01 badm 320 overview of marketing

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What do you think marketing is?Tweet #woltersworld

www.woltersworld.comOverview of Marketing1


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Chapter 1 GrewalProf. Mark Wolters

BADM 320: Principles of Marketingwww.woltersworld.com

Overview of Marketing

www.woltersworld.com

2 Overview of Marketing
http://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.twitter.com/woltersworldhttp://www.youtube.com/woltersworld


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TodayAdministration Issues,

What is marketing,

The 4 Ps of marketing,

A bit on the history of marketing, Value based marketing,

Why is marketing important?

What topics from class you would like summary

videos for,

www.woltersworld.com3 Overview of Marketing


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Administration Issues I cannot enroll you in the class,

I do not have the override to put anyone in the class,

The College informed me that anyone that did not meetthe prerequisites would be dropped from the class and Icannot override the College,

If you have issues talk to Jeff Headtke the academicadviser for the Department of Business Administration,3rd floor Wohlers,

Viral Marketing is full,

If you are interested in taking part send me an email([email protected]) and if anyone drops out I will giveyou their video,

If you do not want to take part PLEASE let me know so Ican give to other students to earn Extra Credit,


mailto:[email protected]:[email protected]


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Administration Issues Bought different versions of the book?

Each slide set will have the title of the chapter on itsTitle Slide,

Non-Profit Marketing Plan Extra Credit,

I have spoken to a few non-profits and they wouldlove your help, so if you do not have a non-profit towork for, we have some for you,

Please subscribe towww.youtube.com/woltersworld

Please subscribe to www.twitter.com/woltersworld

Please Like Wolters World on Facebook,

Exam & class questions Email:

[email protected] Viral Marketin Questions: mwolter illinois.edu


http://www.youtube.com/woltersworldhttp://www.twitter.com/woltersworldmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.twitter.com/woltersworldhttp://www.youtube.com/woltersworld


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What do you think marketing is?Tweet #woltersworld



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What is marketing?


Definition AMA: marketing is the activity, set ofinstitutions, and processes for creating, capturing,communicating, delivering, and exchanging offeringsthat have value for customers, clients, partners andsociety at large. Everything it takes to get a product from idea to clients

hand,

The Core Aspects of Marketing, Satisfying Customer Wants & Needs,

An Exchange, goods/services for $$$, The Marketing Mix (4Ps of Marketing),

Can be performed by individuals or organizations,

Marketing occurs anywhere,

Marketing helps create value,

It is not just selling & promoting,


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Determine Customers Needs &Wants & Satisfy Them!


We need to determine who our clients should be,

Then we figure out how they tick,

What do they want from our product?

What do they need from our product?

How do they buy our product?

Why do they buy our product?

Find your niche & you can be a success,

Target those who WANT your product as well asthose that can AFFORD your product,

And deliver on those wants & needs,


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Basics of Segmentation, Targeting &Positioning


MarketSegmentation

Divide up the market into smaller submarkets (find your niche) Base submarkets on certain criteria Wants & Needs, Purchasing

Behavior, Demographics, Psychographics & Many More

TargetMarketing

Evaluate each market segment Decide on which markets are most worthy of investing who can

afford your product/service/idea,

Positioning

Communicating sources of value to customers, connect to needsand wants of specific market

Develop unique marketing mixes for specific groups


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Determine Customers Needs &Wants & Satisfy Them!


We cannot sell our products to everyone, andeven if we could we may not want to,

Does Ferrari want to see a Ferrari in every house?Or does it want to keep an air of exclusivity?

See the Mercedes Brand, A-Class vs SLR, hashaving cheaper cars hurt their brand image?


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What do you Need from your phone & what doyou Want from your phone #woltersworld



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What Phone Do You Have & Why? Does itsatisfy your needs/wants? #woltersworld



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Marketing Entails an Exchange


The exchange ofthings of valuebetween a buyer & aseller,

You buildrelationships up viaexchanges in order toget people to comeback for more,

Customer servicegoes into marketing,Good Service =Returning Customer =

More $$$,


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Decisions on the 4 Ps ofMarketing


The Marketing Mix isthe KEY part ofdetermining yourproduct/servicesdelivery and perception

to customers, Product Creates

value,

Price captures the

value of the product, Place delivers that

value to the customer,

Promotioncommunicates thevalue,


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4Ps Product: Creating Value


We have to have a product/service/idea to sell, Product tangible/physical good to sell

Cars/Shoes/Phones,

Service intangible Accounting Services, Travel

Guide, Education, McKinley Health Center, Ideas philosophies/opinions/programs Use a

Wolters World video on Top 10 Munich to have abetter time at Oktoberfest, by using the information

in the video they purchased the ideas, Think Public Service Announcements,


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Why does Apple have all theseproducts & who are they for?

www.woltersworld.com16 Overview of Marketing


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iPhone 5 vs iPhone 4S vs iPhone 4Tweet #woltersworld


iPad 2, The New iPad,

iPhone 4,

iPhone 4S, iPhone 5,

Macbook Pro,

Macbook Air,

iPod Touch,

iPod Nano,


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4Ps Price: Capturing Value


Price is everything a buyer gives up to obtain yourproduct,

The money, time, effort, energy, etc,

It depends on the perception of Value,

$1000 to New York, is it a good price? 7 nights in 4 star hotel included & transfers, YES!

Just flight from Champaign to New York, Maybe Buy it fortomorrow $946, how much is it today? But 6 weeks ago, NOnot a good price,

We must look at what the customer feels is a good

price, Historical prices, substitute products, ability to pay, quantity,

quality, etc.

Xbox free with a PC, but I already have a Wii ($50 a game)


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4Ps Place: Delivering the ValueProposition


Everything it takes to get the product (value) tothe right customer, when they want it,

Supply Chain: right amounts, right place, rightstores, right times, no excuses, excuses = lost

customers, I want Svyturys (Lithuanian beer) & Vinho Verde

(Portuguese green wine) Binnys did not have itwhen I went there, Friar Tuck did, I now only go to

Friar Tuck to get alcohol,


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4Ps Promotion: Communicating theValue Proposition


Even the Best Products Dont sell unless they arepromoted!

We need to promote the value of the product topeople in order to drum up interest, create value, ifcustomers do not know why they need our productwhy will they want to buy it? Facebooks IPO road show was so successful that they

were able to raise the IPO price (though it is at half itsvalue now),

Budweiser promoted Bud Light Platinum on the SuperBowl to get the word out,

Papa Johns Monday Specials,

Promotion is the most common idea people haveabout marketing,

Product = engineers, Price = accountants, Place =lo istics Promotion = advertisin /marketin


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Some Commercials


Santa Claus & Coke http://www.youtube.com/watch?v=lG-BTP91o0g

Mac vs PC Windows 7

http://www.youtube.com/watch?v=9DWLyrljLDk

Fiat

http://www.youtube.com/watch?v=VdS1Mgu11vg
http://www.youtube.com/watch?v=lG-BTP91o0ghttp://www.youtube.com/watch?v=9DWLyrljLDkhttp://www.youtube.com/watch?v=VdS1Mgu11vghttp://www.youtube.com/watch?v=VdS1Mgu11vghttp://www.youtube.com/watch?v=9DWLyrljLDkhttp://www.youtube.com/watch?v=lG-BTP91o0ghttp://www.youtube.com/watch?v=lG-BTP91o0ghttp://www.youtube.com/watch?v=lG-BTP91o0g


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What do these commercials promote?#woltersworld



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Marketing is done by individuals &the firm


B2B Marketing: Selling products from a Business toanother Business. Supplies: Goodyear sells tires to Ford, Farmer Bob sells

tomatoes to Subway, Products: Wolf Ovens to Home builders, Apple sells

iPads to Wal-Mart,

B2C Marketing: Selling products from a Business toConsumer, Buy your phone at AT&T, your jeans at Old Navy, Text

books from Amazon,

C2C Marketing: Consumers selling their products toother consumers, Sell iPhone on ebay (you already bought the product &

used it now you are selling it), selling your BADM 320notes to your friends (you purchased the knowledge bybeing here),


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Marketing impacts variousstakeholders


Marketing effects not only sales, but otheraspects of the company,

Employment marketing: PWC BBQ for students(because they love you or because they want to

WOW you?), Industry marketing: Got Milk ads,

Retailers: Black Friday Sales designed bymarketing team, they need to know what to stock up

on, (Supply chain),


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A Brief History of Marketing


Production Based: until 1920s: Henry Fordwe make it, they buy it, Customers canhave any color they want so long as itsblack

Sales Based: 1930s-50s: Door to DoorSales Hoover-Man,

Market-Oriented: 60s-90s: customer is king!

Value Based: Today: finding value inproducts from a consumers perspective andmarketed towards those perceived feelingsof value with competitive offerings,

Sams Club Bulk amounts (Value), $1 Menu atMcDonalds,


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Value Based Marketing


What is value?A deal? Lowest price? Price/quality ratio?

What people perceive as value changes constantly, $1000 DVD player Marks U of I days, $25 today, New competitors change things, Nokia got nailed by Apple &

Samsung, My buddy got a deal on a car, that is my new perceived value,

How do we become value driven? Share information on trends, competitors, customers,

suppliers throughout the firm: helps coordinate ways topromote the value of our products in comparison to all,

Balance Benefits with Cost: keep up on needs/wants &know the balance, Southwest airlines/Ryanair = dirt cheap,

not main airport, but for $35 bucks I dont care. Build relationships with customers: collect all info can

on customers to deliver a tailored experience, so theycome back, people value those relationships,


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Why marketing is important


It helps us expand globally: We know ourselves and what are local customers want, well

we can do that same analysis on our global customers andbecome a success, We know all the things the product/service offers & ways to sell

it, promote it, etc,

Marketing flows throughout the Supply chain:

How much we sell (or plan to sell) influences our relationshipswith suppliers, manufactures, logistics, retailers, consumers, Why does apple always have hip adds? So everyone

associated with selling anything Apple can feel hip as welland convey that,

Spurs on Entrepreneurs: they see a need/want not met &they satisfy it! Jeff Bezos: Amazon (shopping from home via this new internet

thing), Reed Hastings: Netflix (its snowing out there! Im not going to

Blockbuster),

Mark Wolters: Wolters World: There are no travel guides thattell you the bad parts of where you go,


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Questions?

Comments?

I would not leave quite yet



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Questions to think about


What is the difference between a need & a wantfor customers?

What are the 4 Ps of marketing & explain them?

Think of the iPhone, iPad, iPod, how are the 4 Psdifferent & similar for each of these products, why,and for whom would a retailer try to sell each ofthese different products?

Explain the differences between B2B, B2C & C2Cmarketing,

What are the core aspects of marketing?

How does marketing create value?


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Which Topics Do You Want Videos From?#woltersworld

www woltersworld comOverview of Marketing31

01 badm 320 overview of marketing

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