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Sales Era. The Changing Role of Marketing Simple Trade Era. . Local middlemen. Summary Overview This slide illustrates five stages of marketing evolution. Marketing Department Era. As more companies move to meet demand. In general. Here marketing people develop long-range plans in addition to short-run marketing planning and the whole company effort is guided by the marketing concept. An important point to remember is that some managers have not made it all the way to the final stages. Marketing Company Era. the idea of marketing has moved from a focus on products to a focus on customer needs. During this era. 33-34. in turn. A production focus is more common when few products are available in a given market. resold these goods to other consumers or more distant middlemen. the focus shifts to selling activities to beat the competition and win customers. As production rises. Production Era. Teaching Tip: Point out to students that through the sales era. all the marketing activities are brought under the control of one department. As specialization developed.This slide relates to the material on pp. When executed well. families traded or sold their output to local middlemen. the company focuses on production of a few specific products. this improves short-run policy planning by integrating and coordinating the firm¶s activities. Discussion Note: A production era focus helps economies increase capacity where demand exceeds supply. This early role of marketing is still the focus of much of the marketing activity in the less-developed areas of the world. See also Transparency 7. competition increases. During the production era. marketing activities are still separated and that each era brings an emphasis on one or more tools of marketing that had previously been underutilized or were not recognized as necessary to meet the demand conditions applicable at that time.

Production Orientation. such as banks. More surprisingly. The marketing concept means that the organization aims all its efforts at satisfying its customers -. Profits refer to the difference between a firm¶s revenue and its total costs. Additional information contrasts the production and marketing orientations and reviews the difficulties involved in adopting the marketing concept. Instructor¶s Note: This slide corresponds to Exhibit 2-1 on p. The Marketing Concept Marketing Concept. Customer value reflects benefits and costs. To better understand what it takes to satisfy a customer. 34 and Transparency 8. There are several slides in this series. Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. it¶s useful to take the customer¶s point of view. see student handout pages Summary Overview This slide and lecture material provide an introduction to the marketing concept. A typical example is the focus on a production orientation -. many service companies. Identifying. and implementing the products and product changes that consumers demand requires that the company be profitable. See also Transparency 9 and Overheads 10-12.making whatever products are easy to produce and then trying to sell them. developing. Adoption of the Marketing Concept. The Importance of Profit. 34-37.at a profit. have also been slow to adopt a philosophy of total commitment to customer satisfaction--but this has changed dramatically in recent years Customer¶s point of view. many industrial products companies still have failed to do so. . Specific businesses and their managers may still focus on more narrow concerns than satisfying customers. While consumer product companies adopted the marketing concept early on.This slide relates to the material on pp. Profits provide the resources to pay for satisfying customers.

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The customer is likely to be more satisfied with the customer value is higher--when benefits exceed costs by a larger margin. Competition and Customer Value Customer¶s point of view. This is especially important when what different firms have to offer is very similar. There are several slides in this series. To better understand what it takes to satisfy a customer. So. Customer value reflects benefits and costs.This slide relates to the material on pp. Customer value is the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits. a firm that offers superior customer value is likely to win and keep customers. Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. it¶s useful to take the customer¶s point of view. They have choices about how to meet their needs. The basic points to be made are on the slides (there is another slide not shown here) Customer Value Reflects Benefits and Costs Customer Value. One complication is that different customers may see the benefits and costs in different ways. . see student handout pages Summary Overview This slide and lecture material cover the customer value concept. On the other hand. That makes it difficult to satisfy everyone with one offering. a customer who sees the costs as greater than the benefits isn¶t likely to become a customer. 37-40.

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See also Overheads 13-15. objectives. While the costs associated with achieving nonprofit success may be measured. . they may still be operated much as for-profit businesses. they may not be set up to take advantage of and use marketing-related concepts and tools. Each nonprofit organization IS trying to satisfy some group of consumers in some way. Because some goals. Poorly Organized for Marketing. Nonprofits often exist to accomplish a goal unrelated to traditional ³paying customer´ satisfaction. 40-43. The Marketing Concept Applies in Nonprofit Organizations While the objectives of nonprofit organizations are not strictly economic. Marketing thinking helps to identify what is REALLY needed. restoring an historical building. such as preserving a wetland. Objectives Achieved by Satisfying Needs. They may not have a traditional ³bottom line´ economic measure of success. or making health-care available to the poor usually require a measure of success other than profit. such as high levels of customer satisfaction or cleaner environments.This slide relates to the material on pp. can diminish other goals. However. Ethics Organizations exist in a society and consequently face a social responsibility -. they differ in several ways: Non-Customer Support. The long-run significance of ethical behavior in business and in marketing activities will be emphasized throughout the course. such as profits or economic efficiency. Non-Economic Measures of Success. Summary Overview Nonprofit organizations may have different reasons than traditional businesses for operating but they still need an understanding of marketing ideas. such as profit or return on investment. many nonprofits specifically raise money from non-customer groups and then spend it on ³customers´ who define a cause. Marketing Concept Provides Focus. In fact. businesses must strive to reach acceptable balances between these conflicts. Partly due to the nature of nonprofit businesses.a firm¶s obligation to improve its positive effects on society and reduce its negative effects.

Marketing managers are responsible for seeing to it that an implemented strategy is working. these activities are continuous and decisions made in the past in one area can have implications on the other areas as well. Goals and objectives are typically set and one or more measures of progress are taken to assess performance. Instructor¶s Note: This topic is covered in greater detail in Exhibit 2-10. At the company-wide level. 45 and Transparency 10. Implementation. The Marketing Management Process The ongoing process of marketing management requires attention to three key areas: Planning. Marketing managers must anticipate such changes and plan how the firm will move to meet them with satisfying products. 43-45. Customers¶ needs and wants change. and control of marketing activities. Instructor¶s Note: This slide corresponds to Exhibit 2-4 on p. it is up to the marketing manager to take corrective action. As indicated on the slide. Planning is required because marketing managers must seek attractive new opportunities. When performance falls short of expectations. Summary Overview The marketing management process refers to the planning. Control deals with assessing and evaluating marketing performance. implementation. Implementation is the process of putting marketing plans into action. this is called strategic (management) planning -.the managerial process of developing and maintaining a match between an organization¶s resources and its market opportunities. Control.This slide relates to the material on pp. .

45-46. offering a single marketing mix combination to everyone. Target marketing says that the marketing mix is tailored to meet the needs of a specific group of target customers. ‡ Marketing Mix. See also Overhead 16. . Instructor¶s Note: This slide corresponds to Exhibit 2-5 on p. The importance of target customers cannot be over-emphasized. Mass Marketing. This approach is not target marketing and treats all customers as the same. but rather that marketing mix decisions should meet customer needs. Summary Overview As noted previously. A marketing strategy specifies a target market and a related marketing mix. Target Marketing. the customer (C) is in the center of the controllable variables of the marketing mix. On the slide. Teaching Tip: Remind students that this diagram is also a visual reminder of the marketing concept.This slide relates to the material on pp. A marketing mix consists of the controllable variables the company puts together to satisfy this target group. 46 and Transparency 11. marketing strategic planning is the managerial process of developing and maintaining a match between an organization¶s resources and its market opportunities. A target market is a fairly homogeneous (similar) group of customers to whom a company wishes to appeal. The two interrelated parts are: ‡ Target Market. It does not suggest that the marketer controls the customers¶ needs and wants. Understanding Marketing Strategy Planning Marketing Strategy. Marketing strategy planning means finding these opportunities and developing profitable marketing strategies that the company can use to capitalize on them. This provides the ³big picture´ of what the firm will do in some market. This arrangement is to remind the marketer that the efforts of the firm should always be aimed at meeting customer needs. A company may need a different marketing mix for each distinct group of customers.

customer behavior is not. 47 and Transparency 14. . Place. Promotion. 47. Instructor¶s Note: This slide corresponds to Exhibit 2-7 on p.This slide relates to the material on p. These ³Four Ps´ are combined in differing ways to match the offer made by a company to the needs and wants of different target markets. Instructor¶s Note: Remind students that the customer is not part of the marketing mix. Then lead them in discussion to identify why: Because the four Ps are controllables for the marketer -. and Price. Summary Overview It is useful to categorize all the variables in the marketing mix into four basic ones of Product.

Decision Areas of the Four Ps Product. place decisions also involve making products available when customers want them. Advertising. Promotion involves telling the target market about the product. generalizations about product classes can be learned that help marketers develop different product mixes quickly. its main form. This involves direct communication between sellers and potential customers. ‡ Sales Promotion. trial. but it can also be an intangible service. Instructor¶s Note: This slide corresponds to Exhibit 2-8 on p. or purchase by final consumers or others in the channel. See also Transparency 13 and Overhead 17. goods. ‡ Mass Selling. This refers to the other types of promotion that marketers use to stimulate interest. is any paid form of nonpersonal presentation of ideas. In setting a price. Place. 48 and Transparency 15. A channel of distribution refers to the series of firms or persons between the producer of the product and the final user or consumer. . Product-area decisions involve the characteristics of various kinds of products. The product is often a tangible good that customers buy. either face-to-face or over the phone. such as tax and legal preparations. Place refers to where a product is made available to target market customers. Promotion. marketing managers must consider the kind of competition in the target market as well as possible customer reactions to different price levels. Mass selling communicates with large numbers of customers at the same time. In addition. 48-50. While exceptions arise.This slide relates to the material on pp. and services by an identifying sponsor. Key tools of promotion include: ‡ Personal Selling. Price.

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Instructor¶s Note: You may wish to discuss the use of added-value channels as a competitive advantage for better marketing efforts and link this to the discussion of Exhibit 2-12.This slide relates to the material on p. 49. Summary Overview A channel of distribution refers to any series of firms or persons used to move goods from producers to final users. The key for understanding the contribution of the channel to better marketing effort is the matching of the best kinds and types of channels for the product or service and the effective management of the channel. . They may be relatively simple or complex. 49 and Transparency 16. Instructor¶s Note: This slide corresponds to Exhibit 2-9 on p. Channel systems can be either very long or very short.

Control jobs provide feedback to managers that leads them to modify their marketing strategies.what the company wants to do -. During implementation.short-run.and then adapt individual decisions to align company efforts and objectives to changing situations. See also Transparencies 17 and 19 and Overheads 18-19. Control is an ongoing process of analyzing and correcting the actions taken in implementation. Discussion Note: Effective operational decision making is critical to successful implementation. What marketing mix will be offered. Marketing managers must use the marketing plan as a context for overall guidance -. The marketing program combines strategy and tactics. A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy. Implementation involves putting the marketing plan into action. 3. 53-55. ideas and actions. Control. Summary Overview A marketing program blends all of the firm¶s marketing plans into one ³big´ plan. 55 and Transparency 18. Teaching Tip: Students should understand that control is not a punishment mechanism to be used only when someone makes mistakes.This slide relates to the material on pp. 2. Elements of the Marketing Program Marketing Plan. often ³on-the-spot. Businesses expect that all plans require some fine tuning and even more than that when competitive forces change quickly. . Marketing plans should make clear the following: 1. Instructor¶s Note: This slide corresponds to Exhibit 2-11 on p. What company resources will be needed at what rate. to whom. What results are expected (this should also specify some means of control). marketing managers make many operational decisions -. and serves as the link between planning and implementation and control. and for how long. Implementation.´ decisions to help implement strategies.

Good plans implemented poorly might still be profitable. 57 and Transparency 20. The average marketing program does not produce great results--and that accounts for the majority of firms.This slide relates to the material on pp. 55-57. return on promotional spending is close to 0. and there¶s conflict in channels of distribution. Ill-conceived plans. Instructor¶s Note: Planning does not take place in a vacuum. can lose money and even threaten the survival of the company itself. Summary Overview Planning is crucial because it sets the course the company will follow in everything else it does. Focus on Best Practices. In too many firms. Instructor¶s Note: This slide corresponds to Exhibit 2-12 on p.they want products that provide superior customer value. On average. This type of ³death-wish´ marketing is both costly and ineffective. Creative strategy is more than an interesting approach to business: It is needed for company survival. too many new products fail. customer retention rates are low. even implemented well. managers do a poor job of planning and implementing marketing strategies and programs. It¶s important to do better than what¶s typical! . A focus on consumer needs and wants forces strategic planners to recognize that consumer¶s don¶t care about company problems -. Managers work within an environment of controllable variables (the 4Ps) that interacts with and is affected by other variables (marketing environment variables). The Importance of Marketing Strategy Planning Creative Strategy. Dramatic shifts in strategy are increasingly the norm is fast-moving markets. customer satisfaction levels are too low.

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