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Welcome to the
World of Marketing
Creating and
Delivering Value
1.
Chapter Objectives
who are marketers?
1.
2.
where they work,
marketing’s role
1.
2.
in the firm
Explain marketing
2
Chapter Objectives
1.
2.
Marketing’s value
1. to everyone involved in the
marketing process
range of services & goods
3
Chapter Objectives
1.
Understand value
1. Re: customers, producers,
and society
2.
marketing planning
4
Chapter Objectives
1. marketing mix tools
1. Product/price/promotion &
2. Place (distribution)
2.
evolution of the
marketing concept
5
CHAPTER CONCEPTS
6
Welcome to a Branded World
“Brand You”

You are a product

You have “market value”

as a person
7
Welcome to a Branded World
“Brand You”

You “position” yourself for a job

Don’t “sell yourself short”

You package & promote yourself
8
Who & Where of Marketing

Marketers:

Are real people

who make choices that affect
themselves,
 their companies, &
 millions of consumers

9
Who & Where of Marketing

Marketers:

Work cross-functionally


within the firm
Enjoy exciting, diverse careers
10
The Value of Marketing

Definition of marketing (AMA, 2004)
An organizational function
 and a set of processes
 for creating, communicating,
and delivering


value to customers
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The Value of Marketing

Definition of marketing (AMA, 2004)

and manages customer relationships

in ways that
benefit the organization
 and its stakeholders

12
Marketing = Meeting Needs

stakeholders
Buyers,
 sellers,
 investors,
 community residents,
 citizens

13
Marketing = Meeting Needs

Marketing concept
 Identifying consumer needs
&
 providing products that
satisfy those needs
14
Marketing = Meeting Needs

The modern marketplace
a mall,
 mail-order catalog,
 a TV shopping network,
 an eBay auction,
 or an e-commerce Web site

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Marketing =Creating Utility

Utility: the sum of the benefits we
receive from using a product/service
Form utility
 Place utility
 Time utility
 Possession utility

16
Marketing Is about
Exchange Relationships

An exchange occurs when something
is obtained for something else in
return,



like cash for goods or services
Buyer receives product that satisfies need
Seller receives something of equivalent value
17
The Evolution of Marketing
The
 The
 The
 The

Production Era
Selling Era
Consumer Era
New Era
18
The Production Era

Focus = most efficient ways to make
and distribute products,


like Henry Ford’s Model T & Ivory soap
Marketing plays an insignificant role
19
The

Focus = one-time sales of goods


Selling Era
rather than repeat business
Marketing = a sales function
20
The
Consumer Era

Focus = satisfying customers’
needs and wants
Marketing = more important

Total Quality Management (TQM)


widely followed in marketing community
21
The New Era: Profits & Ethics

Focus = building long-term bonds


with customers.
Marketing uses customer relationship
management (CRM)


to track consumers’ preferences
tailor value proposition to each individual
22
The New Era:
Focusing on Social Benefits

Social marketing concept:


satisfy customers’ needs and
also benefit society


Sustainability:


meeting present needs and
ensuring future generations can meet their needs
23
The New Era:
Focusing on Accountability
•

Measuring how much value is created by
marketing activities
ROI (Return on Investment)

direct financial impact of firm’s expenditure of
resources

such as time or money
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What Can Be Marketed?
From serious goods and services
to fun things
 Goods and services


mirror changes in popular culture
Marketing messages

may communicate myths of a culture
25
What Can Be Marketed?
Product: any good, service, or idea
Consumer goods/services
 Business-to-business goods/services
 Not-for-profit marketing
 Idea, place, and people marketing

26
The Marketing of Value
Value:
 the benefits a customer receives
 from buying a good or service

27
The Marketing of Value
Marketing communicates the value
proposition:
a marketplace offering that
fairly and accurately sums up the value
that the customer will realize
if he/she purchases product/service
28
Value from the Customer’s
Perspective
ratio of costs to benefits

The

Value proposition includes:
whole bundle of benefits
 the firm promises to deliver,


not just the benefits of the product itself
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Value : Seller’s Perspective

takes many forms:
Making a profitable exchange
 Earning prestige among rivals
 Taking pride in doing what a company
does well
 Nonprofits:


motivating, educating, or delighting the public
30
Calculating the Value of a
Customer

Single transactions


don’t provide companies with value they desire
Lifetime value of a customer:


How much profit a company expects from ONE
customer’s purchases now and in the future
WalMart: LTV = $250,000
31
Providing Value to
Stakeholders

Competitive advantage:

ability of a firm to outperform the
competition

by providing customers with a benefit

the competition cannot provide
32
Adding Value through
the Value Chain


a series of activities
involved in designing, producing,
marketing, delivering, and supporting
any product
33
Adding Value through
the Value Chain

a series of activities:
 Inbound logistics
 Operations
 Outbound logistics
 Marketing final product
 Service
34
Consumer-Generated Value:
From Audience to Community


Everyday people generating value
instead of just buying it

People functioning
 in marketing roles:
 creating ads,
 providing input into new products, or
 serving as retailers
35
Value: Society’s Perspective

How marketing transactions


add or subtract value from society
Stressing ethics/social responsibility

is good business in long run
36
The Dark Side of Marketing
* Marketers

Illegal activities


such as “bait and switch”
Products that encourage antisocial
behavior
37
The Dark Side of Marketing
*Consumers
Terrorism
 Addictive consumption
 Exploited people
 Illegal activities
 Shrinkage
 Anticonsumption

38

Marketing as a Process
Marketing planning:
Analyzing the marketing environment
 Developing a marketing plan
 Deciding on a market segment
 Choosing the marketing mix –

product,
 promotion,

price,
place
39
THE END
40
Keeping It Real:
Fast-Forward to Decision
Time at Qode



Meet Rick Szatkowski of NeoMedia
Technologies
Qode links your cell phone to the Web
when you enter a keyword or click a
SmartCode.
Example: A code on a movie poster
plays a trailer for the movie
41
Chapter case study
Ron Jon’s Surf Shop
See handout

42
Ron Jon Surf Shop, Inc.
How to advertise Ron Jon’s at
airports?
Option 1: rental car advertising
 Option 2: wall-mounted backlit
photographs (dioramas)
 Option 3: escalator “gateways”

43
How It Worked Out
at Ron Jon Surf Shop
Bill choose option 2: wall-mounted
backlit photographs (dioramas)
Opened a small store in the Orlando
Airport adjacent to the very busy food
court
 Surf and sales are up at Ron Jon!

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