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Objectives • Course Organization • Tasks of Marketing • Major Concepts & Tools of Objectives • Course Organization • Tasks of Marketing • Major Concepts & Tools of Marketing • Marketplace Orientations • Marketing’s Responses to New Challenges

Course/Text Organization • Part I - Marketing Management • Part II - Analyzing Marketing Course/Text Organization • Part I - Marketing Management • Part II - Analyzing Marketing Opportunities • Part III - Developing Marketing Strategies • Part IV - Shaping the Market Offering • Part V - Managing & Delivering Marketing Programs

Defining Marketing is a societal process by which individuals and groups obtain what they Defining 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. - Philip Kotler (p. 7)

What is Marketed? • Goods • Places • Services • Properties • Events • What is Marketed? • Goods • Places • Services • Properties • Events • Organizations • Experiences • Information • Persons • Ideas

Core Concepts of Marketing Target Markets & Segmentation Needs, Wants, and Demands Product or Core Concepts of Marketing Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment

The Marketing Environment The macro-environment The micro-environment Political factors Economic factors lie pp Su The Marketing Environment The macro-environment The micro-environment Political factors Economic factors lie pp Su s er um ns Co Men Money Machinery Materials Minutes rs The Internal environment Stakeholders Technological factors Socio-cultural factors

For an exchange to occur…. . • There at least two parties. • Each For an exchange to occur…. . • There at least two parties. • Each party has something that might be of value to the other party. • Each party is capable of communication and delivery. • Each party is free to reject the exchange offer. • Each party believes it is appropriate or desirable to deal with the other party.

Demand & Need States I want. . . I need… • • • • Demand & Need States I want. . . I need… • • • • Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull Stated needs Real needs Unstated needs Delight needs Secret needs

Simple Marketing System Communication Industry (a collection of sellers) Goods/services Money Information Market (a Simple Marketing System Communication Industry (a collection of sellers) Goods/services Money Information Market (a collection of Buyers)

The New Player Order The marketplace isn’t what it used to be…. • • The New Player Order The marketplace isn’t what it used to be…. • • Changing technology Globalization Deregulation Privatization Or? Empowerment Customization Convergence Disintermediation

Structure of Flows Resources Resource markets Money Services, money Taxes, goods Services, money Manufacturer Structure of Flows Resources Resource markets Money Services, money Taxes, goods Services, money Manufacturer markets Money Taxes Government markets Taxes, goods Services, money Taxes, goods Money Goods, services Consumer markets Money Intermediary markets Goods, services

Marketing Mix - The Four Ps & The Four Cs Marketing Mix Place Product Marketing Mix - The Four Ps & The Four Cs Marketing Mix Place Product Customer Solution Price Customer Cost Conven. Promotion ience Communication

Four Ps Product variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Four Ps Product variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Price List price Discounts Allowances Payment period Credit terms Promotion Sales promotion Advertising Sales force Public relations Direct marketing Place Channels Coverage Assortments Locations Inventory Transport

Company Orientations Towards the Marketplace Production Concept Consumers prefer products that are widely available Company Orientations Towards the Marketplace Production Concept Consumers prefer products that are widely available and inexpensive Product Concept Consumers favor products that offer the most quality, performance, or innovative features Selling Concept Consumers will buy products only if the company aggressively promotes/sells these products Marketing Concept Focuses on needs/ wants of target markets & delivering value better than competitors

Customer Delivered Value Starting point Focus Means Ends Factory Existing products Selling and promotion Customer Delivered Value Starting point Focus Means Ends Factory Existing products Selling and promotion Profits through sales volume (a) The selling concept Market Customer needs Integrated marketing Profits through customer satisfaction (b) The marketing concept

Traditional Organization Chart Top Management Middle Management Front-line people Customers Traditional Organization Chart Top Management Middle Management Front-line people Customers

Customer-Oriented Organization Chart Customers Front-line people m to us Top management C s er Customer-Oriented Organization Chart Customers Front-line people m to us Top management C s er m to us er C s Middle management

Evolving Views of Marketing’s Role Production Marketing Finance Human resources a. Marketing as an Evolving Views of Marketing’s Role Production Marketing Finance Human resources a. Marketing as an equal function Production Finance Human resources Marketing b. Marketing as a more important function

Evolving Views of Marketing’s Role Marketing Customer ce n c. Marketing as the major Evolving Views of Marketing’s Role Marketing Customer ce n c. Marketing as the major function M ar ke tin g re Hu so m ur an ce s n ma ces Hu ur so re na Fi e nc od Pr na Fi on cti u Production d. The customer as the controlling factor

Evolving Views of Marketing’s Role Production Marketing n ma ces Hu ur so re Evolving Views of Marketing’s Role Production Marketing n ma ces Hu ur so re Customer ce n na i F e. The customer as the controlling function and marketing as the integrative function

Review • Course Organization • Tasks of Marketing • Major Concepts & Tools of Review • Course Organization • Tasks of Marketing • Major Concepts & Tools of Marketing • Marketplace Orientations • Marketing’s Responses to New Challenges