Welcome to the World of Marketing

Creating and

Delivering Value

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Chapter Objectives1. who are marketers?

1. where they work, 2. marketing’s role

1. in the firm

2. Explain marketing

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Chapter Objectives

1. Marketing’s value 1. to everyone involved in the

marketing process

2. range of services & goods

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Chapter Objectives1. Understand value

1. Re: customers, producers, and society

2. marketing planning

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Chapter Objectives1. marketing mix tools

1. Product/price/promotion &

2. Place (distribution)

2. evolution of the marketing concept

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CHAPTER CONCEPTS

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Welcome to a Branded World

“Brand You” You are a product

You have “market value” as a person

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Welcome to a Branded World

“Brand You” You “position” yourself for a

job

Don’t “sell yourself short”

You package & promote yourself

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Who & Where of Marketing

Marketers: Are real people

who make choices that affect themselves, their companies, & millions of consumers

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Who & Where of Marketing

Marketers:

Work cross-functionally within the firm

Enjoy exciting, diverse careers

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The Value of Marketing Definition of marketing (AMA, 2004)

An organizational function and a set of processes for creating, communicating, and delivering

value to customers

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The Value of Marketing Definition of marketing (AMA, 2004)

and manages customer relationships in ways that

benefit the organization and its stakeholders

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Marketing = Meeting Needs

stakeholders Buyers, sellers, investors, community residents, citizens

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Marketing = Meeting Needs

Marketing concept Identifying consumer needs &

providing products that satisfy those needs

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Marketing = Meeting Needs

The modern marketplace a mall, mail-order catalog, a TV shopping network, an eBay auction, or an e-commerce Web site

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Marketing =Creating Utility

Utility: the sum of the benefits we receive from using a product/service

Form utility Place utility Time utility Possession utility

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Marketing Is about Exchange Relationships

An exchange occurs when something is obtained for something else in return, like cash for goods or services

Buyer receives product that satisfies need Seller receives something of equivalent

value

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The Evolution of Marketing

The Production Era The Selling Era The Consumer Era The New Era

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The Production Era

Focus = most efficient ways to make and distribute products, like Henry Ford’s Model T & Ivory

soap

Marketing plays an insignificant role

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The Selling Era

Focus = one-time sales of goods rather than repeat business

Marketing = a sales function

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The Consumer Era

Focus = satisfying customers’ needs and wants

Marketing = more important

Total Quality Management (TQM) widely followed in marketing

community

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The New Era: Profits & Ethics

Focus = building long-term bonds with customers.

Marketing uses customer relationship management (CRM) to track consumers’ preferences tailor value proposition to each individual

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The New Era: Focusing on Social Benefits

Social marketing concept: satisfy customers’ needs and also benefit society

Sustainability:

meeting present needs and ensuring future generations can meet their

needs

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The New Era: Focusing on Accountability

• Measuring how much value is created by marketing activities

ROI (Return on Investment) direct financial impact of firm’s

expenditure of resources such as time or money

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What Can Be Marketed?

From serious goods and services to fun things

Goods and services mirror changes in popular culture

Marketing messages may communicate myths of a culture

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What Can Be Marketed?

Product: any good, service, or idea Consumer goods/services Business-to-business

goods/services Not-for-profit marketing Idea, place, and people

marketing

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The Marketing of Value

Value: the benefits a customer

receives from buying a good or service

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The Marketing of Value

Marketing communicates the value proposition:

a marketplace offering that fairly and accurately sums up the

value that the customer will realize

if he/she purchases product/service

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Value from the Customer’s Perspective

The ratio of costs to benefits

Value proposition includes: whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself

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Value : Seller’s Perspective

takes many forms: Making a profitable exchange Earning prestige among rivals Taking pride in doing what a company

does well Nonprofits:

motivating, educating, or delighting the public

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Calculating the Value of a Customer

Single transactions don’t provide companies with value they

desire

Lifetime value of a customer: How much profit a company expects from

ONE customer’s purchases now and in the future

WalMart: LTV = $250,000

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Providing Value to Stakeholders

Competitive advantage: ability of a firm to outperform the

competition by providing customers with a

benefit the competition cannot provide

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Adding Value throughthe Value Chain

a series of activities involved in designing, producing,

marketing, delivering, and supporting any product

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Adding Value throughthe Value Chain

a series of activities: Inbound logistics Operations Outbound logistics Marketing final product Service

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Consumer-Generated Value:From Audience to Community

Everyday people generating value instead of just buying it

People functioning in marketing roles: creating ads, providing input into new products, or serving as retailers

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Value: Society’s Perspective

How marketing transactions add or subtract value from society

Stressing ethics/social responsibility is good business in long run

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The Dark Side of Marketing

* Marketers Illegal activities

such as “bait and switch” Products that encourage antisocial behavior

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The Dark Side of Marketing

*Consumers Terrorism Addictive consumption Exploited people Illegal activities Shrinkage Anticonsumption

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Marketing as a Process Marketing planning:

Analyzing the marketing environment

Developing a marketing plan Deciding on a market segment Choosing the marketing mix –

product, price, promotion, place

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THE END

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Keeping It Real: Fast-Forward to Decision Time at Qode

Meet Rick Szatkowski of NeoMedia Technologies

Qode links your cell phone to the Web when you enter a keyword or click a SmartCode.

Example: A code on a movie poster plays a trailer for the movie

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Chapter case study

Ron Jon’s Surf Shop

See handout

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Ron Jon Surf Shop, Inc.How to advertise Ron Jon’s at airports? Option 1: rental car advertising Option 2: wall-mounted backlit photographs (dioramas)

Option 3: escalator “gateways”

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How It Worked Out at Ron Jon Surf Shop

Bill choose option 2: wall-mounted backlit photographs (dioramas) Opened a small store in the Orlando Airport adjacent to the very busy food court

Surf and sales are up at Ron Jon!