • Develop customer-oriented personnel through… • Training (Disney University) • Empowerment (Federal Express) • Teamwork and team-building skills (Southwest Airlines ) 2000 South-Western CollegePublishing

12. DIFFERENCES BETWEEN SALES AND MARKETING ORIENTATION 2000 South-Western CollegePublishing

13. DIFFERENCES BETWEEN SALES AND MARKETING ORIENTATION D I S C U S S 2000 South-Western CollegePublishing

14. The Marketing Process • A mission statement consistent with the organization’s mission statement • Set measurable marketing objectives • Environmental Scan (Internal and External) • Marketing strategy (Tgt. Mkt. & marketing mix) • Implementation • Measure performance against objectives • Review and feedack 2000 South-Western CollegePublishing

15. THE MARKETING PROCESS Marketing Strategy Target Market Strategy Marketing Mix [Product,Price,Promotion, Distribution] MISSION STATEMENT SETTING MARKETING OBJECTIVES ENVIRONMENTAL SCAN ( S. W. A. T. ) Implementation Evaluation Feedback 2000 South-Western CollegePublishing

16. Why study marketing? • Plays an important role in society • Marketing is vital to business survival • Marketing affects your life every day • International implications • Be a more knowledgeable consumer AND... 2000 South-Western CollegePublishing

17. Between a fourth and a third of the entire civilian workforce in the United States performs marketing activities, such as... CAREER OPPORTUNITIES !!! • Sales (organizational or consumer) • Promotion (advertising, PR, sales promotions) • Research • Retailing • Product management • Logistics 2000 South-Western CollegePublishing

18. MARKETING AFFECTS YOUR LIFE EVERY DAY • About 50 cents of every dollar you spend pays for marketing costs. • By understanding marketing, you will become a better-informed consumer and citizen • You will better understand the buying process and be able to negotiate more effectively with sellers • You will be better prepared to demand satisfaction when the goods and services you buy do not meet the standards promised by the marketer 2000 South-Western CollegePublishing

19. ETHICS IN MARKETINGHealthy Versus Healthy Looking? Is it ethical for Coppertone to produce low ultraviolet ray protection products? • Should the sun-care industry only market goods that are healthy for the consumers, even though consumers want less healthy products? 2000 South-Western CollegePublishing

20. GLOBAL PERSPECTIVES • How are some upscale US catalog retailers successfully marketing their products to the younger generation and city dwellers in Japan? • How are these US catalog retailers creating customer value? JAPAN 2000 South-Western CollegePublishing