The power of marketing

What do you want your target audience to think, feel, know

and do

Where did the concept of marketing come from?

• Industrial revolution sparked production

• Production sparked competition• Competition sparked need to sell• Need to sell sparked

marketing

Is marketing sales?

• No…and yes• Marketing is selling and so much more• Marketing is what affects customer

perceptions• Marketing is what affects customer

behaviors• Marketing is what is done before the

sale to make it easier to do

Areas of marketing

History

Marketing

Sales

Public Relations

Customer Satisfacti

on

Advertising

So…What is marketing again?

• The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

What is an exchange?

• It’s an “exchange” between a customer and a company

An exchange is the act of

obtaining a desired object from someone

by offering something in

return.

What is exchanged?

• Needs• Services• Wants• Money• Goods

Exchange

Examples of exchanges

• Ordering the Orange Chicken at the local Chinese food hot spot and paying with your American Express debit card

• Being the last on your block to download “Temple Run” and paying $.99 in iTunes to do it

• The can of Coke that you drank last night has a BOGO coupon on it for Six Flags and you drive to San Antonio to take advantage

Is this an exchange?

• Activity: Your buddy buys you this t-shirt from Amazon.com

• Action: You buy tickets to see Metallica

Is this an exchange?

• Activity: Someone sticks a coupon for $2 off a Chick-fil-A sandwich underneath your windshield wipers

• Action: You buy a sandwich (plus an awesome ice tea)

Are these exchanges?

• Activity: Your school holds a blood drive

• Action: You donate blood

Assignment I: Exchanges

• Complete the Exchanges student handout

• Assignment is due for a daily grade by the end of class on Wednesday, November 19th

Remember these?

History

Marketing

Sales

Public Relations

Customer Satisfacti

on

Advertising

What is advertising?

• Advertising is an important element of the marketing mix

• It directs a message at large numbers of people with a single communication

• It is a mass medium

Why advertise?

• The advertiser has control over the message– They can decide what they want to say

and where they want to say it

• Advertising is quick– You can communicate to a lot of people

at the same time

Types of advertising media

• Outdoor– Billboards

• Newspaper– Local or national

• Radio– Local or satellite

Types of advertising media

• Websites– Facebook, CNN

• Television– Network, cable, local

• Cinema– Pre-feature

Types of advertising media

History

• Search engines• Magazines• Other – Restrooms, transportation

Assignment Ii: advertising media

• Complete the Advertising Media student handout

• Assignment is due for a daily grade by the end of class on Friday, November 21st

let’s move on to customer satisfaction

Customer Satisfaction

Marketing

Sales

Public Relations

Customer Satisfacti

on

Advertising

What is Customer satisfaction?

• It is a measure of how products and services supplied by a company meet or surpass customer expectations

• How satisfied the customer is in the mind of the customer– It’s all about perception, not necessarily

reality

• Customer satisfaction depends on how the consumer perceives their experience– This is a main job of marketing!

How do you measure customer satisfaction?

• Individual level– Did your dad love the Toyota Highlander

he had for 10 years so much that he bought a new one?

• Holistic level– Did more than 50% of the customers

who filled out the survey at Chili’s say they had a good experience?

How does Toyota measure customer satisfaction?

More expensive cars (higher profit margin, want to make them happier)

Low-cost economical vehicle (lower profit margin, want to make them happy too but less concerned)

How do you improve customer satisfaction?

• Know the careabouts of your target customer

• Know what they expect• Underpromise and overdeliver– “Delight” them

• Don’t cut your own throat to increase customer sat– Dropping the price or promising too

much can cut into your profit

Assignment Iii: customer satisfaction

• Complete the Customer Satisfaction student handout

• Assignment is due for a daily grade by the end of class on Wednesday, December 3rd

Public relations

Public Relations

Marketing

Sales

Public Relations

Customer Satisfacti

on

Advertising

What is public relations?

• PR is the purposeful communication between an organization and its publics – The goal is to generate goodwill

• “Publics” are the “stakeholders” who have relationships (or previous “exchanges”) with the organization

Examples of publics

PRCustomers

Government

Media

Competitors

Employees

Potential Customers

Vendors

Why use pr?

• It’s a low-invasive way to influence the public– Howard Stern and Beth Ostrosky Talk About

Pets– Burger King product placement in Iron Man

• Earns third-party credibility by getting other people to write about you

• Cost-effective– Less expensive than advertising

Public Relations

Types of public relations

• Reactive Interviews– If Channel 2 is doing a local story on HS football, they

might call Coach Brantley for an interview

• Proactive Pitching– Coach Brantley might proactively call Channel 2 or send

a press release and talk them into doing a story on the team

• Speeches and Presentations– Coach Brantley might present a speech on the best way

to strength and condition in the offseason at the annual Texas High School Football Coaches’ Convention

– He might prepare the presentation himself or have an assistant coach do it for him

Types of public relations

• Newsletters– Printed or online– EHS Knightwire

• Special Events– Olympic torch relay–Macy’s Thanksgiving Day Parade– Nathan’s Famous Hotdog Eating Contest

Types of public relations

• Sponsorships– Need to match marketing

goals– Tostitos Fiesta Bowl– Pepsi Center

• Community Relations– Supporting cultural activities, youth–Make-A-Wish Foundation

Assignment Iv: public relations

• Complete the Public Relations student handout

• Assignment is due for a daily grade at the end of class on Wednesday, December 3rd

Marketing

Sales

Public Relations

Customer Satisfacti

on

Advertising

sales

Sales

What is sales?

• The act of exchanging a good or service for money– Seller agrees upon a price – Ownership passes from the seller to the

buyer

Types of sales

• Direct sales– Between a seller and a buyer

• Agency sales– Through a middleman

• Door-to-door– Encyclopedias

• Many more

Assignment V: Major Grade advertising campaign

• Partner in groups of 2 or 3. NO WORKING ALONE!• Select a product (or make up your own!) that you

will create an advertising campaign for• Complete the Advertising Plan Q&A and save it to

your H drive• You must create a billboard and a print ad– Final billboard will be a JPEG, 12”x24”– Final print ad will be a JPEG, 5” wide by 7” tall

• Assignment is due at the beginning of class on Friday, December 5th