Chapter 1

1. Chapter 1 Defining Marketing for the Twenty-First Century PowerPoint by Karen E. James Louisiana State University - Shreveport To accompany A Framework for Marketing Management, 2nd Edition

2. Objectives • Understand the new economy. • Learn the tasks of marketing. • Become familiar with the major concepts and tools of marketing. • Understand the orientations exhibited by companies. To accompany A Framework for Marketing Management, 2nd Edition

3. Objectives • Learn how companies and marketers are responding to new challenges. To accompany A Framework for Marketing Management, 2nd Edition

4. The New Economy • Consumerbenefits from the digital revolution include: • Increased buying power. • Greater variety of goods and services. • Increased information. • Enhanced shopping convenience. • Greater opportunities to compare product information with others. To accompany A Framework for Marketing Management, 2nd Edition

5. The New Economy • Firmbenefits from the digital revolution include: • New promotional medium. • Access to richer research data. • Enhanced employee and customer communication. • Ability to customize promotions. To accompany A Framework for Marketing Management, 2nd Edition

6. Marketing Tasks • Marketing practices may pass through three stages: • Entrepreneurial marketing • Formulated marketing • Intrepreneurial marketing • As marketing becomes more formulated, creativity is inhibited. To accompany A Framework for Marketing Management, 2nd Edition

7. Goods Services Experiences Events Persons Places Properties Organizations Information Ideas What Can Be Marketed? To accompany A Framework for Marketing Management, 2nd Edition

8. Marketing Defined • Kotler’s social definition: “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.” To accompany A Framework for Marketing Management, 2nd Edition

9. Marketing Defined • The AMA managerial 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 objectives.” To accompany A Framework for Marketing Management, 2nd Edition

10. Target markets and market segmentation Marketplace, market-space, metamarkets Marketers & prospects Needs, wants, demands Product offering and brand Value and satisfaction Exchange and transactions Relationship and networks Marketing channels Supply chain Competition Marketing environment Marketing program Core Marketing Concepts To accompany A Framework for Marketing Management, 2nd Edition

11. Core Marketing Concepts • Target markets & segmentation • Differences in needs, behavior, demographics or psychographics are used to identify segments. • The segment served by the firm is called the target market. • The market offering is customized to the needs of the target market. To accompany A Framework for Marketing Management, 2nd Edition

12. Core Marketing Concepts • Shopping can take place in a: • Marketplace (physical entity, Lowe’s) • Marketspace (virtual entity, Amazon) • Metamarkets refer to complementary goods and services that are related in the minds of consumers. • Marketers seek responses from prospects. To accompany A Framework for Marketing Management, 2nd Edition

13. Core Marketing Concepts • Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment. • Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food) • Demands are wants for specific products backed by an ability to pay. To accompany A Framework for Marketing Management, 2nd Edition

14. Core Marketing Concepts • A Product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source. • When offerings deliver value and satisfaction to the buyer, they are successful. To accompany A Framework for Marketing Management, 2nd Edition

15. Enhancing Value • Marketers can enhance the value of an offering to the customer by: • Raising benefits. • Reducing costs. • Raising benefits while lowering costs. • Raising benefits by more than the increase in costs. • Lowering benefits by less than the reduction in costs. To accompany A Framework for Marketing Management, 2nd Edition

16. Core Marketing Concepts • Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur. • Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. To accompany A Framework for Marketing Management, 2nd Edition

17. Core Marketing Concepts • Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders. To accompany A Framework for Marketing Management, 2nd Edition

18. Marketing Channels Communication channels Distribution channels Service channels Deliver messages to and receive messages from target buyers. Includes traditional media, non-verbal communication, and store atmospherics. Core Marketing Concepts To accompany A Framework for Marketing Management, 2nd Edition

19. Marketing Channels Communication channels Distribution channels Service channels Display or deliver the physical products or services to the buyer / user. Core Marketing Concepts To accompany A Framework for Marketing Management, 2nd Edition

20. Marketing Channels Communication channels Distribution channels Service channels Carry out transactions with potential buyers by facilitating the transaction. Core Marketing Concepts To accompany A Framework for Marketing Management, 2nd Edition

21. Core Marketing Concepts • A supply chain stretches from raw materials to components to final products that are carried to final buyers. • Each company captures only a certain percentage of the total value generated by the supply chain. To accompany A Framework for Marketing Management, 2nd Edition

22. Core Marketing Concepts • Four levels of competition can be distinguished by the level of product substitutability: • Brand competition • Industry competition • Form competition • Generic competition To accompany A Framework for Marketing Management, 2nd Edition

23. Core Marketing Concepts • The following forces in the broad environment have a major impact on the task environment: • Demographics • Economics • Natural environment • Technological environment • Political-legal environment • Social-cultural environment To accompany A Framework for Marketing Management, 2nd Edition

24. Core Marketing Concepts • The marketing program is developed to achieve the company’s objectives. Marketing mix decisions include: • Product: provides customer solution. • Price: represents the customer’s cost. • Place: customer convenience is key. • Promotion: communicates with customer. To accompany A Framework for Marketing Management, 2nd Edition

25. Company Orientations • The orientation or philosophy of the firm typically guides marketing efforts. Several competing orientations exist: • Production concept • Product concept • Selling concept • Marketing concept • Customer concept • Societal marketing concept To accompany A Framework for Marketing Management, 2nd Edition

26. The Marketing Concept • Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value. • Four pillars of the marketing concept: • Target market • Customer needs • Integrated marketing • Profitability To accompany A Framework for Marketing Management, 2nd Edition

27. Changes in the Marketplace • Globalization, technological advances, and deregulation have created many challenges: • Customers • Brand manufacturers • Store-based retailers • Both companies and marketers have been forced to respond and adjust. To accompany A Framework for Marketing Management, 2nd Edition