Download World of Marketing

MARKETING
Real People, Real Choices
Fourth Edition
CHAPTER 1
Welcome to the
World of Marketing:
Creating and
Delivering Value
Michael R. Solomon
Greg W. Marshall
Elnora W. Stuart
The Value of Marketing
Marketing is the adaptive process, in
society and organizations, of
collaborating to communicate, create,
provide, and sustain value for customers
through exchange relationships while
meeting the needs of diverse
s t a k e h o l d e r s .
1-2
Marketers do it to satisfy needs…
• Most successful firms practice the marketing
concept
– first identify consumer needs and then
provide products that satisfy those needs
• A need is the difference between a
consumer’s actual state and some ideal or
desired state
– physical needs
– psychological needs
1-3
Aveeno
Aveeno satisfies
a need by
providing
blemish-free skin
1-4
Needs versus Wants
• A need is the difference between the
actual and ideal states of being
• A want is a desire for a particular
product used to satisfy that need
– wants are culturally and socially
influenced
1-5
Crest Whitestrips
Crest
Whitestrips
provide a
benefit many
consumers
want today:
whiter teeth
1-6
A marketplace can take many forms
1-7
Marketing Creates Utility
Form
Place
Time
Possession
1-8
What Can Be Marketed?
• Consumer Goods and Services
• Business-to-Business Goods and
Services
• Not-for-Profit Marketing
• Idea, Place, and People Marketing
1-9
Oregon Zoo
Non-profit organizations like zoos
need to market themselves too!
1-10
Providing Value to Stakeholders
• Competitive Advantage
• Distinctive Competency
• Value Chain
1-11
Figure 1.1: A Value Chain for HP
1-12
Value from Society’s Perspective
Some feel that
marketers
manipulate
consumers, while
others feel people
should be
responsible for their
own choices.
1-13
Marketing as a Process
• Marketing planning
– What product benefits will our customers
be looking for in 3-5 years?
– What capabilities does our firm have that
set it apart from the competition?
– What additional customer groups might
provide important segments for us in the
future?
– What legal issues may affect our business?
– Technology/Environment?
1-14
Target Markets
• Mass Market - all possible customers
regardless of differences in their specific needs
and wants
– developing a basic product and a single
strategy for everyone
• Market segments - distinct groups of
customers within a larger market
• A target market - an organization’s chosen
segment
• Plan how the target market should perceive the
product in comparison to competitors’ brands the market position
1-15
Figure 1.3: The Marketing Mix
1-16
Marketing Mix Decisions
•
•
•
•
Product
– What new products should we introduce?
– What are our objectives with each product?
– Which products should we phase out?
– What type of service do our customers expect?
Place
– Where do our customers shop?
– Should we sell directly to our customers?
– How should we ship the product?
Promotion
– What are our promotion objectives?
– What medium should we use?
Price
– What message does our price send?
– Is our price consistent with our value?
– Should we change our price?
– How will our price affect demand?
1-17
The Evolution of Marketing
Production Era
Selling Era
Consumer Orientation
New Era Orientation
1-18
Ford
This 1949 Ford ad
illustrates the choices
awaiting people after
World War II.
1-19
New Era Orientation
• Customer relationship management
• Social benefits
• Accountability
– Marketing metrics
1-20
Oris
Oris gives back to
the community by
donating money
to disabled
people who want
to learn how to fly
an airplane
1-21
Issues for Discussion_1
• Have you ever pirated software? How about
music? Is it ethical to give or receive instead
of paying for it?
• As a typical student, how does marketing
satisfy your needs? What areas of your life
are affected by marketing?
• Can you think of firms that still operate with a
production orientation? A selling orientation?
What changes would you recommend for
these firms?
1-22