Marketing - Rami Show

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  • Hello dear, My name is mariam nasrin, I know that this email will meet you in a good health and also surprisingly but God has his own way of bringing people together. Nice to Meet you I would appreciate if you can reply me back( mariamnasrin2@gmail.com ) So that i can explain you more about me. thank Yours mariam.
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  • Marketing - Rami Show

    1. 1. Rami Ibrahim El Khoury
    2. 2. Learning Objectives <ul><li>To be able to define marketing as focused on customers </li></ul><ul><li>To identify some important marketing terms, including target market, marketing mix, marketing exchanges , and marketing environment </li></ul><ul><li>To become more aware of the marketing concept and marketing orientation </li></ul><ul><li>To understand the importance of building customer relationships </li></ul><ul><li>To learn about the process of marketing management </li></ul><ul><li>To recognize the role of marketing in our society </li></ul>
    3. 3. Outline <ul><li>Defining Marketing </li></ul><ul><li>Understanding the Marketing Concept </li></ul><ul><li>Managing Customer Relationships </li></ul><ul><li>Value-Driven Marketing </li></ul><ul><li>Marketing Management </li></ul><ul><li>The Importance of Marketing in Our Global Economy </li></ul>
    4. 4. What is Marketing? <ul><li>Simply put: Marketing is the delivery of customer satisfaction at a profit. </li></ul><ul><li>Goals: Attract new customers by promising superior value and </li></ul><ul><li>keep and grow current customers by delivering satisfaction. </li></ul>
    5. 5. Defining Marketing <ul><li>Marketing </li></ul><ul><ul><li>The process of creating, distributing, promoting, and pricing goods, services, & ideas to facilitate satisfying exchange relationships with customers in a dynamic environment. </li></ul></ul><ul><li>Customers </li></ul><ul><ul><li>The purchasers of organizations’ products; the focal point of all marketing activities </li></ul></ul>
    6. 6. FIGURE 1.1
    7. 7. Marketing Focuses on Customers <ul><li>Target Market </li></ul><ul><ul><li>A specific group of customers on whom an organization focuses its marketing efforts </li></ul></ul><ul><ul><ul><li>Large or small customer groups </li></ul></ul></ul><ul><ul><ul><li>Single or multiple product markets </li></ul></ul></ul><ul><ul><ul><li>Single or multiple products </li></ul></ul></ul><ul><ul><ul><li>Local to global markets </li></ul></ul></ul>
    8. 8. Marketing Deals with Products, Distribution, Promotion, & Price <ul><li>The Marketing Mix </li></ul><ul><ul><li>Four marketing activities — product, distribution, promotion, and pricing — that a firm can control to meet the needs of customers within its target market </li></ul></ul>Product Distribution Promotion Pricing Target Market
    9. 9. Product Distribution Promotion Pricing Goods, services, or ideas that satisfy customer needs The ready, convenient, and timely availability of products Activities that inform customers about the organization and its products Decisions and actions that establish pricing objectives and policies and set product prices
    10. 10. Marketing Builds Satisfying Exchange Relationships <ul><li>Exchange </li></ul><ul><ul><li>The provision or transfer of goods, services, or ideas in return for something of value </li></ul></ul>FIGURE 1.2
    11. 11. Marketing Builds Satisfying Exchange Relationships <ul><li>Exchange Conditions </li></ul><ul><ul><li>Two or more participants have something of value that the other party desires. </li></ul></ul><ul><ul><li>Exchange provides mutual benefit/satisfaction. </li></ul></ul><ul><ul><li>Each party has confidence in the exchange value of the other party’s offering. </li></ul></ul><ul><ul><li>- Each party must meet the expectations of the exchange to become trusted by the other parties. </li></ul></ul>
    12. 12. Marketing Occurs in a Dynamic Environment <ul><li>Marketing Concept </li></ul><ul><ul><li>A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals </li></ul></ul><ul><ul><li>Customer satisfaction </li></ul></ul><ul><ul><ul><li>Analysis of customers’ current and long-term needs </li></ul></ul></ul><ul><ul><ul><li>Analysis of competitors’ capabilities </li></ul></ul></ul><ul><ul><ul><li>Integration of firm’s resources </li></ul></ul></ul>
    13. 13. Product Orientation Sales Orientation Marketing Orientation Late 19th century: efficient production of goods allowed firms to meet strong customer demand. Mid-1920s – early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus) Early 1950s –2000s : adopting a customer focus means a commitment to researching and responding to customer needs. FIGURE 1.3
    14. 14. Implementing the Marketing Concept <ul><li>Becoming marketing oriented requires: </li></ul><ul><ul><li>establishing an information system to discover customers’ needs and using the information to create satisfying products. </li></ul></ul><ul><ul><li>coordinating all marketing activities by restructuring the organization. </li></ul></ul><ul><ul><li>obtaining the support of all managerial and staff levels in the organization. </li></ul></ul>
    15. 15. Managing Customer Relationships <ul><li>Relationship Marketing: </li></ul><ul><ul><li>Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency </li></ul></ul><ul><ul><ul><li>Increased value of customer (loyalty) over time results in increased profitability. </li></ul></ul></ul>
    16. 16. Managing Customer Relationships <ul><li>Customer Relationship Management (CRM) </li></ul><ul><ul><li>Using information about customers to create marketing strategies that develop and sustain desirable customer relationships </li></ul></ul><ul><ul><ul><li>Identifying buying-behavior patterns of customers </li></ul></ul></ul><ul><ul><ul><li>Using behavioral information to </li></ul></ul></ul><ul><ul><ul><li>focus on the most profitable customers </li></ul></ul></ul>
    17. 17. Value-Driven Marketing <ul><li>Value </li></ul><ul><ul><li>A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product </li></ul></ul><ul><ul><ul><li>Customer value = customer benefits – customer costs </li></ul></ul></ul><ul><ul><li>Customer benefits </li></ul></ul><ul><ul><ul><li>Anything desired by the customer that is received in an exchange </li></ul></ul></ul><ul><ul><li>Customer costs </li></ul></ul><ul><ul><ul><li>Anything a customer gives up in an exchange for benefits </li></ul></ul></ul><ul><ul><ul><ul><li>Monetary price of the benefit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Search costs (time and effort) to locate the product </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Risks associated with the exchange </li></ul></ul></ul></ul>
    18. 18. Marketing Management <ul><ul><li>Marketing Management </li></ul></ul><ul><ul><li>The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently </li></ul></ul><ul><ul><li>Effectiveness </li></ul></ul><ul><ul><ul><li>The degree to which an exchange helps an organization achieve its objectives </li></ul></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><ul><li>The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges </li></ul></ul></ul>
    19. 19. Marketing Management (cont’d) <ul><ul><li>Planning </li></ul></ul><ul><ul><li>Assessing opportunities and resources </li></ul></ul><ul><ul><li>Determining marketing objectives </li></ul></ul><ul><ul><li>Developing a marketing strategy and plans for implementation and control </li></ul></ul><ul><ul><ul><li>How, when and by whom are marketing activities performed? </li></ul></ul></ul><ul><ul><li>Organizing </li></ul></ul><ul><ul><li>Developing the internal structure of the marketing unit </li></ul></ul><ul><ul><ul><li>Functions, products, regions, customer types </li></ul></ul></ul>
    20. 20. Marketing Management (cont’d) <ul><li>Implementation </li></ul><ul><ul><li>Coordinating marketing activities </li></ul></ul><ul><ul><li>Motivating marketing personnel </li></ul></ul><ul><ul><li>Developing effective internal communications within the unit </li></ul></ul><ul><li>Control </li></ul><ul><ul><li>Establishing performance standards </li></ul></ul><ul><ul><li>Comparing actual performance to established standards </li></ul></ul><ul><ul><li>Reducing the difference between desired and actual performance </li></ul></ul>
    21. 21. Effective Marketing Control Process <ul><li>provides for quick detection of differences in planned and actual performance. </li></ul><ul><li>accurately monitors activities and is flexible enough to accommodate changes. </li></ul><ul><li>incurs low process costs relative to the costs of a “no-control” situation. </li></ul><ul><li>is understandable by both managers and subordinates. </li></ul>
    22. 22. The Importance of Marketing in Our Global Economy <ul><li>Marketing Costs Consume a Sizable Portion of Buyers’ Dollars </li></ul><ul><li>Marketing Is Used in Nonprofit Organizations </li></ul><ul><li>Marketing Is Important to Business and the Economy </li></ul><ul><li>Marketing Fuels Our Global Economy </li></ul>
    23. 23. The Importance of Marketing in Our Global Economy <ul><li>Marketing Knowledge Enhances Consumer Awareness </li></ul><ul><li>Marketing Connects People Through Technology </li></ul><ul><li>Socially Responsible Marketing Can Promote the Welfare of Customers and Society </li></ul><ul><li>Marketing Offers Many Exciting Career Prospects </li></ul>
    24. 24. After reviewing this chapter you should: <ul><li>Be able to define marketing as focused on customers. </li></ul><ul><li>Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment. </li></ul><ul><li>Be more aware of the marketing concept and marketing orientation. </li></ul><ul><li>Understand the importance of building customer relationships. </li></ul><ul><li>Have learned about the process of marketing management. </li></ul><ul><li>Recognize the important role of marketing in our society. </li></ul>
    25. 25. Supplemental Slides Copyright © Houghton Mifflin Company. All rights reserved. 1 –
    26. 26. Important Terms <ul><li>Marketing </li></ul><ul><ul><li>The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment </li></ul></ul><ul><li>Customers </li></ul><ul><ul><li>The purchasers of organizations’ products; the focal point of all marketing activities </li></ul></ul><ul><li>Target Market </li></ul><ul><ul><li>A specific group of customers on whom an organization focuses its marketing efforts </li></ul></ul>
    27. 27. Important Terms <ul><li>The Marketing Mix </li></ul><ul><ul><li>Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market </li></ul></ul><ul><li>Product </li></ul><ul><ul><li>Goods, services, or ideas that satisfy customer needs </li></ul></ul><ul><li>Distribution </li></ul><ul><ul><li>The ready, convenient, and timely availability of products </li></ul></ul><ul><li>Promotion </li></ul><ul><ul><li>Activities that inform customers about the organization and its products </li></ul></ul>
    28. 28. Important Terms <ul><li>Pricing </li></ul><ul><ul><li>Decisions and actions that establish pricing objectives and policies and set product prices </li></ul></ul><ul><li>Exchange </li></ul><ul><ul><li>The provision or transfer of goods, services, or ideas in return for something of value </li></ul></ul><ul><li>Marketing Concept </li></ul><ul><ul><li>A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals </li></ul></ul>
    29. 29. Important Terms <ul><li>Relationship Marketing </li></ul><ul><ul><li>Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency </li></ul></ul><ul><li>Customer Relationship Management (CRM) </li></ul><ul><ul><li>Using information about customers to create marketing strategies that develop and sustain desirable customer relationships </li></ul></ul><ul><li>Value </li></ul><ul><ul><li>A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product </li></ul></ul>
    30. 30. Important Terms <ul><li>Customer Benefits </li></ul><ul><ul><li>Anything desired by the customer that is received in an exchange </li></ul></ul><ul><li>Customer Costs </li></ul><ul><ul><li>Anything a customer gives up in an exchange for benefits </li></ul></ul><ul><li>Marketing Management </li></ul><ul><ul><li>The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently </li></ul></ul>
    31. 31. Important Terms <ul><li>Effectiveness </li></ul><ul><ul><li>The degree to which an exchange helps an organization achieve its objectives </li></ul></ul><ul><li>Efficiency </li></ul><ul><ul><li>The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges </li></ul></ul>
    32. 32. Source: Investor’s Business Daily, Wednesday, September 5, 2001, p. A6. Used with Permission.
    33. 33. Transparency Figure 1I Starting Salaries for College Graduates Source: American Demographics, December 2000, p. 27. Adapted with permission.
    34. 34. Marketing <ul><li>Review </li></ul>
    35. 35. Meeting Customer Expectations <ul><li>Goal: to meet or exceed customer expectations </li></ul><ul><li>The customer determines the expectation </li></ul><ul><li>Treat customers like human beings </li></ul>
    36. 36. What is Marketing? All of the above, plus much more! <ul><li>Personal Selling? </li></ul><ul><li>Advertising? </li></ul><ul><li>Making products available in stores? </li></ul><ul><li>Maintaining inventories? </li></ul>
    37. 37. plus A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution
    38. 38. Marketing is 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 goals.
    39. 39. Desire to Deal With Other Party Freedom to Accept or Reject Something of Value Ability to Communicate Offer At Least Two Parties Necessary Conditions for Exchange
    40. 40. The Concept of Exchange The idea that people give up something to receive something they would rather have.
    41. 41. <ul><li>There must be at least two parties and each party… </li></ul><ul><li>Must have something the other party values </li></ul><ul><li>Must communicate and deliver goods </li></ul><ul><li>Must be free to accept or reject offer </li></ul><ul><li>Must want to deal with other party </li></ul>Conditions for Exchange
    42. 42. <ul><li>Exchange may not take place even if conditions met </li></ul><ul><li>An agreement must be reached </li></ul><ul><li>Marketing occurs even if exchange does not take place </li></ul>NO SALE
    43. 43. Marketing Management Can you name the four marketing management philosophies?
    44. 44. Competing Philosophies Production Sales Market Societal Marketing
    45. 45. Philosophy Key Ideas Production Sales Market Societal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance
    46. 46. Production Orientation <ul><li>The firm is focused on what it does best </li></ul><ul><li>Less concerned on customers’ needs </li></ul>
    47. 47. Sales Orientation <ul><li>Aggressive sales techniques </li></ul><ul><li>Less sought out items </li></ul>
    48. 48. Market Orientation The marketing concept states that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.
    49. 49. The Marketing Concept <ul><li>Focuses on customer wants and needs to distinguish products from competition </li></ul><ul><li>Integrates all organization’s activities to satisfy customer wants and needs </li></ul><ul><li>Achieves organization’s long-term goals by satisfying customer wants and needs </li></ul>
    50. 50. Market Orientation Requirements <ul><li>Top management leadership </li></ul><ul><li>A customer focus </li></ul><ul><li>Competitor intelligence </li></ul><ul><li>Interfunctional coordination </li></ul><ul><li>Customer relationships </li></ul>
    51. 51. Societal Marketing Orientation <ul><li>Less toxic products </li></ul><ul><li>More durable products </li></ul><ul><li>Products with reusable or recyclable materials </li></ul>Marketing that preserves or enhances an individual’s and society’s long-term best interests
    52. 52. Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Sales Orientation Market Orientation Outward Coordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs
    53. 53. Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction Key Issues in Developing Competitive Advantage
    54. 54. Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits
    55. 55. Customer Value Requirements <ul><li>Offer products that perform </li></ul><ul><li>Give consumers more than they expect </li></ul><ul><li>Avoid unrealistic pricing </li></ul><ul><li>Give the buyer facts </li></ul><ul><li>Offer organization-wide commitment in service and after-sales support </li></ul>3
    56. 56. Customer Satisfaction The feeling that a product has met or exceeded the customer’s expectations.
    57. 57. <ul><li>Meet or exceed customer’s expectations </li></ul><ul><li>Focus on delighting customers </li></ul><ul><li>Provide solutions to customer’s problems </li></ul>3
    58. 58. Relationship Marketing The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms.x 3
    59. 59. Relationship Marketing’s Importance 3 Attracting a new customer may be TEN TIMES the cost of keeping an old customer
    60. 60. Building Long-Term Relationships <ul><li>Customer-oriented personnel </li></ul><ul><li>Effective training programs </li></ul><ul><li>Empowered employees </li></ul><ul><li>Teamwork </li></ul>
    61. 61. Empowerment Delegation of authority to solve customers’ problems quickly.
    62. 62. <ul><li>Ensures a customer focus </li></ul><ul><li>Encourages innovation </li></ul><ul><li>Stimulates an awareness of customer change </li></ul>
    63. 63. Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed
    64. 64. Environmental Scanning <ul><li>Social forces </li></ul><ul><li>Demographic forces </li></ul><ul><li>Economic forces </li></ul><ul><li>Technological forces </li></ul><ul><li>Political & legal forces </li></ul><ul><li>Competitive forces </li></ul>
    65. 65. Organization Mission <ul><li>Defines a company’s: </li></ul><ul><li>Purpose </li></ul><ul><li>Objectives </li></ul><ul><li>Strategies </li></ul><ul><li>Actions </li></ul>
    66. 66. Market Opportunity Analysis <ul><li>Defines who may buy your product or service </li></ul><ul><li>Size and potential </li></ul>
    67. 67. Marketing Strategy <ul><li>Select one or more target markets </li></ul><ul><li>Set market objectives </li></ul><ul><li>Develop & maintain a marketing mix </li></ul>
    68. 68. Target Market Strategy <ul><li>Use single marketing mix for entire market </li></ul><ul><li>Focus on single market segment </li></ul><ul><li>Appeal to multiple markets with multiple mixes </li></ul>
    69. 69. Marketing Objectives <ul><li>Characteristics </li></ul><ul><ul><li>Consistent with company objectives </li></ul></ul><ul><ul><li>Measurable </li></ul></ul><ul><ul><li>Time specific </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Energize employees </li></ul></ul><ul><ul><li>Set standards of performance </li></ul></ul>
    70. 70. Marketing Mix <ul><li>P roduct </li></ul><ul><li>P lace (Distribution) </li></ul><ul><li>P romotion </li></ul><ul><li>P rice </li></ul>
    71. 71. Why Study Marketing? <ul><li>Plays an important role in society </li></ul><ul><li>Vital to business survival, profits and growth </li></ul><ul><li>Offers career opportunities </li></ul><ul><li>Affects your life every day </li></ul>
    72. 72. “ Marketing is too important to be left to the marketing department .” -- David Packard Hewlett-Packard
    73. 73. <ul><li>1/4th to 1/3rd of the entire civilian workforce in the U.S. performs marketing activities </li></ul><ul><li>Fastest route up the corporate ladder </li></ul><ul><li>Professional Selling </li></ul><ul><li>Marketing Research </li></ul><ul><li>Advertising </li></ul><ul><li>Retail Buying </li></ul><ul><li>Distribution Management </li></ul><ul><li>Product Management </li></ul><ul><li>Product Development </li></ul><ul><li>Wholesaling </li></ul>
    74. 74. Why Study Marketing? <ul><li>Half of every dollar spent by consumers pays for marketing costs </li></ul><ul><li>Become a better-informed consumer </li></ul>
    75. 75. Recap - Marketing <ul><li>Describe the five marketing management orientations. </li></ul><ul><li>Explain customer relationship management. </li></ul><ul><li>Explain the purpose of the approach to business planning, and briefly describe each of the four types of SBUs. </li></ul><ul><li>What is a marketing audit? On what elements does the marketing audit focus? </li></ul><ul><li>What goes into a company’s microenvironment? </li></ul><ul><li>Explain the impact of baby boomers, generation X, and generation Y on today’s marketing strategies. </li></ul><ul><li>Distinguish among the five types of customer markets. </li></ul><ul><li>Describe the basic marketing research process. </li></ul><ul><li>Provide the advantages/benefits of three of the contact methods used for marketing research. </li></ul><ul><li>Explain Maslow’s needs hierarchy. </li></ul><ul><li>Explain the stages in the adoption process. </li></ul><ul><li>Briefly describe the characteristics of business markets. </li></ul><ul><li>Explain how business markets differ from consumer markets. </li></ul><ul><li>Outline the major steps in target marketing. </li></ul><ul><li>Compare and contrast the five major segmenting strategies. </li></ul><ul><li>Explain how companies identify attractive market segments and choose a target marketing strategy. </li></ul>
    76. 76. Marketing <ul><li>Categorize the topics by groups. The individual points are easy, learn how they work as a collective </li></ul><ul><li>Remembering what is in which grouping is a little harder- these groupings usually have fancy names </li></ul><ul><li>Acronyms work for me, it may for you </li></ul>
    77. 77. Describe the five marketing management orientations <ul><li>The production concept holds that consumers will favor products that are available and highly affordable. </li></ul><ul><li>The product concepts holds that consumers will favor products that offer the most in quality, performance, and innovative features. </li></ul><ul><li>Those who follow the selling concept hold that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort. </li></ul>
    78. 78. Describe the five marketing management orientations <ul><li>Using the marketing concept means that achieving organizational goals depends on knowing the needs and wants of target markets and delivering satisfaction better than competitors do. </li></ul><ul><li>The societal marketing concept holds that the firm should determine the needs, wants, and interests of target markets. </li></ul>
    79. 79. The 5 Orientations – their focuses <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>
    80. 80. The 5 Orientations – their focuses <ul><li>Production Concept – </li></ul><ul><li>“ Maximizing your production and distribution efficiency” </li></ul><ul><ul><li>Likely mass production. </li></ul></ul><ul><ul><li>Pros: it’s perfect when your demand > supply. </li></ul></ul><ul><ul><li>Cons: It’s lame when the quality starts sucking. </li></ul></ul><ul><li>Product Concept – </li></ul><ul><li>“ I’ll make my product the BEST outta y’alls.” </li></ul><ul><ul><li>Cons: May lack sales methodology. i.e. packaging attractiveness. </li></ul></ul><ul><ul><li>Substitutes i.e. trains : airplanes || typewriters : computers </li></ul></ul>
    81. 81. The 5 Orientations – their focuses <ul><li>Selling Concept – </li></ul><ul><li>“ sell what we make versus make what the market wants” </li></ul><ul><ul><li>Typically practiced with unsought goods </li></ul></ul><ul><ul><li>Done a lot when over capacitated </li></ul></ul><ul><li>Marketing Concept – </li></ul><ul><li>“ Not ‘make and sell,’ but ‘sense and respond’” </li></ul><ul><ul><li>There’s a semi-useful picture – fig 1.3 to show the key contrasts of the selling and marketing contrasts </li></ul></ul>
    82. 82. The 5 Orientations – their focuses <ul><li>Societal Marketing Concept </li></ul><ul><ul><li>Kind of like Marketing+ </li></ul></ul><ul><ul><ul><li>Separates short-run wants and long-run welfare </li></ul></ul></ul><ul><ul><ul><li>McDonalds </li></ul></ul></ul><ul><ul><li>Revolves around 3 main points on a triangle: Society, Company, and Consumers (Human welfare, Profits, and Want satisfaction). </li></ul></ul><ul><ul><li>Refer to figure 1.4 </li></ul></ul>
    83. 83. The 5 Orientations – let’s actually THINK *gasp* <ul><li>Let’s look at Kelis and what she sells. Her milkshakes-- Is it a product, or a service? Could be both. Regardless, what concept(s) is she utilizing, and how? </li></ul><ul><li>Which of the 5 orientations is the focus? </li></ul><ul><li>Kelis has a sustainable competitive advantage over her competitors </li></ul><ul><li>She could teach them, but she’d have to charge </li></ul><ul><li>Is it worth the initial capital gain she would receive, or to keep her competitive edge? </li></ul>
    84. 84. Explain customer relationship management <ul><li>Customer relationship management is no longer defined as customer database management activity. </li></ul><ul><li>It is now the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. </li></ul>
    85. 85. Customer Relationship Management (CRM) <ul><li>“… .Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction” </li></ul><ul><li>Bonus Definition: [Cognitive] Dissonance </li></ul><ul><ul><li>“ OMGz that was the best deal EVAR!!11” </li></ul></ul><ul><ul><ul><li>The next day: “…. or not.” </li></ul></ul></ul><ul><ul><ul><li>Cognitive Dissonance in a customer would be an example of bad CRM </li></ul></ul></ul>
    86. 86. Explain the purpose of the Consulting approach to business planning, & briefly describe each of the four types of SBUs <ul><li>The purpose is to provide a measure of market attractiveness and a measure of company strength in the market. </li></ul><ul><li>The four types of SBUs are starts, cash cows, question marks, and dogs. </li></ul><ul><li>Stars are high-growth, high-share businesses or products; they often need heavy investment to finance their rapid growth. Cash cows are low-growth, high-share businesses or products; they need less investment and produce a lot of cash to pay bills and support other SBUs. </li></ul><ul><li>Question marks are low-share business units in high-growth markets; they require a lot of cash to hold their share. </li></ul><ul><li>Management must decide whether to build them into stars or phase them out. </li></ul><ul><li>Dogs are low-growth, low-share businesses and products; they may generate enough cash to maintain themselves but do not promise to be large sources of cash. </li></ul>
    87. 87. The Boston Consulting Group
    88. 88. The Consulting Approach <ul><li>The illustration is more a for a company’s product mix– not between differing firms </li></ul><ul><li>Dell: </li></ul><ul><ul><li>Give examples for each </li></ul></ul><ul><ul><ul><li>Stars </li></ul></ul></ul><ul><ul><ul><li>Cows </li></ul></ul></ul><ul><ul><ul><li>Question Marks/Babies </li></ul></ul></ul><ul><ul><ul><li>Dogs </li></ul></ul></ul>
    89. 89. What is a marketing audit? On what elements does the marketing audit focus? <ul><li>The marketing audit covers all marketing areas –the marketing environment, marketing strategy, marketing organization, marketing systems, marketing mix, and marketing productivity and profitability. </li></ul><ul><li>Audits are normally conducted by an outside party. </li></ul><ul><li>Management then decides which actions make sense and how and when to implement them. </li></ul>
    90. 90. Marketing Audit <ul><li>The Marketing Audit is Comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities. </li></ul><ul><li>They provide good input for a plan of action to improve the company’s marketing performance. </li></ul><ul><li>Usually conducted by a third party </li></ul><ul><ul><li>Objective/unbiased </li></ul></ul><ul><ul><li>Thorough analysis and gives feedback </li></ul></ul><ul><li>Great tool </li></ul><ul><ul><li>Looks internally and externally </li></ul></ul><ul><ul><li>Covers ALL major marketing areas of a business </li></ul></ul><ul><li>Management then calls the final shots after hearing what the auditors have to say </li></ul>
    91. 91. What goes into a company’s macro-environment? <ul><li>Studying demography to determine the human population in terms of size, density, location, age, gender, race, occupation, and other statistics in a firm’s market area is essential. </li></ul><ul><li>It is important to note that the most single important demographic trend in the United States is the changing age structure. </li></ul><ul><li>A firm must be aware of generational differences and the changing American family structure </li></ul>
    92. 92. Macro-environment, hmm… <ul><li>(Figure 3.2, shows that…) </li></ul><ul><li>Company – 6 Major Macro-environment Forces </li></ul><ul><ul><li>Demographics forces </li></ul></ul><ul><ul><li>Economic forces </li></ul></ul><ul><ul><li>Natural forces </li></ul></ul><ul><ul><li>Technological forces </li></ul></ul><ul><ul><li>Political forces </li></ul></ul><ul><ul><li>Cultural forces </li></ul></ul>
    93. 93. Explain the impact of the baby boomers, generation X, and generation Y on today’s marketing strategies <ul><li>The baby boomers can earn more than half of all personal income; this group enjoys vacations, providing Harley-Davidson and marketers of watercraft, for example, a huge target market. </li></ul><ul><li>They are attracted to high-priced cars, health and fitness, and other luxuries. </li></ul><ul><li>Generation X members carry a more cautious outlook and care about the environment and social responsibility; they are less materialistic than baby boomers. </li></ul><ul><li>Generation Y members are children of the baby boomers. They buy designer clothes; they are brand conscious and highly computer literate. </li></ul><ul><li>The demands of these population groups are set marketing trends. </li></ul>
    94. 94. Let’s Generalize… shall we? <ul><li>Refer to fig 3.3- pie chart </li></ul><ul><li>This section is easy reading </li></ul><ul><li>Tips: consider the age and what those types of people stereotypically buy. How many of them are there? Is that a good market? </li></ul><ul><li>“ The demands of these population groups are set marketing trends.” </li></ul>
    95. 95. Let’s Generalize… shall we? <ul><li>Baby Boomers </li></ul><ul><ul><li>Born between 1946 and 1964 (42-60) </li></ul></ul><ul><ul><li>Population: 78 million </li></ul></ul><ul><ul><ul><li>28% of the population, but over 50% of personal income </li></ul></ul></ul><ul><ul><li>WWII babies </li></ul></ul><ul><ul><li>Boomers are spending $30 billion in anti-aging products and services </li></ul></ul><ul><ul><li>Refer to the book for ridiculous nicknames </li></ul></ul><ul><ul><ul><ul><li>(DINKs, DEWKs, MOBYs, WOOFs, GRUMPIES) </li></ul></ul></ul></ul>
    96. 96. Let’s Generalize… shall we? <ul><li>Generation X </li></ul><ul><ul><li>Born between 1965 and 1976 (30-41) </li></ul></ul><ul><ul><li>Population: 49 million </li></ul></ul><ul><ul><ul><li>16% of the population </li></ul></ul></ul><ul><ul><li>Young, individualistic, freedom-minded few </li></ul></ul><ul><ul><li>Seek success but less materialistic </li></ul></ul><ul><ul><li>Cautious romantics who want a better quality life </li></ul></ul><ul><ul><li>Skeptical bunch </li></ul></ul><ul><ul><ul><li>Hard to market to </li></ul></ul></ul>
    97. 97. Let’s Generalize… shall we? <ul><li>Generation Y </li></ul><ul><ul><li>Born between 1977 and 1994 (12-29) </li></ul></ul><ul><ul><ul><li>That’s us =D!!.... Unless you’re a lot older than you look. </li></ul></ul></ul><ul><ul><li>Apparently, I… </li></ul></ul><ul><ul><ul><li>Have a disposable income of $103/wk </li></ul></ul></ul><ul><ul><ul><li>Enjoy toys, games, clothes, furniture, and food </li></ul></ul></ul><ul><ul><ul><li>Am VERY tech savvy </li></ul></ul></ul>
    98. 98. Describe the basic marketing research process <ul><li>The marketing research process has four steps: </li></ul><ul><li>defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings. </li></ul><ul><li>The manager must know what is wrong and the specifics causes in defining the problem. </li></ul><ul><li>Three objectives must be set and reached: </li></ul><ul><ul><li>exploratory research, descriptive research, and causal research. </li></ul></ul><ul><ul><li>Next, the exact information needed and a plan for gathering and presenting it must be made. </li></ul></ul><ul><ul><li>Further, the research must be implemented, gathering secondary and primary data to compile and analyze. </li></ul></ul><ul><ul><li>The information must be written and the important information must be presented to management for decision making. </li></ul></ul>
    99. 99. Steps in the Marketing Research Process
    100. 100. Steps in the Marketing Research Process
    101. 101. Provide the advantages/benefits of each of the contact methods <ul><li>Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. </li></ul><ul><li>Respondents may give more honest answers to more question than to an unknown interviewer in person or on the phone. Also, no interviewer is involved to bias the answers. </li></ul><ul><li>Telephone interviewing is one of the best methods for gathering information quickly and provides great flexibility. </li></ul><ul><li>Interviewers can explain difficult questions, skip question, or probe on other question. </li></ul><ul><li>Rates of response tend to be higher than mail methods. </li></ul><ul><li>Personal and group interviewing allow interviewers to guide respondents and explore issues as they evolve, and they are flexible. Visual aids observed. </li></ul><ul><li>Computer-assisted interviewing aids in eliminating interviewer bias. </li></ul><ul><li>Online methods allow the person to be more honest, the costs are greatly reduced, and reports come back faster. </li></ul>
    102. 102. Contact Methods <ul><li>Mail Telephone Personal Online </li></ul><ul><li>Flexibility </li></ul><ul><li>Quantity data </li></ul><ul><li>Interv. Efft. Ctrl. </li></ul><ul><li>Sample control </li></ul><ul><li>Speed </li></ul><ul><li>Response rate </li></ul><ul><li>costs </li></ul>
    103. 103. Totally random slide for generic tips… <ul><li>Sometimes straight memorization is unavoidable- get ideas to help you remember </li></ul><ul><li>Be creative, yet logical </li></ul><ul><li>Don’t forget that you are a consumer too </li></ul><ul><li>Ask yourself ‘why,’ or play a scenario </li></ul><ul><ul><li>Control of online responses is ‘poor’ (in the book) </li></ul></ul><ul><ul><ul><li>Maybe because… </li></ul></ul></ul><ul><ul><ul><ul><li>Spammers are free to roam and spam </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Juicy stuff spreads like wildfire </li></ul></ul></ul></ul>
    104. 104. Explain Maslow’s needs hierarchy <ul><li>Maslow suggested that our unfulfilled needs are enough to motivate us and that our needs are arranged in a hierarchy. </li></ul><ul><li>The hierarchy of needs includes: physiological, safety, social, self-esteem, and self-actualization . </li></ul><ul><li>Maslow suggested that we fill the bottom-level, basic needs first before moving up the hierarchy. </li></ul>
    105. 105. Maslow’s needs hierarchy <ul><li>Our needs in life are build upwards on 5 things </li></ul><ul><ul><ul><li>Physiological </li></ul></ul></ul><ul><ul><ul><li>Safety </li></ul></ul></ul><ul><ul><ul><li>Social </li></ul></ul></ul><ul><ul><ul><li>Esteem </li></ul></ul></ul><ul><ul><ul><li>Self-actualization </li></ul></ul></ul><ul><li>Basically, we need to fill up our needs before our wants (and it should be in that order) </li></ul><ul><li>Good job, Maslow  </li></ul>
    106. 106. Maslow’s Hierarchy of Needs
    107. 107. Explain the stages in the adoption process <ul><li>In the awareness stage, consumers become aware of the new products but lack information about it. </li></ul><ul><li>Then, consumers seek information about the new products in the interest stage. </li></ul><ul><li>In the evaluation stage, consumers consider whether trying the new product makes sense. </li></ul><ul><li>Consumers try the product on a limited basis in the trial stage. </li></ul><ul><li>Consumers decide to make full use of the product in the adoption stage. </li></ul>
    108. 108. Stages in the adoption process <ul><li>There are 5 stages </li></ul><ul><li>Awareness: “Hey… that exists” </li></ul><ul><li>Interest: “Lemme find out more about it” </li></ul><ul><li>Evaluation: “Now that I know more about it, I’ll debate with myself and determine or not it’s worth trying” </li></ul>
    109. 109. Stages in the adoption process <ul><li>Trial: “I’ll try this out this small snippet of the product (I.E. annoying John Basedow videos) to get a better estimate of its value” </li></ul><ul><li>Adoption: The consumer decides to adopt John Basedow into his newly found home to start using him regularly </li></ul>
    110. 110. Briefly describe the characteristics of business markets <ul><li>The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does. </li></ul><ul><li>These markets are more geographically concentrated and the demand is derived demand. </li></ul><ul><li>Many markets have inelastic demand; that is, total demand for many business products is not affected much by price change. These markets have more fluctuating demand than consumer goods. </li></ul><ul><li>Further, a business purchase decision usually involves more decision participants and a more professional purchasing effort. Business buyers usually face a more complex buying decision with a buying process that is more formalized. </li></ul><ul><li>Many companies practice supplier relationship management. In the long run, business marketers keep a customer’s sales by meting current needs and by partnering with customers to help them solve their problems. </li></ul>
    111. 111. Characteristics of business markets There are 3 parts <ul><li>First off – </li></ul><ul><li>what IS a business market? </li></ul><ul><li>Basically, </li></ul><ul><li>when businesses buy from businesses… versus consumers buying from a business </li></ul>
    112. 112. Characteristics of business markets Marketing structure & Demand <ul><li>Business buyers are fewer , but are larger buyers </li></ul><ul><ul><li>i.e. Black and Decker sells power tools, but Lowes, Home Depot, and Wal-Mart account for over 50% sales </li></ul></ul><ul><li>More geographically concentrated . </li></ul><ul><li>Is derived demand from the final product’s demand </li></ul><ul><li>WTH is “derived demand”? </li></ul>
    113. 113. Characteristics of business markets Marketing structure & Demand <ul><li>Derived Demand: </li></ul><ul><li>is basically a demand that comes only from other products needing that [raw] material </li></ul><ul><ul><li>In other words: You as a consumer don’t want silicon, but there is a demand because the final product for computers requires silicon CPU chips, hence a demand for silicon. </li></ul></ul><ul><ul><li>“ The demand for silicon is derived from the final consumer demand for computers” </li></ul></ul>
    114. 114. Characteristics of business markets Marketing structure & Demand <ul><li>Demand is business markets are more inelastic . </li></ul><ul><ul><li>If the cost of leather halves, it doesn’t mean Wal-Mart is going to double their leather shoe inventory </li></ul></ul><ul><li>And have a more fluctuating demand </li></ul><ul><ul><li>“ A small % increase in consumer demand can cause a large increase in business demand” </li></ul></ul>
    115. 115. Characteristics of business markets: Nature of the Buying Unit <ul><li>Business buying involves a more professional purchasing effort </li></ul><ul><ul><li>Done by trained purchasing agents </li></ul></ul><ul><ul><li>Several decision-making participants </li></ul></ul><ul><ul><li>My thinking: they don’t want to buy a massive 10 bazillion widgets to then say “oops” </li></ul></ul>
    116. 116. Characteristics of business markets: Types of Decisions & the Decision Process <ul><li>Business buyers usually face more complex buying decisions </li></ul><ul><li>The business buying process is more formalized </li></ul><ul><li>In business buying, buyers and sellers work more closely together and build close long-run relationships </li></ul>
    117. 117. Explain how business markets differ from consumer markets <ul><li>As compared with consumer markets, business markets usually have fewer, larger buyers who are more geographically concentrated. Business demand is derived, largely inelastic, and more fluctuating. More buyers are usually involved in the business buying decision, and business buyers are better trained and more professional than are consumer buyers. </li></ul><ul><li>In general, business purchasing decisions are more complex, and the buying process is more formal than consumer buying. </li></ul>
    118. 118. Compare & contrast the five major segmenting strategies <ul><li>An undifferentiated marketing strategy ignores market segment differences and targets the whole market with one offer. This mass-marketing strategy offers focuses on what is common in the needs of consumers rather than on what is different. </li></ul><ul><li>In contrast, a differentiated strategy targets several market segments and designs separate offers for each. Companies hope for higher sales and a stronger position within each market segment. </li></ul><ul><li>Concentrated or niche marketing goes after a large share of one or a few segments or niches instead of going after a share of a large market. These niches may be overlooked, unimportant, or underworked. </li></ul><ul><li>Niching offers smaller companies an opportunity to compete by focusing their limited resources more effectively. Using micromarketing, a company can tailor products and marketing programs to suit the tastes of specific individuals and locations. It includes local and individual marketing. </li></ul>
    119. 119. The five major segmenting strategies <ul><li>(dude, but I only count 4 of them here) </li></ul>Fig 7.2
    120. 120. The five major segmenting strategies <ul><li>Undifferentiated Marketing </li></ul><ul><li>Differentiated Marketing </li></ul><ul><li>Concentrated Marketing </li></ul><ul><li>Micromarketing </li></ul><ul><ul><li>Includes: </li></ul></ul><ul><ul><ul><li>Local Marketing </li></ul></ul></ul><ul><ul><ul><li>Individual Marketing </li></ul></ul></ul>
    121. 121. Explain how companies identify attractive market segments & choose a target marketing strategy <ul><li>To target the best market segments, the company first evaluates each segment’s size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources. </li></ul><ul><li>It then chooses one of four marketing strategies- ranging from very broad to very narrow targeting. </li></ul><ul><li>The seller can ignore segment differences and target broadly using undifferentiated marketing. </li></ul><ul><li>This involves mass-producing, mass-distributing, mass-promoting about the same product in about the same way to all consumers. </li></ul><ul><li>Or the seller can adopt differentiated marketing- developing different market offers for several segments. </li></ul>
    122. 122. Explain how companies identify attractive market segments and choose a target marketing strategy <ul><li>Concentrated marketing involves focusing on only one or a few marketing segments. </li></ul><ul><li>Finally, micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. </li></ul><ul><li>Micromarketing includes local marketing and individual marketing. Which targeting strategy is best depends on company resources, </li></ul><ul><li>product variability, product life cycle stage, market variability, and competitive marketing strategies. </li></ul>
    123. 123. How companies identify attractive market segments and choose a target marketing strategy <ul><li>They evaluate each segment’s </li></ul><ul><ul><li>size and growth characteristics </li></ul></ul><ul><ul><li>structural attractiveness </li></ul></ul><ul><ul><li>compatibility with company objectives & resources </li></ul></ul><ul><li>Refer to the information and what you know about the 4 target marketing strategies, judge what is most appropriate …. </li></ul>
    124. 125. Customer Analysis <ul><ul><li>Who </li></ul></ul><ul><ul><li>Where </li></ul></ul><ul><ul><li>When </li></ul></ul><ul><ul><li>What </li></ul></ul><ul><ul><li>How </li></ul></ul>
    125. 126. Customer Analysis <ul><li>Consumers </li></ul><ul><li>Business to Business </li></ul>
    126. 127. Customer Analysis <ul><li>Consumers </li></ul><ul><ul><li>End use customers </li></ul></ul><ul><ul><li>Brand loyalty </li></ul></ul><ul><ul><li>Repurchase </li></ul></ul>
    127. 128. Customer Analysis <ul><li>Business to Business requires special considerations </li></ul><ul><ul><li>derived demand </li></ul></ul><ul><ul><li>purchaser is often NOT the user </li></ul></ul>
    128. 129. Customer Analysis <ul><li>Where are my customers? </li></ul><ul><ul><li>Invoice data </li></ul></ul><ul><ul><li>Warranty cards </li></ul></ul>
    129. 130. Customer Analysis <ul><li>When Do My Customers Buy? </li></ul><ul><ul><li>Demand variation </li></ul></ul><ul><ul><li>Changing customer buying patterns </li></ul></ul>
    130. 131. Customer Analysis <ul><li>What Do My Customers Want? </li></ul><ul><li>Recording sales by price range, size and color </li></ul><ul><li>Competitive information from independent research firms </li></ul>
    131. 132. Customer Analysis <ul><li>How Do My Customers Buy? </li></ul><ul><ul><li>Recognition of problem </li></ul></ul><ul><ul><li>Search for alternatives and info </li></ul></ul><ul><ul><li>Buyer’s mental evaluation of alternatives </li></ul></ul><ul><ul><li>Purchase </li></ul></ul><ul><ul><li>Postpurchase behavior </li></ul></ul>
    132. 133. Customer Analysis <ul><li>Problem recognition </li></ul><ul><ul><li>Depleted inventory </li></ul></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Store display </li></ul></ul>
    133. 134. Customer Analysis <ul><li>Search for alternatives and information </li></ul><ul><ul><li>Past experience </li></ul></ul><ul><ul><li>Brochures </li></ul></ul><ul><ul><li>Catalogs </li></ul></ul>
    134. 135. Customer Analysis <ul><li>Evaluation of alternatives </li></ul><ul><ul><li>Standard Learning Hierarchy </li></ul></ul><ul><ul><li>Dissonance-Attribution Hierarchy </li></ul></ul><ul><ul><li>Low - Involvement Hierarchy </li></ul></ul>
    135. 136. Standard Learning Theory <ul><li>Cognitive (Perceptual) </li></ul><ul><li>Affective (Like - Dislike) </li></ul><ul><li>Conative (Purchase) </li></ul><ul><li>Buyers are highly involved </li></ul><ul><li>Products are clearly differentiated </li></ul><ul><li>Mass media/Early PLC </li></ul>
    136. 137. Dissonance-Attribution Theory <ul><li>Conative (Purchase) </li></ul><ul><li>Affective (Like-Dislike) </li></ul><ul><li>Cognitive (Perceptual) </li></ul><ul><li>Buyers highly involved/products similar </li></ul><ul><li>Salesperson important </li></ul><ul><li>Early Maturity </li></ul>
    137. 138. Low-Involvement Theory <ul><li>Cognitive (Perceptual) </li></ul><ul><li>Conative (Purchase) </li></ul><ul><li>Affective (Like - Dislike) </li></ul><ul><li>Low involvement/similar products </li></ul><ul><li>Broadcast/Late maturity </li></ul>
    138. 139. Customer Analysis <ul><li>Buyer’s mental evaluation of alternatives </li></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Social class </li></ul></ul><ul><ul><li>Personality </li></ul></ul><ul><ul><li>Lifestyle </li></ul></ul>
    139. 140. Customer Analysis <ul><li>Purchase </li></ul><ul><ul><li>Store location </li></ul></ul><ul><ul><li>Skill of the salesperson </li></ul></ul><ul><ul><li>Availability of credit </li></ul></ul>
    140. 141. Customer Analysis <ul><li>Post- purchase Behavior </li></ul><ul><ul><li>Speed of repairs </li></ul></ul><ul><ul><li>Product durability </li></ul></ul><ul><ul><li>Extended warranty </li></ul></ul>
    141. 142. Customer Analysis <ul><li>How Does My Firm Become Customer Oriented? </li></ul><ul><ul><li>Customer Checklist </li></ul></ul><ul><ul><li>Plant tours </li></ul></ul><ul><ul><li>Customer visits </li></ul></ul>
    142. 143. Customer Analysis <ul><li>Action and results driven </li></ul><ul><li>Encourages initiative </li></ul><ul><li>Increases role of staff to customers </li></ul><ul><li>Builds trust </li></ul>
    143. 145. Road Map: Previewing the Concepts <ul><li>Define what marketing is and discuss its core concepts. </li></ul><ul><li>Explain the relationships between customer value, satisfaction, and quality. </li></ul><ul><li>Define marketing management and understand how marketers manage demand and build profitable customer relationships. </li></ul><ul><li>Compare the five marketing management philosophies. </li></ul><ul><li>Analyze the major challenges facing marketers heading into the new “connected” millennium. </li></ul>
    144. 146. What is Marketing? <ul><li>Simply put: Marketing is the delivery of customer satisfaction at a profit. </li></ul><ul><li>Goals: Attract new customers by promising superior value and </li></ul><ul><li>keep and grow current customers by delivering satisfaction. </li></ul>
    145. 148. 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>
    146. 149. What are Consumers’ Needs, Wants, &Demands? Needs - state of felt deprivation including physical, social, and individual needs i.e hunger Wants - form that a human need takes as shaped by culture and individual personality i.e. bread Demands - human wants backed by buying power i.e. money
    147. 150. Experiences Persons Products Anything that can be Offered to a Market to Satisfy a Need or Want Places Organizations Ideas Activities Services Activity or Benefit Offered for Sale That is Essentially Intangible and Doesn’t Result in the Ownership of Anything
    148. 151. Customer-Driven Quality Total Quality Management Involves Improving the Quality of Products, Services, and Business 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
    149. 152. Exchanges Transactions <ul><li>Relationships </li></ul><ul><li>Building a Marketing </li></ul><ul><li>Network by Adding: </li></ul><ul><li>Financial Benefits </li></ul><ul><li>Social Benefits </li></ul><ul><li>Structural Ties </li></ul><ul><li>Profitable Customers </li></ul>
    150. 153. <ul><li>Consider the following thought questions, formulate an answer, pair with the student on your right, share your thoughts with one another, and respond to questions from your instructor. </li></ul><ul><ul><li>When was the last time you were completely satisfied with something you purchased? </li></ul></ul><ul><ul><li>What was it? </li></ul></ul><ul><ul><li>Why were you satisfied? </li></ul></ul><ul><ul><li>What did a marketer have to do with this? </li></ul></ul>Interactive Assignments
    151. 155. Marketing Management Attracting new customers and retaining and building relationships with current customers Profitable Customer Relationships Finding and increasing demand, also changing or reducing demand such as in Demarketing Demand Management Involves managing demand, which involves managing customer relationships Marketing Management
    152. 156. Stage 1. Entrepreneurial Marketing Stage 2. Formulated Marketing Stage 3. Intrepreneurial Marketing
    153. 157. Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept
    154. 159. http://www.johnsonandjohnson.com/
    155. 160. <ul><li>What are the major differences between the Marketing Concept and the Societal Marketing Concept? </li></ul><ul><li>The Marketing Concept holds that achieving organizational goals depends on determining the needs and wants of target marketing and delivering the desired satisfactions more effectively and efficiently than competitors do. </li></ul><ul><li>The Societal Marketing Concept holds that generating customer satisfaction and long-run societal well-being are the keys to achieving both the company’s goals and its responsibilities. </li></ul>Discussion Question
    156. 162. Learn About & Track Customers With Databases Communicate With Customers in Groups Or One-on-One Create Products & Services Tailored to Meet Customer Needs Distribute Products More Efficiently & Effectively Connecting Technologies in Computers, Telecommunications, Information, & Transportation Help To:
    157. 163. The Internet <ul><li>The Internet has been hailed as the technology behind a New Economy. </li></ul><ul><li>New applications include: </li></ul><ul><ul><li>“ click-and-mortar” companies </li></ul></ul><ul><ul><li>“ click-only” companies </li></ul></ul><ul><ul><li>Business-to-business e-commerce </li></ul></ul><ul><li>Business-to-business transactions online are expected to reach $4.6 trillion in 2009. </li></ul><ul><li>By 2008, 500,000 companies will use the Internet to do business. </li></ul>
    158. 164. Connections With Customers <ul><li>Most marketers are targeting fewer, potentially more profitable customers. </li></ul><ul><li>Asking: </li></ul><ul><ul><li>What value does the customer bring to the organization? </li></ul></ul><ul><ul><li>Are they worth pursuing? </li></ul></ul><ul><li>Connecting for a customer’s lifetime. </li></ul>
    159. 165. Bank One (Marketing at Work ) <ul><li>BankOne focuses on connecting with customers they can serve profitably. </li></ul><ul><li>Premier One customers know that they are “special, exclusive, privileged, valued.” </li></ul><ul><li>http://www.bankone.com/ </li></ul>
    160. 166. Connections With Marketing’s Partners <ul><li>Connecting Inside the Company </li></ul><ul><ul><li>Every employee must be customer-focused </li></ul></ul><ul><ul><li>Teams coordinate efforts toward customers </li></ul></ul><ul><li>Connecting With Outside Partners </li></ul><ul><ul><li>Supply Chain Management </li></ul></ul><ul><ul><li>Strategic Alliances </li></ul></ul>
    161. 167. Global Connections Value Connections Social Responsibility Connections Broadening Connections
    162. 168. Rest Stop: Reviewing the Concepts <ul><li>Define what marketing is and discuss its core concepts. </li></ul><ul><li>Explain the relationships between customer value, satisfaction, and quality. </li></ul><ul><li>Define marketing management and examine how marketers manage demand and build profitable customer relationships. </li></ul><ul><li>Compare the five marketing management philosophies. </li></ul><ul><li>Analyze the major challenges facing marketers heading into the next millennium. </li></ul>
    163. 169. For Management & Marketing
    164. 170. She said, “What’s that?” He said, “The World Wide Web.” She said, “What does it do?” He said, “I don’t know, it’s not finished yet.”
    165. 171. Shrinking World 1500-1840 Communication by ship, coach, horseback 1850-1930 Communication by steamship, train, auto 1930-1950 Communication by airplane, auto, and radio/television 1960-1980 Communication by jet airplane, telephone, satellite radio/television 1990-2000 Communication by sst airplane, high bandwidth communication 2001-2005 High Bandwidth Communication, Expanding technology for personal communication
    166. 172. The New World of Digital Media <ul><li>Gauge the problem of looking forward by looking backward </li></ul><ul><ul><li>Thirty years ago... </li></ul></ul><ul><ul><li>or even twenty years ago… </li></ul></ul><ul><ul><li>or even five years ago... </li></ul></ul>
    167. 173. “ Computers in the future may weigh no more than 1.5 tons” Popular Mechanics magazine , 1949 “ There is no reason anyone would want a computer in their home.” Ken Olson, Digital Equipment, 1977
    168. 174. The future? It’s in the future!
    169. 175. “ E-Commerce will usher in a new world of low-friction, low-overhead capitalism.” Bill Gates, CEO, Microsoft
    170. 176. “ It’s going to be quite bloody. The Internet does not wipe out markets, but it resculpts them. It is an enormously destructive force.” Emily Greene, Director, Forrester Research
    171. 177. D
    172. 179. A working definition of Digital Management focuses on... <ul><li>Planning strategies, </li></ul><ul><li>Internal Business and Employee attitudes behavior, and </li></ul><ul><li>Legal and regulatory policy issues ... </li></ul>... related to the commercial development of Digital Tools
    173. 180. Digital Management includes <ul><li>EDI (Electronic Data Interchange) </li></ul><ul><li>Support for interpersonal communication </li></ul><ul><li>The transfer of money </li></ul><ul><li>The sharing of databases in the conduct of business </li></ul>Milosevic and Bond 1996 http://aleph.ac.upc.es/HMP/PAPER/096/html/096.html
    174. 181. Digital Media Tools <ul><li>E-mail </li></ul><ul><li>Internet </li></ul><ul><li>Intranet </li></ul><ul><li>File sharing </li></ul><ul><li>Enterprise Software </li></ul><ul><li>Desktop Publishing </li></ul><ul><li>Multimedia </li></ul>
    175. 182. Desktop Publishing and Multimedia <ul><li>Microsoft Office or equal </li></ul><ul><ul><li>Word </li></ul></ul><ul><ul><li>Excel </li></ul></ul><ul><ul><li>PowerPoint </li></ul></ul>
    176. 183. Desktop Publishing and Multimedia <ul><li>Video Editing </li></ul><ul><li>Audio Editing </li></ul><ul><li>Blogging </li></ul><ul><li>Specialized Software </li></ul>
    177. 184. A working definition of Digital Marketing focuses on... <ul><li>Marketing and planning strategies, </li></ul><ul><li>Business and consumer behavior, and </li></ul><ul><li>Legal and regulatory policy issues ... </li></ul>... related to the commercial development of Digital Tools
    178. 185. Digital Marketing can be divided into four domains: Business (user) Business (supplier) Consumer Administration (Government)
    179. 186. Combinations <ul><li>Business (supplier) --> business (user) </li></ul><ul><ul><li>Using a network for ordering from suppliers, receiving invoices and making payments (EDI) </li></ul></ul><ul><li>Business (supplier)--> consumer </li></ul><ul><ul><li>Electronic retailing, mostly on the web </li></ul></ul><ul><li>Business (supplier)--> administration </li></ul><ul><ul><li>Transactions such as the details of upcoming government procurements </li></ul></ul><ul><li>Consumer --> administration </li></ul><ul><ul><li>E-payment of taxes, receiving govt. services </li></ul></ul>
    180. 187. From Choi et al. (1997) The Economics of Electronic Commerce . p. 18 Areas of Digital Marketing
    181. 188. Examples <ul><li>MP3 music-digital product, digital agent, digital process </li></ul><ul><li>Maine Lobsters-physical product, digital agent, digital process </li></ul><ul><li>E-tickets-physical product, physical agent, digital process </li></ul>
    182. 189. Measuring Digital Marketing <ul><li>What counts as Digital Marketing? </li></ul><ul><li>Count only dollars transacted on Internet? </li></ul><ul><li>Count sales leads generated as part of total? </li></ul><ul><li>What can we use to guide decisions about Internet’s effectiveness? </li></ul>
    183. 190. Standard, simple, many instances Custom, complex, few instances Electronic Presence Company Promotion Pre/Post Sales Support Natl. Elec Distribution Intl. Elec Distribution Simple Sales Transactions National Payment Shared Business Processes International Payment
    184. 191. Online Business Models <ul><li>E-Shop: On-line retailing </li></ul><ul><li>E-Procurement: Seeking suppliers </li></ul><ul><li>E-Auction: Electronic Bidding </li></ul><ul><li>E-Mall: Aggregators, sector markets </li></ul><ul><li>3rd Party Marketplace: Common market front end </li></ul>
    185. 192. Online Business Models <ul><li>Virtual Communities: information members </li></ul><ul><li>Value Chain Service Providers: Component supplier </li></ul><ul><li>Value Chain Integrators: Multiple components </li></ul><ul><li>Collaboration Platforms: Work groups </li></ul><ul><li>Information Brokers: information and consultancy </li></ul><ul><li>Virtual Reality </li></ul>
    186. 193. Issues for Digital Media <ul><li>Globalization </li></ul><ul><ul><li>Beyond communication links and into cultural harmony </li></ul></ul><ul><li>Contractual Agreements </li></ul><ul><ul><li>Harmonizing contract law </li></ul></ul><ul><li>Financial Agreements </li></ul><ul><ul><li>Payment confirmed, tax issues </li></ul></ul>
    187. 194. Issues for Digital Media <ul><li>Ownership </li></ul><ul><ul><li>Copyright and intellectual property rights </li></ul></ul><ul><li>Privacy </li></ul><ul><ul><li>Trust, a perception issue </li></ul></ul><ul><li>Security </li></ul><ul><ul><li>A procedural issue </li></ul></ul>
    188. 195. Issues for Digital Media <ul><li>Interconnectivity </li></ul><ul><ul><li>Infrastructure for broad global access </li></ul></ul><ul><li>Interoperability </li></ul><ul><ul><li>Systems design for seamless operation </li></ul></ul><ul><li>Deployment </li></ul><ul><ul><li>Public awareness of benefits </li></ul></ul>

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