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MarketingMarketing is Everything

- Regis McKenna, HBR, 1991

The End of Marketing- Regis McKenna, Business 2.0, 2000

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AnIntroduction to Marketing

Marketing defined:

Marketing is an organizational

functionand a set of processes

for creating, communicating,and delivering value to

customers and for managing

customer relationships in ways

that benefit the organizationand 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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AnIntroduction 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 organizationand its stakeholders.

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VISION

The Fundamental Model

STRATEGY OPERATIONS TACTICS

VALUE

Loyalty/Love Belief/Behavior Custom/Habituation

Build FOCUS and

Mind Share

Build TRUST and

Access Share

Build CAPABILITY and

Market Share

Build FRANCHISE

and Heart Share

ProcessServiceBranding

Value Indicator

IT/IMResearch/DDDistribution/Logistics

SegmentationMacro/Micro

Methodology

Targeting

Size

Dynamic

Leverage

PositioningReason for Being

Offering

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)

Value creation and destructionValue culture

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AnIntroduction 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 organizationand its stakeholders.

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The Communication Process

SENDER RECEIVERMEDIUM

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)

Attitude: Self-Referencing Issues Attitude: Cultural Filter Issues

Firm Intermediary; Customer

Noise

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AnIntroduction to Marketing

Marketing defined:

Marketing is an organizational

function and a set of processes

for creating, communicating,and delivering valueto

customers and for managing

customer relationships in ways

that benefit the organizationand 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 + EbValue = --------- where,

P + Oe

Fb = Functional benefits (utility)

Eb = Emotional benefits (psychology)

P = Price (charged) for acquisitionOe = Other expenses/costs of acquisition and finally

Value = You answered my question!

Solved my problem!

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Classic Marketing Development SequenceTime/Space

1930s

Today

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AnIntroduction to Marketing

Marketing defined:

Marketing is an organizational

function and a set of processes

for creating, communicating,and delivering valueto

customers and for managing

customer relationshipsin ways

that benefit the organizationand its stakeholders.

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customer relationship management

A discipline in marketing combining database

and computer technology with customerservice 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,

personalizedmarketing communicationwhether

the customer sees an ad, visits a Web site, or calls

customer service.

C R M

American Marketing Association

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AnIntroduction to Marketing

Marketing defined:

Marketing is an organizational

function and a set of processes

for creating, communicating,and delivering valueto

customers and for managing

customer relationshipsin ways

that benefit the organizationand 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

____________________

____________________

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