Marketing

1. Marketing

2. Market Marketer Marketing Customer Change Risk Competition Passionate Needs, wants

3. Always Listen To The Consumer What The Customer Needs How The Consumer Feels

4. How The Market Is Evolving And What That Means To The Consumer Don’t Be Too Far Ahead Of The Customer The Second Best Idea

5. Cost of failure Ensure that your team feels empowered to try new concepts

6. Always know what your competitor will do Always do it first Never underestimate your competition

7. If you dream it you can believe it If you can believe it ,you can do it

8. Golden rule • Treat others as you would like them treat you

9. Reference books

10. Chapter 1: Marketing’s Role within Organizations “Marketing is an art; marketing is a science.”

11. objectives • Know what marketing is . • Understand the difference between micro-marketing and macro-marketing. • Know what the marketing concept is. • Understand how the marketing concept relates to customer value. • Understand the important new terms.

12. What do we learn about marketing? • Marketing: a set of decisions and processes that every organization uses to carry out an exchange with others, both inside and outside the organization. • Goal of marketing: identifying and meeting human and social needs to achieve the goal of an organization.

13. How marketing relates to production • Production: Actually making goods or performing services. • Products don’t sell themselves. • Utility: The power to satisfy human needs. • Products do not automatically provide utility.

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15. Coca-Cola or Pepsi or New Coke?

16. Time Form Utility Place Task Possession Utility and Marketing ByProduction with guidance of marketing byMarketing

17. The 5 types of utility • Utility: the power to satisfy human needs. • Form utility is provided when someone produces something tangible. • Task utility is provided when someone performs a task for someone else. • Possession utility: obtaining a good or service and having the right to use or consume it. • Time utility: having the product available when the customer wants it. • Place utility: having the product available where the customer wants it. (Internet bookseller)

19. Marketing defined • The American Marketing association (AMA): 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. • Marketing is both a set of activities performed by organizations and a social process.

20. Micro-marketing Macro-marketing The performance of activities that seek to accomplish an organization’s objectives by anticipating customer needs and directing the flow of need-satisfying goods and services. A social process that directs an economy’s flow of goods and services to effectively match supply and demand and to meet society’s objectives. Micro-marketing and Macro-marketing

21. Micro-marketing • Micro-marketing looks at customers and the organizations that serve them; • Applies to profit and nonprofit organizations • More than just persuading customers • Begins with customer needs • Builds an ongoing relationship

22. Whole-Company Strategic Management Planning Marketing Planning Adjust Plans As Needed Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program The Marketing Management Process

23. The Marketing Mix C Marketing Strategy Planning

24. Product Place C Price Promotion The Four Ps of the Marketing Mix

25. Macro-marketing • The emphasis of macro-marketing is on how the whole marketing system works. (Heterogeneous supply and demand) • Whether it is effective or fair depends on the objectives of the society.

26. Model of Market-DirectedMacro-Marketing System Many Individual Producers Middlemen intermediaries Facilitators Perform universal marketing functions Monitoring by government(s) and public interest groups To overcome discrepancies and separations To create utility and direct flow of need-satisfying goods and services Many Individual Consumers

27. Marketing is important! • Marketing is a concept, an approach and a set of decisions and processes.

28. The evolution of marketing • Simple trade era: a time when families traded or sold their surplus output to local intermediaries, who then resold these goods to other consumers or distant intermediaries. • Production era: a time when a company focuses on production of a few specific products---perhaps because few of these products are available in the market. • Sales era: a time when a company emphasizes selling because of increased competition. • Marketing department era: a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities. • Marketing company era: a time when marketing people develop long-range plans and the whole company effort is guided by the marketing concept.

29. Focus: Sell Surplus Simple Trade Era Focus: Increase Supply Production Era Focus: Sales Era Beat Competition Focus : Marketing Department Era Coordinate and Control Focus : Marketing Company Era Long-Run Customer Satisfaction Marketing’s Changing Role

30. The marketing concept • Marketing concept: the idea that an organization should aim all of its efforts at satisfying its customers ---- at a profit. • Production orientation: making whatever products are easy to produce and then trying to sell them.-----trying to get customers to buy what the firm has produced. • Marketing orientation: trying to carry out the marketing concept. ---- trying to produce what the customers need. 3 basic ideas.

31. 3 basic ideas of marketing concept • Customer satisfactionguides the whole system. • The team approach---- all the departments adopt the marketing concept and work together; the organization work as a total system and specifies a high-level objective----customer satisfaction. • Survival and success require aprofit. Profit is the difference between a firm’s revenue and its total costs, which is the bottom-line measure of its success and ability to survive.

32. The Marketing Concept Customer Satisfaction Total Company Effort The Marketing Concept Profit

33. Customer Value Reflects Benefits and Costs Customer value concerns the difference between the benefits a customer sees from a firm’s market offering and the costs of obtaining those benefits. Costs Benefits The customer’s view of costs and benefits is not just limited to economic (or even rational) considerations--and a low price may NOT result in superior value.

34. Customer value

35. Customer Value Costs Benefits • One customer’s view of the benefits and costs of a firm’s market offering may vary from another customer’s view, so firm may not be able to satisfy everybody with the same offering. • Customer value concept takes the customers point of view, but customers may not explicitly weigh costs and benefits and even if they do their view may not match some “objective” reality.

36. McDonald’s QSCV • Every day an average of 38 million people visit its 23,500 restaurants in 109 countries. People do not flock to McDonald’s outlets solely because they love the hamburger. Some other restaurants make better-tasting hamburgers. People are flocking to a system, not a hamburger. The system is called QSCV---quality, service, cleanliness, and value. McDonald’s works with its suppliers, franchise owners, employees and others to deliver high value to its customers. • What do you learn from the case?

37. What can we learn from customer value? • A consumer is likely to be more satisfied when the customer value is higher. • Low price and high customer value are not the same thing. • The customer value reflects a customer’s point of view which matters very much to a firm. • A manager should try to improve the benefits or to reduce the costs and thus satisfy the customers . • To improve customer value is an effective way to beat competition. • The firm should try to provide customer value before and after each purchase to build ongoing relationship with the customers.

38. Non- Customer Support Non- Economic Measures Characteristics of Nonprofit Organizations Poorly Organized for Marketing 8.Nonprofits Need Marketing, Too

39. The marketing concept, social responsibility, and marketing ethics • Besides satisfying some consumers, social responsibility should be concerned with, which is a firm’s obligation to improve its positive effects on society and to reduce its negative effects. • Should all consumer needs be satisfied? • Trying to balance consumer, company and social interests. • Code of ethics (p24)

40. Basic terms in marketingMarket • market :“A market is all the people or organizations that buy or possibly buy some specific goods or service.” Market(=demand) = population + purchasing power + purchasing motive • marketplace: physical, e.g. you go shopping in a store; • marketspace: digital, e.g.you go shopping on the internet.

41. needs, wants and demands • a. need: basic forces that motivate a person to do something. food, air water, clothing ,shelter; recreation, education and entertainment. • b.want: needs that are learned during a person’s life. It is directed to specific objects that might satisfy the need. Wants are shaped by one’s society. • c.demand: wants for specific products backed by an ability to pay. It can be divided into real demand and potential demand which can be turned into reality by promoting or communicating. Marketers do not create needs; needs preexist marketers. Demand=willingness to buy+buying power

42. A product is the need-satisfying offering of a firm. Basic offerings: goods services experiences events persons places properties organizations information ideas product or offering

43. Customer Satisfaction • Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations. P﹤E dissatisfied P﹦E satisfied P﹥E highly satisfied or delighted • “It’s no longer to satisfy customers. You must delight them.”

44. 10.5 Marketing mix Marketing mix refers to the controllable variables that the company puts together to satisfy a target group(4Ps: product, price, place and promotion; 4cs: customer solution, customer cost, convenience, communication).

45. Social marketing concept • Social marketing concept: the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and society’s well-being. It calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest.

46. relationship marketing & integrated marketing • relationship marketing concept It has the aim of building long-term mutually satisfying relations with key parties----customers, suppliers, distributors----in order to earn and retain their long-term preference and business. Marketers accomplish this by promising and delivering high-quality products and services at fair prices to the other parties over time. It introduces another 2Ps into marketing mix---- power and public relations. • integrated marketing: when all the company’s departments work together to serve the customer’s interests, the result is integrated marketing.

47. Problems and questions • Briefly describe how acceptance of the marketing concept might affect the organization and operation of your college or university? • Does the acceptance of the marketing concept almost require that a firm view itself as a total system? • Distinguish between production orientation and marketing orientation, illustrating with examples in your local area. • How do you think the consumers would react if a food processor developed a new food product that would provide all necessary nutrients in small pills for about RMB 1000 per person per year?

48. Quiz • 1. Marketing creates task utility, but not time or place utility • A) True • B) False • 2.Macro-marketing emphasizes how the whole marketing system works. • A) True • B) False • 3.Changes in the demographic, social, political, economic, and technological environments have altered people's preferences for how they want their needs to be satisfied. • A) True • B) False

49. 4. Adopting the marketing concept requires that a company eliminate all functional departments. • A) True • B) False • 5. Farmers going to the local village market to sell their crops were in the simple trade era. • A) True • B) False • 6. Micro-marketing: • A) anticipates customer needs and directs need-satisfying goods and services from producer to customer. • B) applies to Nortel (a for-profit company). • C) applies to Mountain Equipment Co-op (a non-profit co-operative) • D) is more than persuading customers

50. 7. During the sales era: • A) a company emphasized selling because of decreased competition. • B) the emphasis was on "getting people to buy what we make." • C) production techniques were very flexible. • D) companies thought "if we can make it, it will sell." • E) all marketing activities are brought under the control of one department. • 8. Which of the following is NOT likely to be found in a company with a marketing orientation? The company: • A) sells whatever it can make. • B) designs its packaging as a selling tool. • C) uses marketing research to see if it is satisfying its customers. • D) sees delivery as a service. • E) focuses on locating new opportunities. • 9. Both production and marketing contribute to providing: • A) possession utility. • B) place utility. • C) form and task utility. • D) time and place utility. • E) none of the above.