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MAKE MARKETING

VALUE DECISIONS

What is Marketing ???

MarketingWhats It All About?

More than Selling or


Advertising

More thanAll
Selling
Thoseand
Advertising
Bicycles!

Things a Firm Should Do in Producing a


Bike
Analyze
Analyze Needs
Needs
Predict
Predict Wants
Wants
Estimate
Estimate
Demand
Demand
Predict
Predict When
When
Determine
Determine
Where
Where
Estimate
Estimate Price
Price
Decide
Decide
Promotion
Promotion
Estimate
Estimate
Competition
Competition
Provide
Provide Service
Service

MARKETING
Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and
society at large.

VALUE
Benefits a customer receives from buying a good or service
Comparison between benefit and cost
V = B-C or V = B/C
Consumer/customer will choose product (good or service)
that offer more benefit than cost

MARKETING MEET NEEDS


Marketing meets the needs of diverse stakeholders.
Stakeholders: refers to buyers, sellers, or investors in a
company, community residents
Consumer: ultimate user of a good or service

MARKETING CONCEPT
A management orientation that focuses on identifying and
satisfying consumer needs to ensure the organizations longterm profitability
Need: is the difference between a consumers actual state
and some ideal or desired state. When the difference is big
enough, consumers is motivated to take action to satisfy the
need.
Want: a desire for a particular product we use to satisfy a
need in specific ways that are culturally and socially
influenced

MARKETING CONCEPT
Benefit: the outcome sought by a customer that motivates
buying behavior-that satisfies a need or want.
Demand: customers desires for products coupled with the
resources needed to obtain them.
Market: All the customers and potential customers who share
a common need that can be satisfied by a specific product,
who have the resources to exchange for it, who are willing to
make the exchange, and who have the authority to make the
exchange

MARKETING CREATES UTILITY


Form utility is the benefit provided by transforming raw materials into
finished products. For example: transforming steel and plastic into a
riding lawnmower.
Place utility is the benefit provided by making products available
where customers want them. For example: popcorn at a movie
theater.
Time utility is the benefit provided by storing products until they are
needed. For example: providing TV episodes online so that a viewer
can download them whenever they wish to watch.
Possession utility is the benefit provided by allowing the consumer to
own, use, and enjoy the product. For example: a furniture store
offering credit and disposal of an old sofa to make possessing a new
one easier.

Marketing Creates Utility

Form

Place

Time

Possession

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MARKETING AND EXCHANGE

Exchange
PRODUCT
Marketer

PAYMENT
Customer

THE EVOLUTION OF MARKETING

Evolution of a Concept
Production
Era

Sales Era

TIMELINE

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Relationship
Era

Triple Bottom
Line Era

1. PRODUCTION ERA
Production orientation, which works best in a sellers market
when demand is greater than supply because it focuses on
the most efficient ways to produce and distribute products
Views market as a homogeneous group that will be satisfied
with the basic function of a product
PRODUCE/SELL WHAT WE CAN MAKE!

2. THE SALES ERA


Selling orientation: management views marketing as a sales
function or a way to move products out of warehouse so that
inventories dont pile up.
hard sell, salespeople aggressively push their wares

3. THE RELATIONSHIP ERA


Consumer orientation: a business approach that prioritizes
the satisfaction of customers needs and wants
Total Quality Management: A management philosophy that
focuses on satisfying customers through empowering
employees to be an active part of continuous quality
improvement.

4. THE TRIPLE BOTTOM LINE


ORIENTATION
Triple Bottom Line Era:
This orientation focuses on building long-term bonds with customers
and emphasizes three bottom lines:
Financial: profits to stakeholders.
Social: contributions to the communities in which the firm operates.
Environmental: doing business in a way that minimizes damage to
the environment.
Many firms embrace the Social Marketing Concept--where the
marketer attempts to satisfy the consumer and benefit society at the
same time.

MARKETING AS A PROCESS

MARKETING PLANNING
Marketing plan: A document that describes the marketing
environment, outlines the marketing objectives and strategy,
and identifies who will be responsible for carrying out each
part of the marketing strategy
We can choose mass market or market segment
Mass market: All possible customers in a market, regardless
of the differences in their specific needs and wants
Market segment: A distinct group of customers within a larger
market who are similar to one another in some way and
whose needs differ from other customers in the larger market
Target market: segment(s) on which an organization focuses

Marketings tools:
the marketing mix
4ps
Product, Price. Place, Promotion

Copyright 20112Pearson Education, Inc. Publishing as Prentice Hall

Product

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Price

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Promotion

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Place

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall