Introduction to Marketing

1. Introduction to Marketing Market Oriented Approach

2. What is Marketing? • Is 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 objectives to serve both buyers and sellers.

3. Needs Eat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer

4. Needs & Wants A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person’s knowledge, culture, and personality. What are the legal, ethical, and moral. implications of satisfying wants and needs?

5. Factors that influence marketing activities • Organization itself (mission and goals) • Customers • Suppliers • Shareholders • Competitors • Environmental forces • Society

6. Summary of factors that affect an organization’s marketing program Competitive forces Economic forces Marketing program Product Promotion Consumer Regulatory forces Social forces Price Place Technological forces Environmental forces

7. Requirements for Marketing to Occur For marketing to occur, at least 4 factors are required: • Two or more parties (individuals or organizations) with unsatisfied needs, • a desire and ability on their part to be satisfied, • a way for the parties to communicate, and 4. something to exchange.

8. First Task: Detect Needs

9. Marketing’s first task: discovering consumer needs Organization’s marketing department Discover consumer needs Information about needs Potential consumers: The market

10. What is a Market? Potential consumers make up a market, which is: 1. People 2. with the Desire and 3. with the Ability to Buy a specific product.

11. Marketing’s Second Task: Satisfying Consumer Needs Organization’s marketing department Concepts for products • Satisfy consumer needs • Find the right combination of: • Product • Price • Promotion • Place Discover consumer needs Information about needs Goods, services, ideas Potential consumers: The market

12. The Target Market Because the organization obviously can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.

13. The Four Ps: Controllable Marketing Mix Factors Product Price Promotion Place

14. Building Customer Relationships

15. Customer value is. . . . the unique combination of benefits received by target buyers that includes quality price convenience on-time delivery before & after-sale service

16. Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-termbenefits. Mutual long-term benefitsbetween the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.

17. A marketing programis. . . a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

18. How Marketing became so important?

19. Four different orientations in the history of North American business Production era Sales era Marketing concept era Market orientation era 1860 1880 1900 1920 1940 1960 1980 2000

20. Definition of Market Orientation An organization that has a market orientation focuses its efforts on . . . . (1) Continuously collecting information about customers’ needs and competitors’ capabilities, (2) sharing this information across departments, and (3) using the information to create customer value.

21. Old Marketing Context

22. Ethics & Social Responsibility • Ethics • Social responsibility. Decisions should consider the well-being of society as a whole. • Societal marketing concept. An organization should satisfy customers’ needs while providing for society’s well-being. • Macromarketing • Micromarketing

23. The Breadth & Depth of Marketing Marketing affects every person and organization Who markets? What do they market? Who buys and uses what is marketed? Who benefits from these marketing activities? How do they benefit?

24. Who buys and uses what is marketed? Ultimate Consumers Organizational Buyers (B to B)

25. How Do Consumers Benefit? Utility Examples of Marketing Actionsthat Create Utility Form Place Time Possession Product design, packaging Distribution, store location Inventory management, warehouses, delivery Transactions, transfer of ownership