Markting Homework
Mic_Al
chapter_01.pptx
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
1
How would YOU define marketing?
Does MKTG apply to relig. denominations? Why/why not?
Cologne Cathedral
(Roman Catholic)
Baptist Church
(New England States)
New Synagogue, Berlin
(Jewish)
Great Mosque of Mecca, Saudi Arabia (Muslim)
Hagia Sophia, Istanbul [Constantinople),
Turkey [Byzantine Empire],
Christian: 537 – 1453 (fall of the empire/ conquered)
Muslim: 1453 – 1931
Museum: 1935 - present
AMA marketing definitions
1935:
MKTG is the performance of business activities that direct the flow of goods and services from producers to consumers
Emphasis?
Goods and services
From producers => to consumers
1935:
MKTG is the performance of business activities that direct the flow of goods and services from producers to consumers
Emphasis?
1935:
MKTG is the performance of business activities that direct the flow of goods and services from producers to consumers
Emphasis?
1935:
MKTG is the performance of business activities that direct the flow of goods and services from producers to consumers
Emphasis?
Food for thought: what is a business?
Let’s have a look at (click)
AMA marketing definitions
1985
MKTG is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives
Emphasis?
Process (dynamic aspect)
The 4 Ps
Ideas, goods, services
Exchanges
Satisfy indiv. and org. objectives
AMA marketing definitions
2004
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.
Emphasis here?
Organizational function (MKTG department)
Delivering value
Customer relationships
(not just the organization but also) stakeholders
2004
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.
Emphasis here?
AMA marketing definitions
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.
Emphasis?
MKTG is an activity (not just the realm of the MKTG department but the whole org.!)
Partners (not just a relationship but real partners)
Society at large (corporate citizenship; “we use solar energy to produce our goods”; Walmart donates to local community etc.)
AMA marketing definitions
“The American Marketing Association revisits the definition for marketing every five years in a disciplined effort to reflect on the state of the marketing field.”
AMA dictionary – very helpful!:
http://www.marketingpower.com/_layouts/dictionary.aspx?dLetter=M
Marketing Seeks to:
Exchange
Discover Needs and Wants of Customers
Satisfy Them
WHAT IS MARKETING? DELIVERING BENEFITS
LO1
AMA Definition of Marketing
1-10
10
WHAT IS MARKETING? DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
LO1
The Organization Itself and Its Departments
Society
Environmental Forces
1-11
http://www.youtube.com/watch?v=fViObqGvIjM
11
FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces
1-12
12
Consumers May Not Know or Cannot Describe What They Need or Want
consumer needs? => MKTG research
Most New Products Fail
“Focus on Consumer
Benefit = who cares?”
“Learn From the Past”
The Challenge:
Pepsi Max
LO2
1-15
"Zero calories, maximum taste" -- drops the word diet from its messaging altogether
What needs does it address?
15
Famous product failures
Need
Want
Does Marketing Persuade People to Buy the “Wrong” Things?
Market
HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS. WANTS
LO2
1-17
17
Click on pic
Needs and wants
Need
– “I am hungry”; basic necessity; Maslow’s pyramid; necessary for survival
Want
– sth I would like to have; shaped by personality, knowledge, culture
can MKTG influence needs? Wants? Both?
MKTG can discover needs & influence wants
FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program – what’s the problem with this chart?
1-20
20
How not to run your office….
HOW MARKETING SATISFIES CONSUMER NEEDS
LO3
Promotion
Place
Market – general; people
Target market – specific
The 4 P’s: Controllable Marketing Mix Factors
Product
Price
$199
1-22
22
The old & the new 4 P’s (Lusch & Vargo 2006)
Key word: co-creating!
(Extra)
Airport: ticket check-in
customization
The power of supply chain management; integration
Facebook etc.
HOW MARKETING SATISFIES CONSUMER NEEDS
LO3
Technological
Regulatory
Uncontrollable Environmental Forces
Social
Economic
Competitive
1-24
Can environmental forces be influenced?
Yes – by innovations
24
THE MARKETING PROGRAM CUSTOMER VALUE AND RELATIONSHIPS
LO4
Best Price - Walmart
Best Service - Verizon
Customer Value – where have we seen the term value before?
Best Product - Starbucks
Value Strategies – offering a unique combination of benefits
1-25
Exchange – trade of things of value
25
FIGURE 1-5 Four different orientations in the history of American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
Market Orientation
1-26
26
FIGURE 1-5 Four different orientations in the history of American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
Market Orientation
“need scanning”
– to create value
1-27
Satisfy needs – org. goals
“Produce it –they will buy it”
Competition grows; “pushing” products on consumers
Intimate understanding of consumers
27
(Extra)
HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION
LO5
Customer Relationship Management (CRM)
Key development: from transactional => relational MKTG
Customer Experience
What Firms Think They Offer Customers
What Customers Say They Receive
1-29
29
HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY
LO5
Ethics – see lecture on chapter 4
Social Responsibility see chapter 4
Societal Marketing Concept
Social Entrepreneurship
1-30
30
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
LO5
Who Buys & Uses What Is Marketed?
Ultimate Consumers => B2C
Organizational Buyers => B2B
How Do Consumers Benefit?: Utility
Form Utility - production
Place Utility – avail. Where needed
Time Utility – avail. When needed
Possession Utility – easy to purchase & use; delivery
1-31
31
Remember this?
Food for thought - how do these groups fit into Maslow’s pyramid?
American Baptist Foreign Mission Society
