1、Introduction to Marketing,Discuss what is marketing and core concepts of marketing and review some possible definitions See the evolution of marketing thought and discuss various orientations toward marketplace Focus on modern marketing concept, identify four pillars of modern marketing Describe 4Ps
2、 of marketing, as elements of total marketing mix Discuss modern marketing concept comparing it with selling concept and extending it with relationship marketing concept,Preview,Introduction to Marketing,Marketing; “Satisfying customer needs” “Meeting needs profitably” “Generating customer value at
3、a profit” “Managing profitable customer relationships by delivering superior value to customers”,Introduction to Marketing,Marketing; “Satisfying customer needs” “Meeting needs profitably” “Generating customer value at a profit” “Managing profitable customer relationships by delivering superior valu
4、e to customers”,What is Marketing?,No single correct definition or approach Common subject matters: The ability to satisfy customers, The identification of favorable marketing opportunities, The need to create an edge over competitors, The capacity to make profits to enable a viable future for the o
5、rganization, The use of resources to maximize a business market position, The aim to increase market share mainly in target markets,Marketing Process,Build profitable relationships and create customer delight,Capture value from customers to create profits and customer quality,Create value for custom
6、ers and build customer relationships,Capture value from customers in return,Design a customer-driven marketing strategy,Construct a marketing program that delivers superior value,Understand the marketplace and customer needs&wants,Core Concepts of Marketing,Needs, wants, and demands,Products and ser
7、vices,Value and satisfaction,Exchange, transactions, and relationships,Markets,Core Concepts of Marketing,Needs, wants, and demands Marketing offers: including products, services and experiences Value and satisfaction Exchange, transactions and relationshipsMarkets,Need Basic human requirements Stat
8、e of felt deprivation Example: Need food Wants Needs directed to specific objects The form of needs as shaped by culture and the individual Example: Want a Big Mac Demands Wants which are backed by buying power,Core Concepts of Marketing,Needs, wants, and demands Marketing offers: including products
9、, services and experiences Value and satisfaction Exchange, transactions and relationshipsMarkets,Marketing offering Combination of products, services, information or experiences that satisfy a need or want Offer may include services, activities, people, places, information or ideas,Products Anythin
10、g that can be Offered to a Market to Satisfy a Need or Want,Core Concepts of Marketing,Services Activities or Benefits Offered for Sale That Are Essentially Intangible and Dont Result in the Ownership of Anything,Market Offerings - examples,Marketing places : Creating positive attitudes or maintaini
11、ng attitudes & behavior toward particular places,“Friends Dont Let Friends Drive Drunk”,Marketing ideas(social marketing)This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.,Market Offerings- examples,Core Concepts of Marketing,Needs, wa
12、nts, and demands Marketing offers: including products, services and experiences Value and satisfaction Exchange, transactions and relationshipsMarkets,Value Customers form expectations regarding value Marketers must deliver value to consumers Satisfaction A satisfied customer will buy again and tell
13、 others about their good experience,Core Concepts of Marketing,Value Gained From Owning a Product and Costs of Obtaining the Product is “Customer Value”,Core Concepts of Marketing,Needs, wants, and demands Marketing offers: including products, services and experiences Value and satisfaction Exchange
14、, transactions and relationshipsMarkets,Exchange The act of obtaining a desired object from someone by offering something in return Transaction Trade of values between two or more parties One exchange is not the goal, relationships with several exchanges are the goalRelationships are built through d
15、elivering value and satisfaction Marketing network consists of the company and all its supporting stakeholders,Core Concepts of Marketing,Needs, wants, and demands Marketing offers: including products, services and experiences Value and satisfaction Exchange, transactions and relationshipsMarkets,Ma
16、rket Set of actual and potential buyers of a product Marketers seek buyers that are profitable,Simple Marketing System,Products/services,Money,Marketing defined as.,Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.S
17、imply put: Marketing the delivery of customer satisfaction at a profit.,More Definitions of Marketing,A social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products and services of value with others.The management pro
18、cess responsible for identifying, anticipating and satisfying customer requirements profitably. Marketing consists of individual and organizational activities that facilitate and enhance satisfying exchange relationships in a dynamic environment through the creation, servicing, distribution, promoti
19、on and pricing of goods, services and ideas,More Definitions of Marketing (cont.),From the societal perspective; some marketers describe marketing as the creation and delivery of a standart of living. From the managerial perspective; marketing (management) is the process of planning and executing th
20、e conception, pricing, promotion and distribution of goods and services to create exchanges that satisfy individual and organizational goals.,Marketing Management,Marketing management the art and science of choosing target markets and building profitable relationships with them. This definition must
21、 include answers to 2 questions: What customers will we serve? How can we serve these customers best? Getting, keeping, and growing customers through creating, delivering, and communicating superior customer valueMarketing management involves managing demand involves managing customer relationships,
22、Marketing Management,Marketing management can be defined in broader terms as “demand management”; Marketers aim to influence the level, timing and composition of demand to meet organizational goals. Marketing management is concerned not only with finding and increasing demand, but also with changing
23、 or even reducing it : demarketing! Demarketings aim is to reduce the number of customers or to shift their demand temporarily or permanently (e.g. move traffic away from a popular tourist attraction during peak demand times),Evolution of Marketing Thought,How marketing has become “marketing” as we
24、understand it and apply its practices today?,Evolution of Marketing Thought,Production Era (1850s-1920s) Industrial revolution; mass production Few products and little competition Sales Era (1920s-1950s) The focus was on personal selling and advertising Sales seen as the major means for increasing p
25、rofits Mktg Era (1950s-present) Customer orientation replaced the “hard sell” of the sales-led era Determination of the needs and wants of customers before introducing products or services,Evolution of Marketing Thought,Relationship Marketing Era: 1990s- Marketing era has recently shifted from being
26、 “transaction-based” to focusing on “relationships” The argument traditional marketing practices focused on attracting new customers rather than retaining existing ones. It is equally important to hang on to existing customers so that they become repeat buyers and long term loyal customers “customer
27、 relationship management”!,Production Concept,Product Concept,Selling Concept,Marketing Concept,Consumers prefer products that are widely available and inexpensive,Consumers favor products that offer the most quality, performance, or innovative features,Consumers will buy products only if the compan
28、y aggressively promotes/sells these products,Focuses on needs/ wants of target markets & delivering value better than competitors,Company Orientations Towards the Marketplace,Production Concept,Consumers will favor those products that are widely available and low in cost. Managers concentrate on ach
29、ieving high production efficiency and wide distribution.The assumption is valid at least in 2 situations : The demand for a product exceeds supply (suppliers will concentrate on finding ways to increase production) The products cost is high and has to be decreased to expand the market.,Product Conce
30、pt,Consumers will favor those products that offer the most quality, performance or innovative features. Managers in product-oriented organizations concentrate on making superior products and improving them over time. The assumption the customers will admire well-made products and can evaluate produc
31、t quality and performance This concept may lead to marketing myopia,Selling Concept,Agressive selling and promotion Assumptions are; Consumers must be convinced of buying company products Company is powerful in generating effective selling and promotion to stimulate more buying This concept is mostl
32、y used by firms which have overcapacity. The aim is “to sell what they make” rather than “make what the market wants.” Short-term profits are more important (customer dissatisfaction may occur),Marketing Concept,Key to achieving organizational goals consists of being more effective than competitors
33、in creating, delivering and communicating customer value to target markets.4 pillars of modern marketing : Target market Customer needs Integrated marketing Profitability through customer satisfaction,Marketing and Sales Concepts Contrasted,Marketing Concept (cont.),Target market homogenous group of
34、 customers to whom the company wishes to appeal Customer needs Consumers may not be fully conscious of their needs It may not be easy to articulate these needs They may use words that require some interpretation Customer-oriented thinking to define customer needs from the customers point of view Sal
35、es revenue New customers + Repeat customers “Customer Retention” vs. “Customer Attraction” Customer satisfaction is a function of the product perceived performance and buyers expectations,Marketing Concept (cont.),Integrated Marketing Various marketing functions must work together for customer satis
36、faction (coordination of 4Ps; marketing mix elements) Marketing Mix controllable variables the company puts together to satisfy its target market(s). Product: Product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns Price: List price, discounts, allowan
37、ces, payment period, credit terms Promotion: Sales promotion, advertising, sales force, public relations, direct marketing Place: Channels, coverage, assortments, locations, inventory, transport,Marketing Concept - The 4 Ps,Marketing Concept - The 4 Ps The 4 Cs,Marketing Mix,Customer Solution,Custom
38、er Cost,Communication,Convenience,Marketing Concept (cont.),Integrated Marketing (cont.) Marketing must be well coordinated with other departments in the company;all departments have to work together to satisfy customers needs and wantsProfitability through customer satisfaction To achieve profits a
39、s a result of creating superior customer value,Selling Marketing.,“There will always be need for 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,
40、marketing should result in a customer who is ready to buy.”Peter Drucker,Customers,Front-line people,Middle Management,Top Management,Modern Marketing Concept Traditional Organization Chart,Modern Marketing Concept Customer-Oriented Organization Chart,Relationship Marketing Concept,Customer Relation
41、ship Management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers Relationship building blocks “customer value” and “customer satisfaction” “C
42、ustomer retention” and “customer loyalty” The intention to gain a greater proportion of an existing customers purchases over a long period (increase “consumer lifetime value”!),Relationship Marketing Concept,“Our slogan 5+Million More Smiling Customers is not about reaching sales targets but about w
43、hether we are able to provide greater satisfaction to a greater number of customers.The goal is to improve customer satisfaction which translates to an increased number of smiling customers.”Tokuichi Uranishi Executive Vice President, Toyota Motor Corporation,Connections With Customers Not All Custo
44、mers are Equal,Most marketers are targeting fewer, potentially more profitable customers. Asking: What value does the customer bring to the organization? Are they worth pursuing? customer profitability analysis Focus has shifted to: keeping current customers, and building lasting relationships based
45、 on superior satisfaction and value. It costs 5 to 10 times as much to attract a new customer as it does to keep a current customer satisfied.,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and Retention Share of Customer Customer Equity,Customer delight leads to em
46、otional relationships and loyalty Customer Lifetime Value (CLV) shows true worth of a customer,Key Concepts,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and Retention Share of Customer Customer Equity,Share of customers purchase in a product category. Achieved thr
47、ough offering greater variety, cross-sell and up-sell strategies.,Key Concepts,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and Retention Share of Customer Customer Equity,The combined customer lifetime values of all current and potential customers. Measures a fir
48、ms performance, but in a manner that looks to the future. Choosing the “best” customers is key,Key Concepts,Societal Marketing Concept,Companys negative effects on society Conflict between consumer wants and long-term social welfare Marketing managers should be concerned with social responsibility T
49、he societal marketing concept Companys task is to determine needs and wants of target markets & to satisfy them more effectively and efficiently than competitors -in a way that preserves or enhances the consumers and societys well-being.,Societal Marketing Concept,SocietalMarketing Concept,Company (Profits),Consumers (Want Satisfaction),Society (Human Welfare),Marketing Landscape,Growth of the Internet Advances in telecommunications, information, transportation Customer research and tracking Product development Distribution New advertising tools 24/7 marketing through the Internet,
