Outline for presentation

1. Outline for presentation • Introduction of course and background • Introduction of marketing e-book • How will the course be conducted? • What is marketing? • What are different ways in which firms can be ‘oriented to doing business?’ • What is the marketing concept? • What are some critical marketing tools • the marketing mix • marketing strategy • market segmentation

2. MK 300-002 – Spring 2002 Dr. Lex Higgins Overview of class August 2002

3. Outline for presentation • Introduction of course and background • Introduction of marketing e-book • How will the course be conducted? • What is marketing? • What are different ways in which firms can be ‘oriented to doing business?’ • What is the marketing concept? • What are some critical marketing tools • the marketing mix • marketing strategy • market segmentation

4. Introduction of course and background • Principles of marketing is a required course for business majors and others • The purpose of the course is to familiarize you with core concepts (principles) that define what marketing is and how it is ‘done’

5. Exercise - What is marketing, really? How do you think Marketing is defined in most companies? Form a definition based on your perception and write your definition down.

6. What is marketing, really? How is it defined in business and academics?

7. Definitions of marketing • American Marketing Association: “the performance of business activities directed toward, and incident to, the flow of goods and services from producer to consumer or user.” (1948) • American Marketing Association: “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.” (1985)

8. Definitions of marketing(continued) “Marketing is the process of establishing and maintaining mutually beneficial exchange relationships with customers and other stakeholders” (Nickels and Wood, 1997) “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others” (Kotler 1997) “Marketing is the conceptualization and profitable delivery of customer satisfaction” (Higgins 1992)

9. A quote from Peter Drucker on marketing “There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him (or her) and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.”

10. Three different orientations to managing marketing activities • Production orientation • Sales or Promotion Orientation • Marketing Orientation

11. Marketing activities under production orientation • firm assumes that customers value low cost products that are widely available • firm focuses on maintaining high production efficiency • marketing management focuses on distribution • metrics: cost of product creation • functional Leadership: Operations

12. Marketing activities under selling orientation • firm assumes that customers must be led, or, if necessary, coerced to buy • marketing management focuses on aggressive selling and promotion efforts • firm is sales management/promotion led • Metrics focus on sales lead conversion and number of new customers • Functional leadership: Finance

13. The marketing concept: a philosophy of doing business • Meet customer needs - focus on providing customer satisfaction • Meet organizational goals • Coordinate marketing activities - the marketing mix: product, price, promotion, and distribution • Do these three better than the competition

14. Group Exercise • Identify a retail firm that you think subscribes to the marketing concept • explain your answer by describing the company point by point following the dimensions of the marketing concept • Identify a retail firm that you think does not subscribe to the marketing concept • explain your answer by describing the company point by point following the dimensions of the marketing concept

15. Marketing activities under marketing orientation • firm assumes that customers’ needs must be discovered and met • marketing management focuses on understanding the market segmentation process and what brings targeted customers satisfaction • although company needs must be met, firm is customer needs driven not company needs driven • marketing activities are coordinated • firm focuses on outperforming the competition

16. Marketing activities under marketing orientation • “Love your customer not your product” • “Find a need and fill it” • “Meet customer needs profitably” • “Have it your way”

17. shared beliefs and values: put customer first strategy development process:external orientation, competitive advantage as theme organization structure and systems: mirrors the market, team-based supporting programs and actions: people, incentives, communications the four above are based on superior skills in understanding and satisfying customers Dimensions of market driven management

18. distinctive capabilities of market driven firms • a set of values that place customers first • the ability to manage information effectively (knowledge management) • successful interfunctional coordination

19. where process begins: factory what is focus:sell products how is marketing performed: selling and promotion why: meet company goals where process begins: target market what is focus: meet customer needs how is marketing performed: integrated marketing why: meet customer needs and company goals Selling orientation versus marketing orientation

20. Exercise Instructions: Based on our discussion of the marketing concept and market driven management describe how you would assist a firm in changing its orientation from selling orientation to marketing orientation.

21. Exercise Instructions: Based on our discussion of the marketing concept and market driven management describe how you would assist a firm in changing its orientation from product orientation to marketing orientation.

22. definition of consumer marketing the marketing of products to people for their own, personal nonbusiness use

23. definition of business-to- business marketing the study of markets for product and services, local to international, bought by businesses, government bodies, and institutions for incorporation, for consumption, or for resale

24. Market segmentation The practice of dividing markets into distinct, different submarkets that have different needs regarding the elements of the marketing mix

25. Marketing Strategy A marketing strategy is a marketing mix that is designed for and aimed at a predetermined target market Potential Target markets Product/service Price Promotion Place (Distribution) Segment 1 Segment 2 Segment 3 Segment 4

26. The marketing management tool box: the marketing mix (or “four p‘s”) • Product or service (what benefits target market customers are seeking delivered in the way they prefer) • Price (value = benefits minus costs) • Distribution (right time and right place) • Promotion (right communication: inform, persuade, remind)

27. Impact of “e-business” on marketing • Underlying model the same - people still exchange value for value • Delivery mechanism radically different - that is, how the value is exchanged and delivered is different (local bookstore versus Amazon.com, for example) • Every business should assess the impact of e-business on its operations