Understanding Marketing: Core Concepts and Strategies

1. A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution plus WHAT IS MARKETING?

2. American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and servicesto create exchanges that satisfy individual and organizational goals. WHAT IS MARKETING? Marketing = Using Exchanges to Satisfy Needs

3. The Concept of Exchange The idea that people give up something to receive something they would rather have. Both buyer and seller are better off after the trade.

4. WHO DO I AIM AT? • Market – All people with both the desire and ability to buy a specific product • Target Market – One or more subgroups I can satisfy

5. Price Promotion Place Product THE CONTROLLABLE MARKETING FORCES The Four P’s -the “arrow”

6. External Environmental Factors Social Natural Economic Technologic Political and Legal Competitive THE UNCONTROLLABLE MARKETING FORCES Helps identify market opportunities

7. FIGURE 1-ASummary of factors that affect an organization’s marketing program

8. FIGURE 1-4Marketing’s task: satisfying consumer needs

9. HOW MARKETING BECAMESO IMPORTANT • Evolution of the Market Orientation • Production Era • Sales Era • Marketing Concept Era • Societal Era

10. MARKETING MANAGEMENT PHILISOPHIES Orientation Key Ideas Production Focus on efficiency of internal operations – if we make it, they will buy it Sales Focus on aggressive sales techniques and believe that high sales result in high profits Market Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables Societal

11. FIGURE 1-BFour different orientations in the history of American business Societal

12. What Is Marketed? • Goods • Services • Ideas THE BREADTH & DEPTH OF MARKETING • Who Buys and Uses What Is Marketed? • Ultimate Consumers • Organizational Buyers

13. HOW DO CONSUMERS BENEFIT Utility – the benefits or customer value received by users of the product

14. HOW TO DELIVER VALUE Customer value-benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and both before-sale and after-sale service. • 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

15. KEEPING THE CUSTOMER SATISFIED • Meet or exceed customer’s expectations • Provide solutions to customer’s problems • Cultivate relationships, NOT one-time transactions

16. Concept Check 1.What is marketing? • A: 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.

17. Concept Check • 1.An organization can’t satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ____________. • target markets

18. Concept Check 2.What are the four marketing mix elements that make up the organization’s marketing program? • A: product, price, promotion, place

19. Concept Check 3.What are environmental forces? • A: Environmental forces are those that the organization’s marketing department can’t control. These include social, economic, technological, competitive, and regulatory forces.

20. Concept Check 1. What are the two key characteristics of the marketing concept? • A: (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

21. Concept Check 2. What is the difference between goods and services? • A: Goods are physical objects whereas services are complex intangible items, such as legal advice, a college education, or airline travel.

22. Exchange • Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.

23. Market • A market consists of people with both the desire and ability to buy a specific product.

24. Customer Value • Customer value is the unique combination of benefits receivedby targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.

25. Marketing Concept • The marketing concept is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

26. Market Orientation • An organization that has a market orientation focuses its efforts on(1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and(3) using it to create customer value.

27. Societal Marketing Concept • The societal marketing concept is the view that an organization should satisfy the needs of consumers in a way that provides for society’s well-being.

28. Organizational Buyers • Organizational buyers are those manufacturers, wholesalers, retailers,and government agencies that buy goods and services for their own use or for resale.

29. Utility • Utility is the benefits or customer value received by users of the product.