Marketing

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Marketing
Marketing is Everything - Regis McKenna, HBR,
1991 The End of Marketing - Regis McKenna,
Business 2.0, 2000
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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.- American
  Marketing Association

(And hereafter regarding definitions)
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Organizational Functions What do firms
really do? Theories

• Economic - Financial
• Agency - Managerial
• Resource Allocation -Managerial
• Competitive Rationality - Marketing
• Adaptive Organization Managerial
• Transaction Function - Economic
• Knowledge-Based Cross-Functional
• Information Processing
• Learning/Teaching
• Where is MARKETING in all this?

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Organizational Functions What do firms
really do? Theories

• Economic - Financial
• Agency - Managerial
• Resource Allocation -Managerial
• Competitive Rationality - Marketing
• Adaptive Organization Managerial
• Transaction Function - Economic
• Knowledge-Based Cross-Functional
• Intelligence Cycle
• Learning/Teaching
• 
  MARKETING

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Knowledge-Based Theory of the Firm
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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.

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The Fundamental Model
VISION
Value culture
Value creation and destruction
STRATEGY
OPERATIONS
TACTICS
Build FOCUS and Mind Share
Build TRUST and Access Share
Build CAPABILITY and Market Share
IT/IM Research/DD Distribution/Logistics
Four Ps (Concept/Creativity)
Product/Promo/Price Place/ plus 1
People Selling (Capture) B2B
(Buyer-Seller/Promo) B2C (Advertising)
C2C (Buzz/Virus/Referral) Differentiation
Content (What) Context (How)
Infrastructure (Enables)
Segmentation Macro/Micro
Methodology Targeting Size Dynamic
Leverage Positioning Reason for Being
Offering
VALUE
Build FRANCHISE and Heart Share
Process Service Branding Value Indicator
Loyalty/Love
Belief/Behavior
Custom/Habituation
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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.

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The Communication Process

Firm
Intermediary Customer
Noise
Attitude Self-Referencing Issues
Attitude Cultural Filter Issues

• Sponsor (sender) encodes message properly (or
  NOT)
• Sponsor sends message through the channel
  (medium) to
• the consumer (receiver).
• Consumer receives the message and decodes it into
• meaningful information (or NOT)

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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.

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Value can be expressed several ways. Three of the
clearest are Benefits (total
get) Value ---------- or more
specifically, Price (total give) Fb
Eb Value --------- where, P
Oe Fb Functional benefits (utility)
Eb Emotional benefits (psychology) P
Price (charged) for acquisition Oe Other
expenses/costs of acquisition and
finally Value You answered my
question! Solved my problem!
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Classic Marketing Development Sequence
Time/Space
1930s Today
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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.

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customer relationship management
A discipline in marketing combining database and
computer technology with customer service and
marketing communications. Customer relationship
management (or CRM) seeks to create more
meaningful one-on-one customer communications by
applying customer data (demographic, industry,
buying history, etc.) to every communications
vehicle. At the simplest level, this would
include personalizing e-mail or other
communications with customer names. At a more
complex level, CRM enables a company to produce a
consistent, personalized marketing communication
whether the customer sees an ad, visits a Web
site, or calls customer service.
C R M
American Marketing Association
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An Introduction to Marketing

• Marketing defined
• Marketing is an organizational function and a
  set of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.

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Stakeholders
One of a group of publics with which a company
must be concerned. Key stakeholders include
consumers, employees, stockholders, suppliers,
and others who have some relationship with the
organization.
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Overall Discussion and Questions

• Syllabus and assignments
• Textbook
• Objectives
• What marketing is
• Who is involved in the course
• ____________________
• ____________________
• ____________________