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Marketing
“Marketing is Everything”
- Regis McKenna, HBR, 1991
“The End of Marketing”
- Regis McKenna, Business 2.0, 2000
An Introduction to Marketing
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A brief review of marketing
The developments in marketing
The language of the discipline
The principles and practices
The scope and methods
The ‘idea models’ of marketing
The practitioners and theorists
The applications and results
At various times we will cover most or all of this
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
- American Marketing Association
(And hereafter regarding definitions)
Theories of the Firm – What do firms do?
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Economic/Financial Functions
Agency/Managerial Functions
Resource Allocation Functions
Environmentally Adaptive Functions
Transaction Functions
Knowledge Functions
– Information Processing
– Learning/Teaching
• What is the role of MARKETING?
Knowledge-Based Theory of the Firm
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
The Fundamental ‘Model’
Value culture
STRATEGY
Build FOCUS and
“Mind Share”
Segmentation
Macro/Micro
Methodology
Targeting
Size
Dynamic
Leverage
Positioning
Reason for Being
Offering
Loyalty/Love
VISION
Value creation and destruction
OPERATIONS
Build TRUST and
“Access Share”
IT/IM
Research/DD
Distribution/Logistics
VALUE
Build FRANCHISE
and “Heart Share”
Process
Service
Branding
Value Indicator
Belief/Behavior
TACTICS
Build CAPABILITY and
“Market Share”
Four P’s (Concept/Creativity)
Product/Promo/Price
Place/ plus 1 + People
Selling (Capture)
B2B (Buyer-Seller/Promo)
B2C (Advertising)
C2C (Buzz/Virus/Referral)
Differentiation
Content (What)
Context (How)
Infrastructure (Enables)
Custom/Habituation
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
The Communication Process
Firm
SENDER
Attitude: Self-Referencing Issues
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Intermediary; Customer
MEDIUM
RECEIVER
Noise
Attitude: Cultural Filter Issues
Sponsor (sender) encodes message properly (or NOT)
Sponsor sends message through the channel (medium) to
the consumer (receiver).
Consumer receives the message and decodes it into
meaningful information (or NOT)
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
Value can be expressed several ways. Three of the clearest are:
Value =
Benefits (total ‘get)
---------Price (total ‘give’)
… or more specifically,
Value =
Fb + Eb
--------P + Oe
… where,
Fb =
Eb =
Functional benefits (utility)
Emotional benefits (psychology)
P =
Oe =
Price (charged) for acquisition
Other expenses/costs of acquisition … and finally
Value
=
You answered my question!
Solved my problem!
Classic Marketing Development Sequence
Time/Space
1930’s
Today
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
customer relationship management
A discipline in marketing combining database
and computer technology with customer
service and marketing communications.
Customer relationship management (or CRM)
seeks to create more meaningful one-on-one
customer communications by applying
customer data (demographic, industry, buying
history, etc.) to every communications vehicle.
CRM
At the simplest level, this would include
personalizing e-mail or other communications
with customer names. At a more complex level,
CRM enables a company to produce a consistent,
personalized marketing communication whether
the customer sees an ad, visits a Web site, or calls
customer service.
American Marketing Association
An Introduction to Marketing
Marketing defined:
“Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its stakeholders.
Stakeholders
One of a group of publics with which a company must
be concerned. Key stakeholders include consumers,
employees, stockholders, suppliers, and others who
have some relationship with the organization.
Discussion
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Syllabus
Text
Objectives
What marketing is
Who is involved
Language (next)
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• Questions?
An Introduction to Marketing
•
•
•
•
•
•
•
•
A brief review of marketing
The developments in marketing
The language of the discipline
The principles and practices
The scope and methods
The ‘idea models’ of marketing
The practitioners and theorists
The applications and results
At various times we will cover most or all of this
An Introduction to Marketing
•
•
•
•
•
•
•
•
A brief review of marketing
The developments in marketing
The language of the discipline
The principles and practices
The scope and methods
The ‘idea models’ of marketing
The practitioners and theorists
The applications and results
At various times we will cover most or all of this