Marketing  Services (intangible)

in the 21st Century

 Events (time based—trade shows) and Experiences (Walt Disney World’s Magic kingdom)

 Persons (Artists, Musicians, CEO, Physicians)

Major Societal Forces

1. Network Information  Places (Cities, States, Regions, Nations) and Properties (Intangible rights of ownership of real estate or
financial properties)
2. Globalization  Organizations (Universities, Museums, Performing Arts Organization)
3. Deregulation  Information (Books, Schools, Magazines)
 Ideas (Revlon sell hope)
4. Privatization

5. Heightened competition
Marketing Goods

Marketing Ideas:
The marketplace isn’t what it used to be…
Friends Don’t Let Friends Drive Drunk
 Changing technology (digital revolution)
 Globalization (transportation, shipping, communication)
 Deregulation (telecommunications, electric utilities) “This is the watch
 Privatization (British Airways)
 Empowerment (Domestic, Foreign, Store and Brands) Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver.
 Customization
Time of death 6:55 p.m”

What is Marketing?
Key Customer Markets
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value
to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.  Consumer markets (personal consumption)

 Business markets (resale or used to produce other products or services)

Selling is only the tip of the iceberg  Global markets (international)

“There will always be need for  Nonprofit/Government markets (Churches, Universities, Charitable Organizations, Government
Agencies)
some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and
understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result
 Marketplaces, Marketspaces
in a customer who is ready to buy. All that should be needed is to make the product or service available.”
Global Markets
Peter Drucker
 Coke is represented at the first China International Beverage Festival in Beijing in 2003

What is Marketed? Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market

Production-oriented managers
 Goods (tangible)
 Sees everyone as basically similar and practices “mass marketing”
Marketing-oriented managers - Sales Promotion
- Advertising
 Sees everyone as different and practices “target marketing” - Sales Force
- Public Relations
- Direct Marketing
Company Orientations PLACE
 Production (consumers will prefer products that are widely available and inexpensive) - Channels
- Coverage
 Product (consumers favor products that offer the most quality performance, or innovative features) - Assortment locations
- Locations
 Selling (consumer and businesses, if left alone, won’t buy enough of the organization’s products)
- Inventory
- Transport
 Marketing (find the right product for the consumers)--i.e., satisfy the wants and needs of the consumers

Production: consumers will favor products that are available and highly affordable
Marketing Mix and Customer
Product: consumers favor products that offer the most in quality, performance, and innovative features
FOUR P’s
Selling: consumers will not buy unless an organization undertakes a large-scale selling and promotional effort
- Product
Marketing: determining the needs and wants of target markets and delivering the desired satisfactions more
- Price
effectively and efficiently than the competitors
- PlacePromotion

FOUR C’s
The Four P’s
- Customer solution
PRODUCT - Customer cost
- Convenience
- Product Variety - Communication
- Quality
- Design
- Featured
- Brand Name
- Packaging
- Sizes
- Services Core Concepts
- Warranties
- Returns  Needs, wants, and demands

PRICE  Target markets, positioning (in mind of target buyers), segmentation

- List Price  Offerings (intangible benefit made physical) and brands (offering from a known source)
- Discounts
- Allowance  Value (set of benefits and satisfaction)
- Payment period
- Credit terms  Marketing channels (communications, distribution, and service)
 Supply chain
PROMOTION
 Competition
  Marketing environment Analyzing the Macroenvironment
 Marketing planning Fad – unpredictable, short-lived, and without social, economic, and political significance.

Trend – a direction or sequence of events that has some momentum and durability. Trends are more predictable
Marketing Management Tasks and durable than fads.

Megatrends – large, social, economic, political and technological changes that are slow to form, and once in place,
 Developing marketing strategies (strategic fit)
they influence us for some time.
 Capturing marketing insights (obtaining information)

 Connecting with customers (relationships) Major Forces:

 Building strong brands (understand strengths and weaknesses) 1. Demographic environment – main demographic force that marketers monitor in population, because
people make up markets.
 Shaping market offerings
2. Economic Environments – available purchasing power in an economy depends on current income,
 Delivering value
prices, savings, debt & credit availability.
 Communicating value
 Creating long-term growth (positioning and new-product development) 3. Social-cultural environment – society shapes the beliefs, values, norms that largely define these tastes
and preferences.

4. Natural environment – deterioration of the natural environment is a major global concern.

New Consumer Capabilities
 A substantial increase in buying power (a click away)
 A greater variety of available goods and services (internet)
5. Technological environment – technology has released such wonders as penicillin, open-heart surgery,
birth-control pill, etc.
6. Political-legal environment – composed of government laws, government agencies, and pressure groups
that influence and limit organizations and individuals.

 A great amount of information about practically anything (online)

 Greater ease in interacting and placing and receiving orders (24/7)

 An ability to compare notes on products and services (internet)

 An amplified voice to influence public opinion (internet)

5 Types of Needs

 Stated needs (inexpensive)

 Real needs (low operating cost)

 Unstated needs (good service)

 Delight needs (extras)

 Secret needs (savvy consumer)