outline for presentation zintroduction of course and background zintroduction of marketing e-book...

Outline for presentation

Introduction of course and background Introduction of marketing e-bookHow 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

MK 300-002 – Spring 2002Dr. Lex Higgins

Overview of classAugust 2002

Outline for presentation

Introduction of course and background Introduction of marketing e-bookHow 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

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’

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.

What is marketing, really?

How is it defined in business and How is it defined in business and academics? academics?

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)

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)

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.”

Three different orientations to managing marketing activities

Production orientationSales or Promotion OrientationMarketing Orientation

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

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 ledMetrics focus on sales lead conversion and

number of new customersFunctional leadership: Finance

The marketing concept: a philosophy of doing business

Meet customer needs - focus on providing customer satisfaction

Meet organizational goalsCoordinate marketing activities - the

marketing mix: product, price, promotion, and distribution

Do these three better than the competition

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

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

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”

shared beliefs and values: put customer firststrategy development process:external

orientation, competitive advantage as themeorganization structure and systems: mirrors

the market, team-basedsupporting programs and actions: people,

incentives, communications the four above are based on superior skills in

understanding and satisfying customers

Dimensions of market driven management

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

Selling orientation versus marketing orientation

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

Exercise

Instructions: Based on our discussion of themarketing concept and market drivenmanagement describe how you wouldassist a firm in changing its orientation from selling orientation to marketing orientation.

Exercise

Instructions: Based on our discussion of themarketing concept and market drivenmanagement describe how you wouldassist a firm in changing its orientation from product orientation to marketing orientation.

definition of consumer marketing

the marketing of products to people for their own, personal nonbusiness use

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

Market segmentation

The practice of dividing marketsinto distinct, different submarketsthat have different needs regarding the elements of the marketing mix

Marketing Strategy

A marketing strategy is a marketing mix thatis designed for and aimed at a predetermined target market

Product/servicePricePromotionPlace (Distribution)

Segment 1

Segment 2

Segment 3

Segment 4

Potential Target markets

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)

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