Marketing 1

BBA 3201, Principles of Marketing 1

Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Discuss the importance of determining value proposition of the consumer. 1.1 Explain through a company’s offerings how a value proposition is

provided to the consumer.

2. Describe behaviors in marketing that impact social responsibility. 2.1 Assess how changes in the business environment will affect an

organization’s level of social responsibility.

3. Describe the impact that changes in the external business environment have on an organization. 3.1 Assess how changes in the business environment will affect an

organization using the PEST Analysis tool.

Unit Lesson What is marketing? A large percentage of the population views marketing as advertising or selling or even the commercials you see on television. While these are included in marketing, in actuality, marketing is so much more than this. Marketing, as defined by the American Marketing Association (2013), 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. The marketing function is completed by a variety of individuals including not only the marketing department, but also the producers, wholesalers, retailers, transport firms, product testing firms, research firms, and advertising agencies. The concept of value proposition is discussed at length within marketing circles. To better understand this concept, let’s discuss this through the consumer’s point of view. The customer value, or value proposition, is the difference between the benefits that a customer receives from an offering and the costs of obtaining those benefits. Obviously, different customers will view the benefits and costs in different ways. A marketer will look to identify the group of customers that is the most interested in their product/service. This group is identified as the target market. Focusing on the customer value of this particular group will provide for the most effective means of allocating the scarce marketing dollars as well as a means to maximize the value proposition of the target market. At the end of the day, this system will also develop a greater relationship with the customer forging towards current and future allegiance to the company. This concept can also be applied to non-profit organizations, as satisfied customers will provide additional funding and support to the organization. Marketing strategy planning suggests that a marketer will review the marketing management process as they look to plan marketing activities, implement the plans, and control these plans (Perreault, Cannon, & McCarthy, 2015). The specifics of these activities are included in the below chart:

Reading Assignment Chapter 1: Marketing’s Value to Consumers, Firms, and Society Chapter 2: Marketing Strategy Planning Chapter 3: Evaluating Opportunities in the Changing Marketing Environment

Suggested Reading See information below.

UNIT I STUDY GUIDE

Introduction to Marketing

BBA 3201, Principles of Marketing 2

PLANNING  Establishing mission, vision, and objectives

 Evaluating opportunities and areas for which the organization may fulfill customer needs

 Creating marketing strategies through the use of the four Ps (marketing mix)

 Preparing the marketing plan

 Developing the entire marketing program

IMPLEMENTATION  Executing or putting the plan into action

CONTROL  In order to understand the relative effectiveness of the marketing strategies, measurable goals must be established.

 Evaluation of these goals to the previously established measurable goals will determine the overall effectiveness of the marketing plan.

The crux of marketing strategy begins with the target market as the marketer looks to apply the controllable factors of the marketing mix (four Ps) to the development of an effective overall marketing strategy for the organization. The marketing mix consists of the product, price, place, and promotion. The general idea is to identify the right product or service at the right price at the right place with the right amount of promotion. Included in the segment of product is the physical good or service or possibly a combination of product and service. Think of a restaurant that offers not only the food as a physical product but also offers the service of preparing and serving the food to the customer. Additional attributes of the product would be the specific features, benefits, level of quality, accessories, installation, instructions, warranty, packaging, and finally the branding qualities. Within the second segment of price, the pricing objectives, flexibility of the pricing model, geographic terms, allowances, and other discount allowances are included. Within the place segment, the method of getting the product from the manufacturer to the target market customer is analyzed. This might include a variety of different types of intermediaries, locations of stores, transportation, and storage needs. Within the final segment of promotion, the promotional blend is discussed including advertising, publicity, sales promotions, use of salespeople, and media strategies. While this planning provides a good overview of the controllable elements, what about the uncontrollable elements? Uncontrollable factors might include industry fluctuations, competitive movement, or changes in the external business environment. These might involve changes in the political/legal environment, economic environment, socio-cultural environment, or even within the technological environment. With its beginning as a management tool, the PEST Analysis has become a highly used method to analyze uncontrollable conditions within the business environment that will impact the organization as a whole as well as the marketing strategies. Beginning with the changes in the political and legal arena, this might include new laws and legislation, regulatory changes, political party changes, or even a feeling of nationalism. Laws might include those enforced by the Federal Trade Commission (FTC), Food & Drug Administration (FDA) or even the Consumer Product Safety Commission. Changes in the economic arena could involve consumer spending habits, interest rates, or any other economic factor involving the general health of the economy. A good example of this might be the condition of businesses during the 2008 economic downturn in the United States. The changes in the socio-

BBA 3201, Principles of Marketing 3

cultural environment might be best approached from the changing demographic make- up of the United States that will ultimately lead to cultural preferences. The characteristics of the population growth will have a significant impact on the marketing of an organization. Finally, as technology continues to advance, this will have a significant impact on the world around us. Whether it be the marketing strategies or the overall operation of the organization, technology is changing the ways we do things.

References

American Marketing Association (2013, July). Definition of marketing. Retrieved from:

https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx Perreault, W., Jr., Cannon, J., & McCarthy, J. (2015). Essentials of marketing: A

marketing strategy planning approach (14th ed.). New York, NY: McGraw-Hill.

Suggested Reading While viewing these PowerPoint presentations is not required, it is highly recommended. Doing so will provide you with a significantly greater level of understanding of basic marketing concepts. Click here to access a PowerPoint presentation of the Chapter 1 material. Click here to access a PDF version of this presentation. Click here to access a PowerPoint presentation of the Chapter 2 material. Click here to access a PDF version of this presentation. Click here to access a PowerPoint presentation of the Chapter 3 material. Click here to access a PDF version of this presentation.