outline for presentation
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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? - PowerPoint PPT PresentationTRANSCRIPT
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