6/3/2022

Knox Business
Intensive
Seminar
Marketing Module

Jim Foley, Director

(Brad Eskridge, Market Dept.,

Foster College of Business)

What is Marketing?

• Definition: Marketing is the activity of

creating, communicating, delivering, and
exchanging offerings that deliver value to
customers and benefit the organization, its
stakeholders, and society at large.
• Some like to say “Marketing Is Everything!”

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What is Marketing?
• Definition: creating,
communicating, delivering, and exchanging offerings

Marketing is far more than simply advertising or communications…

• “Creating” – Developing the proper product offerings to deliver VALUE
• “Communicating” – Advertising, sales promotions, social media, etc.
• “Delivering” – Supply Chain Management, Logistics, channel selection,
etc.
• “Exchange” - The trade of things of value between buyer and seller so
that each is better off after the trade
• “Offerings” – Goods, services, and/or ideas

What is Marketing?
• Definition:
that deliver value to
customers

• Customer Value = Perceived Benefits - Costs

– Perceived Benefits = Anything a buyer receives in a
transaction (both monetary and nonmonetary)
*What do I get*
• Makes them safer, Saves them money in the future, Makes their lives
easier, Provides them with status, etc.
– Costs = What it takes to obtain the product (both monetary
and nonmonetary
*What do I have to give up*.

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Customer Value Strategies

Best Price Best Product Best Service

Note: You CAN’T be everything to everybody!

Michael Porter and Customer Value

• You basically compete in on three ways:
– Cost leadership (low prices)
– Differentiation (benefits, features, quality, customer service)
– Niche (focus on one customer segmentation)

• Technology
– Can be disruptive to the above strategies (eg. Uber)

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Marketing Activities Must Be Customer Driven

• First Step: Figure out the customers’ needs and wants

Market:
A market
consists of
people with
both the desire
and the ability
to buy a specific
offering.

Second Step:
Fulfill Those Needs through the Marketing Mix

• The Marketing Mix: The marketing mix represents

everything that a firm can do to influence and fulfill
demand for its good, service, or ideas:

• Product • Promotion

• Price $499 • Place

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Relationship Marketing
• Relationship Marketing
– Refers to long-term mutually beneficial buyer/seller relationships
– Focused on value enhancement through the creation of more satisfying
exchanges
– Bottom Line: Keep customers longer … because:
• Customer acquisition can be expensive
• Easier to sell additional products / services
• Keeping customers keeps referrals

Social Media Has Revolutionized Relationship Marketing

• Social media removes the role of the intermediary, even if one is
used in the sales channel
• It is marketing segmentation on steroids!
• It is immediate
• It is trackable
• Leads to predictive analytics (better understand the future based on
facts from the past)

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Consumer Purchase Decision Process

But this purchasing decision occurs within the context

of the situation of the individual making the purchase
decision …

Consumer Purchase Decision Process: In Teams – How

Does This Look for Your Company?

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The Level of Consumer Involvement in the Purchasing

Decision Varies by Product / Service
• Inexpensive
• Limited consequences
• Expensive
• Serious personal
consequences
• Reflects own social image

Understanding Market Segmentation

• Market Segmentation
– Aggregating prospective buyers into groups, or segments, that 1.)
have common needs/wants and 2.) will respond similarly to a
marketing action
• Why Segment?
– One-Size-Fits-All Mass Markets no longer exist

vs.

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Market Segmentation:

 Ways to Segment Consumer Markets

• Demographic Segmentation • Geographic Segmentation

9-15

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As You Consider How to Turn Around Your Team’s

Company, Consider These Questions
• Does the company solve a problem for consumers?
• Does the company have the right customers?
• Should it focus on more or fewer segments than they focusing on right
now?
• Does the company have products and services that address all the
customer segments that you would suggest?
• Are there any customer segments the company has overlooked that
might be more attractive?
• Does your company have the right mix of marketing activities? How
involved is the consumer in purchasing decisions?
• Has there been a change in consumer behavior?
• Is there increased competition – what is the risk they create for your
company?

That Completes the Module!

• Only activity left is to take a short quiz in Schoology.
• Go to the Basic of Marketing folder and click on the quiz.
• Take the “Quiz 2: Basics of Marketing”
• It is a short quiz of ten questions.

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