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Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
Marketing intro
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Marketing intro

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Basic intro to marketing management …

Basic intro to marketing management

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  • Summary Overview The objective for the place, or distribution, element of the marketing mix is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition, hopefully all at a reasonable cost. Key Issues Channel of distribution --any series of firms or persons used to move goods from producers to final users. Channels can be: very long or very short; simple or complex. Marketers must: find the best kinds and types of channels for the product; effectively manage the channel. Discussion Question : What are some of the reasons why marketers are paying increased attention to their distribution strategies and tactics? Hint: Think about what happens when distribution does not work as it should. Other aspects of place: logistics or physical distribution; roles of middlemen, such as wholesalers and retailers. This slide relates to material on pp. 31-32.
  • Summary Overview Promotion involves telling the target market and others in the channel of distribution about the other elements of the marketing mix. There are four main types of promotion. Key Issues Personal selling --direct communication between sellers and potential customers. Mass selling --communicates with large numbers of customers at the same time. Advertising --any paid form of nonpersonal presentation of ideas, goods, and services by an identifying sponsor. Publicity —unpaid, nonpersonal presentation of ideas. Discussion Question : An old adage in marketing is that “Advertising is paid for, publicity is prayed for.” What is meant by this statement? What implications does the statement have for the marketing manager? Direct Marketing —communicating with carefully selected individual customers to secure an immediate response. Sales promotion --promotion activities, other than advertising, publicity, and personal selling, that stimulate interest, trial, or purchase. This slide relates to material on p. 32.  Indicates place where slide “builds” to include the corresponding point.    
  • Summary Overview Price is the revenue-generating function of the marketing mix. In setting the “ right ” price, marketing managers must consider many factors, all of which combine to make pricing a combination of science and art. Key Issues Marketers can choose from several different pricing objectives and policies. Among the policies are: price flexibility ; how price changes over the product life cycle ; various allowances, discounts, and geographic terms that affect the final price. Discussion Question : Can you think of examples of products, introduced in the last few years, whose prices changed significantly the longer they were in the market? Is the age of the product the only factor in these price changes? In addition, the marketer must be familiar with the various factors in the legal environment that affect pricing strategy. Other aspects of price include: cost structure and the demand ; price sensitivity ; competition, available substitutes ; impact of the price of one product on any other products offered by the organization. This slide relates to material on pp. 32-33.  Indicates place where slide “builds” to include the corresponding point.       
  • This slide relates to material on pp. 33-34.  Indicates place where slide “builds” to include the corresponding point. Summary Overview All of the four Ps--product, place, promotion and price--have an impact on satisfying the needs of consumers in the target market. No single area is more important than the others- -they are all interconnected. Key Issues In developing a marketing strategy, the jobs of selecting a target market and developing the marketing mix are interrelated . The outcome of the strategy is evaluated against the objectives of the marketer. Discussion Question : Choose a product or service and discuss how the elements of the marketing mix interact with each other. For example, how do product decisions affect decisions about place, promotion, and price? Keeping in mind the marketing concept, the needs of the target market determine the nature of the marketing mix, so developing a thorough understanding of the target market leads to good strategies . Your text provides an example of Toddler University (Marketing Demo 2-1, pp. 33-34), a shoe company whose shoes were targeted to a specific type of parent. The company’s founder understood the target market very well, developed a marketing mix aimed at the needs of the target market, and increased sales from $100,000 to $40 million in four years!   
  • Transcript

    • 1. An Overview of Marketing: Managing Profitable Customer Relationships Chapter 1
    • 2. Learning Objectives: <ul><li>Define marketing </li></ul><ul><li>Outline the steps in the marketing process. </li></ul><ul><li>Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts. </li></ul><ul><li>Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. </li></ul><ul><li>Discuss customer relationship management and strategies for building lasting customer relationships. </li></ul><ul><li>Describe the major trends and forces that are changing the marketing landscape in this new age of relationships. </li></ul>
    • 3. What is Marketing? <ul><li>Simple Definition: Marketing is managing profitable customer relationships. </li></ul><ul><li>Goals: </li></ul><ul><li>Attract new customers by promising superior value. </li></ul><ul><li>Keep and grow current customers by delivering satisfaction. </li></ul>
    • 4. Needs, wants, and demands Products and services Value, satisfaction, and quality Exchange, transactions, and relationships Markets Core Marketing Concepts
    • 5. Marketing Defined <ul><li>A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. </li></ul>
    • 6. Marketing Defined <ul><li>Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. </li></ul><ul><li>Simply put: </li></ul><ul><li>Marketing is the delivery of customer satisfaction at a profit. </li></ul>
    • 7. Needs, Wants, & Demands <ul><li>Need: </li></ul><ul><li>State of felt deprivation including physical, social, and individual needs. </li></ul><ul><ul><li>Physical need: </li></ul></ul><ul><ul><ul><li>Food, clothing, shelter, safety </li></ul></ul></ul><ul><ul><li>Social need: </li></ul></ul><ul><ul><ul><li>Belonging, affection </li></ul></ul></ul><ul><ul><li>Individual need: </li></ul></ul><ul><ul><ul><li>Learning, knowledge, self-expression </li></ul></ul></ul>
    • 8. <ul><li>Wants: </li></ul><ul><li>Form that a human need takes, as shaped by culture and individual personality. </li></ul><ul><li>Wants + Buying Power = Demand </li></ul>Needs, Wants, & Demands
    • 9. Need / Want Fulfillment <ul><li>Needs and Wants Fulfilled through a Marketing Offer : </li></ul><ul><ul><li>Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. </li></ul></ul>
    • 10. Need / Want Satisfiers <ul><li>Products: </li></ul><ul><ul><li>Persons </li></ul></ul><ul><ul><li>Places </li></ul></ul><ul><ul><li>Organizations </li></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Ideas </li></ul></ul><ul><li>Services </li></ul><ul><ul><li>Activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything. </li></ul></ul>
    • 11. Products Anything that can be Offered to a Market to Satisfy a Need or Want What Will Satisfy Consumer’s Needs and Wants? Services Activities or Benefits Offered for Sale That Are Essentially Intangible and Don’t Result in the Ownership of Anything Experiences Persons Places Organizations Ideas Information
    • 12. Marketing Myopia <ul><li>Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. </li></ul><ul><li>They focus on the “wants” and lose sight of the “needs” </li></ul>
    • 13. Value & Satisfaction <ul><li>If performance is lower than expectations, satisfaction is low </li></ul><ul><li>If performance is higher than expectations, satisfaction is high </li></ul>
    • 14. How Do Consumers Choose Among Products and Services? Total Quality Management Involves Improving the Quality of Products, Services, and Marketing Processes Product’s Perceived Performance in Delivering Value Relative to Buyer’s Expectations is Customer Satisfaction Value Gained From Owning a Product and Costs of Obtaining the Product is Customer Value
    • 15. Exchange vs. Transaction <ul><li>Exchange: </li></ul><ul><ul><li>Act of obtaining a desired object from someone by offering something in return. </li></ul></ul><ul><li>Transaction: </li></ul><ul><ul><li>A trade of values between two parties. </li></ul></ul><ul><ul><li>One party gives X to another party and gets Y in return. Can include cash, credit, or check. </li></ul></ul>
    • 16. Exchanges Transactions Relationships Building a Marketing Network Consisting of The Company and All Its Supporting Stakeholders How Do Consumers Obtain Products and Services?
    • 17. What is a Market? <ul><li>The set of actual and potential buyers of a product. </li></ul><ul><li>These people share a need or want that can be satisfied through exchange relationships. </li></ul>
    • 18. Who Purchases Products and Services? Unexpected Situational Factors Attitudes of Others Ethical Potential Buyers Market – Buyers who share a particular need or want that can be satisfied through exchange or relationships. Actual Buyers People Who Exhibit Need Resources to Exchange Willingness to Exchange
    • 19. Marketing Management <ul><li>The art and science of choosing target markets and building profitable relationships with them. </li></ul>
    • 20. Marketing Management Implementing programs to create exchanges with target buyers to achieve organizational goals Demand Management Finding and increasing demand, also changing or reducing demand such as in Demarketing Profitable Customer Relationships Attracting new customers and retaining and building relationships with current customers Marketing Management
    • 21. Marketing Management <ul><li>Demand Management </li></ul><ul><ul><li>Finding and increasing demand, also changing or reducing demand, such as in demarketing. </li></ul></ul><ul><li>Demarketing </li></ul><ul><ul><li>Temporarily or permanently reducing the number of customers or shifting their demand </li></ul></ul>
    • 22. Marketing Management <ul><li>Questions to ask: </li></ul><ul><li>What customers will we serve? </li></ul><ul><ul><li>What is our target market? </li></ul></ul><ul><li>How can we best serve these customers? </li></ul><ul><ul><li>What is our value proposition? </li></ul></ul>
    • 23. Segmentation & Target Marketing <ul><li>Market Segmentation: </li></ul><ul><ul><li>Divide the market into segments of customers </li></ul></ul><ul><li>Target Marketing: </li></ul><ul><ul><li>Select the segment to cultivate </li></ul></ul>
    • 24. Value Proposition <ul><li>The set of benefits or values a company promises to deliver to consumers to satisfy their needs. </li></ul>
    • 25. Marketing Management Philosophies <ul><li>Production Concept </li></ul><ul><li>Product Concept </li></ul><ul><li>Selling Concept </li></ul><ul><li>Marketing Concept </li></ul><ul><li>Societal Marketing Concept </li></ul>
    • 26. Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept <ul><li>Consumers favor products that are </li></ul><ul><li>available and highly affordable. </li></ul><ul><li>Improve production and distribution. </li></ul><ul><li>Consumers favor products that offer </li></ul><ul><li>the most quality, performance, and </li></ul><ul><li>innovative features. </li></ul><ul><li>Consumers will buy products only if </li></ul><ul><li>the company promotes/ sells these </li></ul><ul><li>products. </li></ul><ul><li>Focuses on needs/ wants of target </li></ul><ul><li>markets & delivering satisfaction </li></ul><ul><li>better than competitors. </li></ul><ul><li>Focuses on needs/ wants of target </li></ul><ul><li>markets & delivering superior value. </li></ul>Marketing Management Philosophies
    • 27. The Marketing Mix C
    • 28. The Marketing Mix Product Place Promotion Price C
    • 29. Strategic Decision Areas Product Place Promotion Price Objectives Physical Chars. Prod. Class Service Features Benefits Quality Accessories Installation Instructions Warranty Product Line(s) Packaging Branding NPD? &/or Elimination? PLC Implics. Objectives Channel type Market Exposure Kinds of Intermediaries Kinds and locations of Outlets How to handle transporting and storing Service levels Recruiting Intermediaries Managing Channels Channel Co-op (Not Conflict) is Goal – Who Has Power? Objectives Initial Pricing -Penentration -Skimming -Combo P Flexibility P Sensitivity P Level over PLC Geographic terms Discounts Allowances Legal Implics. Factors Infl. Basic P Det. Objectives Promotion Mix Salespeople Kind Number Selection Training Motivation Evaluation Advertising Targets Kinds of ads Media type Copy thrust Prepared by whom Sales promotion PR Publicity
    • 30. Examples of Basic Channels of Distribution for Consumer Products Manufacturer or producer AOL Nissan Del Monte Procter & Gamble Retailer Consumer Wholesaler Retailer Retailer Wholesaler Wholesaler
    • 31. Controllable Promo. Elements of the Marketing Mix Personal Selling Advertising Public Relations Advertising Publicity Personal Selling Promotion Sales Promotion
    • 32. Price Elements of the Marketing Mix Price Flexibility Price Changes Over the Life Cycle Pricing Objectives Price Setting Price of Other Products In the Line Pricing Objectives Discounts and Allowances Geographic Pricing Terms Legal Environment Cost and Demand Competition and Substitutes Price Sensitivity Price Flexibility Price Changes Over the Life Cycle Discounts and Allowances Geog. Pricing Terms Legal Environ’t Cost and Demand Competition and Substitutes Price Sensitivity
    • 33. All Four Ps Contribute to the Whole Selection of Target Market Understanding the Target Market Leads to Good Strategies! Product Place Promo-tion Price
    • 34. Customer Relationship Management <ul><li>The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. </li></ul>
    • 35. Partner Relationship Marketing <ul><li>Partners inside the firm </li></ul><ul><ul><li>All employees customer focused </li></ul></ul><ul><ul><li>Teams coordinate efforts toward customers </li></ul></ul><ul><li>Partners outside the firm </li></ul><ul><ul><li>Supply chain management </li></ul></ul><ul><ul><li>Strategic alliances </li></ul></ul>
    • 36. Customer Loyalty & Retention <ul><li>Customer Lifetime Value </li></ul><ul><ul><li>The entire stream of purchases that the customer would make over a lifetime of patronage. </li></ul></ul><ul><li>Share of Customer </li></ul><ul><ul><li>The share a company gets of the customers purchasing in their product categories. </li></ul></ul>
    • 37. Customer Equity <ul><li>Customer equity is the total combined customer lifetime values of all the company’s customers. </li></ul>
    • 38. Rest Stop: Reviewing the Concepts <ul><li>Define marketing and outline the steps in the marketing process. </li></ul><ul><li>Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts. </li></ul><ul><li>Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. </li></ul><ul><li>Discuss customer relationship management and strategies for building lasting customer relationships. </li></ul>
    • 39. TO BE CONTINUE…

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