Download Marketing

Definition: “Marketing is the activity for creating, communicating,
delivering and exchanging offerings that benefit customers, the
organization, its stakeholders, and society at large.”
- American Marketing Association (as noted in Kerin)
Definition: “the art and science of identifying, understanding,
acquiring and satisfying customers”
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Steve Hertzenberg
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Art & science
Customer-centric
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Identify: who are your targeted (best) customers?
Understand: what do they want/need/value?
Acquire: persuade target that you will satisfy them
Satisfy: actually deliver value
Typically done in an exchange of value
◦ Goods or services for money
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Marketers’ world is mostly outside of the
corporate walls
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B2B Marketing (IBM, Cisco, SAP)
B2C Marketing (P&G, General Mills, Nestle)
Positions inside firm or with outside agency
◦ Advertising, Public Relations, Database Marketing,
Internet Marketing, New Product Development,
Marketing Research and many more
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Retailing
◦ Store Management, Merchandise Buyer
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Sales & Sales Management
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Everyone
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For-profit organizations
Non-profit organizations
Political parties
Churches
Schools
Individuals
CEOs
Partners
Supervisors
Employees
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24/7/365
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Anywhere/everywhere business takes place
◦ Malls, stores, e-tailers, restaurants, auctions,
corporate offices, etc.
◦ Non-profit fundraisers
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To bring life to an organization
Customers are why organizations exist …
… and Marketing is why organizations have
customers
Customers and the revenue they provide are
firm’s lifeblood
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Understand the environment
Identify & understand the target market(s)
Create positioning and brand
Develop Marketing Mix (the 4 P’s of Marketing)
to persuade and satisfy
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Product (goods, services, ideas)
Price
Place (distribution)
Promotion (communications)
Evaluate and make changes - constantly
Controllable and Uncontrollable Variables
Social
Economic
Product
Price
Customer
Promotion
Place
Technological
Regulatory
Competitive
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Production orientation – focus on production
◦ “If you build it, they will come”
◦ Focus on production/distribution efficiencies
◦ Ex. - Model T (Ford): early1900s
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Sales orientation: move inventory
◦ Firm builds what it wants
◦ Sales must reduce inventory so production efficiencies
continue
 One time deals, new customer promos
◦ Ex. – General Motors: 1970’s – early 1980’s
 Marketing Concept - focus shifts to customers
Understanding:
 who they are
 what they want/need
 how they satisfy those needs today
 identifying a better way to satisfy those needs
 NOTE: not a perfect way; better than the competition
Persuading:
 convince customers to obtain satisfaction from you
Ex. - Apple’s first McIntosh
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Customer Relationship Era
◦ Still customer focused
◦ Same requirements as before re: need,
understanding & value
◦ Added concept of capturing information on
customers to build enduring relationships
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Deliver value in everything you do
◦ Products
◦ Customer experience
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Ex. - Apple iPod
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Regardless of “era” -Today , marketers tasked
with figuring out :
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who the best targets / customers are
what these customers value
how firm can provide it
how to persuade customers to find value from you
how to build profitable & lasting relationships
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Complete set of benefits buyer receives with
a purchase
◦ Includes tangible product, any service components,
all intangibles (e.g. brand/image, convenience, etc.)
◦ Often referred to as the Whole Product
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Delivering value involves meeting a “need”
◦ Requires identifying or creating customers’ needs
 Most products identify and meet existing needs
 Some new products (rare) create new needs