IME 1

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IME 1

• Welcome to the World of Marketing

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Class Objectives

• Know what marketing is all about
• Define the marketing mix
• Understand the basics of marketing planning
• Describe the evolution of the marketing concept
• Explain why marketing is important

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Journey back to October 2001

• Read case
• Is this product successful? Why or why not?
• Why should it be unsuccessful?
• Price 399 competition 249 69 higher
• Why is it successful?
• Can we make this product successful?

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What is Marketing?

• Marketing is 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.

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Marketing Satisfies Needs

• Most successful firms practice the marketing
  concept
• first identify consumer needs and then provide
  products that satisfy those needs

Buggy wars
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Marketing Satisfies Needs

• A need is the difference between a consumers
  actual state and some ideal or desired state
• physical needs
• psychological needs

Shopping basket
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Needs versus Wants

• A need is the difference between the actual and
  ideal states of being
• A want is a desire for a particular product used
  to satisfy that need
• wants are culturally and socially influenced

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Needs, Benefits, Demand, and Markets

• A product delivers a benefit when it satisfies a
  need or want
• Desire coupled with the resources to satisfy a
  want results in demand
• A market consists of all the consumers with that
  need and the resources to make the exchange

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Marketing is an Exchange of Value

• Exchange - the heart of every marketing act
• An exchange occurs when something is obtained for
  something else in return
• Value is in the eye of the beholder

50,000
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Anything Can Be Marketed

• Consumer Goods and Services
• Business-to-Business Marketing
• Not-for-profit Organizations
• Idea, Place, and People Marketing

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The Marketing Mix

• Product
• Place
• Price
• Promotion

Describe the marketing mix of these firms
Buggy wars
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Marketing is a Process

• Customer Relationship Management (CRM) emphasizes
  the importance of building long-term
  relationships with customers to keep them
  satisfied and coming back.
• Selling products that dont come back to people
  that do.

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How?

• Marketing planning
• Finding and reaching the target market
• Looking for customers

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Marketing Planning

• Analyze the organizations current strengths,
  weaknesses, opportunities, and threats
• How is our firm different from the competition?
• Which customer groups should we pursue in the
  future?
• How will changes in the environment affect our
  marketing mix?

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Finding and Reaching a Target Market

• Mass Market - all possible customers regardless
  of differences in their specific needs and wants
• Market segments - distinct groups of customers
  within a larger market
• A target market - an organizations chosen segment

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The Evolution of Marketing

• Production Orientation
• Selling Orientation
• Consumer Orientation
• New Era Orientation
• E-marketing era

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Marketing Creates Value

• Form utility
• Place utility
• Time utility
• Possession utility
• Experiential utility

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Marketing Creates Utility

• What utility do snow tires create?

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Pop Culture and Myths

• Popular Culture
• Music, Movies, Sports, Books, Celebrities
• Marketers provide the materials that become part
  of this culture

NASCAR
NASCAR
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Marketing and Myths

• Marketing messages communicate stories containing
  symbolic elements that may express shared
  emotions and ideas of a culture
• Examples?

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Critics of Marketing
Marketers create artificial needs Marketing
teaches us to value people for what they own
rather than who they are Marketers promise
miracles