26-09-2011

MarketingWhats It All About?

More than Selling and Advertising

? Marketing ?
Provides consumers with need-satisfying goods & services

CUSTOMER SATISFACTION!!!
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What Is Marketing?
American Marketing Association (AMA) Definition Marketing 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 goals

Define the term marketing

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Marketing Is Important to You!

Important to every consumer! Important to every consumer! - YOU pay for the cost of marketing activities

Important to your job! Important to career youropportunities job! - Many exciting & rewarding

Affects economic growth! -Fuller employment, higher incomes, higher standard of living

Achieving a Market Orientation

What are Consumers Needs, Wants and Demands?

Obtain information about customers, competitors, and markets Examine the information from a total business perspective Determine how to deliver superior customer value

Implement actions to provide value to customers

Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink. Demands - human wants backed by buying power. i.e. I have money to buy this meal.

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What Will Satisfy Consumers Needs and Wants?

Products

Customer Value
The ratio of benefits to the sacrifice necessary to obtain those benefits

Anything that can be Offered to a Market to Satisfy a Need or Want

Experiences Persons Places

Organizations

Information

Ideas

Services

Activities or Benefits Offered for Sale That Are Essentially Intangible and Dont Result in the Ownership of Anything

Customer Value Requirements

What is Customer Satisfaction?

Customer satisfaction is the extent to which a firm fulfills a consumers needs, desires, and expectations As some needs are met, others may become more important Expectations may change based on experiences
Satisfying experiences may lead to increasing expectations Disappointing experiences may reduce expectations Expectations may be realistic or unrealistic

Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support

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Maintaining Customer Satisfaction

Relationship Marketing
The name of a strategy that entails forging long-term partnerships with customers, both individuals & firms.

Meet or exceed customers expectations Focus on delighting customers Provide solutions to customers problems Cultivate relationships, NOT one-time transactions

Relationship Marketing

Building Long-Term Relationships

Customer-oriented personnel Effective training programs Empowered employees Teamwork

Who are your customers?

What do customers value?

What do they want to buy?

Requirements for Building Relationships

How do they prefer to interact?

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Marketing Plan Process

Business Mission Statement Objectives

Environmental Scanning
Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation.

Situation or SWOT Analysis

Marketing Strategy Target Market Strategy

Marketing Mix
Product Promotion Distribution Price

Implementation Evaluation Control

Environmental Scanning

Marketing Strategy
The activities of selecting and describing one or more TARGET MARKETS and developing and maintaining a MARKET MIX that will produce mutually satisfying exchanges with target markets.

Examination of macroenvironmental forces Social Demographic Economic Technological Political / Legal Competitive Helps identify market opportunities Provides guidelines for design of marketing strategy

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Marketing Mix: The Four Ps

Price

Product Strategies
The starting point of the 4 Ps Product Includes physical unit, package, warranty, service, brand, image, and value

Promotion Place Product

Distribution (Place) Strategies

Place Product availability where and when customers want them.

Promotion Strategies
Role is to bring about exchanges with target markets Promotion Includes integration of personal selling, advertising, sales promotion, and public relations

Involves all activities from raw materials to finished products

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Pricing Strategies
The most flexible of the 4 Ps Price Price X Units Sold = Total Revenue

Things a Firm Should Do in Producing a Product

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

Eg. A bike

Why Study Marketing?

Plays an important role in society Vital to business survival, profits & growth Offers career opportunities Affects your life every day

Why Study Marketing?

Marketing is far too important to be left only to the marketing department. --David Packard
Hewlett-Packard

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Why Study Marketing?

1/4th to 1/3rd of the civilian workforce performs marketing activities Fast route up the corporate ladder

Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling

The End
See you on Wednesday Evening!