Download Marketing

2 BASIC OPERATING FUNCTIONS OF EVERY
ORGANIZATION
1. Production of a good, service, organization,
person, or idea
2. Marketing of the good, service, organization,
person or idea

want satisfying power of a good or service
1. FORM
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created by production
convert raw materials into finished
goods & services
Ex. Metal Shelves, Ford Explorer
2. TIME
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created by marketing
availability of goods & services when
consumers
want to buy them
Ex.: Dominos 30 minute guarantee
Federal Express
3. PLACE
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
created by marketing
availability of goods & services where
consumers want to buy them
 Ex.: vending machines, Taco Bell
Express
4. OWNERSHIP
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
created by marketing
transfer title time of purchase
 Ex.: retail outlets (in exchange for $ or credit card
payment)

American Marketing Assoc. (1985)

"process of planning & executing the conception,
pricing, promotion, & distribution of ideas, goods, &
services to create exchanges that will satisfy
individual & organizational objectives"
1. PRODUCTION ERA:
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"A good product will sell itself"
Prior to 1920's
production oriented: make product and then sell
it (Henry Ford)
2. SALES ERA:
"Creative advertising & selling will overcome
customer resistance & convince them to buy”
 between 1925 & early 1950's
 selling was main focus of marketing

3. MARKETING ERA:
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"The consumer is king! Find a need & fill it!”
early 1950's to early 1990’s
Emergence of the Marketing Concept
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*CONSUMER ORIENTATION
 Seller’s Market vs. Buyer’s Market
RELATIONSHIP MARKETING ERA
4.
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long-term, value added relationships developed
over time with customers and suppliers
1990-Today
Strategic Alliances

Ex. UPS
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5. The Social Era: NOW
 Connect with consumers via Internet and social media.

Management failure to recognize scope of its
business

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EX. Amtrak
AT&T
chart on pg 13 gives good examples of focusing
on benefits
1. Person Marketing

to cultivate attention, interest, & preference of a
target market toward a person
Ex.: pro athletes
2. Place Marketing


attract visitors to a particular area
Ex.: “Wake Up to Missouri” or Pumpkin License
Plate
3. Cause Marketing

identification & marketing of a social issue, cause, or
idea to selected target markets
Ex.: "Save the Whales"
literacy
Milk
4. Event Marketing

mkt of sporting, cultural, & charitable activities to
selected target markets
 Ex. Visa & Olympics or TWA Dome
5. Organizational Marketing

seek to influence others to accept the goods of,
receive the services of, or contribute in some way
to an organization
- Ex.: “Be All that You Can Be”

Ex: “An Army of One”
1. THE TARGET MARKET

who firm will direct marketing efforts toward
 Ex. Baby-boomers, children, women
 Ex.: Stouffers Lean Cuisine
2. THE MARKETING MIX VARIABLES (4P’s)


Once target market is chosen, how these variables are
"mixed" determines success of marketing.
A. PRODUCT: package design, branding,
trademarks, warranties, product life cycles &
new product development
B. PRICING: one of most difficult marketing
decisions
C. DISTRIBUTION: ensures that product arrives
in right place, in right quantity at the right time
D. PROMOTION: communications link between
sellers & buyers
Ex.: advertising, sales people, sales
promotions
3. THE MARKETING ENVIRONMENT

The marketing environment is important because
it provides a framework for all marketing
activity.
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5 Forces
1. COMPETITION
2. POLITICAL-LEGAL
3. ECONOMIC
4. TECHNOLOGICAL
5. SOCIAL-CULTURAL
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Strategic Alliances: partnership that creates
competitive advantages
ex. Delta and Disney
UPS and Bradfield’s
Pepsi and Apple’s iTunes
Marketing Costs
creating time, place & ownership utility costs $
 most estimate that marketing costs are 40 - 60% of
overall product cost

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It was the future and is now the present!
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Most business people are ethical but there are a
few rotten ones.
Ex. ADM, Enron, Worldcom