Slide 0 in Chapter 1

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Chapter 1

• Defining Marketing for the Twenty-First Century

PowerPoint by Karen E. James Louisiana State
University - Shreveport
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Objectives

• Understand the new economy.
• Learn the tasks of marketing.
• Become familiar with the major concepts and tools
  of marketing.
• Understand the orientations exhibited by
  companies.

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Objectives

• Learn how companies and marketers are responding
  to new challenges.

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The New Economy

• Consumer benefits from the digital revolution
  include
• Increased buying power.
• Greater variety of goods and services.
• Increased information.
• Enhanced shopping convenience.
• Greater opportunities to compare product
  information with others.

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The New Economy

• Firm benefits from the digital revolution
  include
• New promotional medium.
• Access to richer research data.
• Enhanced employee and customer communication.
• Ability to customize promotions.

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Marketing Tasks

• Marketing practices may pass through three
  stages
• Entrepreneurial marketing
• Formulated marketing
• Intrepreneurial marketing
• As marketing becomes more formulated, creativity
  is inhibited.

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What Can Be Marketed?

• Goods
• Services
• Experiences
• Events
• Persons

• Places
• Properties
• Organizations
• Information
• Ideas

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Marketing Defined

• Kotlers social definition
• Marketing is a societal process by which
  individuals and groups obtain what they need and
  want through creating, offering, and freely
  exchanging products and services of value with
  others.

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Marketing Defined

• The AMA managerial definition
• 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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Core Marketing Concepts

• Target markets and market segmentation
• Marketplace, market-space, metamarkets
• Marketers prospects
• Needs, wants, demands
• Product offering and brand
• Value and satisfaction

• Exchange and transactions
• Relationship and networks
• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing program

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Core Marketing Concepts

• Target markets segmentation
• Differences in needs, behavior, demographics or
  psychographics are used to identify segments.
• The segment served by the firm is called the
  target market.
• The market offering is customized to the needs of
  the target market.

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Core Marketing Concepts

• Shopping can take place in a
• Marketplace (physical entity, Lowes)
• Marketspace (virtual entity, Amazon)
• Metamarkets refer to complementary goods and
  services that are related in the minds of
  consumers.
• Marketers seek responses from prospects.

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Core Marketing Concepts

• Needs describe basic human requirements such as
  food, air, water, clothing, shelter, recreation,
  education, and entertainment.
• Needs become wants when they are directed to
  specific objects that might satisfy the need.
  (Fast food)
• Demands are wants for specific products backed by
  an ability to pay.

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Core Marketing Concepts

• A Product is any offering that can satisfy a need
  or want, while a brand is a specific offering
  from a known source.
• When offerings deliver value and satisfaction to
  the buyer, they are successful.

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Enhancing Value

• Marketers can enhance the value of an offering to
  the customer by
• Raising benefits.
• Reducing costs.
• Raising benefits while lowering costs.
• Raising benefits by more than the increase in
  costs.
• Lowering benefits by less than the reduction in
  costs.

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Core Marketing Concepts

• Exchange involves obtaining a desired product
  from someone by offering something in return.
  Five conditions must be satisfied for exchange to
  occur.
• Transaction involves at least two things of
  value, agreed-upon conditions, a time of
  agreement, and a place of agreement.

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Core Marketing Concepts

• Relationship marketing aims to build long-term
  mutually satisfying relations with key parties,
  which ultimately results in marketing network
  between the company and its supporting
  stakeholders.

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Core Marketing Concepts

• Marketing Channels
• Communication channels
• Distribution channels
• Service channels

• Deliver messages to and receive messages from
  target buyers.
• Includes traditional media, non-verbal
  communication, and store atmospherics.

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Core Marketing Concepts

• Marketing Channels
• Communication channels
• Distribution channels
• Service channels

• Display or deliver the physical products or
  services to the buyer / user.

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Core Marketing Concepts

• Marketing Channels
• Communication channels
• Distribution channels
• Service channels

• Carry out transactions with potential buyers by
  facilitating the transaction.

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Core Marketing Concepts

• A supply chain stretches from raw materials to
  components to final products that are carried to
  final buyers.
• Each company captures only a certain percentage
  of the total value generated by the supply chain.

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Core Marketing Concepts

• Four levels of competition can be distinguished
  by the level of product substitutability
• Brand competition
• Industry competition
• Form competition
• Generic competition

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Core Marketing Concepts

• The following forces in the broad environment
  have a major impact on the task environment
• Demographics
• Economics
• Natural environment
• Technological environment
• Political-legal environment
• Social-cultural environment

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Core Marketing Concepts

• The marketing program is developed to achieve the
  companys objectives. Marketing mix decisions
  include
• Product provides customer solution.
• Price represents the customers cost.
• Place customer convenience is key.
• Promotion communicates with customer.

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Company Orientations

• The orientation or philosophy of the firm
  typically guides marketing efforts. Several
  competing orientations exist
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Customer concept
• Societal marketing concept

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The Marketing Concept

• Achieving organizational goals requires that
  company be more effective than competitors in
  creating, delivering, and communicating customer
  value.
• Four pillars of the marketing concept
• Target market
• Customer needs
• Integrated marketing
• Profitability

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Changes in the Marketplace

• Globalization, technological advances, and
  deregulation have created many challenges
• Customers
• Brand manufacturers
• Store-based retailers
• Both companies and marketers have been forced to
  respond and adjust.