Overview of Marketing

MKT 337
Principles of Marketing

Agenda
Defining Marketing
Marketing Management Philosophies
Production, Sales, Marketing & Societal Orientations

The Marketing Process

What is Marketing?

AMA Definition of Marketing

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.

Creating, Communicating, & Delivering Value

Creating
Value

Customer
Customervalue
value
and
andbeneficial
beneficial
relationships
relationships
o
Pr

ct
u
d

Pl
ac
e

Exchange
A
B
Delivering
Value

Pr
ice

io
ot
om
r
P

Communicating
Value

Why is Marketing So Important?

By virtue of who and what is involved:
Everyone is involved somehow, at multiple levels
Enormous levels of resources are at stake
Competition is fierce

Balancing needs of various stakeholders:

Customers
Investors/shareholders
Employees
Community
Society

Marketing & Brand Equity

Most Valuable Global Brands 2014
Google
$158.4 Billion
Apple
$147.9 Billion
IBM
$107.6 Billion
Microsoft
$90.2 Billion
McDonalds
$85.7 Billion
Coca-Cola
$80.7 Billion
Visa
$79.2 Billion
AT&T
$77.9 Billion
Marlboro
$67.3 Billion
Amazon.com
$64.3 Billion
Source: Millward Brown

+ 40%
- 20%
- 4%
+ 29%
- 5%
+ 3%
+ 41%
+ 3%
- 3%
+ 41%

The Marketing Concept

An organizations role is to satisfy
customer wants and needs while
meeting organizational objectives.

The Marketing Concept

Fundamentally, marketing includes 2
core activities:
1. Discover customers needs
2. Satisfy customers needs

With the ultimate responsibility of

generating revenue for the
organization
Note: Customers could be consumers or business buyers

The Marketing Process

Conditions for Exchange

At
AtLeast
LeastTwo
TwoParties
Parties
Something
Somethingof
ofValue
Value

Conditions
Conditionsfor
for
Exchange
Exchange

Communication
Communicationand
andDelivery
Delivery
Freedom
Freedomto
toAccept
Acceptor
orReject
Reject
Desire
Desireto
toDeal
Dealwith
withOther
Other
Party
Party

Perceived Value

Marketing Management
Philosophies

Marketing Management Philosophies

A Quick History Lesson

Marketing Management Philosophies

Orientation
Production

Sales

Market

Societal

Focus is on

Marketing Management Philosophies

Orientation

Focus

Production
Production

What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?

Sales
Sales

How
Howcan
canwe
wesell
sellmore
moreaggressively?
aggressively?

Marketing
Marketing

What
Whatdo
docustomers
customers
want
wantand
andneed?
need?

Societal
Societal

What
Whatdo
docustomers
customerswant/need,
want/need,and
and
how
howcan
canwe
webenefit
benefitsociety?
society?

Sales vs. Market Orientations

Customer Satisfaction

The customers evaluation of a

good or service in terms of
whether that good or service
has met their needs and
expectations.

Relationship Marketing
A strategy that focuses on
keeping and improving
relationships with customers.
Successful relationship marketing
strategies depend upon:
Customer-Oriented Personnel
Effective Training Programs
Empowered Employees
Teamwork

Customer Relationship Management

A company-wide business
strategy designed to optimize
profitability, revenue and
customer satisfaction by
focusing on highly defined and
precise customer groups.
Accomplished by:
Organizing around customer segments
Establishing and tracking customer interactions
Fostering customer-satisfying behaviors
Linking company processes

The Marketing Process

The Marketing Process

Some key questions we consistently ask:
Who are our customers?
How do we discover and satisfy their needs?
and do so better than competitors
while remaining profitable
in the short term and long term
in an ethical & responsible manner

The Marketing Process

Vital
Vital Marketing
MarketingActivities
Activities
Assess
Assessthe
thewants
wantsand
andsatisfaction
satisfactionof
ofcustomers
customers
Design
Designand
andmanage
manageproduct
productofferings
offerings
Determine
Determineprices
pricesand
andpricing
pricingpolicies
policies
Develop
Developdistribution
distributionstrategies
strategies
Communicate
Communicatewith
withpresent
presentand
andpotential
potentialcustomers
customers

The Marketing Process

Analyzing
the Situation

Strategic
Strategic
Planning
Planning

Marketing
Marketing
Environment
Environment

Buyer
Buyer Behavior
Behavior

Segmentation
Segmentation -- Targeting
Targeting -- Positioning
Positioning

Creating
Value
Product
Product

Place
Place

Promotion
Promotion

Price
Price

Price
Price

Capturing
Value
Customer
Customer Relationships
Relationships
Marketing
Marketing
Research
Research

Global
Global
Marketing
Marketing

Ethics
Ethics &
& Social
Social
Responsibility
Responsibility

The Breadth & Depth of Marketing

Who markets?
Companies
Political
organizations
Governments
Individuals

What is marketed?
Products
Services
Ideas

To whom?
Industrial
buyers
Consumers
Ultimate users