Download Marketing Fundamentals overview of course content

Outline for presentation
Introduction of course and background
Introduction of marketing e-book
How will the course be conducted?
What is marketing?
What are different ways in which firms can be
‘oriented to doing business?’
What is the marketing concept?
What are some critical marketing tools
the marketing mix
marketing strategy
market segmentation
MK 300-002 – Spring 2002
Dr. Lex Higgins
Overview of class
August 2002
Outline for presentation
Introduction of course and background
Introduction of marketing e-book
How will the course be conducted?
What is marketing?
What are different ways in which firms can be
‘oriented to doing business?’
What is the marketing concept?
What are some critical marketing tools
the marketing mix
marketing strategy
market segmentation
Introduction of course and
background
Principles of marketing is a required
course for business majors and others
The purpose of the course is to familiarize
you with core concepts (principles) that
define what marketing is and how it is
‘done’
Exercise - What is
marketing, really?
How do you think Marketing is defined in
most companies?
Form a definition based on your
perception and write your definition
down.
What is marketing, really?
How is it defined in business and
academics?
Definitions of marketing
American Marketing Association: “the
performance of business activities
directed toward, and incident to, the flow
of goods and services from producer to
consumer or user.” (1948)
American Marketing Association: “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.” (1985)
Definitions of marketing
(continued)
“Marketing is the process of establishing and
maintaining mutually beneficial exchange
relationships with customers and other stakeholders”
(Nickels and Wood, 1997)
“Marketing is a social and managerial process by
which individuals and groups obtain what they need
and want through creating, offering, and exchanging
products of value with others” (Kotler 1997)
“Marketing is the conceptualization and
profitable delivery of customer satisfaction”
(Higgins 1992)
A quote from Peter
Drucker on marketing
“There will always, one can assume, be need for
some selling. But the aim of marketing is to
make selling superfluous. The aim of marketing
is to know and understand the customer so well
that the product or service fits him (or her) and
sells itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be
needed then is to make the product or service
available.”
Three different orientations to
managing marketing activities
Production orientation
Sales or Promotion Orientation
Marketing Orientation
Marketing activities under
production orientation
firm assumes that customers value low
cost products that are widely available
firm focuses on maintaining high
production efficiency
marketing management focuses on
distribution
metrics: cost of product creation
functional Leadership: Operations
Marketing activities under
selling orientation
firm assumes that customers must be led,
or, if necessary, coerced to buy
marketing management focuses on
aggressive selling and promotion efforts
 firm is sales management/promotion led
Metrics focus on sales lead conversion and
number of new customers
Functional leadership: Finance
The marketing concept: a
philosophy of doing business
Meet customer needs - focus on
providing customer satisfaction
Meet organizational goals
Coordinate marketing activities - the
marketing mix: product, price,
promotion, and distribution
Do these three better than the
competition
Group Exercise
Identify a retail firm that you think
subscribes to the marketing concept
explain your answer by describing the
company point by point following the
dimensions of the marketing concept
Identify a retail firm that you think does
not subscribe to the marketing concept
explain your answer by describing the
company point by point following the
dimensions of the marketing concept
Marketing activities under
marketing orientation
firm assumes that customers’ needs must be
discovered and met
marketing management focuses on
understanding the market segmentation
process and what brings targeted customers
satisfaction
although company needs must be met, firm
is customer needs driven not company
needs driven
marketing activities are coordinated
firm focuses on outperforming the
competition
Marketing activities under
marketing orientation
“Love your customer not your
product”
“Find a need and fill it”
“Meet customer needs profitably”
“Have it your way”
Dimensions of market driven
management
shared beliefs and values: put customer
first
strategy development process:external
orientation, competitive advantage as
theme
organization structure and systems:
mirrors the market, team-based
supporting programs and actions: people,
incentives, communications
the four above are based on superior
skills in understanding and satisfying
customers
distinctive capabilities of
market driven firms
a set of values that place customers
first
the ability to manage information
effectively (knowledge
management)
successful interfunctional
coordination
Selling orientation versus
marketing orientation
 where process
begins: factory
 what is focus:sell
products
 how is marketing
performed: selling
and promotion
 why: meet company
goals
 where process
begins: target
market
 what is focus: meet
customer needs
 how is marketing
performed:
integrated marketing
 why: meet customer
needs and company
goals
Exercise
Instructions: Based on our discussion of the
marketing concept and market driven
management describe how you would
assist a firm in changing its orientation from
selling orientation to marketing orientation.
Exercise
Instructions: Based on our discussion of the
marketing concept and market driven
management describe how you would
assist a firm in changing its orientation from
product orientation to marketing orientation.
definition of consumer
marketing
the marketing of products to people
for their own, personal nonbusiness
use
definition of business-tobusiness marketing
the study of markets for product and services,
local to international, bought by businesses,
government bodies, and institutions for
incorporation, for consumption, or for resale
Market segmentation
The practice of dividing markets
into distinct, different submarkets
that have different needs regarding
the elements of the marketing mix
Marketing Strategy
A marketing strategy is a marketing mix that
is designed for and aimed at a predetermined target
market
Potential Target
markets
Product/service
Price
Promotion
Place (Distribution)
Segment 1
Segment 2
Segment 3
Segment 4
The marketing management tool
box: the marketing mix
(or “four p‘s”)
Product or service (what benefits target
market customers are seeking delivered in
the way they prefer)
Price (value = benefits minus costs)
Distribution (right time and right place)
Promotion (right communication: inform,
persuade, remind)
Impact of “e-business” on
marketing
Underlying model the same - people still
exchange value for value
Delivery mechanism radically different that is, how the value is exchanged and
delivered is different (local bookstore
versus Amazon.com, for example)
Every business should assess the impact
of e-business on its operations