Transcript THE CHANGE IN MARKETING
What is Marketing?
Professor Chip Besio Cox School of Business Southern Methodist University
What Is Marketing?
Advertising?
Selling?
Sales promotion?
What Is Marketing?
Marketing is [the] “process by which individuals and groups obtain what they
need and want
through
creating, offering, and exchanging products
others [Italics mine].” of
value
with ***Philip Kotler
What Is Marketing?
Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the
customer’s point of view
[Italics mine]. *** Peter Drucker
The Evolution of Marketing Production orientation Sales orientation Marketing orientation
Production Orientation Persuade customer to want what firm has
Generic Lowest Cost Volume, Margins
Product Competitive Advantage Objectives
Short-term
Time Horizon Marketing Orientation Persuade firm to have what the customer wants
Differentiated Quality and Service Market Position, Customer Satisfaction Long-term
What Is Marketing?
Core Concepts
Needs, wants, and demands Markets Exchange, transactions, and relationships Products and Services Value, satisfaction, and quality
Source: Prentice Hall
The Marketing Concept Focus on customers’
needs and wants
Orient activities of the firm toward them Achieve long-term goals by offering
customer value
, generating
customer satisfaction
and developing
relationships
with customers Adapted from Prentice Hall
What Motivates Consumers?
Needs
- state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging “
I am thirsty”
Wants
- form that a human need takes as shaped by culture and individual personality. “
I want a Coca-Cola
”
Demands
- human wants backed by buying power “
I can buy a Coca-Cola
” Adapted from Prentice Hall
This Is a Need Needs - state of felt deprivation including physical, social, and individual needs.
This Is a Want Wants - form that a human need takes, as shaped by culture and individual personality.
Wants
This Is Demand
Buying Power
“Demand”
Need / Want Fulfillment Needs and Wants Fulfilled through a
Marketing Offer
: Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
What Satisfies Consumer’s Needs and Wants?
Products
- anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or
Services
- activities or benefits offered for sale that are essentially intangible and don’t result in the want ownership of anything Examples : food, electronics, cars, jewelry, clothing, and machinery Examples : banking, airlines, haircuts, and hotels Adapted from Prentice Hall
How Consumers Choose Products and Services
Customer Value
- benefit that the customer gains from owning and using a product compared to the cost of obtaining it
Customer Satisfaction
- depends on the product’s perceived performance in delivering value relative to a buyer’s expectations Source: Prentice Hall
How Consumers Obtain Products and Services
Exchanges and Transactions
- trade of values between parties, usually involving money
Development of Relationships
building long-term relationships with consumers, distributors, dealers, and suppliers Source: Prentice Hall
The Marketing Concept - Major Goals By: focusing on satisfying consumer needs and wants generating customer value and satisfaction developing relationships with customers The result:
The firm creates a sustainable competitive advantage over its rivals
Emerging Challenges for Marketers
Information Technology Ethical Concerns Nonprofit Marketing Changing World Economy Globalization
Source: Prentice Hall
Marketing Mix - The Four P’s
RICE ROMOTION LACE RODUCT
The Marketing Mix - Product Product line breadth and depth Product characteristics (e.g., quality, features, design, reliability) Brand Packaging Services Return and/or warranty policies
The product is much more than the tangible item that the customer sees
The Marketing Mix - Price List price Discounts Bundling Terms (e.g., 2/10, net 30) Credit
Price includes the tools that determine how much and when the customer pays
The Marketing Mix - Promotion Advertising Sales promotion Direct marketing Public relations Personal selling
Promotion (what many people commonly think of as marketing) includes all communications with potential customers that are intended to influence their attitudes, beliefs and purchase decisions
The Marketing Mix - Place Shelf location Display Inventory Distribution channels Transportation Territory or coverage
Place involves how and when the customer gets the product
Marketing Mix - Summary
Marketers have many more tools at their disposal to achieve company objectives than you might have thought