* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Market
Pricing strategies wikipedia , lookup
First-mover advantage wikipedia , lookup
Sales process engineering wikipedia , lookup
Market segmentation wikipedia , lookup
Social media marketing wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Consumer behaviour wikipedia , lookup
Affiliate marketing wikipedia , lookup
Food marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Sports marketing wikipedia , lookup
Marketing research wikipedia , lookup
Target audience wikipedia , lookup
Ambush marketing wikipedia , lookup
Product planning wikipedia , lookup
Neuromarketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Target market wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing plan wikipedia , lookup
Direct marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Street marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Marketing: Real People, Real Decisions The World of Marketing Chapter 1 Lecture Slides Solomon, Stuart, Carson, & Smith Your name here Course title/number Date Marketing: Real People, Real Decisions Chapter Learning Objectives When you have completed your study of this chapter, you should be able to: • Define the marketing concept. • Define the objective of marketing. • Understand the basics of marketing planning. • Describe the evolution of the marketing concept. • Explain how marketing is important to both individual and business customers in the market place, in our daily lives, and in society. • Explain marketing’s role within an organization. ©Copyright 2003 Pearson Education Canada Inc. 1-2 Marketing: Real People, Real Decisions Introduction to the Topic • What is marketing? • Is is advertising? Sales? Going to the grocery store? • It is a functional area within a business, but what does it do? • A useful definition from the American Marketing Association: • Marketing: 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. • Note the many component parts (including the 4 P’s) to this definition, which will all be discussed in good time. ©Copyright 2003 Pearson Education Canada Inc. 1-3 Marketing: Real People, Real Decisions Needs versus Wants • Marketing attempts to satisfy the needs of consumers. • Consumer: the ultimate user of a good or service • Could be an individual, business, or organization • Need: recognition of any difference between a consumer’s actual state and some ideal or desired state. • Want: the desire to satisfy needs in specific ways that are culturally and socially influenced. • Why is the difference between these two relevant to marketers? • If consumers must learn how to satisfy needs, then they can be influenced in the process. ©Copyright 2003 Pearson Education Canada Inc. 1-4 Marketing: Real People, Real Decisions Exchange of Value • If marketing is all about exchanges of value, what is value? • Customer value: what the customer gets in the purchase, use, and ownership of a product relative to the costs and sacrifices incurred. • Exchange: the process by which some • • • • transfer of value occurs between a buyer and seller. Most exchanges are in the form of money, but barter can also be popular on a local basis. What is the relationship between value and price? Customers will pay for value received; the more received, the more they will pay. A good deal is, therefore, a state of mind? ©Copyright 2003 Pearson Education Canada Inc. 1-5 Marketing: Real People, Real Decisions Exchange of Value (continued) • To be meaningful to marketers, wants need resources. • Demand: customers’ desire for products coupled with the resources to obtain them. • Market: all of the customers and potential customers who: – share a common need that can be satisfied by a specific product, – have the resources to exchange for it, – are willing to make the exchange, and, – have the authority to make the exchange. • Note that these four conditions also make a good definition of a customer. • Marketplace: any location or medium used to conduct an exchange. ©Copyright 2003 Pearson Education Canada Inc. 1-6 Marketing: Real People, Real Decisions (Almost) Anything Can Be Marketed • Product: a tangible good, a service, an idea, or some combination of these that, through the exchange process, satisfies consumer or business customer needs; a bundle of attributes including features, function, benefits, and uses. Products have: • Features: characteristics of the product, such as materials, construction, and what it does. A feature of a computer is that it has 512 Mb of RAM • Advantages: what the features do for the user of the product. More RAM allows for greater computing power. • Benefits: the outcome sought by a customer that motivates buying behaviour. The customer wants more RAM to run the latest version of a software program. ©Copyright 2003 Pearson Education Canada Inc. 1-7 Marketing: Real People, Real Decisions (Almost) Anything Can Be Marketed • Idea marketing: many organizations, including governments use marketing to sell ideas, such as not smoking, responsible alcohol consumption, safe sex, and using recycling programs. • Place marketing: using marketing to sell places as a destination for tourists or for industries to choose to locate in. • Tourism is big business in Canada. • People marketing: using marketing to sell people and their images, such as celebrities endorsing products or representing organizations. • Why would Nike pay Tiger Woods $40 million over 5 years just to wear their clothing and footwear? ©Copyright 2003 Pearson Education Canada Inc. 1-8 Marketing: Real People, Real Decisions The Marketing Concept • Marketing concept: a management orientation that focuses on achieving organizational objectives by understanding consumer needs and wants and the associated costs of satisfying them. • Which comes first, the consumer need or the product to satisfy it? • It is important to recognize that marketing does not exist in isolation from the world around it. • Social marketing concept: an orientation that focuses on satisfying consumer needs and wants while also addressing the needs of the larger society. • “It’s not easy being green.” – Kermit the frog ©Copyright 2003 Pearson Education Canada Inc. 1-9 Marketing: Real People, Real Decisions Marketing Planning • Strategic planning: the process of identifying and analyzing alternative ways of achieving objectives. Type of factor Location of factor Internal to the company Favourable Unfavourable Strengths Weaknesses •Industry position •Product innovation/design •Brand awareness •Distribution channels •History of success •Pricing position •Limited distribution •Limited range of products •Leadership/direction •Resource constraints Opportunities External to the company •New markets •New branding strategies •Expand globally •Expand accessories line •Form strategic partnerships Threats •Fierce competition •Brand name may become the generic for the category •Pace of technology •Regulatory environment ©Copyright 2003 Pearson Education Canada Inc. 1-10 Marketing: Real People, Real Decisions Marketing Planning (continued) • Market segment: a distinct group of customer within a larger market, who are similar to one another in some way and whose needs differ from other customers in the larger market. • Target market: the market segment on which and organization focuses its marketing plan and toward which it directs its marketing efforts. • Market position: the way in which the target market perceives the product in comparison to competitors’ brands. • To be effective, organizations will do all three steps, one after the other, as each one builds on the step previous. • How do marketers achieve positioning? ©Copyright 2003 Pearson Education Canada Inc. 1-11 Marketing: Real People, Real Decisions Marketing’s Tools • Marketing mix: A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to the consumers, which creates a desired response among a set of predefined consumers. Figure 1-1 ©Copyright 2003 Pearson Education Canada Inc. 1-12 Marketing: Real People, Real Decisions Marketing Planning (continued) • Relationship marketing: a marketing philosophy that focuses on building long-term relationships with customers, suppliers, distributors, and other key stakeholders to satisfy mutual needs. • This philosophy recognizes that it is more efficient to keep existing customers happy and buying, than to be constantly trying to find new ones to replace those who have left. • It also recognizes the value of teamwork, when it comes to the supply chain. • Stakeholders: individuals or organizations who affect, or are affected by, the activities of a firm. • Society as a whole have a stake in what organizations do. ©Copyright 2003 Pearson Education Canada Inc. 1-13 Marketing: Real People, Real Decisions The Evolution of a Concept • Product orientation: a management philosophy that emphasizes the most efficient ways to produce and distribute products. • This philosophy focuses on developing products through research and development activities. • This approach works best in a seller’s market, where demand is greater than supply. • Selling orientation: a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory. • Also known as the hard sell, this approach is necessary in times of a buyer’s market, where product availability exceeds demand. • Think aluminum siding in the early 60’s, home security systems today, and other unsought goods. ©Copyright 2003 Pearson Education Canada Inc. 1-14 Marketing: Real People, Real Decisions The Evolution of a Concept (continued) • Consumer orientation: a management philosophy that focuses on being proactive and responsive in identifying and satisfying consumer needs and wants. • Focusing on what the consumer wants makes for good business, as Mattel does with the Barbie™ product line. • New era orientation: a management philosophy in which marketing decision making means a devotion to excellence in designing and producing products that benefit the customer plus the firm’s employees, shareholders, and fellow citizens. ©Copyright 2003 Pearson Education Canada Inc. 1-15 Marketing: Real People, Real Decisions Marketing Creates Value • Functional value: consumer benefits relating to product features, characteristics, utility, performance, and outcomes. • What will the product do for me? • Utility: the usefulness or benefit received by consumers from a product. Utility can based on form, place, time, and possession. • Buying snow tires after the first snowfall in winter qualifies for all four! • Experiential value: consumer benefits relating to sensory, emotional, relational, and epistemic experiences. • Live theatre and sports are experiences enjoyed for many different reasons. ©Copyright 2003 Pearson Education Canada Inc. 1-16 Marketing: Real People, Real Decisions Marketing Creates Value • Symbolic (expressive) value: consumer benefits relating to self-concept or self-identity, self-expression, social meaning, personal meaning, or conditional meaning. • Some products or services we consume for what we believe they say about us to others. Luxury products are a good example. • Cost (sacrifice) value: consumer benefits relating to economic costs, psychological costs, personal investment, and risk. • Warehouse retailers and e-tailers appeal to those consumers who appreciate value created by low prices, selection, and convenience of shopping. ©Copyright 2003 Pearson Education Canada Inc. 1-17 Marketing: Real People, Real Decisions Marketing and Culture • Popular culture: the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market. • Marketing of celebrities is pervasive in North American culture, much to the chagrin of many observers. • Cultural activities can be differentiated and targeted to particular market segments. • Myths: stories containing symbolic elements that express the shared emotions and ideals of a culture. • There are only so many plot and story lines out there to be used, and universal themes such as good versus evil have widespread appeal due to their simplicity. ©Copyright 2003 Pearson Education Canada Inc. 1-18 Marketing: Real People, Real Decisions Marketing’s Role in Society • Ethical behaviour is good business for many reasons beyond it is the right thing to do. Organizations attempt to manage their public image through careful promotional strategies. • The practice of marketing is not beyond criticism, such as: – Marketers create artificial needs – Marketing teaches us to value people for what they own rather than who they are – Marketers promise miracles • Most of these criticisms center on the issue of personal responsibility and tend to overestimate the power of marketing. Agree or disagree? ©Copyright 2003 Pearson Education Canada Inc. 1-19 Marketing: Real People, Real Decisions Famous Last Words… • For good or bad, marketing is everywhere. • Our challenge for the remainder of this course will be to try to understand what it can do for organizations attempting to achieve their objectives. ©Copyright 2003 Pearson Education Canada Inc. 1-20