EBP 1014 Ch. 01
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Principles of Marketing Chapter 1

Principles of Marketing Chapter 1

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EBP 1014 Ch. 01 Presentation Transcript

  • 1. Welcome to the World of Marketing Creating and Delivering Value
  • 2. Chapter Objectives
    • Understand who marketers are , where they work , and marketing’s role in the firm
    • Explain what marketing is and how it provides value to everyone involved in the marketing process
    • Understand the range of services and goods that are marketed
    • Understand value from the perspectives of customers , producers , and society
    • Explain the basics of marketing planning and the marketing mix tools used in the marketing process
    • Explain the evolution of the marketing concept
  • 3. Welcome to a Branded World
    • “ Brand You”
    • You are a product and have “market value” as a person
    • You “position” yourself for a job
    • Don’t “sell yourself short”
    • You package & promote yourself
  • 4. The Who & Where of Marketing
    • Marketers:
      • Are real people who make choices that affect themselves, their companies, & millions of consumers (see “Real People, Real Choices”)
      • Work cross-functionally within the firm
      • Enjoy exciting, diverse careers
  • 5. 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 and for managing customer relationships in ways that benefit the organization and its stakeholders
  • 6. Marketing is about Meeting Needs
    • Meeting the needs of diverse stakeholders
      • Buyers, sellers, investors, community residents, citizens
    • Marketing concept
      • Identifying consumer needs and providing products that satisfy those needs
  • 7. Marketing Is about Meeting Needs (cont’d)
    • The modern marketplace may take the form of a mall, a mail-order catalog, a TV shopping network, an eBay auction, or an e-commerce Web site
  • 8. Marketing Is about Creating Utility
    • Utility: the sum of the benefits we receive from using a product/service
      • Form utility
      • Place utility
      • Time utility
      • Possession utility
  • 9. 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
  • 10. The Evolution of Marketing
    • The Production Era
    • The Selling Era
    • The Consumer Era
    • The New Era
  • 11. The Production Era
    • Focus on the most efficient ways to make and distribute products, like Henry Ford’s Model T & Ivory soap
    • Marketing plays an insignificant role
  • 12. The Selling Era
    • Focus on one-time sales of goods rather than repeat business
    • Marketing viewed as a sales function
  • 13. The Consumer Era
    • Focus on satisfying customers’ needs and wants
    • Marketing becomes more important in the firm
    • Total Quality Management (TQM) widely followed in marketing community
  • 14. The New Era: Make Money and Act Ethically
    • Focus on building long-term bonds with customers.
    • Marketing uses customer relationship management (CRM) to track consumers’ preferences and tailor the value proposition to each individual
  • 15. The New Era: Focusing on Social Benefits
    • Social marketing concept : satisfy customers’ needs and also benefit society
    • Sustainability : meeting present needs and ensuring that future generations can meet their needs
  • 16. The New Era: Focusing on Accountability
      • * Measuring how much value is created by marketing activities
    • ROI (Return on Investment) is the direct financial impact of a firm’s expenditure of resources such as time or money
  • 17. Measuring Value
    • Scorecard : marketing department’s report card on how company/brand is actually doing in achieving various goals
    Table 1.3 (Abridged) Quarterly Scores 2003 Item Text 1 st Qtr. 2 nd Qtr. 3 rd Qtr. Satisfaction with C1 Employee responsiveness 60% 65% 68% C2 Product selection 60% 62% 63% C3 Service quality 60% 62% 55%
  • 18. 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
    • Product: any good, service, or idea
      • Consumer goods/services
      • Business-to-business goods/services
      • Not-for-profit marketing
  • 19. The Marketing of Value
    • Value : the benefits a customer receives from buying a good or service
    • 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
  • 20. Value from the Customer’s Perspective
    • The ratio of costs to benefits
    • Value proposition includes the whole bundle of benefits the firm promises to deliver , not just the benefits of the product itself
  • 21. Value from the Seller’s Perspective
    • Value for the seller 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
  • 22. Calculating the Value of a Customer
    • Single transactions don’t provide companies with the value they desire
    • Lifetime value of a customer : How much profit a company expects from a customer’s purchases now and in the future
  • 23. Providing Value to Stakeholders
    • Competitive advantage : The ability of a firm to outperform the competition by providing customers with a benefit the competition cannot provide.
  • 24. Adding Value through the Value Chain
    • Value chain: a series of activities involved in designing, producing, marketing, delivering, and supporting any product
      • Inbound logistics
      • Operations
      • Outbound logistics
      • Marketing final product
      • Service
  • 25. Figure 1.2: Making & Delivering Value
  • 26. Value from Society’s Perspective
    • How marketing transactions add or subtract value from society
    • Stressing ethics/social responsibility is often good business in the long run
  • 27. The Dark Side of Marketing
      • * Marketers
          • Illegal activities such as “bait and switch”
          • Products that encourage antisocial behavior
      • *Consumers
          • Terrorism
          • Addictive consumption
          • Exploited people
          • Illegal activities
          • Shrinkage
          • Anticonsumption
  • 28. Marketing as a Process
    • Marketing planning
      • Analyzing the marketing environment
      • Developing a marketing plan
      • Deciding on a market segment
      • Choosing the marketing mix -- product, price, promotion, and place
  • 29. Group Discussion
    • Think of any brands in the current market that are not marketed well or lack of marketing.
    • List down at least 10 brands (they can be goods/services).